6 Tips To Keep In Mind Before Purchasing An Auto Warranty

Over time, humans have become overly dependent on cars. That is sad, given that cars have a mind of their own. They break down when one least expects. Fortunately, there are extended auto warranties meant to enlighten the blow and offer you relief any time your car changes its mind. On that note, here are five important tips you will want to consider before purchasing a vehicle warranty.

Shop smart

This is the only way you will get value for your money. More often than not, warranties will be more expensive when sold by auto dealers as opposed to private companies. This is because dealers make their cash on aftermarket items. Some may even pressure clueless car owners into buying warranties they don’t need. To avoid, shop smart. Compare what popular warranty providers have to offer. If possible, make a list of all the extended car warranty companies¬†you wish to consult. Then work down the list as your strike off companies that may be beyond your budget.

Repair history checkup

Do a brief repair history on cars of your make. This will help you to anticipate possible repairs and plan your budget. It will also help you know more about cars that can give you value for money.

Capping repair expenses

With time, you may want to place a cap on your maintenance and repair expenses without an extended auto warranty. Before doing that, look first at what cap would be compared to the cost of your extended auto warranty. Of course, you will want to go for a warranty if it will equate out to be way cheaper that your anticipated repair history to come.


Any warranty you wish to consider should have reinsurance for their warranty policies. This will protect you in the unlikely event of a default. Take every subtle detail into consideration. Find out how the re-insurer is rated then read the fine print just to make sure the name of the insurance company is included in the auto service agreement. Sounds hectic but it is worth your time.


This is certainly one of the most important factors you must consider when looking for a car warranty to purchase. Why so? The market is awash with way to many scams and companies that often turn out to be a total waste of time. Utmost care when shopping for auto warranties should therefore be considered at all times. Take time to car warranty reviews and testimonials. If possible ask your trusted friends or colleagues what they think about the company you wish to purchase an auto warranty from. Then when using car warranty reviews to make a decision, stick to only unbiased reviews.

Contract details

Understand what you are getting yourself into. Read everything on the warranty contract. If possible, have an attorney around to help you understand the legal terms used in the contract and what they mean. At the end of the day, you want to be sure that the contract will not backfire on you and leave you in an worse situation financially.