How to Purchase an Extended Warranty on a Used Auto
When you buy a used car from a dealership you are usually offered the option to purchase an extended warranty on the vehicle. Most used cars are either sold as-is or are covered for only about 90 days for certain mechanical issues. An extended warranty will cover you for certain repairs that are required on the used car. It will extend beyond any warranty that you currently have with the manufacturer. And you should know that you do not have to buy that extended warranty from the dealer--you can shop around and buy one from a third-party company. Keep in mind that not all used cars are eligible for extended warranty coverage, especially when they are prone to problems.
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Instructions
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Visit a used car extended warranty company's website online (or call in). Popular used car warranty companies include CARCHEX, Warranty Direct and Nation Warranty Corporation (see Resources below). Ask for a quote to cover your car.
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Give details about the vehicle. That includes the year, make and model. Enter information about the current mileage on the car, the area where the car is located and the date that it was first put into service. You will also need to give information about when you purchased the car and how much you use the car every year.
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Give your contact information, including your name, phone number and email address, so that the warranty company can call or email you with a quote.
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Select the extended warranty option that fits your needs. Choose how many years or miles you want the warranty to cover your car, the deductible (if any) and play with the coverage until you find a premium that you feel comfortable with.
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Pay for the extended warranty, and wait for your policy information to arrive in the mail or through email (some companies will allow you to pay for the premium in installments). From that point forward, whenever you have an issue with your car refer to your warranty to see if you are covered for the repair, then call in a claim as you would do with your insurance coverage. Some extended warranties will cover only serious mechanical issues, while others will give you bumper-to-bumper coverage.
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Tips & Warnings
Some used car warranty companies won't accept a car that has more than 150,000 miles. If you already have a valid manufacturer's warranty that is still active, your extended warranty is not a double coverage---it does not overlap with your other warranties. It only goes into effect after the manufacturers warranty is expired.
