Buying a vehicle is one of the most important investments that you are likely to make in your lifetime, and while you cannot live in your car (well, we don't recommend it anyway), you car is easily as important as your home.
Your car provides you with transportation to all of the important places you need to get to on a daily basis and in most cases, being without a vehicle turns getting to work, running basic errands, and traveling in general, into a huge hassle.
With collision insurance or similar financial responsibiliy being mandatory in most states, a driver is generally covered if their vehicle is ever in an accident. But what happens when your car just simply breaks down? Because after all, no matter how well a vehicle is made, it will eventually break down. Ford, Honda, BMW, Toyota, etc. all build quality vehicles, but with all of the record-breaking number of recalls in recent years by these companies, the likelihood that your car will experience a mechanical problem at some point only increases with time.
Many drivers have opted to use a form of coverage that is similar to collision insurance but for repairs. This type of protection goes by many names - extended auto warranty, vehicle service contract, mechanical breakdown insurance, or extended vehicle protection - but regardless of the name, it all boils down to one thing: covering the cost of repairs if your vehicle ever experiences a breakdown.
You maintain appropriate tire pressure and you make sure your oil changes are made regularly, so why wouldn't you want to be prepared when your vehicle eventually breaks down? With the rising cost of auto repairs including an average hourly labor rate in the United States topping $103.36 in 2009*, drivers are fed up and turning to extended auto warranties as a means of assistance. Instead of having to shell out upwards of a thousand dollars on a single repair to get their car out of the shop, drivers can pay low monthly installments and be covered anywhere from 3 to 5 to 7-years.
Yes, you can put money aside to pay for auto repairs (as some consumer reporters recommend), but honestly, do you know of anyone who can afford to do this, particularly with the current state of the economy? However, protecting your vehicle with an extended auto warranty eliminates the need for this and includes additional benefits such as roadside assistance, car rental service, temporary towing, and more. So having an extended car warranty isn't just about fixing your car and saving money - it's also about giving yourself peace of mind.