When you a car owner, it is only natural that you will crave reliability. Consumer Reports suggest that this is perhaps the single-most-important criterion for buyers of both new and used cars. But, while you may know which cars are more reliable than others, you may still want greater protection. And this is where an extended car warranty comes in.

Vehicle contracts for servicing or extended warranties are much in demand these days because consumers want to have complete coverage for their new cars. So, these warranties offer them peace of mind and help to reduce financial risks. A Consumer Report in 2013 revealed that automobile owners usually end up paying more than what they get back in terms of direct benefits. While extended warranties may be beneficial for those selling cars, it is debatable how they benefit car buyers.

If you are planning to sell the car once the standard warranty period is over, buying an extended warranty is not worthwhile. However, in case you have it, the warranty may help in negotiations. It might also fetch a better sale value. For those who plan to hold onto their cars for longer than the standard warranty period, an extended warranty is the best option.

The 3 best reasons to invest in an extended car warranty include the following benefits:

1. Customizability
One of the main reasons why extended car warranty benefits are so appealing is because buyers can tailor these contracts to cater to their needs. The original manufacturer warranty may differ in terms of time limits and mileage. But companies which offer extended warranties will provide a much wider range of services. For instance, when a car has a long powertrain warranty and a limited bumper-to-bumper warranty, your provider can extend the second one.

2. Costly repair coverage
Modern cars are far more complex machines, and they are loaded with high-end expensive technologies. When the advanced computer systems or electrical wiring begin to malfunction, the problem can be hard to identify or repair. This sophisticated technology being used in new cars is the biggest reason to get an extended warranty. However, when you buy one, you must ensure it covers all technology features. To do this, you can request your warranty provider for a list of excluded parts and services and go through this carefully.

3. Paperwork by dealers
One of the biggest extended car warranty benefits is that when you buy this from dealers, they will do all your paperwork. Such warranties are costlier than those offered by manufacturers. But here, the dealer takes care of all documentation. Besides, dealer-backed contracts allow repairs to be done at any dealership outlet that sells the brand. So, it is very convenient for car owners. It also has an advantage over warranties given by third-party providers that usually impose restrictions on locations.

You cannot use the extended warranty to look after the general service needs for your car. Parts like clutches, brake pads, and some electronic items may not be included in the manufacturer’s coverage. Even rusting, paint issues or wear-and-tear in upholstery may not be included by the manufacturer.

Getting services done outside approved servicing centers, adding accessories, modifying the electrical connections, and paint are not included in such warranties.