This is a decision that can be made intelligently by asking a number of questions.

Assuming you are still under the original car warranty, do you have any other warranty coverage? Some dealerships offer extra warranty packages when you purchase their vehicles. If you have one of these, why would you need two extended coverage policies?

Can you handle the repairs? While extended warranties can be pricey, they are kind of like a long-term repair plan, paying for it regularly over time until something goes wrong. If you weren’t paying for the extended warranty on your Toyota, would you be able to put that money away in a ‘rainy day fund’ so it would be there when you need it? If not, it may be a better plan to put the money into an extended warranty policy so you have repair coverage when you need it.

How much will those repairs cost? Some cars cost a lot more to fix than other cars, whether it’s because of imported parts or specialized labor, certain vehicles can run up a high bill for small fixes. You should look up your car history and see what average repair bills run. You could even ask the dealership. If they are on the high end, a Toyota extended warranty may not be a bad idea.

How long will you keep your car? Are you the kind of person who will be using your car until it’s no longer a viable form of transportation? Or, when the new Toyotas come out in a few years are you going to ditch this car for a newer model? If you are going to keep it around a long time you may want to invest in the extended warranty program to keep it going for as long as possible. If you are more of a trade-up kind of person the extra warranty coverage may not even kick in by the time you get rid of this car.

Do you have faith in your car? Some cars are just more reliable than others. Part of this answer is going to come from what you already know about your car, the other part should come from doing some research into others who own the same kind of vehicle. If they are having a tough time keeping theirs running, you should consider you will likely have the same kind of problems and may want that extended warranty.

How many things can go wrong? The more options your car has, the more things there are on it to go wrong and need to be repaired. Take an inventory of all the extra bells and whistles you have on your car. The more of them you have, the more likely a Toyota extended warranty is a good idea.

Currently, Dodge extended warranties are available from three years-36,000 miles to seven year-100,000 miles warranty. With a wide variety of plans from basic to bumper to bumper, whether or not you choose an extended warranty depends largely on how long you intend to keep your new car.

For example, a Dodge Caravan warranty covers outer body rust through 100,000 miles; with the Powertrain for 36 months. Or, a 36,000 miles for 60 months on the Powertrain warranty, or the basic 36 months and 36,000 miles warranty.

In addition, here is the basic warranty structure for a 2006 Dodge Caravan. It includes:
Base Warranty: 3 years/36,000 miles; Drivetrain Warranty: 3 years/36,000 miles; Federal Emissions Coverage: 2 years/24,000 miles; Federal Emissions Coverage – Listed Components: 8 years/80,000 miles; Corrosion Warranty: 5 years/100,000 miles;
Roadside Assistance: 3 years/36,000 miles.

The seven year, 100,000 mile plan includes: up to $100 deductible per repair visit; $100 towing and roadside assistance; $35 rental up to 7 days; $1,000 trip interruption; and a one-time transfer plan which allows you to transfer its coverage to the second owner only if the 7/70 Powertrain Warranty is also transferred.

Let’s assume, for example, that you only intend to keep your Dodge Caravan for three years. Well, it wouldn’t make sense to purchase a Dodge extended warranty since you are already covered on the factory warranty. However, if you feel that you will keep the car beyond the three years, then purchasing an extended warranty would be appropriate.

As with most extended warranties, they can also be purchased through a second party. For instance, the Auto Club offers warranties for most vehicles today. Their offer two plans: Gold and Deluxe.

The deluxe plan, although recommended, has one drawback. Unless a part is not listed under the non-covered parts and maintenance service, it’s covered. Also, the gold plan is exclusionary, which essentially means it is limited and only pertains to the general maintenance of the Dodge Caravan. Conversely, gold plan is a comprehensive in nature. In addition to major mechanical items, it covers the majority of the electronic components in the automobile.

Buying a new car or a certified used car comes with a bit of anxiety in that you never know if you should purchase extended warranties. However, in this example of the Dodge Caravan, there is enough information here for you to decide whether or not a Dodge extended warranty is appropriate based on your usage and how long you intend to keep the car.

What does the Acura Extended Warranty include? For starters: roadside assistance; concierge emergency service; rental car reimbursement; trip interruption; trip routing; comprehensive component coverage; and, of course, service from trained technicians.

In addition, the all-important roadside assistance does not incur out-of-pocket expenses and includes: 24 hour toll free service; towing; lock-out assistance; battery jump-start; tire change; as well as a host of other important features which are included.

As for the rental car reimbursement which, as you know, is a vital part of this warranty, allows you to up to $45.00 per day up to six days and is dependent on the time your car needs to be repaired. Trip interruption service is also a key factor in choosing this warranty. If your vehicle needs repair and you are more than 100 miles from home, Acura Care vehicle service contracts can provide up to $100 per day for meals and lodging for up to a 3-day/$300 maximum (up to $300 per day for meals and lodging for up to a 3-day/$900 maximum for Acura Certified Additional Coverage).

Trip Routing allows you to get your trip off to a great start with computerized trip routing and maps, available at no additional charge; provides the fastest or most scenic routes; calculates distances between stops; details route numbers; estimates driving time; and lists Acura dealers along route in the event of a need for Acura parts or service.

The Comprehensive Component Coverage includes: Drivetrain for the car‘s engine; transmission; differential; and axles; computers; electronic components; and electrical system; suspension, steering and brake system; air conditioning; heating system and cooling system; and audio, cellular phone, navigational and security systems.

If your vehicle is covered by an Acura Care vehicle service contract, all repairs will be made by factory-trained Acura technicians at authorized Acura dealerships using only Genuine Acura or American Honda authorized parts. The Acura Extended Warranty goes above and beyond your car’s standard factory warranty. The comprehensive exclusionary coverage of Acura Care covers virtually every component of your vehicle.

It is definitely to your advantage to add the Acura Extended Warranty when buying a new or used vehicle. As mentioned earlier, since Acura has a high resale value, you certainly want to ensure you have all of the components needed to keep your car well maintained. If in the event you do incur damages, you will not have to worry about out of pocket expenses as well.

As to whether or not you need a BMW extended warranty, let’s examine the facts.

In order to ascertain whether or not you actually need a BMW extended warranty, here is additional information about the BMW’s Base Warranty Plans currently available through 2006 models: 4 years/50,000 miles; Drivetrain Warranty: 4 years/50,000 miles;
Federal Emissions Coverage: 2 years/24,000 miles; Federal Emissions Coverage – Listed Components: 8 years/80,000 miles; Corrosion Warranty: 12 years/unlimited mileage.

Experts recommend that purchasing a BMW extended warranty is entirely based on how long you intend to own the car. They advise you to look at the existing warranty before making a decision to extend it. Since the warranty for a BMW has been stated above, it would not be advantageous to expend additional monies if you intend to keep the car during the entire period of the warranty. Conversely, since you’ve invested a great deal of money on this car, and feel you will keep it behind the original warranty – then it is up to you to decide if a BMW extended warranty is worth the price. Most recommendations would advise it is prudent to purchase a BMW extended warranty if you plan on keeping it beyond the factory warranty.

There are two types of BMW extended warranties available: deluxe and gold coverage. If you decide you want maximum coverage for your BMW, the deluxe plan is recommended. However, keep in mind that if a part is not listed under the non-covered parts and maintenance service, it’s covered under this plan. You should be aware of the fact that because the gold plan is exclusionary, it is limited and only pertains to the general maintenance of the BMW.

The gold plan, on the other hand, is one of the most comprehensive listed extended service contracts in the industry. In addition to major mechanical items, it covers the majority of the electronic components in the automobile. This plan includes coverage for the engine, cooling system, transmission, air conditioning in addition to the electrical system, suspension, electronics, and seals and gaskets.

Therefore, when ascertaining if you need to purchase a BMW extended warranty, you may want to use the aforementioned information as a guide to help you decide if extending the car’s warranty is not only within your budget, but is a prudent step for you to take.

Ensure that the company is registered with the Better Business Bureau and has an A+ rating, regardless of whether you are purchasing a warranty online or through a dealership.

Generally, however, the warranty company will often be the dealership where the car is purchased. In order to stay ahead of the warranty game, it would be preferable to research the company, determine their rates and, more importantly, what they cover. All too often, if a vehicle warranty sounds too good to be true, it usually is.

When speaking to or checking online companies ask for a copy of the warranty in the former case and print out the policy information in the latter scenario. Check several online and offline companies so that you can compare and contrast them in order to ascertain who is actually offering the best deal. Try not to let any salesperson talk you into anything before you have had the opportunity to check other companies.

If you’ve ever purchased a new car, undoubtedly you have surmised that the dealership is working with warranty companies, which is why most salesmen point you to another office so that you can speak to an “agent” who will give you “the best price.” This is just doublespeak. Both the warranty company and the dealership often work together for commission purposes, and unless you are steadfast in requesting information before you sign on the dotted line you may expend more than you can afford.

Finally, as with any contract it is vital that you read the “fine print” before signing anything. While salesmen will often explain the contents of the contract as well as the warranty and what it covers, you need to read the warranty as well to ensure that all of the information was exactly as written. Once you sign a contract, you are obligated.

Vehicle warranty companies have to be checked and researched thoroughly before you even consider them. The car you purchased may have cost you a great deal of money and as an investment, you need to be assured that you are going to receive the best warranty available at a price you can afford.

With so many unscrupulous business owners, the last thing you need is dealing with someone – especially online – whose warranty is misleading. Therefore, do the homework required when searching for online or offline vehicle warranty companies. The more you know, the better prepared you will be to separate the wheat from the chaff.

A car can be one year old and be classified as a used car. A car that is that “new”, however, will most likely still be covered under the original manufacturer’s warranty, which was for at least 36 months or 36,000 miles. There may be a chance that a car one year old has 36,000 miles on it, but it’s rare. If it does, the original warranty may no longer be in effect, so you should be looking at some other type of used car warranty.

When you purchase a used car from a dealer, there is usually some sort of used car warranty that comes with it. Unfortunately, the used car warranty is usually only for 30, 60 or 90 days. These warranties also generally only cover major parts like the powertrain or engine. Occasionally, they may take care of more than that but you may want to check with the dealer.

In fact, it’s a good idea to ask for the used car warranty in writing and have the dealer go through it with you explaining what it covers and what it does not cover. Don’t be afraid of asking too many questions. Buying a car is a large investment and you should know what you’ll need to pay for in the case of a breakdown.

Extended warranties are another type of used car warranty. It’s important that you know what an extended warranty is and what it covers.

When a car is new, it has a two-part warranty. One part is called a bumper to bumper and it covers almost everything the name implies: from front bumper to back bumper. The only things that are not covered in a bumper to bumper warranty are things that need replacing as a result of normal wear like tires or brakes. The other part of the warranty is a powertrain warranty, which covers the engine, powertrain and any parts that make the car move.

Extended warranties take over the bumper to bumper warranty when the original warranty expires. Many people don’t understand this and think it replaces their original warranty. There are many different parts of the car that may break down which the extended warranty won’t cover, however.

Before purchasing an extended warranty, know what you’re going to get and what it’s going to cost. The cost of the extended warranty will depend on what type of car you have as some of them are more reliable like Toyota, Honda, Lexus, etc. This is also something you may want to check on before you purchase a car. Some break down more often than others.

Make an educated decision when shopping for a warranty, to make sure you are getting everything you need. There’s more to getting a good used car warranty than getting the best price.

Reputable Company

A good review will tell you to sign a contract only with a reputable company. Aside from having a good reputation and a number of satisfied clients, an extended warranty company should also have a long history of service. Add to this the backing of a solid insurance company that is preferably rated A. A company with a good insurer and a long company history will guarantee that they know what they are doing so well that they have survived the challenges that are common in their field of business.

There are many ways to check the history, record and details of a company. You can check their own site. You can match the data in their website with other pieces of information that you can find about them online from directories, review sites and forums. You can also ask the Better Business Bureau if the company is listed with them.

Terms and Conditions

Reviews will always tell you to go for companies with clear contracts. A company should be able to explain to you in detail what an extended auto warranty is. This is even if you already have an idea about it. This explanation should go beyond explaining that an extended warranty is not equal to double coverage. They should clearly state what is covered, what is not covered, kinds of cars covered and what the levels or types of coverage are. Moreover, they should be more than willing to answer all your questions. Good extended warranty companies also make sure that you have thoroughly reviewed the contract.

Warranty Cost

Reviews auto extended warranties will tell you the obvious about cost. As with a lot of other products and services, extended warranties for autos are often best when they aren’t rock bottom. Some bargains and limited price deals are legitimate and are really great deals. Other price cut promos however are really just schemes to lure clients. When the time comes to file for claims, many of these companies will cite one or a couple of reasons to deny your claim. Low prices may also mean that you won’t get the car work that you deserve. It should be obvious that extended warranties that are a little pricey are better deals. The price you pay is a guarantee that you will get what you paid for if you the warranty covers it.

Wear vs. Mechanical Defect

Reviews offer valuable advice regarding one item of coverage. Good extended auto warranty companies will always tell you the difference between coverage for wear and tear and mechanical defect. As the terms suggest, one type will only cover inherent manufacturing defects while the other one will cover repair due to prolonged use. Companies who are after your cash will only advise you to get one or the other. This is to ensure that when you file for a claim, they can deny you because the cause of the damage is one or the other for which you are not covered. Only reputable companies will advice you about both types.

A car is an expensive purchase. You would want to make sure that you don’t have to keep spending more than you should for it for the rest of its lifespan. Always read reviews auto extended warranties first before buying a car or signing an extended warranty contract.

1. How Long Does The Extended Warranty Last?

What’s the time limit on your contract. Be sure to find out how long after your original manufacturer’s warranty it expires and whether and what the mileage limit is.

2. What Does The Warranty Cover?

Are you purchasing a listed extended auto warranty or an exclusionary auto warranty. Does the policy offer coverage for wear and tear in addition to mechanical failure.

3. What Is The Reimbursement Policy?

Some warranties require that you pay for the repairs upfront and await reimbursement from the warranty company. This could take several weeks. Find out who has to pay, and if it’s the warranty company what authorization they require to process this payment.

4. What Is The Deductible?

The deductible is the amount that you must pay at the time of a covered repair. Some warranty policy deductibles are in excess of $200.

The big question Is whether the deductible is charged per repair or per visit? This can make a huge difference. If in a single visit your car required 4 repairs you would have to pay the deductible 4 times if your warranty was a per repair rather than per visit policy.

It’s therefore important for you to find out whether each repaired component requires a separate deductible?

You should aim to select an extended warranty with a deductible that is paid per service visit and not paid per component replaced or repaired.

5. Who Does The Repairs?

Who does the repairs? A manufacturer-backed extended warranty is good at dealerships around the country, while a dealer-backed warranty may be limited to a single dealership. With an aftermarket warranty you may be able to pick your mechanic, but how difficult will it be to get repairs approved?

6. What are the maintenance requirements?

What types of routine maintenance on the car must you pay for on your own? Be sure to keep records and receipts from all service work. If you don’t it can invalidate the extended warranty.

7. Can you cancel?

Some extended service contracts charge a cancellation fee and some cannot be canceled.

Original manufacturer’s warranties vary in the extent of their coverage, and in the amount of time or mileage in which the vehicle is guaranteed. They serve as a protection to the consumer that the purchased vehicle is not defective, as shipped from the manufacturer.

But although there are similarities between the two, it is important to understand that a new car warranty is not exactly an insurance policy. It is true that both warranties and insurance policies protect the car buyer financially from structural defects in the car, but they are not the same legally. A warranty comprises a contract between buyer and manufacturer, while an insurance policy is a contract with a third-party insurer, which is unrelated to the original vehicle manufacturer.

To further confuse matters, several insurance companies have begun offering a type of warranty/insurance policy known as “mechanical breakdown insurance.” This usually covers the same parts that are included in the original manufacturer’s warranty, but often for an extended period of time.

For example, many new-car warranties are valid for three years or 36,000 miles. “Mechanical breakdown insurance” might cover the exact same items as the original warranty, but extend the coverage for an additional 3 to 5 years.

There is also a type of new-car warranty known as an “adjustment warranty.” This type is basically a contract between the buyer and their local car dealership, not the original manufacturer. “Adjustment warranties” normally cover all major parts and systems of the vehicle over a short-term basis, usually between 30 and 90 days from the date of purchase.

Because every state has different laws when it comes to purchasing a new car, “adjustment warranties” can be mandatory in some states for as much as 90 days. But other states may have no law at all regulating this type of coverage. A dealer may choose to include an “adjustment warranty” as a premium feature, though the coverage can be in effect for as little as one month.

New-car warranties themselves are long and often confusing documents. They may contain many different sections, and more legalese than the average consumer is comfortable with. For this reason, the” bumper to bumper” warranty has become a popular selling point for many new cars.

The bumper to bumper warranty is comprehensive, and covers everything from interior trim and minor cosmetic details, to major engine overhauls or new tires. These warranties also contain several sections, and arguably the most important of these is the separate drivetrain warranty. This covers the most important and expensive elements of your car, such as the engine, transmission and differential.

The drivetrain warranty is normally limited by the number of miles on the vehicle, not necessarily the number of months or years you have owned the car.

All of these separate sections combine to create the new-car warranty, and serve as your protection against shoddy workmanship and defective parts.

Research indicates that a company called Warranty Direct is the one to choose when looking for extended auto warranties. Named one of the top 200 companies by Forbes Magazine, Warranty Direct has been in business for more than 27 years, and has sold more extended warranties than any other company to date.

Due to the licensing and registration policies which vary from state to state, Warranty Direct has the capacity to offer extended warranties in all states regardless of their restrictions. A member of the Better Business Bureau and WebAssured.com, they have an incredibly high rating from those consumers who have utilized their services.

In addition, regardless of the age of your car or the mileage incurred, Warranty Direct offers the most comprehensive coverage available. Along with a money back guarantee, they offer: protection in case of a mechanical breakdown and/or wear-and-tear, seal and gasket coverage, damage caused by overheating, repairs at your own reputable mechanic, coverage transfer, travel protection, roadside assistance, and the claims are paid to your mechanic which ultimately avoids direct billing to you.

One of the many myths associated with purchasing extended warranties is that you can purchase it at any time. As you know, extended warranties and rising costs of coverage go hand in hand. Therefore, it is a good idea to discuss the costs incurred for the best extended auto warranty at time of purchase. In this way, you can ask questions and become more acquainted with the terms and conditions of the warranty and expend less money in the long term. Further, you can then contact Warranty Direct to ascertain what their extended auto warranty costs are to give you an estimate of the total cost of coverage for your vehicle.

When buying or leasing a car, it seems as if everyone at the dealership is offering you one plan after another. The best advice one can give you is to research the warranty from your dealership and extended warranties from other companies, including Warranty Direct, so that you can make a knowledgeable decision on the best extended auto warranty to buy. After all, buying a car is a long-term investment and you want to be assured you are completely covered for any eventuality.

The best extended auto warranty available will depend upon how much time and research you are willing to spend either online or offline. It is definitely worth the time and, in the long run, will yield a cost-effective solution.