Tips to Selecting Extended Auto Warranty

Tip#1: Make Sure You Require an Extended Auto Warranty

Without any element of doubt, the extended auto warranty offered by an Auto Service Agency helps in saving thousands of bucks in car maintenance and repair. But, as beneficial as it may sound, there are cases in which auto warranty is not required and wouldn’t be able to offer any protection.


Those cases are as follow:

  • The new vehicles already come with manufacturer’s 3-year warranty. This means you do not have to buy extended warranty as you are already covered.
  • If your car is 10 years old and someone tries to sell you an extended warranty, you must know the full coverage ends after 10 years. Also, if your car has completed 120,000 miles run, any warranty beyond that would just be a scam that you must avoid at all costs.

Tip#2 Hire the Right Service Provider

Unfortunately, auto warranty frauds are rampant these days. Before selecting one for your car, you need to carefully research. Find a company registered on BBB or D&B. Ignore all the warranty offers you receive through email or telephone. The trustworthy firms dealing in auto warranty don’t use these selling mediums.

You also should avoid making a deal with a middleman or any 3rd party. To find the right service provider, check reviews of top auto warranty providers online, and then get a second opinion before finalizing your deal.

Tip#3 Select the Right Coverage Plan

Knowing in advance about the coverage you require for your vehicle would help you in saving a lot of money. For this, you must understand different auto warranty plans to get the best one.

Tip#4 Always Cancel the Contract Transfer Policy

If you are having second thoughts about a policy, you must ask the service provider to cancel it. Many firms would charge you for policy cancellation before time. However, a good auto service agency always has a 30 or 60 days initial cancelation policy providing you with a full refund and a prorated refund after the initial period of cancelation at any time. Such companies also offer a provision of transfer coverage, in case your vehicle is bought by another person.

Last but not least make sure you understand all the points of the extended auto warranty contract before signing it to avoid any issue afterward.

Wilko is a full-time motoring journalist with an obsessive interest in all things automotive.