No one wants to spend hundreds or thousands of dollars on surprise car repairs.
But the longer you have your car, the more likely you'll need to shell out cash to keep it in working condition — and the more likely you'll be outside the original warranty that came with your car.
Extended car warranties can help you avoid those big bills if something in your car goes awry. But unlike factory warranties, they'll cost you.
The cost of a car warranty depends on several factors (including whether you buy one from your dealer, as well as the make, model, and mileage of your car), and it won't make sense for every budget.
Here's what you should think about if you're wondering whether to buy an extended car warranty.
Pro: Warranties protect less-reliable cars
A car warranty typically comes in a few different forms, but in short, a car warranty can cover the cost of new parts (exactly which parts depends on exactly which warranty you get). A traditional warranty comes from the manufacturer when you buy a new car; if you want to extend your protection or protect a pre-owned car, you'll need to buy an extended warranty or a vehicle service plan on your own from a third-party company such as CarShield.
Note that no matter the type of car warranty you get, it typically won't cover issues due to negligence or accidents, which is why a warranty isn't a replacement for car insurance.
Technically, in order to get your money's worth from an extended car warranty, your car will generally need to break down unexpectedly at least once — and the cost of the replacement(s) over the span of the extended warranty will have to be more than the cost of the warranty itself.
If you bought a car that's known for being reliable or for having cheap parts, it's less likely you'll be in a position where the extended warranty math works out. If you're buying an expensive vehicle that has a reputation for breaking down, however, an extended warranty would be a better bet.
Just keep in mind that warranty prices go up for more expensive or unreliable cars. You'll need to hit a higher threshold for the warranty to pay off.
If a comprehensive extended warranty doesn't make sense with your numbers, you might want to pick up partial coverage instead. For instance, a company like CarShield offers powertrain coverage for a lower cost; that covers some of the most expensive parts of your vehicle.
Pro: Extended car warranties offer peace of mind
Even if the math doesn't work out, you may want to consider an extended car warranty as an emotional tool. With coverage in place, you won't have to worry about losing transportation if an expensive part fails unexpectedly, and you reduce your chances of a large repair bill.
If you find yourself too scared to drive your car because you're afraid some part of it will break, or if you regularly feel anxious about the cost of car repairs, an extended car warranty may help you feel protected.
Just make sure you know what exactly your extended car warranty covers, as well as any deductibles you might have to pay before the coverage kicks in. Extended warranties can help you successfully deal with stress, but you don't want to use them as an excuse for unpreparedness.
Con: Even extended warranties don't cover everything
If an extended car warranty isn't for you, it might be worth it to take the money you would put toward an extended warranty and add it to an emergency fund for vehicle repairs instead.
If an expensive part fails, the emergency fund might not fully cover the cost of repairs like an extended car warranty could. But it will make those costs more bearable, and it should still cover the costs of cheaper repairs.
Plus, you can put that money toward other things if your fears of engine failure never come true.
Created by the Commerce Team at Business Insider with CarShield.