Auto Warranty Buyer's Guide | How the Choose the Right Extended Warranty

The consumer guide to uncovering the best value

in auto warranties and repairs.

Auto Warranties

Choosing the Right Extended Warranty

The right extended warranty will protect your investment and save you money. Let’s face it, warranty companies wouldn’t be in business unless they did save people money, and it is in the best interest of the warranty company or warranty broker to select the best warranty coverage that meets your particular needs and budget.

Choosing the right auto warranty has a lot to do with the make, model, age, and mileage of your vehicle, how many miles you drive a year, and how long you want to keep your vehicle. Another factor to consider, is does the vehicle still have some level of the original manufacturer’s warranty. Other personal factors also weigh heavily on the type of protection to purchase but the most important is how much money you want to pay out of your own pocket for repairs.

The first thing you need to do is determine how many miles you drive a year - the average driver will put about 15,000 miles per year on their vehicle. This is the base line for determining the coverage you will need. For example, if you drive 15,000 per year and want to protect your vehicle for five years you will need a minimum of 75,000 miles of coverage. If you are only going to keep your vehicle for three years then you would need a minimum of 45,000 miles.

These guidelines are offered as a general rule of thumb for different types of vehicles.

Automotive Resources

Leased Vehicles

If you are leasing a brand new vehicle right off the showroom floor, forget about purchasing an extended warranty. The factory warranty will give you enough coverage during the term of the lease and you won’t be saving any money.

If however you are leasing a pre-owned vehicle that has more than 36,000 miles and less than 50,000 and you don’t want to be paying extra for repairs, consider a bumper-to-bumper program for the length of the lease. To save money, and as minimum protection, look at a powertrain warranty. Just remember to buy the minimum coverage needed to meet the length of the lease.

If you are going to purchase the vehicle at the end of the lease, consider a wrap program or a bumper to bumper. You will save money if you buy it before the vehicle reaches 12,000 miles but you should buy it before it reaches 36,000 miles.