Extended Warranty Cost

When it comes to extended car warranties, drivers have a lot of questions. What is and isn’t covered in the contract? How long is the waiting period before the coverage goes into effect? But, the most common question is, understandably, how much does an extended warranty cost? Unfortunately the answer isn’t short and simple. There are too many factors that go into estimating the cost of an extended warranty to give one solid answer. So instead this article aims to give you an idea of how much you should expect to pay based on a number of different factors.

Extended Warranty Cost Factors

When determining the cost of an extended warranty plan there are a host of different factors that a Vehicle Protection Specialist has to take into account . This ranges from the Make and Model of your vehicle, to the types of modifications it is outfitted with. The more likely your vehicle is to break down and the more expensive it is to fix, the higher the cost of the coverage. Below you can read about

Make and Model

The brand of car you own is a huge factor in how much your warranty plan will cost. Everything else being equal, coverage for a Toyota Camry will be cheaper than a Mercedes-Benz S-Class. The parts in the Mercedes-Benz are simply more expensive than they are in the Toyota so they will understandably cost more to fix or replace.

Year and Mileage

Another important factor that decides the cost of a coverage plan is the condition of a vehicle. Condition is often measured in the number of years owned and the number of miles driven. Whether it be from general use or weather effects, wear and tear slowly builds up and increases the likelihood of a car part breaking down.

Coverage Plan

This one is fairly obvious but is still worth mentioning. We offer a variety of coverage plans depending on your protection needs. The more components that a plan covers, the more the plan costs. Extended car warranty plans range from the most basic to the most comprehensive, often referred to as powertrain and bumper-to-bumper coverage respectively.

Driving habits

By driving habits, we are referring mainly to the number of miles driven a year, week, and day. Basically, it is a way to measure how much a driver uses their car.

Modifications

Added modifications make getting extended warranty coverage slightly more complicated. Depending on the type of modification, a vehicle might be ineligible for coverage or be required to pay a surcharge. If your vehicle has any tire, suspension, or any other performance modifications please contact our customer service department to see if a surcharge applies for your modification.

What is the Cost of Coverage?

To give drivers a better idea of how much they should expect to pay, we will use three different cars as examples to show how the above factors can affect the price of a warranty. The three cars will be a Toyota Camry with 50,000 miles, a Chevy Silverado 1500 with 80,000 miles, and a Mercedes-Benz S-Class with 20,000 miles. To keep it simple, these are all 2014 model cars. The price point of each car varies significantly so as to help you understand the large range of cost for each.

Toyota Camry

Let’s look at the Toyota Camry first. With 50,000 miles, it has experienced moderate wear on the parts but is still in good working condition. As a relatively inexpensive car, the Camry offers great pricing on coverage. For as low as $96.90 a month a driver can have comprehensive coverage with the Surpreme plan, protecting their vehicle for 60 months (5 years) or 60,000 miles, whichever comes first. If the driver isn’t as worried about the extra parts, they can choose to pay as low as $88.70 for the Secure Plus plan, protecting the most vital components of the vehicle.

*The below rates are the minimum rates for the listed months and mileage (months/mileage)

Chevy Silverado 1500

For the Chevy Silverado at 80,000 miles, things get a little pricier. With a higher initial cost for the vehicle and 30,000 miles over the Camry, the price of the Supreme plan is understandably higher. By paying as low as $150.17 though, a Silverado owner can have coverage comparable to a bumper-to-bumper factory warranty far after it has expired. But, at an affordable $109.63, a driver can have the engine, transmission, and drive axle assembly covered when they are far more likely to fail than with the Camry.

*The below rates are the minimum rates for the listed months and mileage (months/mileage)

Mercedes-Benz S-Class

Top-of-the-line luxury vehicles like the Mercedes-Benz S-Class come at steep price of a minimum of $96,600. This is the main reason that the protection plans for it go for a higher premium than the other two vehicles despite its lower mileage. It is also important to take note of the larger difference between the different plans. This is common among more expensive vehicles because of all the added features they carry that might be covered in more comprehensive plans like Superior and Supreme.

For a vehicle that is more than four times as expensive as a Toyota Camry of the same year, the price of the plan is not nearly as high relative to the price of the car. This is why we recommend getting an extended warranty earlier because of how it drives the price of plans down significantly.

*The below rates are the minimum rates for the listed months and mileage (months/mileage)

Can You Afford It?

Some believe that a vehicle extended warranty cost outweighs the benefits. If you are having doubts, you simply need to ask yourself one question: can I afford to pay for a major breakdown out of pocket? Most likely the answer is no. The same way car insurance protects you from overwhelming car repairs in the unfortunate incident of a collision, car warranties protect you in the same way for breakdowns. Why pay for a $3,650 engine repair when you could pay as little as $100 dollars a month to maintain peace of mind. So pick up the phone now and call us for a free quote today so you can save money tomorrow: 1-800-211-0988