I have a 2012 Ford Explorer that has less than 30000 miles. The warranty is expired so any cost to the vehicle is covered by me. I was thinking about getting an extended warranty to cover major costs.
Is it worth it. I plan to keep the car for at least 3-5 more years. I have a work car so I only use it for personal use.
Anyone have any experiences with this sort of thing?
If not I would get something. Even if it is just on the powertrain (engine, trans, etc)
I agree.
Typically they want too much money for too little real coverage by the time they get through with the exceptions and exclusions.
The only time I ever bought one was to take care of an appliance salesman I knew who did a great job of taking care of us, so I let him sell me something extra to put a few more commission bucks in his pocket.
This.
I had an extended warranty on my central AC, which was extended by a third party company. Three months after my original warranty expired, the air handler and associated equipment conked out. I called the extended warranty company and they said they would give the new part and reimburse $320 for the work. I called a few contractors and, bottom line, the work cost me three grand. Plus, I would have had to wait something like at least 6-8 weeks for the warranty claim to be processed...and I was already in May, which meant basically going through a sizable portion of the cooling season with no AC.
So, basically, the extended warranty was fucking worthless.
I think is was like 2500 bucks for 5 years paid at 80 bucks a month and part of it down at front.
It already has saved me almost 2k 2 years into it when a check engine went on and the dealership needed to change a sensor in the transmission.
Maybe on non-luxury it might not be worth it I don't know.
The most important thing is to read the contract very carefully. It spells out specifically what is covered and what isnt. I'd wager that over 90 percent of the complaints against the warranty companies come from people looking for coverage where it doesn't exist. It's never going to be like a new dealer warranty but it should cover your basics. Engine, transmission, electrical, steering, etc.
Also if you do go with one make sure to give your car regular oil changes and maintenance and to keep all of the receipts so that coverage cannot be disclaimed.
Good Luck!
It will always be cheaper, on average, to pay for the repairs yourself. Now chance may place you over time above or below average, but you have no way to know at this point what the future will hold with your car. Good luck!
We had our first claim at 65000 miles my daughter needed an engine, it was replaced and warrantied for 3yrs 36000 miles. the second repair she needed to replace the control arm bushings, the company paid for both sides to be done, the last repair was a new drive shaft. I think I got my money's worth. Good luck and remember, make sure they pay the prevailing labor rate!!
That's true of any insurance. The reason to have it is for the case where your costs are way above average.
I'd be very careful with extended auto coverage though, heard lots of bad things. My brother paid for it when he bought a new car - he thought through the dealer. Didn't realize it was through a 3rd party who he found out had gone bankrupt when he went to file his 1st claim.
That's true of any insurance. The reason to have it is for the case where your costs are way above average.
I'd be very careful with extended auto coverage though, heard lots of bad things. My brother paid for it when he bought a new car - he thought through the dealer. Didn't realize it was through a 3rd party who he found out had gone bankrupt when he went to file his 1st claim.
The reason to get insurance is if your potential loss exceeds your ability to pay it. You have home insurance because you can't afford to replace your home if it burns down. You have automobile insurance because you can't afford the potential 6-figure loss in an accident deemed your fault.
Repairs on your possessions - cars, appliances, furnace, electronics -- are not something you should need to insure. Buy quality items with a strong reliability record and keep a good reserve of cash available to pay for repairs yourself. You'll end up far ahead of the game in the long run.