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      June 27, 2019

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How Much Should You Pay for an Extended Auto Warranty

Tips on Purchasing an Auto Warranty Plan

When to Buy an Extended Auto Warranty Plan






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Best Auto Warranty Plans

An auto warranty is an agreement between the owner of the vehicle and a warranty company. The warranty company agrees to pay for repairs, identified in advance, during the specified warranty period. A warranty period is generally based on car mileage; anywhere from one thousand to several tens of thousands of miles. The longer the coverage, the higher the price of the auto warranty. Warranties are often purchased in lump sum amounts, but certain companies also offer monthly payment plans.

Auto warranties are generally considered a wise purchase, since the cost of car repairs can easily exceed thousands of dollars. However, that reasoning only holds true if the auto warranty covers the repairs needed. Auto warranty contracts have a lot of fine print. Understanding the scope of coverage is imperative to making a wise purchase. You also need to make sure the company offering the auto warranty is reputable - a warranty company that goes out of business will not be there to issue auto claim payments. Simply put, not every auto warranty is created equal.

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Best Reviews


Auto Warranty Reviews

5 stars
Carchex Best-In-Class Blue Ribbon Award

CARCHEX has a solid, comprehensive, easy-to-follow website that is full of helpful information. They are a highly rated company with many endorsements and positive consumer feedback. CARCHEX offers a strong array of service plans and is highly recommended.
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4.5 stars
Warranty Direct


Warranty Direct is a 30 year old company offering a long list of extended auto warranty plans to meet your needs. Rated highly by several independent agencies, customer service is a strong focus at Warranty Direct.
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4 stars


Endurance Warranty Services provides three different extended auto warranty plans. We liked their flexible premium payment schedule, 24-hour roadside assistance, and 30 day money back guarantee. They also have an A+ rating with the BBB. Read More... Visit

3 stars
AA Auto Protection


AA Auto Protection offers six extended warranty plans. They are a broker, thereby representing several companies that underwrite the warranties they sell. Their customer service representatives, while friendly enough, were not the most professional in speech and manner.
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Continued from above

Before agreeing to purchase an auto warranty, you need to be sure to consider the following items:

  • Repair Coverage. Will the auto warranty plan cover the costly repairs that may be needed?
  • Cost. How does the cost of one auto warranty company compare to the next? Are you getting what you're paying for?
  • Reputation. If and when you have an auto repair claim, will the auto warranty company stand behind you and your claim? has reviewed and ranked the best auto warranty plans available today. We hope you find these reviews helpful in finding the best auto warranty that fits your needs!

The Basics of Auto Warranties

Cars are expensive investments, whether you like to purchase new or pre-owned. In protecting that investment and to avoid future repair expenses on your car, you may want to consider purchasing an auto warranty.

Most new and some used cars are covered by some sort of warranty when purchased. For example, new cars are usually covered by a manufacturer's warranty. These warranties vary greatly and are limited in duration. They may cover a variety of repairs until either a time limit or mileage limit such as three years or 36,000 miles. Once you reach that time or mileage limit, the warranty will either totally expire or much of what it covers will be void.

Some manufacturers also offer various program warranties on specific used or pre-owned cars, usually called "certified used" or something similar, that extend the original manufacturer's warranty or parts of the warranty.

If you plan on keeping the car past the life of the manufacturer's warranty, you may want to consider purchasing an extended warranty. Extended warranties are insurance policies against expensive, unforeseen repairs. In essence, extended warranties are actually service contracts. They cover expenses incurred that your warranty doesn't cover.

Unlike manufacturer's warranties, extended warranties are purchased separately from your car. They can be purchased either through the original manufacturer or through a third-party, independent warranty company. In some cases, you'll receive offers to purchase extended warranties in the mail or over the phone from the manufacturer just as the original manufacturer's warrantee is expiring.

Extended warranties are all different. They each differ on what repairs are covered, how much is covered, duration of the coverage and cost of the warranty. Before purchasing any extended warranty, determine what is still covered on the warranty you possess, determine how long past the life of the warranty you'll keep the car, what you want covered and for how long.

When researching the details of the warranty you want to purchase, look for information on the policy's deductible, whether the policy is transferable if you sell the car and whether repairs can be done anywhere or only with specific shops. Also, look for specifics on what is covered and what is not. For instance, does the warranty cover breakdown of parts as well as wear and tear? A warranty that only covers breakdown requires the part to break before the warranty will pay to replace it. A wear and tear policy will cover parts that need to be replaced because they are too worn to work efficiently.

Purchasing an extended warranty can be a smart investment. Don't forget to research the warranty specification and the companies offering them online before making the purchase.


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California Lemon Laws: Is Your Car a Lemon?

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VW ID Batteries To Be Backed By Eight-Year Warranty

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Koehne Auto

GMC has the largest new car inventory in the Marinette area, which contributes to over 400 new and used vehicles. We expect to make our customers COMPLETELY SATISFIED, and will not settle for less. We ...

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