Are Extended Warranties Worth It In Canada?

Given that you are spending a lot of money on a new vehicle, you might be wondering whether buying an extended warranty is worthwhile, especially when you are already getting the factory warranty. In the U.S., you can purchase an extended warranty long after buying your car, provided that it has been adequately maintained and is still covered by your factory warranty. The extended warranty on a used car might be worth it if the vehicle is not solid.

Most vehicles will generally get less reliable as they age, so it is probably worth considering an extended warranty if you plan to keep the car past its original manufacturer expiration date. Suppose you have enough cash to cover unexpected repairs to your vehicle yourself. You could be covered by yourself without buying an extended warranty or a breakdown mechanical warranty. You will receive a range of vehicle components included in the coverage provided with an extended vehicle warranty. An extended car warranty in Canada can be a good investment if you do not have emergency funds and anticipate that you might need a significant repair to your car soon.

Extended Warranties in Canada

Extended used car warranties might not be suitable for every buyer, but they could be a lifesaver if a costly repair comes up later on or if you are stuck on the side of the road. You can get extended used car warranties if your vehicle meets the age, condition, and mileage requirements. The cost of a used car extended warranty will vary depending on your vehicle’s make and model, the car’s age, the miles it has driven, and any deductibles you add. While various warranties are available, an extended warranty is designed to cover unexpected problems with your vehicle over a specific timeframe.

Whether bad brakes, a problem with your transmission, an electrical problem, or any other significant breakdown in the systems in your car, extended warranties will cover both repair costs and the cost of labour for getting your vehicle fixed. Most warranties cover components like your engine, transmission, and heating/cooling/electrical systems. An Extended Car Warranty covers repairs to your engine and other systems in the car within a specific time frame or over a set number of miles. An extended warranty is a car servicing agreement which either supersedes the manufacturer’s warranty for a new vehicle or gives you repair coverage on used vehicles.

An extended warranty is an insurance policy that covers your car if it is damaged or requires specific repairs you might not expect so soon. When you purchase a new vehicle, it comes with a factory warranty covering either the first years of the lifespan of a car or the first several thousand kilometres of drive, whichever comes first. When you purchase a new vehicle, most manufacturers provide peace of mind by providing coverage under a warranty that lasts for a specified time frame, ranging from about two to five years. According to AAA, the best time to buy insurance on a new vehicle is when it is still under its initial factory warranty.

An important thing to remember is that all insurance products or warranties plans protect against the unexpected costs that may come up if and when you need to take advantage of the coverage. As your car gets older and the miles go up, specific warranties cost more and cover less, making it harder to qualify for coverage. Not only that, but having a Canadian gray market car could invalidate your factory warranty since your vehicle originated from another country, meaning it is harder to get coverage in the U.S. If you are purchasing a used Canadian car straight from a previous owner, unknown parts might be installed, which could potentially void your factory warranty or any extended coverage you might have purchased.

Should You Get an Extended Warranty?

Ensuring that you have adequate coverage to keep your car on the road should be your priority since most extended warranty providers will not assist with repair costs of Canadian gray market vehicles — except for Endurances Advantage Auto Protection Plan. Given the costs associated with car repairs, having a warranty to cover those costs may give you some peace of mind that you will not be stuck dealing with a pile of problems that you do not deserve to have to face so soon after purchasing your new vehicle. If you would prefer to foot every repair bill as it comes, a warranty is likely not suitable for you. Article Content If you are unsure about how your new vehicle will handle your repair budget, fret not; another little-known fact is that nearly all automakers will let you buy an extended warranty until the time your basic coverage is up, as well as mileage limits.

For instance, if you are infamous for blowing tires, the warranty could save you big bucks next time you are driving with a flat. Instead of running the risk of significant expenses when parts break, you can be financially prepared by purchasing a vehicle warranty membership, such as those offered by GuardTree. You can obtain a vehicle warranty extension through a dealership, through specific lenders when getting a car loan, or you can buy it individually online. CarShield is our pick for Best Value, as the company has some of the lowest-priced car service contracts in the business so that you could end up with an excellent value on your extended Ford warranty.

Drivers who buy a vehicle warranty from the company receive a one-year complimentary membership in the Endurance Elite program, including roadside assistance, rental vehicle reimbursement, towing, tire repair and replacement, and more. There is no middleman, and excellent customer service throughout the quoting and claims processes is the focal point for many positive reviews about the Endurance Warranty. In addition, AAA offers an auto service contract that combines warranty protection with additional services like battery replacement, travel reimbursement, and rental vehicle coverage. Diamond New Cars Canada & United States Offers similar coverage as a manufacturer’s warranty for brand-new vehicles Very flexible offering compared with some auto insurance options you may find but has relatively poor reviews.

What’s the best first car to buy in Canada?

Check Out These Credit Cards With Extended Warranty:

BMO Preferred Rate Mastercard

BMO Cashback MasterCard

Scotia Momentum Visa Infinite Card

Sources

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