An extended car warranty or extended service plan typically costs $350 to $700 per year, in accordance with the Endurance Guarantee. An extended service plan, also known as a vehicle service contract or extended warranty, is an optional plan that protects you from costly repairs after the manufacturer`s warranty expires. The decision to purchase an extended service plan is an important and often time-consuming decision. Even for covered parts that are repaired in extended warranty time or miles level, a warranty cannot fully cover your out-of-pocket costs. For example, restrictions may be placed on the amount of towing costs covered by the warranty, which puts you on the hooks for the rest. And some manufacturers use a depreciation factor that pays only partial costs based on the number of miles driven. If you want improved repair coverage, you should also consider mechanical troubleshooting insurance (MBI), a kind of insurance that you call your auto insurer to cover them, and you can pay for repairs to parts not covered by extended car warranties, according to the insurer. Because these policies and their costs are regulated by the government, they often offer greater consumer protection and, in some cases, savings from expanded safeguards. However, service contracts generally only cover problems related to electrical or mechanical parts, especially those that are not covered by manufacturers` warranties. While service contracts can cover the engine and gearbox, they generally exclude routine maintenance such as oil change and tire change. However, some advanced car warranties offer coverage similar to that of the manufacturer`s warranty. The cost of an extended service plan depends on a number of factors related to your vehicle and the type of supplier with which you want to sign your contract.
Most advanced service plan providers also include additional services such as troubleshooting, rental car refunds and towing, while many allow them to choose the workshop to use for repairs. All new cars in the United States have a warranty covering repairs for a specified period and a number of miles, such as 3 years and 36,000 miles. An extended warranty offers similar coverage beyond these time or mileage limits. Legally, only the original manufacturer can « extend » a warranty. Other suppliers often use the term « extended warranty » to refer to similar products, when they should technically be considered car service contracts and not « guarantees. » Different plans cover different repairs and there are usually a few exceptions to each plan. Full coverage usually includes the equivalent of a powertrain warranty, powertrain warranty, corrosion/rust warranty and extended warranty extension for bumper bumpers. When looking for a serious advanced service plan provider, we recommend: Simply protect your used Toyota with our Platinum service contract and leave us the rest.