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Extended Auto Warranty Questions Before Buying
Last Updated 07/18/2019

Purchasing an extended warranty is one of the best ways to avoid repair costs as your gets older and is bound to start having mechanical problems pop up here and there. Sure, the vehicle never breaks down during the first years of ownership, but then as soon as your current warranty expires, all the expensive stuff starts happening.

However, before you buy one you should ask yourself a few questions to see if purchasing a vehicle service contract (also known as an Extended Auto Warranty) is right for you.

Extended coverage is not for everyone, policies differ in price and coverage. So exactly how do you know which one’s right for you?

Below is a list of questions the experts at the BBB and Consumer Reporting have comprised for you to ask yourself if buying a warranty policy is right for you.


Warranty questions to ask yourself:

Do I Have to Buy a Warranty from a Dealer?

The short answer is NO! Dealers and their staff want you to believe you must buy a warranty at the time you buy a car. This is NOT TRUE, you can purchase coverage from any company you choose at anytime you want.

When Should I Buy a Warranty?

You can wait until your factory warranty is about to expire however we don’t recommend it. The longer you wait, the more expensive it will be. A couple of the key factors a warranty company looks at is the vehicles age and how many miles it has. The newer the vehicle and lower miles equals less risk for the warranty provider.


Do I Need an Extended Warranty?

Before buying an extended warranty for your vehicle ask yourself these questions.

Will I keep the vehicle for a long period of time? (Also ask yourself if you want a car payment vs. an extended warranty which is 1/10th the cost or less of a car payment)

This is the most important question you can ask yourself. If you’re one of those people that get tired of your vehicle every three years and don’t drive that often, you probably do not need to purchase an extended warranty.

If you’re leasing a vehicle for 36 months or less you don’t need an extended warranty. The dealer will still try to sell you one but don’t do it, it’s a scam!

Most Manufacturer’s warranties will cover any major mechanical breakdowns ONLY for three years and 36,000 miles. There’s a reason warranties expire so early … because that’s when things start breaking down.

If you’re one of those people that puts a lot of miles on a vehicle quickly or drives a car until it falls apart, you should definitely consider purchasing one for the added coverage and peace of mind.


Do you drive far from home? Business Trips or Roadtrips?

Trip Interruption coverage is part of an extended warranty. Between the cost of hotels, rental cars, towing and other losses incurred when a breakdown happens at a bad time in a bad place, can you afford not to have this coverage? Oftentimes it can take days to get a part in even for a simple repair. Extended Warranty coverage gives you the flexibility to do what you need without worrying about the cost.

What are the benefits of this online Auto Warranty vs. buying from the Dealer?

Most extended warranties sold through new and used car dealerships are actually through a third party and the dealer is acting as the middle man. Many dealers own the company providing the coverage and they’ve set up the company under a different name to give the consumer a sense of security. However, if you check out those “adminstrtators” or “underwriters” BBB ratings, they’re almost always failing grades. We boast an A+ rating with the BBB.

The obvious answer is that you’ll overpay if you buy from the Dealer. You’ll also pay interest and require a credit check if you buy from the dealer, or be forced to pay in full on a credit card.

We offer credit free and interest free payment plans without checking credit. The full benefits can be Found Here


How Much is the Warranty Deductible?

Always research how much and what kind of deductible you are responsible for before you sign the contract. Some warranties have a deductible per repair item and some have deductibles per repair visit.

Per repair item deductible – The overall cost of these types of extended warranties may be cheaper up front however you will have to pay a deductible for each covered repair item you have fixed on your vehicle.

Per repair visit deductible – The overall cost of this type of extended warranty may be a little higher. However you will only be charged a single deductible no matter how many covered repair items you have fixed under your warranty.

An example of the above deductibles would be this:

Let’s say you have a $100 per visit deductible. You take your vehicle in for an alternator, starter and fuel pump problem. Your deductible would only be $100. If you had a per repair item deductible you would be charged $100 for each item or $300.

Another thing to be aware of about warranty deductibles is how much is the deductible? Warranty deductibles can range from $50 to $250 or more? The higher the deductible normally means the cheaper the overall cost of the warranty. Do your research when finding the one that best fits your budget.

We offer everything from a $0.00 deductible policy up to a maximum of $100. Never more. You may have to pay a little more for $0 deductible coverage. However if you find yourself taking your car in frequently or want to have the peace of mind not having to come out-of-pocket in the future. You may find this kind of policy to best fit your needs.


What Type of Auto Warranty Should I Buy?

Although extended warranty companies may call their policies by fancy names. They can pretty much be all condensed into three different categories.

Exclusionary “Bumper to Bumper” Warranty – Also know as a bumper-to-bumper warranty, this type of policy covers nearly all of the mechanical systems of a vehicle except for the parts listed on the policies “exclusion list.”

The exclusion list will have all the parts or systems NOT covered by an exclusionary warranty. It’s in your best interest to find and review this list carefully to make sure you have the parts you will want covered on your policy.

Named Component “GOLD” or “DELUXE” Warranty – Also known as an inclusive warranty, this type of coverage is pretty much black and white. It will cover the major mechanical breakdown or major mechanical systems of your vehicle. Basically, if the part is not listed on the contract then it will not be covered by the policy.

Powertrain Warranty – This type of extended warranty only covers the engine, transmission and certain parts of the drivetrain. Powertrain warranties only cover the parts in which oil flows through the vehicle (internally lubricated parts) . As past statistics show, these parts of an automobile are the least likely to fail.

Please remember a car has thousands of static and moving parts. A powertrain warranty does not cover these “other parts.” Some people question if a powertrain warranty is truly an extended warranty?

CAR BUYING TIP – Companies will sometimes sell auto warranties very similar to each other. Salespeople may call them all by the slang term “Bumper-to-Bumper” not knowing any different and this can be misleading to the consumer.

Never take anyone’s word for what a warranty covers. When inquiring about an extended warranty it’s better to ask, “What is not covered, rather than what is covered by the policy.

Most normal wear and tear items (consumable items) such as belts, hoses, windshield wipers and brake pads are never covered on auto warranties. You can get added perks such as travel reimbursement, roadside assistance and travel lodging. We ALWAYS include these perks. Many others don’t. Make sure you ask and understand what all is included when selecting a warranty.


Can I get a warranty if my factory warranty is expired?

Yes you can. Many people don’t realize their vehicle may still be eligible for extended coverage after their manufacturer’s warranty has expired.

Once a manufacturer’s warranty expires is when a vehicle is more prone to have mechanical and system failures. Most vehicles under 10 model years old and 150,000 miles are still eligible to receive some kind of extended coverage.

Keep in mind the older your vehicle gets and the more miles you put on it, the more expensive the warranty will be.

What if I can’t get my warranty financed?

On rare occasions a bank may not finance the added amount of an extended warranty on a car loan. Sometimes a car dealership will mark up a warranty so high the lender will not finance it because the “Loan-to-Value” is, for lack of better words, out-of-whack.

If a car dealership or lender tells you they’re unable to include the extended warranty in your car loan, look at it as a blessing since we do not require bank financing or a credit check. You may ask yourself how we can do that, but the answer is actually quite simple. If you stop making your payment, you would lose your coverage, and why would you want to do that when your car is even more likely to break down the older it gets, right?

You may find the an extended warranty at a cheaper price elsewhere, but if you do, chances are there is a catch. Check BBB ratings to start.

Regardless, if you haven’t gotten a quote from us yet, it only takes two minutes to fill out our form on the right or


Other common FAQ’s:

Why am I getting an error when I put in my mileage?

Posted by on Monday, January 19th, 2015 in

At this time, we are unable to sell coverage for cars that exceed a certain mileage. However, our partner may have a specialized product that will meet your needs. Your information will automatically be passed on to one of our partner companies that can provide you some from of repair assistance, so expect a call […]

Read More

Why am I getting an error when I put in California or Missouri?

Posted by on Monday, January 19th, 2015 in

At this time, we are unable to sell Vehicle Service Contracts in any of these states. However, our partner may have a specialized product that will meet your needs. Your information will automatically be passed on to one of our partner companies that can provide you some from of repair assistance, so expect a call […]

Read More

Do I need your product if I’m already covered by the manufacturer warranty?

Posted by on Monday, January 19th, 2015 in

Depending on when you purchased your vehicle, your original manufacturer warranty may be about to expire. Most cars are covered for their first 36,000 miles or 3 years, whichever comes first. And naturally, if you plan on having your car longer than 3 years (or whenever your warranty expires), buying now will always save you […]

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Why do I need your product when I already have a powertrain warranty?

Posted by on Monday, January 19th, 2015 in

Powertrain warranties are limited in the components they protect; typically covering the main engine, drive axles and transmission. What they don’t cover are all the other items that can, and often do, go wrong. Like all the electronics, luxury packages, power seats, windows and tailgates, braking system, air conditioning, heating system, cooling system, fuel system, starting […]

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I don’t see an option for the year my car was made?

Posted by on Monday, January 19th, 2015 in

We’re sorry but any vehicle that was manufactured prior to 1997 is not eligible for our products. However, you may still be eligible for coverage through our partner who will be contacting you automatically upon submission of your vehicle information.

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What type of financing or payment arrangements are available?

Posted by on Monday, January 19th, 2015 in

Our payment plans are available with no credit check or interest. Depending on the coverage term, you may be offer 6, 12, 18 and sometimes even 24-month payment plans that typically require at least 10% downpayment to activate the coverage. In some cases, Month-to-month plans may also be available. Please submit your vehicle and contact […]

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Where can I find an example or sample of a contract?

Posted by on Monday, January 19th, 2015 in

Since we work with many different underwriters, please speak with an agent to determine which Vehicle Service Contract is best suited for your needs. Your agent can then email you a sample contract before you purchase your vehicle service contract, but we recommend activating your coverage today to get the clock started on your 30-day […]

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Is there a waiting period condition in my service contract terms and conditions?

Posted by on Monday, January 19th, 2015 in

Yes. There is a 30 day/1000 mile or a 90 day/200 mile waiting period from the odometer reading and sale date of the service contract. During this time, we are unable to authorize payments on claims. This allows us to keep our service contracts at a competitive price for the consumer by eliminating coverage for […]

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Once I buy the contract, can I bring my car in next week to get it fixed?

Posted by on Monday, January 19th, 2015 in

No. There is a 30 day/1000 mile waiting period (90 day/200 mile waiting time for people who drive less) from the odometer reading and sale date of the service contract. During this time, we are unable to authorize payments on claims. Why? We don’t want folks to buy a contract knowing the vehicle has existing […]

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Do I need service records for every claim?

Posted by on Monday, January 19th, 2015 in

Not every claim will require maintenance records, but some do. If the claim is for a maintenance related item we will ask to review your records. Occasionally, we will ask for service records to verify your mileage on your contract in order to verify you were provided the correct coverage.

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