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...
After purchasing a Honda, is an extended warranty available?
When your factory warranty expires, a Honda extended warranty can give you security. However, independent service providers might be more adaptable than Honda Care’s auto service agreements.
The price of an extended warranty is not disclosed on the Honda website. The price for a 3-year/120,000-mile extended warranty and a 5-year/120,000-mile extended warranty for a 2019 Honda Accord with 35,000 miles, respectively, was $1,850 and $2,250, respectively, when we contacted a Honda dealership for quotations. Costs are significantly influenced by variables including mileage, location, and dealership.
A Honda extended warranty may only be bought from a Honda dealership before the limited warranty on your new car ends. After then, you should consider your possibilities from third parties.
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.
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:
- 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.”
- A percentage of the repair expense may be covered by some extended warranties. The remainder, along with a deductible, is your responsibility.
Does purchasing an extended warranty for a car make sense?
Generally speaking, extended auto warranties aren’t worthwhile financially. According to a Consumer Reports poll, the majority of individuals who acquire an extended warranty save less on repairs than they paid for the agreement.
An extended car warranty is probably not worthwhile if you drive a dependable vehicle and keep enough money in savings to cover an emergency auto repair. Similarly, if you already have a dependable technician or have insurance that provides comparable benefits, you might not need an extended warranty.
However, choosing to buy an extended warranty isn’t necessarily only a financial one. For some people, the cost of mental tranquility may be worth it. You might feel more at ease purchasing an extended warranty if your car isn’t the most trustworthy. Just be certain that you are aware of the history of the car and your personal priorities.
What does the Honda Care warranty cover?
Your new vehicle is safeguarded by Honda Care in crucial areas including the engine, transmission, suspension, air conditioning/heating, fuel system, etc. Transfers between private parties are permitted with Honda Care. The terms of Honda Care plans range from 5 years/60,000 miles to 8 years/120,000 miles.
What makes a Honda warranty invalid?
If an aftermarket part was fitted incorrectly or caused a component failure, a dealer may void your warranty. In this case, you’ll be responsible for paying for the vehicle’s repairs.
Does the battery fall under the Honda extended warranty?
The Honda Plus Extended Warranty for hybrid vehicle owners includes many of the essential parts of your car’s Integrated Motor Assist system. Chemical condenser is one of the components. Battery for a control unit.
Are oil changes covered by the Honda warranty?
The Sentinel Services VSC provides warranty protection through Honda Care for a range of products, including normal maintenance services like oil changes and tire repairs, key fob replacement, roadside assistance, concierge services, and a trip interruption benefit. A Honda technician with the appropriate certification must perform routine oil changes at a Honda Express Service Center. With a cap of one repair per tire, the tire repair coverage will pay you up to $35 per tire. Up to five Honda vehicles registered to the same family residence are covered by roadside assistance.
Does Honda Care provide coverage for new batteries?
The New Vehicle Limited Warranty covers the original battery installed in your new Honda vehicle for 3 years or 36,000 miles. A warranty of 100 months is included with a replacement battery purchased from an authorized Honda dealer like Apple Tree Honda.
Is engine repair covered by an extended warranty?
If you’ve taken good care of your automobile and just had bad luck with your engine, your extended warranty will definitely come to your rescue. Fortunately, if you have any form of extended warranty, your engine is almost certainly covered by your extended warranty.
Nevertheless, based on our experience, this is a rare occurrence that is typically brought on by failing to regularly repair your engine in accordance with the manufacturer’s recommendations.
How valuable is the bumper-to-bumper warranty?
Extended bumper-to-bumper warranties are worthwhile because they provide the highest level of peace of mind. You won’t have to worry about paying for expensive repairs as your car matures if you have comprehensive coverage. Bumper-to-bumper insurance alternatives, however, are sometimes the most expensive.
To ensure you’re getting the greatest bargain, we advise doing some comparison shopping and requesting estimates from several service providers. In the end, you’ll have to decide whether a bumper-to-bumper extended warranty is worthwhile for your situation and budget based on the pricing and term details.
Which three queries should you consider asking before buying an extended warranty for this product?
Before making a choice, consider the following five questions.
- Who is responsible for the extended auto warranty?
- Have you looked around for the best deal?
- Are you aware of the coverage?
- What’s your track record with repairs?
- Really, do you need this warranty?
Transaxles are they covered by extended warranties?
Depending on the type of warranty you select, an extended warranty may or may not cover specific items. However, in most cases, extended warranties cover your car’s vital mechanical components, such as the engine, transmission, axles, and gaskets.
Is my extended warranty refundable?
Anytime you decide to cancel your extended warranty, you’ll receive a prorated refund for the period that was left on your policy. If the warranty was part of your loan, your car payment won’t change, but after the refund is taken out of your balance, you might be able to pay off the car sooner.
To make the cancellation process as simple as possible, think about the following advice:
Check the small print. For information on who to contact and whether there is a cancellation fee, locate the paperwork for your insurance. Call the finance manager who sold you the extended warranty if you just purchased it and you don’t yet receive the contract. You might need to get in touch with the business through phone or letter regarding third-party warranties.
Let’s say “no. Be aware that if you phone a warranty business, you will likely be routed to a department that is trained to persuade you to stay with them. Don’t feel like you have to explain why you’re canceling—just keep saying it “no.
Get it down on paper. Get a copy of any cancellation forms that you might be required to fill out signed by a dealership employee. Keep copies of any pertinent paperwork, including your cancellation letter or form.
Following up To ensure that your cancellation was successful, schedule a reminder. You can speak with your lender or check your loan statement.