Key Tips for Choosing the Right Extended Vehicle Protection

Considering an extended auto service plan? Before making a final decision, it's important to understand what you're getting. An extended auto service plan is not a traditional warranty as defined by Federal law; rather, it is a vehicle service contract that can be purchased at any time, unlike a manufacturer’s warranty included in the initial sale. The term "extended auto warranty" is mostly marketing language to imply an extension of the original coverage, with options provided by dealerships, insurers, and auto clubs that can help cover unexpected repair costs outside factory warranties.

While exploring extended auto protection options, keep these essential tips in mind to select the most suitable plan for your vehicle.

Research Thoroughly
No single coverage plan fits all vehicles. Your choice depends heavily on your car’s make, model, and history. It’s essential to research common repairs for your specific vehicle. Notably, tech-related issues like GPS, Bluetooth, and internet connectivity often require costly repairs. Consider plans that include reimbursement for these electronic systems.

Negotiate Prices
Many dealerships mark up extended protection plans, giving room for bargaining. Before negotiations, do online research to find affordable quotes. You can also attempt to negotiate with insurance providers and auto clubs, though discounts are not guaranteed. Doing some homework can help you secure a better deal and save money.

Buy Early for New Vehicles
New cars typically come with manufacturer warranties lasting around three years or more. While it may seem unnecessary to buy an extended plan early on, waiting can be costly as vehicles age. To maximize savings and coverage, purchase your extended protection within the first year of ownership. Although this double coverage may not be as necessary in the first three years, buying early will be more economical if you plan to keep the vehicle for over four years.