How To Choose an Extended Auto Warranty

Buying an extended warranty for your vehicle can potentially save you a lot of money, but you want to get the best deal for your dollar. This article will tell you what to look for when purchasing an extended warranty for your car, as well as where you can purchase such warranties.

  1. The extent of the warranty. The first step when deciding to purchase an extended vehicle warranty is to decide which type of warranty would be best for you. There are extended vehicle warranties that range from only covering engine and transmission parts, to a bumper-to-bumper warranty, and even some that include rental reimbursement, towing, and roadside assistance. If your car is newer and you only want to cover the big ticket items, then a warranty that covers only engine and transmission parts may be best for you. However, if your vehicle is older and you want the added security of knowing you are fully covered, then a bumper-to-bumper warranty would serve you best.

    Another aspect to consider is what kind of deductible you want. Can you afford a $200 deductible, or do you need a lower one -- say, $50 or so. You need to decide how long you want the extended warranty to last; length of warranties start at 12 months and go up form there, with prices ranging from $800 to $2000. Once you decide what kind of warranty you need and what terms need to be met, you are ready to purchase an extended warranty for your vehicle.

  2. Car dealership. One of the best places to look, if you are just purchasing a used vehicle, is the dealership where you bought the car. Many times the dealerships already have plans set up with a particular company that could save you money by purchasing an extended warranty through them. Another advantage to purchasing a warranty through a dealership is that they can often add the vehicle price into your purchase price and you do not have to come up with all the money for the warranty all at once.
  3. Banks and credit unions. If it has been awhile since you purchased your vehicle and your manufacturer's warranty has expired, or if you just want another option, then consider banks and credit unions. A good place to go for extended warranties for you vehicle is you bank or credit union who either finances your vehicle or with whom you have an account. They almost always have a vehicle warranty company that they work with, and once again it can be a great opportunity to save some money. If you are still financing your vehicle with them, they will often add the extended warranty amount to your final balance, and once again you are not paying all at once for your warranty.
  4. Internet. Last but not least, a wonderful resource for finding and researching various extended vehicle warranties is the internet. There are a ton of companies listed on the internet that can provide you with extended vehicle warranty information. Be sure to read the fine print though and make sure you are getting exactly what you need in a warranty. A few great sites where well-priced extended warranties can be found are,, and Warranty Direct, which provides you with quotes from several different companies at once. On each of the sites listed above, you can obtain a free quote by following the directions on the main page.

Extended vehicle warranties can save you on high vehicle repair costs, and help you with valuable resources like roadside assistance and rental reimbursement, but you must do your research and find the warranty that is right for you.


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