Does Mercury offer extended warranties?

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.

When An Extended Car Warranty Is Worth It … read full answer

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 not 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 $1,500 on average. The cost of an extended car warranty can be anywhere from $1,000 to $5,000 depending 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… read full answer

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.

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.

Yes, Mercury offers mechanical breakdown insurance for new or used cars that are less than 7 years old, with less than 100,000 miles and under their original manufacturer's warranty coverage. Mercury mechanical breakdown insurance (MBI) is a policy add-on that insures a vehicle against mechanical problems, such as transmission or engine failure, which are not covered by standard car insurance policies.… read full answer

However, mechanical breakdown insurance will not pay for routine maintenance, wear and tear, or damage caused by an accident. Other exclusions to Mercury mechanical breakdown coverage include tune-ups, non-mechanical items, normal wear and tear and poor maintenance, among others.

Mercury Mechanical Breakdown Insurance Cost

The cost of Mercury mechanical breakdown insurance varies depending on the car, but the average MBI policy costs around $100 a year.

Mechanical breakdown insurance from Mercury is a good alternative to an extended warranty from the vehicle manufacturer, which might provide the same type of coverage but will usually cost around $1,500 total. For more information on whether Mercury MBI is worth it, check out WalletHub’s complete guide to mechanical breakdown insurance.