Cars have become a fundamental part of our lives, providing convenience and mobility. However, with ownership comes the risk of unexpected expenses, particularly after the manufacturer’s warranty expires. This is where extended car warranties become a valuable safety net, making them an essential consideration for car owners.

An extended warranty, often called a vehicle service contract, begins where the manufacturer’s warranty ends. It provides coverage for specific repairs and replacements, shielding owners from unforeseen repair costs. These warranties can be customized, allowing drivers to choose plans that best suit their vehicle and usage.

Sujeet Nair, CEO and Founder of Edel Assurance, says, "Modern cars are equipped with advanced technologies, which can lead to expensive repairs. Extended warranties help cover these high costs, offering financial predictability through manageable premiums. This ensures car owners avoid the strain of unexpected repair bills."

Extended warranties promote regular servicing, which is critical for maintaining a vehicle’s performance and reducing the likelihood of breakdowns. Vehicles with such coverage are also more attractive to potential buyers, as an active warranty signals proper maintenance and adds to resale value.

"One of the biggest advantages of extended warranties is their flexibility. Drivers can choose coverage tailored to their specific needs, whether it’s comprehensive protection for luxury vehicles or basic coverage for key components. This adaptability ensures owners only pay for what they require," said Nair.

In addition to covering repair costs, many extended warranties include added services such as roadside assistance and towing. These features make ownership more convenient and reduce stress during unexpected situations.

vehicle service contract

Drive worry-free: How extended car warranties can save you from unexpected repair bills