Extended auto warranties offer peace of mind by protecting drivers from the high costs of unexpected repairs. However, misconceptions about extended warranties often lead car owners to question their value or avoid purchasing them altogether. Understanding the truth behind these myths can help you make an informed decision about whether an extended auto warranty is right for you.

In this blog, we’ll break down common myths about extended auto warranties and present the facts, so you can separate fact from fiction and make a decision that’s best for your vehicle.

Myth #1: Extended Auto Warranties Aren’t Worth the Cost

Fact: Extended Warranties Can Provide Valuable Protection Against Costly Repairs

One of the most common myths about extended auto warranties is that they’re simply not worth the expense. While it’s true that an extended warranty is an investment, it can actually save you thousands of dollars in repair costs over the life of your vehicle. Cars are complex machines, and as they age, parts naturally wear out and are more prone to breakdowns.

For example, a transmission repair can cost anywhere from $1,800 to $3,400, and an engine replacement could be upwards of $4,000 to $7,000. If you experience one or two major repairs, your extended warranty could pay for itself. Instead of paying a large, unexpected repair bill, you’ll pay a small deductible, and the warranty will cover the rest.

Key Points to Remember

• Cost of Repairs: Modern vehicles are built with complex technology, and repairs for major systems are often expensive.
• Unexpected Expenses: An extended warranty protects you from financial stress when unexpected repairs arise.
• Long-Term Savings: Even if you don’t use the warranty frequently, a single major repair can make the warranty worthwhile.

Myth #2: Extended Warranties Only Cover Minor Repairs

Fact: Extended Warranties Typically Cover Major Components and Systems

Another misconception is that extended warranties only cover minor issues or aren’t very helpful when it comes to serious repairs. In reality, most reputable extended auto warranties cover major systems such as the engine, transmission, drivetrain, and electrical system—some of the most expensive parts to repair.

The specific coverage will vary based on the type of plan you choose. Comprehensive (bumper-to-bumper) warranties cover a wide range of components, while powertrain warranties focus on critical parts like the engine and transmission. You can select the plan that best fits your needs and budget.

Key Points to Remember

• Coverage for Major Systems: Most extended warranties include protection for essential and costly vehicle systems.
• Choice of Plan: You can choose a warranty that suits your vehicle’s age, mileage, and potential needs.

Myth #3: You Have to Buy an Extended Warranty Through the Dealership

Fact: You Can Purchase Extended Warranties from Independent Providers

While dealerships do offer extended warranties, they’re not the only option. Independent companies like Empire Auto Protect offer a variety of plans, often at more competitive prices than what’s available through a dealership. Independent providers also tend to offer more flexible coverage options and benefits that can be tailored to meet your needs.

Purchasing an extended warranty through an independent provider can also allow you to avoid added dealership markups, resulting in lower costs and better value for your money. Additionally, reputable third-party warranty providers work with nationwide networks of repair shops, giving you flexibility when it comes to choosing where to have your car repaired.

Key Points to Remember

• Independent Providers: You don’t have to rely solely on the dealership—many independent providers offer quality extended warranties.
• Flexible Options: Independent providers may offer a wider range of plans and more competitive prices.
• Nationwide Repair Networks: Independent providers typically allow you to choose from a network of repair shops for convenience.

Myth #4: Extended Warranties Cover Everything

Fact: Extended Warranties Cover Specific Components and Exclude Wear-and-Tear Items

It’s essential to understand that extended warranties are designed to cover specific mechanical breakdowns and failures. They are not all-encompassing policies that cover every aspect of vehicle maintenance or all repairs. Most extended warranties will exclude items that naturally wear down over time, such as brake pads, tires, wiper blades, and other wear-and-tear parts.

In addition, warranties generally do not cover damage caused by neglect, accidents, or modifications. It’s important to read the terms and conditions of your warranty to understand exactly what is and isn’t covered, so you have realistic expectations.

Key Points to Remember

• Wear-and-Tear Exclusions: Items like tires and brake pads are generally not covered, as they wear out over time.
• Maintenance Responsibilities: Regular maintenance is the responsibility of the owner and is essential for keeping the warranty valid.
• Understanding Limitations: Reading the warranty’s exclusions helps avoid surprises and ensures you know what’s covered.

Myth #5: Extended Warranties Require You to Use Specific Repair Shops

Fact: Many Extended Warranties Offer Flexibility in Repair Shop Choice

Some drivers believe that extended warranties limit them to specific repair shops, but many extended warranty providers actually give you the freedom to choose from a network of certified repair shops. Reputable providers often work with national repair networks, allowing you to find a repair shop close to home or your workplace.

In fact, some providers even allow you to use your preferred mechanic, as long as they’re certified. Be sure to confirm your provider’s policies before purchasing a warranty if you have a particular repair shop in mind.

Key Points to Remember

• Repair Shop Flexibility: Many providers offer flexibility in choosing repair shops from their network.
• Preferred Mechanic Options: Check if your provider allows repairs at your preferred certified mechanic.

Myth #6: You Don’t Need an Extended Warranty if Your Car Is Reliable

Fact: Even Reliable Vehicles Can Develop Issues Over Time

While it’s true that some car brands are known for their reliability, every vehicle is susceptible to breakdowns, particularly as it ages and accumulates mileage. Even well-maintained vehicles experience wear and tear on critical parts, which may eventually lead to repairs.

An extended warranty provides coverage for those times when something unexpected happens, regardless of how reliable your vehicle has been historically. It’s important to remember that as cars age, repairs become more likely, and an extended warranty is an investment in peace of mind for the long term.

Key Points to Remember

• Age and Mileage Impact: Even reliable cars are prone to issues as they age.
• Long-Term Coverage: A warranty covers unexpected issues that could arise, regardless of brand reputation.

Myth #7: Filing a Claim Is Difficult and Time-Consuming

Fact: Reputable Providers Offer a Simple and Efficient Claims Process

A common myth about extended auto warranties is that filing a claim is complicated and involves lots of red tape. While every company is different, reputable providers like Empire Auto Protect have streamlined their claims process to make it as hassle-free as possible.

Typically, all you need to do is take your vehicle to an authorized repair facility, and the provider will handle the rest. They’ll work directly with the repair shop to approve the claim, and in most cases, the provider pays the shop directly, so you don’t have to worry about reimbursement.

Key Points to Remember

• Hassle-Free Process: Reputable providers offer a straightforward and efficient claims process.
• Direct Payments to Repair Shops: Many providers pay the repair shop directly, making the process easier for you.

Conclusion: Understanding the Facts About Extended Auto Warranties

Extended auto warranties can offer substantial benefits and peace of mind for vehicle owners, especially as their cars age. By understanding the myths and facts about extended warranties, you can make a more informed decision about whether this investment is right for you.

With Empire Auto Protect, you can choose from a range of plans designed to cover essential components and protect you from unexpected repair costs. Our transparent pricing, flexible plans, and straightforward claims process ensure that you get the best possible coverage. To learn more about our extended auto warranties or to get a quote, call 1-888-345-0084 today.