No, Erie does not offer extended warranties. Erie does not sell anything similar to an extended warranty, such as mechanical breakdown insurance, either.
On the other hand, drivers can buy extended warranties from AAA and Allstate, or mechanical breakdown insurance from insurers such as Geico and USAA. Like extended warranties, mechanical breakdown insurance covers damage to major systems in a vehicle, including the engine and transmission.
Extended car warranties are worth it if a driver doesn’t carry sufficient savings to pay for vehicle system repairs or is worried about their car’s reliability. But for most drivers, extended car warranties go unused, so the potential benefits are not enough to justify the upfront cost.
A good time to consider the value of an extended warranty is when the manufacturer’s warranty on your vehicle has expired or will expire soon. This typically happens after three years or 36,000 miles, depending on which comes first. If you plan on keeping your car beyond the manufacturer warranty’s expiration, then purchasing an extended warranty might give you peace of mind moving forward.
An extended warranty might also be worth it if you’re concerned about your ability to pay for major mechanical repairs in the future. Car repairs cost about $400 on average, which is less than the $1,500 average for an extended warranty. On the other hand, the least common and most catastrophic mechanical failures can often cost several thousands of dollars to repair.
If your car isn’t very reliable and you’re not in the financial position to risk either paying for repairs or replacing the car yourself, it might be worth it to pay a higher upfront cost for protection through an extended warranty.
When An Extended Car Warranty Isn’t Worth It
Your car is reliable
Your car is not worth very much
Your car is still covered by the manufacturer’s warranty
You have a large enough emergency fund to pay for major vehicle repairs
Bear in mind that you don’t have to purchase an extended warranty when you buy your car. It’s likely a smart move for you to wait until the manufacturer’s warranty is about to expire to evaluate your situation and determine whether you want to pay for an extended warranty. To learn more, check out WalletHub’s guide to the best extended car warranties.
An extended car warranty costs around $1,500. The exact cost of an extended car warranty depends on several factors, including the condition of the car, the car’s mileage, and the amount of coverage included in the warranty.
Factors That Affect Extended Car Warranty Cost
An extended car warranty pays for repairs to a car’s major systems if they malfunction. If you drive an older car or a car with higher mileage, your warranty will be more expensive because your car is more likely to experience mechanical problems. Similarly, the more coverage that you include in your warranty, the more you’re going to pay.… read full answer
How to Shop for an Extended Car Warranty
If you want to purchase an extended warranty for your car, you should get quotes from multiple sources in order to find the best price. You can purchase an extended warranty from your car’s manufacturer or a third-party company, and the pricing is generally the same between the two. However, customer satisfaction tends to be higher for warranties from the manufacturer.
Many insurance companies also offer an alternative to extended warranties called mechanical breakdown insurance (MBI). MBI provides similar coverage and only costs about $100 per year.
Erie is cheap for drivers who have full coverage policies. Drivers can also save even more with Erie by taking advantage of discounts for things like having multiple policies from Erie or for having a vehicle equipped with safety features. Erie is not one of the cheapest car insurance companies overall, though, and young drivers specifically may find cheaper rates elsewhere.… read full answer
Average Rates for Erie Car Insurance vs. Top Competitors
Note: Premiums are representative of a full coverage in NY; individual premiums will vary.
Erie may not be one of the cheapest car insurance companies for most drivers, but it does offer a variety of discounts, like discounts for taking a driver training course or for paying your policy in full. Plus, Erie rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.
Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so the best way to find a good deal is to compare quotes from multiple insurers and take advantage of every discount.
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