Buying an Extended Warranty

Reader question:

What should I be looking for when I’m going to buy a new car with an extended warranty?


Great question.

  • Get it from the right place. You can find a lot of places that will sell warranties online or in other places, and they generally have good deals when it comes to price and more ful warranties. Try these instead of your car dealership, who will charge twice as much for half as much coverage.
  • The warranty administrator should be backed with money and have insurance. The greatest way to go is with a publicly traded administrator who will put a part of the price that you bought your contact at into a claims reserved account, which will be insured, to make sure that there will always be enough money to pay for a claim that is covered in the warranty.
  • Your warranty should start right now, the second you buy it. If you get one that starts way back when you bought your car, or doesn’t start until later, you’re asking for trouble.
  • No deductible, or only a deductible for each time you make a claim.
    It should come with a buyers remorse period of sixty days wherein you can get your money back.
  • It should be able to be switched from your old car to your new when you buy a new car.
  • You shouldn’t have to buy your warranty as soon as you buy your car
  • Things like overheating and antilock brakes should be covered in the policy.
  • You should have certain perks, like getting compensated for a car rental while your vehicle is being fixed and towing.
  • Breakdown and wear & tear.
  • Repairs shouldn’t have to be done at only one place. Better if they can be done at any repair shop that is ASE certified.
  • The warranty should pay the mechanics, not you. One way for them to get out of giving you your money is to make you pay at first and them reimburse you.


Fashun Guadarrama.

About the Author:

Austin Davis, consumer car repair advocate. "Hi there! I love to help people solve their car repair problems and I hope my site was helpful to you today. Thank you for stopping by."