Extended car warranties have a lot of benefits and are one of the largest businesses in the auto market. While some see extended warranties as peace of mind, others are not so sure about its value. According to a Consumer Reports study, more than 50% of the people who bought extended car warranties have never even used them, while also finding that the cost of repairs was typically less than the cost of the warranty.

That being said, if a person hangs on to their car till the wheels fall off, with the car requiring regular repair for the same, then extended warranties make a lot of sense. So, it’s important to make sure that one will benefit from taking, or not taking, extended car warranties by considering the following:

1. When one wants to keep their vehicle for a longer period
When one likes their car, they obviously want to keep it with them for a longer period of time. Extended warranties benefit by providing warranty coverage beyond the tenure of the warranty, helping maintain the vehicle in a good state for a longer period. Extended warranties help keep the car running hassle-free and smoothly. This is the first and main extended car warranty benefit.

2. When repairs tend to be costlier than the extended warranties on the car
Whenever the car goes in for a repair job, it is not easy on the pocket. Repair bills can be extremely costly and service appointments are inconvenient and tiresome. If the vehicle is driven around more, then the owners will have to pay more in maintenance costs and also run the risk of their car having to go in for more repairs. Extended warranties save owners money in the long run.

3. When you want peace of mind along with customer satisfaction
Extended warranties guarantee peace of mind. While car owners might have to shell out a little more to have it, one of the main benefits of extended car warranties outweighs the cost totally: peace of mind, which assures owners that any repairs will be covered.

4. Presence of lots of purchase options
Many consumers erroneously believe that extended car warranties must be purchased only from the OEM or the dealer for a vehicle – which is not true. Extended car warranties can be bought from other companies which offer much more competitive warranty terms. This allows customers to analyze and evaluate various coverage plans and shop for one which best suits their needs. This is an essential extended car warranty benefit.

5. Presence of more coverage options
Today, there are companies which offer a whole plethora of options for purchasing extended car warranties even after the original warranties on the vehicles have expired. Owners are not bound to buy extended warranties for those cars whose warranties are going to expire, but rather have the option of doing so.

In the end, there are full chances of extended warranties never being used. However, extended warranties are like health insurance – one might not require it, but prevention and precaution is always better than cure.