How to Compare Extended Auto Warranties

Purchasing an extended auto warranty is a great way to safeguard yourself against automotive problems that may occur after the initial warranty is over. The prices and coverage of extended auto warranties can vary greatly, so it is a good idea to check the details of each policy carefully.

• Decide if you need a bumper-to-bumper extended auto warranty or if you simply need a powertrain extended auto warranty. If you have a vehicle that has multiple power features, you may want to choose a bumper-to-bumper warranty so that these features are covered by the warranty. If the vehicle is a stock vehicle, a powertrain warranty is usually enough coverage.

• Determine the amount of annual mileage you will be driving to help you choose the least expensive warranty option. There are low-mileage warranty options for drivers who do not drive a lot; this type of policy is less expensive than other similar policies while still covering the same items under warranty.

• Consider how long you plan on owning the vehicle to help you choose the best type of extended auto warranty. There are policies that will cover the vehicle for 1 year, 3 years and 5 years. So, if you know that you will trade the car in before 5 years then you should choose the 1-year or 3-year extended auto warranty policy. 

• Shop around before choosing an extended auto warranty company. There are many different extended auto warranty companies out there, and the amount of coverage and prices can vary greatly by company. In order to find the best deal on the extended auto warranty you need, it is best to compare the rates of at least 3 different companies.