Is Hyundai’s Extended Warranty Worth It?

Disclosure: This content was produced by an independent editorial party for the purposes of educating our customers, and is not influenced by the other business operations of CARCHEX.

A Hyundai extended warranty can keep your car on the road for longer and save you hundreds—even thousands—of dollars at the repair shop. When shopping for extended coverage for your Hyundai, protection plans from third-party providers are often more flexible and less expensive than coverage plans from the dealership.

The experts at CARCHEX have been keeping drivers covered on the road for more than 20 years. Keep reading to learn how we can help you find the best extended warranty for your Hyundai.

Extended warranties are vehicle service contracts that provide continued coverage for certain repairs and parts of your Hyundai vehicle at an extra cost. If you purchase extended protection from the Hyundai dealership, you choose from three levels of protection options:

• Powertrain—This only covers the engine, transmission, and drive axle of your Hyundai vehicle.
• Gold—This covers what’s included in the powertrain extended warranty, plus additional components like the climate control system. It doesn’t include high-tech electronics, brakes, or steering components.
• Platinum—This plan gives the highest level of component coverage, including high-tech electronics and the navigation system.

Hyundai also offers limited Gold and Platinum-level extended warranty options for certified pre-owned Hyundai vehicles.

Limitations of a Hyundai Dealership Extended Warranty

Extended warranties offer great protection for your vehicle. However, choosing a Hyundai-branded extended warranty may not be the best decision. When you purchase a vehicle service contract from Hyundai, your flexibility and payment options are limited. For example:

• Limited Repair Shops—When you use a vehicle service contract from Hyundai, you have to take your vehicle to a Hyundai dealership for any covered repairs.
• Interest Charges—Most Hyundai dealerships will encourage you to add an extended warranty contract to your financing. This might seem like an easy way to make monthly payments on your service contract, but it also includes the interest on your new car financing. You’ll not only pay the price for the vehicle service contract, but you’ll also have to pay interest on that amount.
• Higher Costs—Your Hyundai dealer won’t be able to shop around for the best price. In fact, most dealerships aren’t able or willing to give you a lower price on a vehicle service contract.
• Limited Timeframe—Unless you purchase a certified pre-owned Hyundai, you can only add an extended vehicle service contract at the time you buy a new Hyundai. If you decide a few years into ownership that you’d like to protect your vehicle, you won’t be able to purchase a Hyundai-branded service contract.

Hyundai Assurance, known as America’s Best Warranty, is Hyundai’s bumper-to-bumper warranty for new vehicles. Hyundai offers some of the longest warranties and protection plans for new vehicles. The brand offers a 10-year / 100,000-mile powertrain warranty, a term that’s widely considered the best protection on the market.

While 10 years or 100,000 miles sounds great, it’s not all it’s cracked up to be. So what’s missing?

Here’s a quick look at the manufacturer’s warranty that comes with a Hyundai the moment you drive it off the lot.

• 10-year / 100,000-mile powertrain limited warranty—Covers the repair or replacement of components of the powertrain, such as engine or transmission components
• 5-year / 60,000-mile new vehicle limited warranty—Bumper-to-bumper coverage of almost all components on the vehicle, with limitations for certain audio systems, batteries, and paint
• 7-year / unlimited-mile anti-perforation warranty—Provides coverage for rust holes only from the interior body to the exterior
• 5-year / unlimited-mile 24-hour roadside assistance—Offers roadside assistance services such as towing
• 12-year / 12,000-mile replacement parts and accessories warranty—Covers Hyundai-certified replacement parts installed after the 5-year/60,000-mile warranty coverage is up
• 8-year / 80,000-mile federal emission defect and performance warranty—Covers repairs or replacements of certain emissions control components should they fail an EPA-approved inspection
• 7-year / 70,000-mile California emission control system warranty—Applies to vehicles manufactured to California state emissions requirements and covers emissions control components that fail to meet California state inspections
• Lifetime hybrid battery warranty—Replaces lithium-ion batteries in Hyundai hybrid models and recycles old battery free of charge

Hyundai’s factory bumper-to-bumper warranty is one of the best offered by a manufacturer, but there are a few things you should know:

• The new vehicle limited warranty does not apply to hybrids, electric, or natural gas vehicles.
• All the warranties listed above cover only pieces manufactured by Hyundai or original to the vehicle.
• You’re only covered by the plans listed above if you get your car serviced at select authorized Hyundai dealerships.
• If you sell the car or buy a used Hyundai, all those great warranty perks end.
• Once your dealer warranty expires, you’re on the hook for all repair bills.
• Covered repairs are limited to parts or components that are found to be defective.

The most important reason to protect your Hyundai with a vehicle service contract is to help pay for covered repairs. Although Hyundai is in the top 15 leaders for vehicle reliability in J.D. Power’s 2020 and 2021 Dependability Studies, all cars are prone to breakdowns.

Check out this list for common repairs and their cost for a 2017 Hyundai Sonata, according to data from RepairPal:

If your Hyundai factory warranty has expired or if you’re shopping for a pre-owned Hyundai, a third-party extended auto warranty can give you the peace of mind you need in the event of an expensive repair.

Here’s a look at the five levels of coverage offered by CARCHEX, with many protection plans available within each.

When you choose to protect your Hyundai with CARCHEX, you’ll enjoy these benefits:

• We offer low monthly payments, so you can be sure an extended warranty will comfortably fit into your budget.
• You get to choose your repair shop, so you can stay with the mechanic you trust most and won’t have to go to the dealership for repairs.
• We pay claims directly to the repair facility, so you never have to foot the bill then wait around for reimbursement.
• All CARCHEX plans are transferable, which can increase your car’s resale value on the private market.
• We offer a 30-Day Money-Back Guarantee, so if you’re not completely satisfied with your warranty, you get a refund.
• We give you roadside assistance, which helps you get your car to the nearest repair facility and back on the road.
• We’ve got an A+ rating from the BBB, meaning we’re a vehicle service contract company you can trust.

A Hyundai extended warranty is always a smart move, but you have options beyond what the manufacturer provides. CARCHEX warranty specialists will work with you to ensure that you find extended coverage for your Hyundai that suits your needs and budget. Our flexible warranties can be customized specifically for you.

Getting a CARCHEX extended warranty quote is free, fast, and easy. Call us at 866-261-3457.

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Sources:

Autotrader: https://www.autotrader.com/car-tips/buying-a-car-is-the-factory-warranty-transferable-228454

KBB: https://www.kbb.com/car-news/can-i-get-a-warranty-with-that/2100005672/

Hyundai: https://www.hmfusa.com/hpp-mechanical-Coverage

Edmunds: https://www.edmunds.com/auto-warranty/five-questions-to-ask-before-you-say-yes-to-an-extended-warranty.html

J.D. Power: https://www.jdpower.com/business/press-releases/2020-us-vehicle-dependability-study

J.D. Power: https://www.jdpower.com/business/press-releases/2021-us-vehicle-dependability-study-vds

RepairPal: https://repairpal.com/estimator/results/0c67a550-d2e3-4984-bce6-2449d60e121e

RepairPal: https://repairpal.com/estimator/results/d24893d9-604f-4e03-a452-0299991d4dc4

RepairPal: https://repairpal.com/estimator/results/7d4d5a85-4a4e-48c2-a99e-5db8a25fa057

RepairPal: https://repairpal.com/estimator/results/76b3b507-a50f-4d8d-98a2-450c3cd06602

Edmunds: https://www.edmunds.com/hyundai/sonata/2018/cost-to-own/#style=401758164

CARS.com: https://www.cars.com/articles/making-sense-of-new-car-warranties-1420680927011/

Better Business Bureau: https://www.bbb.org/us/md/hunt-valley/profile/extended-warranty-contract-service-companies/carchex-0011-23015869