Why It’s Important to Buy a Car Warranty

Car Warranty

In my experience, car breakdowns usually happen at the most inconvenient times and can also occur when you are in the worst possible financial position.

Twice I’ve had cars come down with issues the day before heading away on a holiday in the car, and once on the very morning, we were leaving.


With money already committed to accommodation and holiday spending, the last thing I needed right then was to fork out a few hundred dollars (or more) on car repairs.

A used car warranty can protect you from these unexpected financial shocks.

While they may not save you from the inconvenience of breaking down just when you most need your vehicle. These warranties can ensure your vehicle gets repaired quickly with a minimum of disruption to your personal circumstances. And the cost is covered by the warranty, saving you from having to quickly have to come up with the money to pay for the repairs.

If your car is more than a few years past brand new, and your budget doesn’t stretch to having a few thousand dollars parked away for unexpected emergencies. Then a car warranty can be an important protection with some major benefits.

Financial Protection

If your car needs repairs, you can get your car taken to an approved repairer and the only cost you will face with be your chosen deductible.

Customize Your Cover

The cost of the warranty will depend on a variety of options available from warranty providers.

The biggest way to reduce the cost is to choose a deductible. This is an amount you must pay first, and the warranty pays the balance.

If you have chosen a $250 deductible and the repair is only going to cost $240, then you have no claim and would have to pay for the repair yourself. This saves the warranty provider of all the administration associated with the claims process.

Of course, of repairs was $260 you could make a claim. You would pay the repairer $250, and the warranty provider would pay the remining $10.

The larger the deductible you choose, the lower the cost of the warranty because the bigger the deductible, the more chance of some minor repairs not resulting in claims because the cost is lower than the deductible.

Some warranties will only cover major parts of the vehicle, while other polices will cover almost everything, and include towage to get your vehicle to the repairer and a rental car while e your vehicle is being repaired.

These additional options of course make the warranty more expensive.

To decide which policy best suits you, ask yourself what your situation would be inf your car suddenly broke down today.

Can you easily get hold of the money to pay for repairs of up to $3,000 or more? If not, then you want to cover your major parts.

Could you afford $250 or $500? IF you could, then you cold take a deductible for this amount to reduce the cost of the warranty.

How would you travel around if your car was out of action for a week? If there is a second vehicle in the family, then getting to work each day without your car might not be an issue, but if the other family vehicle is committed elsewhere each day, or there is no other back-up vehicle at home, what public transport costs will you face?

It might be cheaper to upgrade your warranty to include  a rental vehicle than paying for bus or train costs and the extra travel time that results from using public transport.

Peace of Mind

If upgrading to a newer car isn’t an option and your existing car (even if it has needed few repairs) is getting older, a car warranty ensure that you will be able to get your car repaired immediately if it needs any repairs.

A car warranty ensures you don’t get any unexpected repair bills that you can’t afford. It’s much easier it fit a regular monthly payment into your budget than it is to come up with a lump sum. If you depend on a particular vehicle, it makes sense to have a car warranty.

Rizwan Ahmad
Rizwan Ahmad

Rizwan is an avid mobile geek and a gaming lover. He loves to keep a tab on new tech and loves to share the latest tech news and reviews on Smartphones, Gadgets, Apps, and more.


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