What to Look for in an Extended Auto Warranty
You’ll find a lot of variation in what an extended car warranty may covers. Almost all contracts exclude from coverage maintenance and wear items, ranging from brake parts to exhaust system components to air filters. And many contracts exclude—or fail to include—many additional items, including electrical devices like power windows and radios, interior trim, gauges, and even air-conditioning systems.
Some contracts cover only a specified list of items and you’ll probably have a hard time judging whether important items are left off the list.
You’re better off with a contract that covers everything except a specified list of items.
First, ask to see a sample contract, itemizing what is and is not covered.
Your auto warranty company should fax or email you a contract to read. If they won’t do this simple thing, do not buy a car warranty from them.
If you don’t see a part listed in the “What is Covered” portion of the contract, then assume it’s not covered and ask questions. Be sure to check the “Not Covered” list. Again, ask questions.
- Buy your auto warranty direct
- Make sure it covers breakdown and wear & tear
- It should have a 100% money back guarantee within 30-60 days
- One deductible per visit or zero deductible amount
- You don’t have to buy it the day you buy the car
- Transferable when you sell the car
- It should take effect the day you buy the warranty
- Car warranty covers overheating and ABS brakes
- Should include car rental, towing, and travel reimbursement
- Repairs can be completed at any ASE certified car repair shop
- The auto warranty company pays the auto repair shop directly
- The car warranty administrator should be well funded and insured
- The reinsurance company should have an “A” rating on A.M. Best
Standard Exclusions In Extended Car Warranties
No auto extended warranty covers glass, lenses, sealed beams, light bulbs, trim, moldings, bright metal, upholstery, paint, exhaust systems, tires, air bags, batteries, brake rotors, drums, shock absorbers, throttle bodies, etc.