We know that there are a lot of decisions to make regarding your car. At Honest Wrenches, we want to make sure we provide you with as much information as possible so you can make the best choices for you; at no extra charge. Today we’re breaking down extended warranties–are they worth the investment? Or should you pass on them? We tend to not be on the side of extended warranties, but we also want to acknowledge that while we have had negative experiences with some companies, there may be some extended warranty companies that will benefit you. Regardless of where you fall, there are pros and cons to each side. To understand more about extended warranties, let's take a deep dive into some of the different types of extended warranties.
1. The basic extended warranty
Sometimes called the bronze package, this will be an extremely basic warranty. It will only have coverage up to a certain amount of money per hour paid out, as well as generally only covering half of the bill up to a maximum amount. Usually, it covers internally lubricated parts of the engine and transmission.
2. The plus extended warranty
Also known as the silver package, this will include everything in the basic package with the addition of some filler options–however, keep in mind that there’s a good chance that the extra items listed in this level won’t fail during the warranty period.
3. The deluxe extended warranty
Otherwise called the gold package, this is our recommendation for the best package to choose if you were to purchase one. This package will include all of the above, as well as some wearable items, such as suspension components that we know will eventually fail, hopefully in that warranty period, and will therefore be covered to your benefit.
You might think that the simple conclusion here is to stick with a Deluxe or Gold extended warranty package, but there’s more to uncover. What is the biggest issue with these above warranties? When you purchase an aftermarket or extended warranty, the warranty company has a 90% chance that you will never have an issue with anything that is covered under your warranty. That basically means, they have a 90% chance of winning, and you have a 10% chance of winning. In the event that you do win this extended warranty lottery, you’ve got peace of mind that it’s there to fall back on. But are those odds that you want to take?
Check back next time as we delve further into these warranties.