How to Choose an Extended Auto Warranty

Auto warranties have changed dramatically since their inception about thirty years ago. Originally designed to be an adjunct to your current manufacturer's warranty on only new cars, they have evolved into must have insurance plans for anyone who owns a car.

No longer are they just for covering basic repairs, they now cover everything that has anything to do with your car. They are similar to auto insurance policies now. Extended warranties cover many of the things that auto insurance does except auto insurance only covers theft and accidents whereby extended warranties cover malfunctions that are not a result of an accident.

Some extended warranties now cover not only repairs, but they cover lodging, rental cars, and misc. expenses should your car have a major issue on a road trip far away from home.

For instance if you are taking your family from Boston see the grandparents in Miami and your transmission dies in Atlanta on a Saturday night, you could be all set if you have the right extended warranty coverage. You should be able to find lodging, eat, make phone calls, get a tow truck, and wait until your car is fixed.

Your warranty will outline in detail how to make these arrangements yourself if it happens to be with a company who doesn't offer 24 hour customer service coverage. If your company does have a 24 hour toll free number simply call, explain your problem, and they will help you make lodging reservations, contact family, suggest nearby motels and restaurants, and completely explain how your policy will pay for and handle your current car problems and reimbursable components.

Extended warranties have become pretty much a la carte shopping. No longer relegated to new vehicles, you can have coverage for any vehicle - as long as you're willing to pay the price.

First, you need to understand not only what your present vehicle is worth, you need to know what a replacement vehicle would cost. In other words, is it cheaper to make sure someone else will pay repairs, or is it cheaper to just buy another car?

When the cost of a car and its mandatory car insurance are both taken into consideration, you could easily be looking at a cost of at least $600 a month. An extended warranty for a 10 year old car with a history of minor repairs, could range anywhere from $50 to $300 a month depending on the type of coverage you choose and the amount of your elected deductible.

To choose a warranty with coverage you may not need, can be a waste of money. If you don't take your car on extended trips, you certainly don't want to pay for coverage that includes meals and lodging and rental cars. If your car is only three years old, you may want to have a reliable mechanic look it over before deciding on your deductible, too. In other words, if he says everything looks fine, chances are the major problem centers like air conditioning, transmission and steering won't go any time soon, and you can feel comfortable asking for a $250 deductible.