While in theory they could be a good idea, extended warranties are frequently expensive and don’t always cover everything that could go wrong.
Additionally, many buyers of extended warranties never utilize them. An extended warranty would then be a cost with no financial benefit. In a Consumer Reports survey, barely a quarter of respondents said they would buy an extended warranty again, and 55% of those who purchased one did not utilize it.
Additionally, among those who made use of their guarantee, the cost of repairs was frequently less than the warranty’s price.
It can make more sense to put aside the cash you would spend on an extended warranty and use it to pay for any necessary repairs rather than buying one.
However, there are a few things you should be aware of before making the decision to purchase an extended warranty, including how it functions, how much it costs, and the benefits and drawbacks of doing so. Furthermore, even though we’ll use the term “extended warranty” since it’s widely accepted, this is not a warranty as that term is used in federal law, and it doesn’t offer the same consumer protections that other warranties do.
In This Article...
How long is the extended warranty from Honda?
Through Honda Care, you may purchase Honda extended warranty options that provide coverage for up to 8 years and 120,000 miles. Vehicle service contracts (VSCs) from Honda Care are offered for both new and used vehicles up until the end of the manufacturer’s warranty, which is 3 years and 36,000 miles.
For Honda extended warranty coverage, there are two options for coverage:
- Powertrain warranty coverage: Used cars are the only ones that come with a powertrain warranty. Engine, transmission, and drive axle stated-component coverage are provided under this guarantee.
- Bumper-to-bumper warranty coverage is an option that is offered for brand-new, certified-pre-owned, and used cars that are still covered by the original manufacturer’s warranty. Except for a few excluding items, this extended warranty covers all of your car’s essential systems.
All auto repairs under a Honda extended warranty are carried out by factory-trained Honda mechanics using authentic Honda parts. If you sell your car, your Honda Care extended service agreement can be transferred to the new owner. You can also decide to end your insurance and get a prorated refund.
Should I get a Honda Civic extended warranty?
It might not be worthwhile for the majority of Honda owners to purchase an extended warranty. The likelihood that the cost of your contract will be higher than the cost of covered repairs is low because Honda vehicles are known for their dependability. However, Honda Care car insurance policies can protect against the expense of unplanned breakdowns and are reasonably priced. These contracts are chosen by many drivers due to the increased peace of mind.
The price of a Honda extended warranty varies depending on your dealership, the deductible, the terms of the contract, and more. According to internet user reviews, the price range for a Honda extended warranty should be between $1,000 and $2,500.
Honda Care is the brand name for the Honda extended warranty. It is a service agreement for vehicles that guarantees payment for specific repairs brought on by mechanical failure. The length of a contract varies range, however it can last up to 8 years and 120,000 miles.
Depending on your car and the particular contract, auto extended warranties may be well worth the money. Consider the price of your contract in comparison to the anticipated cost of repairs and the dependability of your car to decide whether an extended warranty is worthwhile.
Does purchasing an extended warranty make sense?
Extended warranties are often “a lousy value” when it comes to the overall cost of your car, according to Gillis. 55% of consumers who bought an extended warranty in a Consumer Reports poll never used it. Most people who used the guarantee ended up spending more on repairs than they had originally saved.
Additional negatives include:
- A percentage of the repair expense may be covered by some extended warranties. The remainder, along with a deductible, is your responsibility.
- Exclusions: The fine language in every contract outlines how the warranty may be applied. For instance, the provider can refuse to pay for issues brought on by regular wear and tear or lower the claim settlement in light of your car’s depreciation.
- Limitations: You might need to bring your automobile to a repair facility that has been approved by the warranty instead of choosing your own technician.
- A Consumer Reports poll found that 55% of those who purchased extended warranties never used them.
- Overlap: If you already have coverage from the manufacturer’s warranty or a mechanical breakdown insurance policy, you may not need the extended warranty. In that situation, Gillis claims that “the additional coverage is not worth the premium.”
Is purchasing an extended warranty on a new car worth it?
“Extended warranties are, in reality, pricey. According to financial expert and radio talk show host Dave Ramsey, that is why individuals sell them because they profit handsomely from commissions. “I never advise purchasing extended warranties. You cannot afford the car if you cannot afford to maintain it.
Ramsey advises owners to establish a repair emergency fund that they can access as needed. And if the money isn’t required for repairs, it can be used to buy the next vehicle.
If you decide to get an extended warranty, keep in mind that you can haggle over the cost just like you did when buying the automobile.
Extended warranties could ease financial strain, especially for owners of devices from dubious brands. They are offered by dealerships, auto clubs, and insurance firms (which sometimes call them mechanical breakdown insurance). The duration, scope, and cost of the plans might all vary. Because aftermarket programs have precise restrictions on what repairs are authorized and where the work can be done, the fine print really does matter.
According to AAA, the optimum time to get protection for newer vehicles is while they are still covered by the original manufacturing warranty. As a result, there is a wider range of extended coverage terms available and the price is kept low.
The finest coverage options for people driving used cars often apply to those with fewer than 80,000 miles on the odometer. The organization advises used-car buyers to take into account their projected time of ownership, annual mileage, and ability to pay for repairs out-of-pocket. The typical claim for AAA is $850.
A vehicle service contract is available through the national auto club that combines warranty defenses with add-on services like battery replacement, travel reimbursements, and rental-car coverage. According to AAA, 30 to 40% of its clients need at least one covered repair.
From a purely mathematical perspective, it makes more sense to forego the protection and concentrate on purchasing and properly maintaining a model with above-average anticipated reliability. Check our reliability ratings before purchasing a new or used car.
If you decide to acquire an extended warranty, make sure to do it from a reputable company, such as an automaker, and read the fine print. With extended warranties, there are frequently a lot of limitations on what is covered and where the car may be serviced.
There are a lot of robocalls promoting extended warranty services. We advise being wary of any unsolicited call that offers this type of security.
Can you get an extended warranty later on?
Although waiting until the original factory coverage has ended will typically result in paying a higher premium rate, you can get an extended auto warranty at any time. Near the conclusion of the initial warranty period might be the best time to buy. You can then start looking around to see what kinds of coverage and prices are offered for the year and model of your car. This will enable you to compare different policies on the basis of one another. However, it’s crucial that you make a thoughtful decision about where to get an extended warranty policy. Despite the wide range of options, many won’t likely satisfy your needs for a dependable warranty provider. The standard fine language in these contracts ensures that your policy isn’t worth more than the paper it’s printed on. Avoid these businesses at all costs and choose one that is reputable and reliable instead!
The things that fall within each third-party provider’s guarantee for repair will vary. Make sure the type of coverage you select will meet the needs of your vehicle and your budget because there are many different levels of coverage available. A hefty repair bill could occur from purchasing insufficient coverage, which could leave out certain components and parts. If something were to happen, you want to know that you would be completely protected. On the other hand, purchasing excessive insurance may not be the best course of action. Verify the policy’s inclusions to be sure. Ask your vehicle protection specialist if there are any other coverage plans that would better suit your needs if you see that the majority of the parts or components listed do not even pertain to your car.
Check out the list of excluded items, which are things that are not covered. The finest protection, often referred to as a “bumper-to-bumper auto warranty,” is fully comprehensive coverage, but we want to make sure you know that it is also the most expensive. The majority of drivers are aware, however, from their auto insurance bills that the more coverage you add to your car, the more it will cost you. But even the most complete coverage is useless if you purchase it from a shady business. Your insurance won’t be legitimate if the warranty is being covered by a business that might cease operations in a month or a year, costing you a sizable sum of money. Any firm you are thinking about should have a solid financial history and a good reputation for settling claims. Additionally, inquire about the company’s BBB rating and Vehicle Protection Association certification while you’re there. When selecting a protection plan from one of the top extended auto warranty providers, keep these two things in mind.
How much does an extended Honda warranty cost?
In 2021, what will the price of a Honda extended warranty be? The price of your Honda extended auto warranty depends on your vehicle’s type, condition, and plan deductible. In contrast to CARCHEX Vehicle Protection Plans, which are normally far more economical, Honda dealership warranties typically cost between $1,000 and $1,500.
What is covered by the extended warranty from Honda?
The Honda Care extended warranty covers powertrain and drivetrain coverage, electrical repairs and replacements, heating and cooling repairs, chassis coverage, and Honda original accessories regardless of the coverage duration, 6, 7, or 8 years (up to 120,000 miles). Roadside assistance, rental car reimbursement, a trip interruption benefit, and concierge services, such as emergency cash advances and airline ticket assistance, shipment of personal replacement items, assistance with insurance claims, and referrals for auto glass replacement, are also included in the plan. This overview list may change depending on the particular Honda Care package you select.
Honda Service Under Warranty
Despite being among the most dependable cars, Hondas occasionally experience issues. As long as the vehicle is still covered by warranty and the repair is covered, you will be 100% covered if your Honda develops a problem while it is still under warranty. This holds true for all of its warranties, regardless of whether they were acquired as a new car, a certified pre-owned vehicle, or as part of Honda Care’s extended warranty plan.
Purchases of extended warranty plans can be made directly from the manufacturer or via a third-party supplier. There are advantages and disadvantages to each, so we advise conducting research based on your Honda model. However, to help you get started, we discuss third-party providers further in this blog.