The concept of an extended warranty is a misnomer because this is not a warranty. It is essentially an insurance policy for your car which acts as a protection against costly, unplanned repairs. This warranty will cover all repairs for a stipulated period and a specific number of miles. The real warranties are included in your car price, while extended auto warranties are service contracts that you must pay for separately.

The key extended car warranty benefits include the following:

1. If you keep the same car for a long time
If you buy an extended warranty it is beneficial as you can keep your car for a very long time. It is especially true of car owners who are reluctant to let go of their cars. The extended warranty will offer them coverage beyond the normal warranty period so that they have no problems maintaining it.

2. Less expensive repairs
An extended warranty will make your repairs less expensive. When you do not have such a warranty, the repair bills may turn out to be very steep. Moreover, getting appointments for servicing the car is both hard and tiresome. The longer you drive a car, the higher will be your costs for maintaining it, and the greater are the risks of repairs.

3. Peace of mind
One of the key extended car warranty benefits is that it offers you complete peace of mind. While you may need to pay slightly more at the beginning, the advantages outweigh the costs. You can be assured that this warranty will cover all repair expenses and save you money.

4. Find a better deal
While people tend to think that you can only buy this warranty from the car dealer, it is possible to get great deals on warranties when you approach other companies. So, as a buyer, you are free to compare the terms offered by multiple companies and analyze different coverage plans before making a final decision.

5. More than one driver
When your vehicle is being driven by more than one person, the vehicle will likely undergo a lot of stress. Differences in braking and acceleration habits among different drivers are only natural. But, this may put more strain on car parts, and over some time, it can lead to more frequent needs for repairs. It is where an extended auto warranty can be a blessing.

6. Routine maintenance
An extended auto warranty is the best possible solution for someone who is not very prompt with routine maintenance. Most car owners are complacent about this, which is why their cars experience mechanical problems often. In such a situation, opting for extended warranties is the right thing to do.

7. Adds value
When you invest in an extended warranty for your car, it helps to add more value to the car’s price as time passes by. Any car under a warranty period or an extended warranty is likely to be in good working condition. So, it can command a much higher trade-in value in case the owner is ready to sell it at a dealership.

While car problems can happen at any time, regardless of the make of the car or your abilities as a driver, you have to remember that routine maintenance cannot be overlooked. So, you should ideally scan your maintenance history and analyze your driving habits to judge whether or not your car stands to benefit from an extended car warranty.