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An extended car warranty is like an insurance plan: If something goes wrong, you take the vehicle to the mechanic’s shop for repair. If the problem is included under the warranty, then the repairs are paid for—even if your car needs thousands of dollars’ worth of repair work.

Sometimes called an “aftermarket car warranty” or “vehicle service contract,” an extended auto warranty kicks in after your initial warranty has expired and is intended to offset the costs of expensive repairs after your vehicle’s standard manufacturer’s warranty expires. Compare what the best extended auto warranty companies have to offer.

A manufacturer’s car warranty usually lasts for at least three years or 60,000 miles, whichever comes first. An extended auto warranty provides additional coverage, typically for about five years, after your initial warranty has lapsed.

In general, the average extended car warranty cost ranges from $800-$1200 per year, but every person and policy is different. When your car needs repairs and you don’t have coverage, the mechanic will require payment in full. Certain Companies offer specialized payment plans to fit your budget. We know how important having extended coverage is. Do You?

An extended auto warranty protection plan will most likely cover your vehicle for the following:

24 Hour Roadside Assistance, Rental Car Service, Locksmith & Lock-Out Service, Towing, Parts & Labor, Out Of Gas Service, Dead Battery, Trip Interruption, Brakes, Electrical, Cooling, Drive Axle(s), Transmission, Engine, AWD, 4x4, Steering, Heating, Air Conditioning, Fuel System, Anti-Lock Brakes (ABS), Hi-Tech Electronics, Turbo, Supercharger as well as Front & Rear Suspension.

Ultimately, it’s up to you to decide whether the peace of mind an extended warranty can provide is worth the price tag. If you do decide to purchase an extended warranty, be sure to do your homework, watch out for auto warranty scams and work with a reputable company. An extended warranty could add thousands of dollars to the purchase of a car. This may not seem like much if you’re financing it and rolling the cost of the warranty into your monthly payment. But it still can be a significant amount of money, even if you’re not paying it all up front.

You can purchase an extended warranty for any of the following vehicle and motorcycle manufacturers. Ford, Toyota, BMW, Honda, Subaru, Mercedes, Lexus, Maserati, Lamborghini, Rolls-Royce, Alfa Romeo, Jeep, Dodge, Chrysler, GMC, Honda, Nissan, Infiniti, Jaguar, Saab, Saturn, Audi, Acura, Ferrari, Lotus, Chevrolet, Mazda, Mitsubishi, Hummer, Pontiac, Scion, Smart, Hyundai, Buick, Bentley, Aston Martin, FIAT, Ford, Porsche, Mclaren, Cadillac, KIA, Land Rover, Lincoln, Mercury, MINI, Tesla, Fisker, Volkswagen, Volvo, Kawasaki, Ducati, Triumph Polaris, Can-Am, Indian, Yamaha, Suzuki, Aprilia, Harley-Davidson, Moto-Guzzi, Benelli, Vespa, KTM and many more.

If you’re buying a vehicle with a reliable track record, it might make sense to skip the warranty. Instead, consider setting aside the money you’d spend on it, and save for that rainy day when something could go wrong. If you don’t end up needing the money for repairs, you can keep saving it or use it for something else.