Over 2 million of them are already on the road, and as the number of electric vehicles sold rises nationwide, they’ll get even easier to buy in the years to come. But like all cars, EVs need repairs, often when you least expect it–and that’s where EV incentives like extended warranties come in.
In the guide below, we’ll take a deep dive into what extended warranties are, how they can help make EV costs more manageable, and whether they’re the right choice for you. By the end, you should have everything you need to make the right choice when you’re looking to buy your first, or next, electric car.
When you buy any new car, it typically comes with a warranty that should cover you for repairs for anywhere from three to five years. After that, you’ll have to pay for repairs and replacements on your own or apply for an extended warranty. This is a vehicle service contract offered by either a manufacturer or a third party that extends coverage for a period after the original warranty has expired.
Many EV warranties are even more generous, typically offering battery replacement coverage for up to eight years or 100,000 miles. Over a million new EVs are expected to be sold in 2024, putting more drivers on the road under manufacturer’s warranties. But as the pool of used EVs grows and warranty periods come to an end, buyers can turn to extended warranty providers to protect them.
EV warranties usually cover repairs and parts replacements for components such as the motor, powertrain, lights, suspension, air-conditioning system, charging port, and built-in technology such as the sound system. Extended warranties, however, may only cover a few of these components, and typically cover less than manufacturer’s warranties.
In general, you can expect an extended warranty to cover an EV’s motor, charging port, battery pack, and inverter — in other words, the main components of the drivetrain. They usually won’t cover additional or incidental EV costs, such as tire, brake pad, and windshield wiper replacement.
Nearly all EV extended warranty policies will provide for battery pack replacement, as this is one of the most important parts of an EV. You should also look for a policy that covers the electric motor and certain parts, such as drive shafts, in the event of failure due to defects. However, extended warranties typically don’t include replacements due to wear and tear.
If you drive or plan to purchase an EV with the motor, inverter, power control module (PCM), and reduction drive in a single unit, look for a policy that covers each of these components. A single-unit setup simplifies manufacturing and thus lowers prices, but it can make a vehicle more difficult to repair. Warranty coverage could save you a small fortune in cases like these.
However, there are plenty of options when it comes to choosing an extended warranty provider, and many offer valuable perks and additional services. For example, you might find warranties that combine basic coverage with emergency roadside assistance, cover the cost of rental vehicles, or offer courtesy payments for food and lodging if you break down away from your home.
Two groups of drivers could see a lot of benefits from EV extended warranties. If you plan to buy a new EV and use it for many years, for example, you may want to invest in an extended warranty to protect your vehicle after the original warranty has ended.
Getting an extended warranty is also a good idea when buying a used EV with higher mileage. These are more likely to be near or past the expiry date of the original warranty, and with more time on the road, they’re more susceptible to parts failures and damage.
Since something like an EV battery pack replacement can cost from $5,000 to $20,000, ensuring your warranty will cover that cost will go a long way toward keeping your expenses manageable and your car on the road.
Let’s recap: EV extended warranties are designed to provide peace of mind, manageable EV costs, and a reliable way to get the repairs you need to keep an electric car of any age on the move. While they won’t do everything the original warranty would, they can still give you a valuable option when you’re facing repairs that could run into thousands of dollars.
As for whether it’s worth the cost, take a look at your circumstances and coverage needs before deciding. There are many situations in which an extended warranty could be the ideal solution — don’t be surprised if yours is one of them!
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Published February 13, 2024 2:30AM
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