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How to Compare Extended Car Warranties

Extended warranties are available as a full bumper-to-bumper warranty (which covers all but maintenance items) or a powertrain warranty (which covers all major components of the engine and transmission), or sometimes a lesser version of bumper-to-bumper coverage. The warranties can be purchased from an aftermarket provider or from the manufacturer through a dealership. Prices, mileage, deductibles and terms differ widely, so while one may seem cheaper, it may not give you the coverage you need. Learn how to compare extended car warranties.

Instructions

1

Choose a warranty that suits your vehicle. If you have a car that lacks power windows or locks, you probably dont need an extended bumper-to-bumper warranty. If you have all the bells and whistles, having a full bumper-to-bumper warranty may serve its purpose well, as sunroofs, heated seats or navigation systems can prove expensive for repair or replacement.

2

Ask for a list of covered items for the warranties you are comparing. While the technical terms for covered repairs or parts may seem confusing, you should ask any questions to the warranty representative, so that you are sure what is covered and what is not. Compare printed lists to determine similarities and differences, and ask questions if you find any covered items missing from contracts you are comparing.

3

Compare the term and mileage for your warranty. You should ask for coverage that suits your driving needs, such as a 15,000-mile-per-year instead of a 10,000-miles-per-year allowance if you commute. For those who do not drive much, the years are more important than the mileage, such as a four-year, 40,000-mile-per-term warranty over a two-year, 40,000-mile-per-term option.

4

Compare prices and deductibles. Once youve determined comparable coverage and a term that fits your needs, pay close attention to the deductible. You should note that deductibles are charged per incident, so make sure you are choosing an affordable deductible, although some warranties are available without a deductible.

5

Ask where you can service your car. If youre purchasing from a manufacturer, you can use any same-make, new-car dealer. Extended warranties are usually accepted by any shop that uses the company. Find out if you are expected to pay first and be reimbursed later, or call around to shops in your area to ask if they take the warranty that you are considering for purchase.

6

Ask if the warranty is transferable. This means that if you sell your car during the contract period, you can offer the remainder of coverage with your sale. Or, ask if you can be prorated back any of the contract cost amount should you cancel the warranty at a later date.