A car, new or used, represents a huge investment of money rivaled only by payments on house mortgages. Cars, more than any other any investment, tend to malfunction at the worst possible time. Repairs could pop up for wear and tear, overheating, accidents or part malfunction. An extended auto warranty reflects the concern over losing a vehicle to breakdowns or malfunctions, and the potential costs that could break the bank of the average driver.

An extended warranty is the best way to ensure that a sudden breakdown of a vehicle doesn't result in the driver getting stranded. Drivers who can't pay for repairs have no way to go to work, pick up groceries, or take their children to school. An extensive warranty that covers breakdown and wear and tear means that the driver will not have to pay for the labor fees that come with repair bills--fees that can end up being anywhere from 60 dollars an hour to over 100 dollars an hour. In fact, aside from regular and basic maintenance, drivers with the best coverage won't have to pay for repair bills at all.

Different policies have different coverage, and obviously the price will reflect what is covered under the extended auto warranty. Bumper to bumper coverage tends to catch most problems, but it is important to go over the contract to see what is and is not covered before assuming that all repairs will be taken care of. Named and exclusionary coverage are also extensive, naming what is not covered, rather than what is. From that point on there are also policies that only cover mechanical breakdown, ones that cover wear and tear, and ones that include roadside assistance. All of these allow security and peace of mind.

As any car owner knows, the question is not whether a car will break down, but when it will break down. With good extended warranties, the vehicle owner knows that they are taken care of when something goes wrong. Instead of being caught with an empty bank at the worst possible time, low monthly payments are made to ensure that the car stays protected, maintained and in good condition. Now that's a good investment.