Why Buy a Warranty in the First Place?

When it comes to protecting the investment you have in your vehicle there is no better way than an extended warranty. Buying an auto warranty is buying a service contract that guarantees the warranty company will pay for expensive repairs and not you.

The first question most people ask is what if my car never breaks? According to ConsumerReports.org, “the average three year old car has 55 problems per 100 vehicles”. That’s not very surprising to anyone who has ever owned a car.

It’s also not very surprising that car repairs are expensive, and the newer and more sophisticated cars are becoming increasingly more expensive to fix. The average cost to repair an air conditioning system for example is $825. Over the next five years repair costs are going to increase about 35%. So that $850 air conditioner repair today is going to cost about $1,150 to repair when it breaks 5 years from now. One covered repair can pay for the entire warranty!

Major Component Average Costs to Repair

Not only do you save money on repairs but many extended warranties also include added benefits such as 24/7 roadside assistance, towing, car rental reimbursement, and travel interruption protection.

A much overlooked benefit of warranty coverage is a vehicle still under warranty has a much higher resale value. This is an additional added value that make warranties financially more attractive.