There are a few key topics to research when considering an extended warranty.

Establish Your Need For A Warranty

• Do you have a warranty in place now?

If you have a warranty in place, you generally do NOT need an extended warranty. The one thing to watch out for is trying to “time” the purchase of an extended warranty so that it exactly matches the end of your existing warranty. This is due to two key factors. First, you have to remember to buy the warranty at exactly the right time. A little overlap is probably a good idea. Second, since extended warranties are priced in part on the number of miles currently on your car, you may push yourself into a higher premium bracket by waiting. For instance, if your car has 35900 miles, it will be priced differently than if it has 36001 miles.

• How much longer is your warranty going to last?
  We advise that you set up a reminder to give yourself 60 days before the end of your current warranty to research, select and purchase an extended warranty.
  
• Are you concerned about unexpected large repair bills?
  If your budget is tight and a large repair bill would cause hardship, an extended warranty is likely a good idea. By purchasing an extended warranty and paying for it in installments, you can exchange the risk of an unpredictable large expense for a low monthly fee.

• Is a small, predictable monthly payment preferable to a large unexpected repair bill?

Many people prefer knowing that they will never have to worry about a funny noise that their car starts to make and what it might mean to their pocketbook. Having to pay $800 at one time is a challenge, especially when you don’t know what the next month will bring. With an extended warranty on an installment plan, the risk of a covered expense blowing out your monthly budget is virtually eliminated.

• What does a typical repair bill (for a transmission) cost for your make/model?

• Is your car considered reliable?

You can check MSN Autos at the following link to check the reliability of your car.
http://autos.msn.com/home/reliability_ratings.aspx

Select A Warranty Company

• Does the warranty company require personal information just to give you a quote?
  If so, they are likely going to attempt to contact you again. And again. And again. Warranty Headquarters respects your privacy. You should only have to give personal contact information once you decide to buy.

Select A Warranty

• Can repairs be performed at any licensed shop?
  Be sure that repairs can be made at ANY licensed repair shop and not a specific group of repair shops. This is especially important if you are on a road trip.

• Is the warranty transferable?
  It is important that you make sure your extended warranty is transferable. You also need to check what the requirements are for transferring the warranty, if a fee is required and any other requirements such as having the new owner confirm the transfer

• Can you cancel the warranty at any time?
  Some warranty companies do not allow you to cancel your warranty. Be sure you can cancel and get a pro-rated portion of your premium back. Note that if a claim is pending or has been paid, you may not be able to cancel the policy and get a refund.
• Do you have to pay for repairs and then be reimbursed or is the repair facility paid directly by the warranty company?
  The whole point of an extended warranty is to avoid large, unexpected repair bills. That’s why its important to make sure that any warranty you purchase pays the repair facility directly. Some policies will require you to pay for the repair and then seek reimbursement.
• What is covered? How about electronics such as DVD players and GPS?
  This is the magic question. You need to take a close look at what is being covered by an extended warranty. Some only cover mechanical breakdowns – if something breaks. Others cover “wear & tear, meaning that a component is covered if it wears out due to normal use. It is also important that you make sure that expensive electronic components such as stereos, DVD players, GPS and other high-tech components are covered if you have such devices in your car. Finally, you will only be covered if you take proper care of your car!

• What is the deductible?
  A deductible is the amount you pay for any covered repair. For instance, if your deductible is $100, and a repair is $500, then you would pay the first $100 and your extended warranty would cover the remaining $400.
  
  The most important question really is “Which deductible is right for me?” This is a question that needs to be asked and answered BEFORE you buy your warranty. The deductible has an impact on your premium, but also represents the amount your budget can handle in the event of a repair. Warranty Headquarters will help you select the right deductible for you.

• Can you pay for your warranty in installments?
  For some car owners, it is the fear of a large bill that creates interest in extended warranties. Installment plans allow you to avoid paying the full extended warranty contract amount up front, and instead pay over 6, 12 or 18 months.

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