You have taken a lot of time to research on purchasing a new vehicle. You had to decide whether to buy a new or used car, when to take the test drives and how to secure financing. You have heard about an extended warranty, but you are yet to subscribe. The article is addressing this question, are extended warranties frivolous or worthwhile?

1. Do I need an extended warranty?
If you have a lot of cash and don’t mind risks, an extended warranty may not be for you. However, if you wish to have peace of mind that the unexpected car breakdowns will be taken care of, you need to subscribe. Cars that are used heavily, such as for travel and commuting usually suffer many mechanical failures. Also, if you reside in areas with adverse weather like rain, heat, and snow, breakdowns are more likely to happen. In such cases, getting the extended warranty is essential.

2. What is covered?
Once you are sure you need to get an extended warranty, the next step is to find a reputable provider. Make sure you have all the details of the warranty up front. The provider should be willing to give you specific data about the coverage for every plan they offer. Even the basic coverage should entail a list of components that are covered. Compare the plans before choosing one that matches your needs.

3. Who backs the warranty?
Extended warranties are usually backed up by a dealer, a manufacturer or an independent firm. Therefore, find out who will be doing the repairs. Although manufacturer warranties are costlier than third-party covers, they are usually reliable. They also cover an array of fixes and allow you to visit an authorized dealer.

4. Are there any perks?
Benefits such as a free rental car as you wait for yours to be fixed can be a real saver. 24-hour roadside help is another great addition. Strip interruption compensation will come in handy. Such perks are a sign of a reputable company.