Extended Car Warranty

Frequently Asked Questions



"Extended warranties and auto insurance can all be purchased online. Spend some time examining exactly what coverage is available. There is a wide range among different plans. Finally, watch the amount of the deductible." - quote from Better Business Bureau web site.

Can I finance aftermarket extended warranties?


Most companies selling aftermarket extended warranties offer some sort of payment plan. If you can't find it on a companies web site, try calling the company to see what arrangements can be made.

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Should I buy an extended warranty on my ... ?


Tough question. When it comes right down to it, no extended warranty makes financial sense. Like all forms of insurance, the companies who sell extended warranties are here to make a profit. They know exactly what the average repair costs for vehicles are. They add a percentage to the average repair costs to cover their operating expenses and some more for their profit. So if they know the average repair costs, less deductibles, is $900 for your vehicle over the next 5 years, they might charge $1100 for a warranty. Statistically, you would be better off to put the money in the bank and pay for the repairs out of the account.

So what good is an extended warranty? It provides peace of mind and limits how much you end up paying for repairs. I know that the average repairs for my truck will be around $1000 over the next 5 years. Knowing this, I'm more then willing to spend $1200 or $1300 on a warranty because I don't want to risk high repair bills if it turns out my vehicle needs an above average amount of repair.

On a more personal level, I'm cheap and I know what I'm like with vehicles. While my last car was still under warranty, whenever there was a noise or minor problem, I took the car in for service. After all, I knew that my warranty would pay for the repair. When my warranty expired, I tended to put off repairs as long as possible because I didn't want to spend my money. The Honda quickly deteriorated to the point that when I traded it in, it had to be towed. For me an extended warranty meant I would end up taking better care of my vehicle.

The only one who can answer the question "Should I buy an extended warranty on my ..." is you.

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How can I research a company to see if it is reliable?


One of the best ways to check out a company is thru one of the Better Business Bureau's web sites.

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