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Jennifer Cook is a writer for USA TODAY Homefront and has spent hours perusing sample warranty contracts from vehicle manufacturers and warranty providers. She began her career in automotive content researching insurance and vehicle shipping companies. Jennifer is based in the sleepy town of Cedar Mountain, North Carolina and spends much of her time exploring the Blue Ridge Mountains. She hopes to become an accomplished scuba diver in the coming years but knows that fear of sharks is a healthy thing.
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Vehicle protection plans extend coverage for repairs after manufacturer warranties expire.
Plans range from comprehensive exclusionary coverage to basic stated-component coverage.
You can expect to pay an average of $848 per year of coverage for a vehicle protection plan.
Vehicle protection plans are contracts between drivers and warranty administrators. These protection plans aren’t required after a vehicle’s factory warranty, but they protect your budget and your vehicle from the shock of sudden mechanical breakdowns.
Choosing the right vehicle protection plan involves a little research. According to Michael Chung, senior director of market intelligence for the Auto Care Association, it pays to ask questions when searching for the best extended car warranty company to work with.
You can purchase coverage plans directly from vehicle manufacturers, dealerships or dedicated third-party providers. Some companies are direct administrators of vehicle service contracts, while others provide access to contracts offered by other administrators.
Endurance offers coverage for up to 8 years or 200,000 miles, but it only offers long-term plans.
The coverage level that a vehicle protection plan provides can vary by company and contract type. The two types of vehicle protection plans are stated-component coverage and exclusionary coverage, and each works a little differently.
With stated-component contracts, you receive coverage for all parts and repairs specifically listed in the contract. With exclusionary plans, you receive coverage for all parts and repairs except those listed in the contract.
Many extended warranty providers offer one level of exclusionary coverage and a few tiers of stated-component coverage. Your coverage options might include the following:
Most companies include a few standard perks with their vehicle protection plans. The most common perk is roadside assistance, which typically includes towing, lockout assistance, fuel delivery, battery jumpstarts and flat tire assistance. However, some contracts also include rental car reimbursement and trip interruption coverage in the event of covered vehicle repairs.
Even the best exclusionary plans won’t cover routine maintenance and vehicle upkeep. In fact, to keep from voiding your warranty coverage, you’ll need to complete oil changes, filter changes, tire rotations and other maintenance that your vehicle manufacturer recommends. You’ll also need to pay out of pocket for replacement brake pads, windshield wiper blades and light bulbs.
In addition to maintenance, vehicle protection plans won’t offer coverage for select types of vehicle damage, including the following:
As long as you know which parts and repairs your plan does and does not cover, vehicle protection plans are relatively straightforward. After any applicable waiting period, you can reach out to your plan’s administrator to file a claim for a covered repair.
Filing a claim with most vehicle protection plans is simple. You’ll reach out to your warranty administrator about a covered repair, get prior approval and either drive or have your vehicle towed to a designated repair facility. From there, you’ll provide your mechanic with your plan information, and your warranty provider will pay the mechanic directly.
Many extended car warranty companies work with outside warranty administrators to back contracts. This means you’ll typically want to contact the contract administrator to file a claim, not the company that sold you the contract. However, some providers — such as Endurance — are direct providers, meaning they’ll handle any claims in-house.
Most vehicle protection plans include a waiting period of around 30 days and 1,000 miles. Until this period is met, the company won’t pay out for any claims, even those listed as covered. Extended warranty companies use these waiting periods to prevent drivers from seeking coverage for preexisting issues.
You can usually cancel your vehicle protection coverage at any time. However, if you’d like a refund, you may need to request one within 30 days of purchasing your coverage. Many companies offer a 30-day money-back guarantee with either a full or prorated refund. Be sure to check any company’s refund and cancellation policies before committing to a contract.
On average, you can expect to pay around $848 per year of coverage for an extended warranty. This average includes down payments and all monthly payments, but the amount could fluctuate for several reasons. The final price tag on a vehicle protection plan varies based on the provider, plan type and the vehicle’s make, model, year and mileage.
Vehicle protection plans typically carry deductibles that must be paid for claims to be covered. Typical deductibles range from $0 or vanishing to $200.
If you’re driving a new car, you may not need additional coverage until your manufacturer warranty expires. However, if you want to get the most life out of your used car without putting your budget at risk, a vehicle protection plan may be the right choice for you.
As your vehicle ages, repair costs and frequencies increase. Extended warranties offer customizable coverage with monthly and long-term contract options for drivers from all walks of life. Like all warranties, extended auto warranties have benefits and drawbacks such as the following:
You can find the best coverage for your vehicle and budget by following a few guidelines when shopping:
If you’re interested in additional protection for your car or truck, vehicle protection plans offer peace of mind through customizable coverage levels and monthly or long-term contracts. Not every company offers the same coverage levels, and prices will vary by provider, so it pays to shop around.
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
Homefront has an affiliate disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Homefront editorial staff alone (see About Homefront). Homefront adheres to strict editorial integrity standards. The information is believed to be accurate as of the publish date, but always check the provider’s website for the most current information.
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