What is an extended warranty?

  • By Lea Naiz
  • 28 Jun, 2017

An extended warranty can be described as a service contract or insurance policy against expensive vehicle repairs. While your regular warranty is included with the cost of your car, an extended warranty is a separate product. Some extended warranties can be rolled into the total purchase price, while others are separately billed on a monthly or annual basis.

If your vehicle experiences a covered breakdown, you pay only the deductible to have it repaired. For example, if you have a $250 deductible and your extended warranty covers engine failure, you will pay only $250 while your extended warranty picks up the rest of the cost for your engine to be rebuilt or replaced.

Not all extended warranties are the same, so it is important to do your research. For example, a per-visit deductible means that you only have to pay once for all covered repairs performed at the same time, while a per-repair deductible means that you pay separately for each repair. Some extended warranties only cover repairs done at a dealership. Some require you to pay out of pocket and then submit the bill for reimbursement. Some are transferable if you sell the car, while others end at that time. Some companies are known for their honest and ethical business practices, while others make it nearly impossible to have repairs covered.

An extended warranty can be a great option for those who plan to drive their vehicles long after the manufacturer’s warranty expires. Do your homework, make sure you understand exactly what you are getting, and select the warranty that best meets your needs.

If you are tired of getting the runaround and being treated like you haven’t got a clue, we invite you to try   Colchin Automotive  instead. Give us a call at 303-431-5421 for all of your automotive needs!

Blog Categories

Recent Posts

By Morgan Gertler 04 Oct, 2017
If you take your car to a dealership for service, you will get OEM (Original Equipment Manufacturer) parts. If you go to an independent shop, you will most likely (though not necessarily) get aftermarket parts. Many people assume that OEM is better, and worry that aftermarket parts may not be up to par. Is there any truth to this belief? Or does it make sense to save money by using aftermarket parts? What’s the difference, anyway? Here’s what you should know.
By Morgan Gertler 04 Oct, 2017
Today’s gas stations offer a variety of options, from unleaded fuel with a range of octane ratings to diesel fuel. Sometimes higher-octane choices have names such as Super, Plus, Super Plus, Premium, or Super Premium. With so many different types of gas to choose from, you might wonder what happens if you select the wrong one. What happens if you use the wrong gas depends on what kind of engine you have and which specific fuel you use.
By Morgan Gertler 04 Oct, 2017
Extreme weather is a fact of life, and now is the time to get prepared. While regular car maintenance is always essential, different weather events make certain problems more likely to occur. Here are 4 tips for handling whatever extreme weather might come your way.
By Morgan Gertler 30 Aug, 2017
Visibility is a major key to safe, defensive driving, but many people overlook it when caring for their cars. Maximizing visibility is essential even when driving in sunny conditions, but it can quickly become a matter of life and death when dealing with rain, fog, or snow. Fortunately, a few simple maintenance tasks can dramatically improve visibility.
By Morgan Gertler 30 Aug, 2017
Gasoline is a necessary ongoing expense for vehicle owners, and many people are looking for ways to save at the pump. You probably already know that premium fuel is an unnecessary expense for those whose cars do not require it, but you may be skeptical of switching to an off brand. Will cheap gas harm your car? Here is what you should know.
More Posts
Share by: