If you are considering purchasing an extended car warranty, ensure you clearly understand the benefits and responsibilities that go along with it. Buying an extended car warranty for your vehicle can prove to be confusing because of the large number of warranty providers in the market. However, all warranty providers do not provide the same kind of service and coverage. Differences are particularly visible in quality and pricing. We attempt to make this decision easier for you with our explainer on various aspects of extended car warranties.

What is an extended car warranty?

An extended car warranty, also known as an aftermarket vehicle warranty, or service contract, is optional coverage that you can get for your vehicle generally after your manufacturer’s warranty expires. It gives you additional protection or extends the coverage your manufacturer offered you for a longer time or mileage. This means that after your manufacturer’s warranty has expired you will still be covered in the event of any expensive repairs needed on your vehicle and won’t have to pay out of your pocket.

Extended car warranties can also be offered to you by your vehicle manufacturer, but in most cases, you will only receive coverage if you opt for it while the manufacturer’s warranty is still active. Once your manufacturer’s warranty expires you will not be able to claim extended warranty coverage from the manufacturer. Besides, with an extended warranty from the manufacturer, you will only be able to get your vehicle repaired at certified dealerships which becomes inconvenient if you find yourself in an area that does not have a certified dealership for your vehicle’s repairs. This is where third-party warranty providers come in and can provide the same coverage as your manufacturer’s warranty. With third-party warranty coverage, you will have more options in terms of car service centers and workshops where you can get your vehicle repaired.

Need for an extended car warranty

Many car owners are doubtful about whether they need the protection of an extended car warranty for their vehicle. However, extended car warranties offer the following advantages:

• Complete peace of mind for car owners regarding repairs to their vehicles. This is particularly true if you own a preowned car that has a higher mileage on it. Such vehicles generally require more repairs due to aging and wear and tear. An extended warranty secures you against any unexpected breakdowns and repairs you may experience with your vehicle.
• Coverage for electronic problems which can be expensive to repair especially in today’s high-tech vehicles
• Long-term savings on repairs
• Adds to the value of your vehicle when you want to sell it
• Additional benefits such as roadside assistance in case of emergencies, Rental car reimbursement while your car is being repaired
• Tailor-made coverage for your vehicle means you can decide which parts of your vehicle you need to be covered by a warranty, depending on your budget.
• Extensive repair network of car service centers and workshops so you don’t have to worry about where to take your vehicle for repairs

Extended car warranty coverage

With extended car warranties, you get to choose the kind of coverage you want for your vehicle based on its specific needs and your budget. Warranty providers offer a wide range of plans for car owners to choose from, with comprehensive coverage that mostly includes the following vehicle components;

• Engine
• Transmission
• Torque Converter
• Differential
• Steering System
• Suspension
• Prop Shaft
• Turbo Charger
• Electricals
• Engine Cooling System
• Air conditioning
• Fuel system
• Brakes and ABS

As for extended car warranty plans, the ones generally offered by most providers are;

•       Comprehensive warranty
•       Powertrain warranty
•       Drivetrain warranty

Potential savings with an extended car warranty

Whether you like it or not, owning a vehicle is expensive, both in terms of the cost of purchasing one and maintenance costs. The cost of routine maintenance, paying for breakdown repairs, and replacing parts due to wear and tear, are all costs that tend to add up over time. Eventually, you may end up paying much more than you anticipated. Learning to use an extended car warranty to cover these expenses is an extremely useful skill for a car owner.

1.       Savings on the cost of unforeseen repairs

The most prominent benefit of an extended car warranty is the protection it provides a car owner from the financial cost of major vehicle repairs. For instance, complex transmission repairs in your car can prove to be financially draining if you are paying for it out of pocket. Without a car warranty, you would have to come up with a large sum of money within a short time to pay for the repairs. But with comprehensive warranty coverage, you would only have to worry about paying for the deductible as required by your warranty contract.

2.       Cover up gaps in your existing coverage

You may already have coverage from your manufacturer’s warranty and vehicle insurance. However, when it comes to repairs for your vehicle, this coverage can fall short, and you may end up spending on repairs out of your pocket. This usually happens when the manufacturer’s warranty is not comprehensive enough and only covers critical repairs. These gaps in your manufacturer’s warranty can be covered by an extended car warranty if you choose a plan wisely.

3.       Increases the resale value of your vehicle

Your car warranty provider may permit transferring the unexpired portion of your extended car warranty when you sell your car. This transferability of the warranty to a new owner, allows you to demand a higher price for your car. Thus, a car warranty increases the resale value of your vehicle.

4.       Long-term savings on repairs and replacements

The cost of repairs and maintenance on your car constantly rises over the years. This is because of the rising labor charges and costs of components and consumables. With an extended car warranty in place, you will not be affected by the rise in prices of components and all labor as these will be covered by your warranty. Hence, investing in an extended car warranty will not only provide you peace of mind but will also bring you long-term financial benefits. Many car owners take on debt to finance their car repairs. This can be avoided with an extended car warranty.

It is apparent that an extended car warranty can do you no harm but will work to your advantage eventually. It prevents you from taking on debt to finance your car repairs apart from lowering your overall repair costs. Besides, a warranty can also enhance the resale value of your vehicle due to the transferability clause. 

MP Warranties – UAE’s Top Car Warranty Service Provider

We are MP Warranties, the most reliable car warranty provider in the UAE. With the help of our car warranties, you can rest assured that you will receive comprehensive coverage for your vehicle repairs. We have customized extended warranty plans to suit the needs of your car as well as your budget. With our warranty coverage, you do not have to worry about how to finance the expensive repairs of your vehicle. You will even receive additional perks such as roadside assistance and towing.

So why wait? Get in touch with us today to cover your car with the best extended car warranty option in the UAE. You can reach us at +971 501 604 953 for more details.