Does your business own and operate several business vehicles? If it does, you should consider getting an extended auto warranty plan. Getting the best extended car warranty that covers your company’s needs is one of the best things you can do to protect your investment.
When you bought your vehicles, they probably came with new car warranties. A typical car warranty covers damage to essential car components up to a certain number of miles or a certain period. But you need to understand that the warranty with a new car is different from a commercial warranty. The main advantage of a commercial warranty is that it protects vehicles for a longer period.
Commercial vehicles need the added protection of an extended warranty because they are used more than personal vehicles. Business vehicles are more prone to accidents and car breakdowns. An extended car warranty ensures that your car fleet is always protected from unexpected events.
Suppose you’re not yet convinced that you need an extended warranty for your business vehicles. In that case, reading the pointers below may change your mind. You can also find tips in the following paragraphs on how to choose the right extended car warranty plan for your business.
Do You Need an Extended Car Warranty?
If your business owns more than one vehicle, you already have a fleet of cars, technically speaking. Even if one of your vehicles breaks down, your business is still eligible for additional coverage.
If your fleet consists of new vehicles, an extended warranty will surely come in handy. New cars feature the latest technology and are equipped with state-of-the-art equipment. You don’t have to understand the nitty-gritty of your car’s tech. But you need to be prepared when the time comes you need to repair the high-tech systems in your vehicle. If you want to get professional service for your vehicles, you should consider getting extended coverage.
New cars are not the only ones that can benefit from an extended warranty. If your fleet of cars is more than ten years old, you should also consider getting an extended warranty. How much are you spending on repairs on your fleet every month? What kind of protection do you want for your cars? How reliable are your old vehicles? These are just some of the questions you need to ask yourself if you have an aging fleet.
Remember that old vehicles are more likely to break down than new cars. If you’re using your own money to repair your cars, it’s not a sustainable way to maintain your fleet. The wiser thing to do is to extend your warranty coverage. Simple mathematics can tell you that you need an extended warranty if you have an old fleet.
What Is Covered by an Extended Warranty?
Most extended warranty plans provide comprehensive coverage that should cover all the needs of your fleet. Coverage usually lasts for up to 10 years. A decade is a long time. Many things can happen within that period.
You need to ensure that your vehicles are protected if you intend to have them for a long period. If you feel that a 10-year coverage is too long, you may be able to find a plan with a shorter coverage period. You just need to make sure that all the essential parts of your vehicle are covered.
An extended warranty typically covers the car’s powertrain (engine, transmission, etc.), air conditioning, gaskets and seals, alternator, safety restraints, electrical components, and more. If you want to cover more parts, you just need to purchase additional coverage based on your needs.
However, you need to keep in mind that more coverage also means a higher cost. But it’s still better to invest in an extended warranty than to spend cash on repairs if one of your cars breaks down or gets into an accident. If you want all the parts of your car to be protected, you need to get a bumper-to-bumper warranty.
Extended warranty plans cover routine maintenance, parts replacement, and labor fees. Some plans even include tire replacement. A separate warranty for tires is also available. You can also purchase corrosion warranties, factory accessory plans, and emission warranties.
Cost of an Extended Warranty
Now that you know the coverage of a typical extended warranty plan, it’s time for you to think about the cost. As mentioned earlier, the price mainly depends on how extensive the coverage is. So if you want bumper-to-bumper protection, expect to pay a higher fee.
The age of your vehicles is also a factor. If you have old cars, you need to be ready to pay more. Most extended warranty companies will provide you with different options. It’s up to you to determine the option that best matches your needs and budget.
An extended warranty is just like an insurance plan. This means you may never use it. But that doesn’t mean it doesn’t provide value. What you’re ultimately paying for is your peace of mind. If you have an extended warranty, you are assured that whatever happens to your vehicle, you don’t have to spend from your pocket.
If your business owns a fleet of vehicles, they will require repair work eventually. That’s part of the reality of being a car owner. You just need to accept it and be prepared—and one of the best ways for business owners to be prepared is to get an extended warranty for their fleet.