The consumer guide to uncovering the best value

in auto warranties and repairs.

Top 10 Warranty Tips

1) Always Read the Contract Before You Buy

Be sure to see and read the warranty policy you are going to buy. If the company you are dealing with will not show you the contract before you purchase walk away, the reputable ones always do.

2) Know Where Repairs Can Be Done

All good extended warranties allow you to have your car repaired at any certified facility. Do not buy a warranty that restricts you to only their repair shops.

3) Know How Claims Are Paid

Most warranty companies pay the repair shop directly by credit card. Some warranties require you to pay the repair in full first then submit a claim to be reimbursed. The better warranty companies will pay the repair shop directly.

4) Know the Deductible and How it’s Applied

Is the deductible a per-visit or a per-repair? Per-repair can cost you more out of pocket if multiple problems are diagnosed when in for a repair.

5) Understand How the Expiration Mileage is Calculated

Some warranties expire “when your odometer reaches” the policy mileage. Some expire “in addition” to your odometer miles. As a general rule, bumper-to-bumper policies expire when your odometer reaches the policy mileage, and stated component and powertrain policies expire in addition to the miles already on your odometer when you purchase the policy.

6) Know the Cancellation Policy

Most warranty policies can be canceled, however some cannot. Typically you will have 30 to 60 days to cancel a policy and get a 100% refund. After the initial period you will receive a pro-rated refund based on how many miles or months you were covered and any claims filed.

7) Is There a Transfer Option

A transferable warranty will increase the resale value of your vehicle. Companies typically charge a small fee of $25 to $50 to transfer the warranty.

8) Get An Inspection

Have your vehicle inspected by a certified mechanic and have them put it in writing. This usually costs less than $100 and will avoid any questions or denials by the warranty company claiming a “pre-existing condition”.

9) Keep a Copy of the Policy in Your Car

You’d be surprised by the number of people that have a breakdown and don’t have the warranty company’s phone number or roadside assistance number with them. Always keep a copy in your glove box.

10) Perform Routine Maintenance

Always perform the manufacturer’s routine maintenance as recommended in their guidelines. Not only does this lessen the chance of problems occurring but you can also avoid a possible claims denial.

Copyright © 2005-2009 ConsumerAutomotiveResearch.com