An extended car warranty covers only the parts and systems explicitly outlined in the policy documents. Many extended car warranties exclude routine maintenance, general wear and tear, theft, and vandalism from the covered parts and systems. One of the main advantages of having an extended car warranty is that you have coverage before your car breaks down, so you don’t have to panic about the repair bill if you have issues.

Yes. Many vehicles on the road have traveled well over 100,000 miles. In many cases, routine maintenance costs soar at the 100,000-mile mark. A 100,000-mile tune-up helps ensure that your car remains safe to drive, even though it has many miles on the engine. Your mechanic will check the brakes, hoses, brake lines, exhaust system, fluid levels, drive belts, driveshaft, fuel lines, steering, suspension, and tie rod ends. It may also be time for new brake pads and rotors.

Checking these systems helps your mechanic find problems before they cause your car to break down. While paying for preventative maintenance can be expensive, it’s better than being stranded and needing help from a tow truck.

An extended car warranty won’t pay for necessary maintenance, but many drivers choose to purchase an extended warranty when their car gets to 100,000 miles for peace of mind. If your 100,000-mile tune-up reveals issues that need immediate attention, your extended warranty could cover future repairs.

Ford has several extended service and maintenance plans available to drivers who own a new Ford vehicle. PremiumCARE covers more than 1,000 components. Ford estimates that customers who purchase a PremiumCARE extended service contract save an average of $4,000 to $6,000 on necessary repairs to their car’s engine.

Ford also offers three additional tiers of comprehensive service plans. ExtraCARE covers 113 components. BaseCARE takes care of repairs for 84 components, and PowertrainCARE handles 29 transmission and engine components. Prices for Ford’s various extended warranties aren’t published on their website. Each driver must get a quote based on their vehicle’s model, age, and mileage.

Each extended car warranty has specific parts and systems that fall under its umbrella of coverage. There may be particular exclusions, as well. Before deciding whether to move forward with an extended car warranty, be sure to read the fine print in the contract carefully. Consult your mechanic to get an estimate of how much you would pay out-of-pocket for common repairs.

Make sure you get a warranty that covers the systems most likely to break down. If you have particular concerns about specific parts, verify that your warranty includes the appropriate coverage.

Read your policy’s exclusions carefully. Some extended warranties exclude any mechanical failure related to a vehicle’s electrical system. This exclusion could easily be interpreted to mean that all repairs are excluded since nearly every part and system built into a modern vehicle depends on the car’s electrical system.

When you purchase an extended warranty on your car, you expect to have coverage when you need it most. One of the most frequent complaints from extended warranty customers is that they need the policy and can’t get the company to pay their claim. Having a claim denied can be frustrating and expensive.

When your car needs repairs, you’ll go to an authorized dealer or repair shop and get an estimate. You must get approval from the warranty administrator before work begins. Suppose there’s a disagreement about whether the repair is covered. In that case, your mechanic may be able to help you communicate details about the problem and required repairs to your extended warranty administrator.

Be sure to save a copy of the estimate from your mechanic. Keep all documentation from your warranty company, as well. If you have to submit receipts to make a claim, keep copies of those, as well. If your claim is denied, get the denial and the reason for rejection in writing.

A vehicle service contract and an extended car warranty may cover necessary work on some of the same systems.

An extended car warranty from a third-party provider or an aftermarket vehicle warranty covers repairs to your vehicle for a certain number of years or miles, whichever comes first. If your car breaks down or needs a specific part or system repaired to prevent it from breaking down, you would make a claim through your warranty.

Many third-party providers use the terms vehicle service contract, aftermarket vehicle warranty, and extended warranty interchangeably.

Extended car warranty prices depend primarily on your vehicle’s age and mileage. Warranty providers may consider your location as well.

Here are some other factors that affect how much you’ll pay for an extended car warranty:

Level of coverage: Many third-party extended warranty companies provide varying levels of coverage with corresponding fees.

Deductible: Choosing a plan with a higher deductible may lower the price of your extended car warranty. Before you choose a high-deductible extended warranty, make sure you have money to cover the deductible set aside.

Down payment: You may be able to lower your monthly costs by making a larger down payment. Some extended warranty companies require a downpayment to begin coverage.

A third-party extended car warranty company may break the total cost of your policy into monthly payments to make the coverage more affordable. While shopping for an extended warranty, make sure you understand whether the company adds financing charges or fees to your bill if you choose a monthly payment plan.

Before you shop for an extended car warranty, make sure you understand exactly which of your vehicle’s parts and systems are currently covered. If you’ve recently completed repairs to your car, the replacement parts are under a parts warranty issued by the manufacturer. For example, Ford started offering a 24-month warranty, including labor on many OEM replacement parts. So, if you paid to have a wheel bearing replaced and it fails within a couple of years, it’s covered under Ford’s service parts warranty. In this case, you wouldn’t use extended car warranty coverage.

Some electric cars have manufacturer warranties on certain parts that far outpace a standard new-car warranty. Diesel-powered vehicles may also have contracts that extend far past their gasoline-powered counterparts. Make sure you understand whether some of your car’s systems and parts are still under warranty before you start shopping for an extended car warranty.

On average, car owners pay $2,800 for an extended car warranty. Of course, your rates may vary depending on the age and mileage of your vehicle.

The best way to avoid extended warranty scams is to read the warranty documentation carefully. Think about how the limits and exclusions could affect your ability to make a claim in the future. If it seems like everything that could go wrong with your car is on the exclusions list, keep shopping.

A trustworthy extended warranty company should provide fast quotes specific to your vehicle. Look for a company that allows you to file a claim online. They must have a quick turnaround for claim approval, too.

If you decide to cancel your 3rd party car warranty, start by contacting customer service. Each extended car warranty company has rules about when and how you can cancel your coverage.

You might receive a partial refund if you paid for the warranty upfront. In many cases, it’s easier to cancel your coverage if you’ve never made a claim.

Car breakdown insurance could work as any other type of insurance if you find the right extended warranty company. Instead of dreading your car’s next major malfunction, you could take a proactive approach to car repair. You could take your car in to have it diagnosed, submit your mechanic’s findings to your warranty administrator, get approval to proceed with the repairs, pay your deductible, and get back on the road all before a breakdown occurs.

Or, you can wait for a breakdown to happen and react accordingly.

Insurance protects your financial interests, and an excellent extended car warranty should do the same.

Whether an auto extended warranty is good or bad depends entirely on your situation. In general, car extended warranties work best for drivers who have a vehicle without a current manufacturer’s warranty. If you decide to get an extended car warranty, you’ll enjoy the peace of mind that comes with having coverage before your car breaks down.