How to Compare Extended Auto Warranties

Before comparing extended warranties, be aware that you can choose coverage provisions to fit your needs. You should compare similar policies before making a decision.

  1. Types

    • Choose extended coverage that meets your needs and makes financial sense. If you have a base-model vehicle with roll-down windows, it may not be worthwhile to purchase a more expensive bumper-to-bumper warranty when a powertrain warranty may suffice. If your car has a lot of electric options, obtaining a bumper-to-bumper warranty may make sense. A bumper-to-bumper warranty includes powertrain coverage. Determine what each warranty covers, because they may differ.


    • Survey warranty terms. People sometimes purchase more coverage than necessary just to have an extended warranty policy. If you drive less than 10,000 miles per year, you should consider choosing a policy with a low-mileage option. For example, you can choose a 36-month policy with 45,000-mileage coverage, but that is more mileage coverage than you'll need. You may save money by choosing less mileage for a warranty. Choose a term that fits your needs. For example, a 36-month coverage period may be appropriate if you don't plan to keep your car longer than three years.


    • After determining the type of warranty that fits your needs, compare similar policy costs. Typically, after-market warranty coverage is increased in price for the seller's profit. You can negotiate the price, because warranty suppliers usually would rather reduce their profit on the warranty than not sell one at all. Ask about deductibles, which generally vary depending on the cost of the warranty.

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  • Photo Credit the paper money image by Serghei Velusceac from

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