Why it's important to lock in lower warranty prices early

None of us are immune to the allure of procrastination. It’s been estimated that the average person spends a whopping 55 days a year pushing things off. But when it comes to protecting your EV with an extended warranty, waiting too long can cost you more than just time. 

Delaying an EV warranty might feel like it saves money now, but it costs more in the long run. Let’s explore why locking in an extended warranty before your EV begins to age can save you thousands and give you what most of us want—that priceless peace of mind.

Waiting on warranty coverage can introduce financial risk

What if you told your dentist that you’ve decided to skip your check-ups for the next five years, so you can save money. You feel like your teeth are in great shape, you brush and floss daily… what’s the risk? Your dentist is sure to raise at least one eyebrow, and tell you that you’re likely to face one of two scenarios. One is that you’ll show up after the five years with dental or related problems that will be more expensive to take care of due to neglect or a lack of thorough checkups. The second is that you’ll show up within those five years, with pain, cavities, or some other issue that’s also a result of neglect. That root canal will cost you more than what you saved by skipping the checkups – and your dental plan might take notice and even deny you coverage.

It is no different with vehicle warranties: proactive care saves money and prevents bigger or more serious problems later on. With electric vehicles (EVs), the battery accounts for roughly one-third of the vehicle’s price – an astronomical sum compared to most other types of electric vehicle maintenance. That’s why it’s important to read the fine print of those warranty agreements: Tesla, for example, will only cover batteries that fall below 70% of original capacity.

EV batteries are not the only cause for sticker shock at the service center. Because EVs tend to be heavier than traditional cars, suspension and steering components (like shocks, struts, bushings, and ball joints) experience more wear and strain. Brake system failures could require expensive electronic repairs. Repairs to the sensors, onboard charger, or thermal management system all could break the bank.

With basic vehicle warranties lasting 3-4 years, and powertrain warranties generally only 1-2 years beyond that, is this a gamble you’re willing to take?

Lock in warranty coverage early for peace of mind

Let’s say you drive a 2022 Ford Mustang Mach-E with 30,000 miles on it. The Standard Factory Warranty will give you 3 years/36,000 miles on the vehicle, and 8 years/100,000 miles on the battery. You’re enjoying your Mach-E and want to keep it for another three years. With XCare, an investment of $3,382 today would cover your Mach-E until January 2028 or 66,000 miles on the odometer, at the extremely reasonable deductible of $100. Any of the aforementioned repairs could amount to a comparable sum, and like any depreciable asset it’s a question of when – not if.

Of course, in life as well as in business, change is a constant. In 2026, Ford will release the next-generation Mach-E. You might change your mind about keeping your current model, and go for the upgrade. Big question then comes up—what happens to your extended warranty? Do you lose it? Fear not! With XCare your warranty is transferable or get a pro-rata refund. You’ll enjoy a higher value when selling your car or get a refund back for the portion you did not use.

Now let’s talk about plan and payment options. You’ll find both monthly subscription models and fixed-price contracts. The monthly subscription model is certainly alluring—you pay a lower monthly fee and can cancel any time (generally) instead of a large lump sum or monthly payments paid toward that sum.

As always, it’s important to read the fine print and do your homework. That monthly subscription might be low on a month-to-month basis, but over time it can add up to exceed the price of a fixed contract. For example, if you have a 10-year/100k-mile XCare plan that you had the foresight to buy early enough in your EV’s lifetime, at just $4,000, you would pay approximately $292 per month (after an initial deposit or first payment). A monthly subscription plan with another company for comparable coverage would run you just $90 per month. But let’s do the math: 

• XCare total cost (120 months): $4,000

• Monthly subscription total cost (120 months): $10,800

In other words, the real cost of your XCare is $33 per month—one third of the cost of the monthly subscription. Even if you hit your 100k-mile limit on your XCare plan a year early, it would still be lower ($37 per month). The numbers don’t lie.

Here’s one other thing to think about. Making the monthly subscription contracts easy to opt-out from might sound convenient, but can also leave you with gaps in protection, introducing new risk in your buying decision. With XCare, our fixed-duration contracts provide continuous, predictable coverage over a set term. Set it & forget it, as they say—and enjoy your EV and all its benefits.

The bottom line: the flexibility of monthly subscription models is better suited for older, lower-value vehicles where flexibility is prioritized over comprehensive protection. Your EV, of course, is not a low-value vehicle. It’s a valuable asset worthy of preservation and protection.

Just a few days left for 2024 pricing!

You have chosen to drive an EV because it represents a dramatic change from the ordinary motoring experience. Whether you chose it for its lower emissions, lower fuel and maintenance costs, cutting edge technology or simply because of the exhilaration that you feel behind the wheel – you know that this is a different type of vehicle. This is the future of travel and transportation, and you’re a part of it.

Ordinary warranties are just fine for ordinary cars. XCare is the first warranty built 100% for EV owners – because yours is not an ordinary car. We’re redefining the experience of an extended warranty by designing the first and only extended warranty for EVs, and our white-glove customer service.

Don’t wait to protect your investment. You can have a well-maintained EV just as easily as beautiful, healthy teeth—all it takes is proactive care.

Act now to lock-in 2024 prices before the new year!