No matter the exact type, extended warranties are an investment in peace of mind that limits financial risk for a set period of time. More and more Vehicles on the road now are mostly run by computers! Lets face it...its not like it use to be. With todays tech in all vehicles , getting something fixed isn't cheap any more. According to AAA most all vehicles on the road now have many extra safety features that can go bad, but if you have a service contract in place all those repairs would be covered. AAA says theses are the costs you can expect if some of your tech breaks:
• Front radar sensors used with automatic emergency braking and adaptive cruise control systems: $900 to $1,300
• Rear radar sensors used with blind spot monitoring and rear cross traffic alert systems: $850 to $2,050
• Front camera sensors used with automatic emergency braking, adaptive cruise control, lane departure warning and lane keeping systems (does not include the cost of a replacement windshield): $850 to $1,900
• Front, side mirror or rear camera sensors used with around-view systems: $500 to $1,100
• Front or rear ultrasonic sensors used with parking assist systems: $500 to $1,300. (Minor formatting edits.)
If you dont believe AAA, just check out what Ally Finance had to say about how great service plans are:
"More than Half of Consumers Paid for Major Car Repairs in the Last Five Years, According to an Ally Survey
In the first 5 Years of owning a new or pre-owned vehicle, Four in five people reported repairs spent $500 or more, while Federal Reserve data finds 41 percent of Americans can't afford an unexpected $400 expense
DETROIT, -- Many American drivers who have to pay for unexpected, major car repairs could be at risk of facing costs they cannot afford.
Fifty-one percent of consumers reported paying for major vehicle repairs in the last five years, according to a survey of more than 2,000 Americans conducted online for Ally Financial by The Harris Poll. Of consumers who reported paying for repairs, four in five (80 percent) said they spent $500 or more, and nearly three in five (58 percent) said they spent $1,000 or more. One in three (33 percent) said they spent $2,000 or more.
Meanwhile, a 2018 Federal Reserve study found that when faced with an unexpected $400 emergency expense, 41 percent of adults either could not pay the expense, or would need to borrow money or sell something to cover it. This means that a significant portion of drivers who are faced with unexpected repairs could not cover them out-of-pocket.
"Expensive car repairs can cause serious financial stress, especially for those with little or no emergency savings," said Mark Manzo, president of Ally Insurance. "Most major vehicle repairs come unexpectedly, and standard insurance policies usually only cover repairs in case of accidents. The rise of complex vehicle technology and the increase in the number of used vehicles on the road have only made repairs more expensive and frequent."
There is a solution that could help many consumers – vehicle service contracts (VSCs), which cover repairs that often are not covered by factory warranties or are no longer covered by expired warranties. Only 18 percent of those surveyed reported buying a VSC in the last five years. Nearly three in five (59 percent) of those who had purchased VSCs said the peace of mind that comes from knowing repairs are covered was the top motivator for buying the coverage.
"Service contracts provide customers with the security of knowing they don't have to worry about car repair bills derailing their budgets or putting them in debt," Manzo added. "Payments for some VSCs can be rolled into regular auto payments, making it easier for consumers to budget and map out their expenses ahead of time. You can't know when to expect the unexpected, but you can plan ahead by talking to your dealer about vehicle service contracts."
The survey was conducted online within the United States by The Harris Poll on behalf of Ally from January 5-9, 2018 among 2,064 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
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