Auto Warranty Buyer's Guide | The Best Extended Warranty Deals

The consumer guide to uncovering the best value

in auto warranties and repairs.

Auto Warranties

Where to Find the Best Extended Warranty Deals

There are many places to buy a vehicle warranty but there are only a few places to buy it at a good price. You can purchase an extended warranty from the manufacturer, the dealer, a warranty company, a warranty broker, or a warranty sales rep.

Manufacturer and dealer warranties are notoriously expensive. You will save money by purchasing direct from the warranty company, a warranty broker, or a warranty sales rep. However there is one catch, manufacturers and warranty companies only offer their own warranties or in the case of dealers, brokers, and sales reps, warranties from companies they represent. Look for a warranty broker that handles multiple warranty products from multiple warranty companies.

Automotive Resources

The insider tip is most dealers try to sell you an extended service contract or extended warranty when you buy a new car and even offer to roll it into the payments. Dealers make a handsome profit on these policies. There is no immediate need to purchase a warranty right then and there. You will qualify for the exact same coverage at any time during the initial term of your basic warranty that comes with the car, and you will definitely find it at a better price elsewhere.

The absolute best price, best service, and best value is purchasing from a warranty broker who handles multiple warranty products from multiple warranty companies. You can save up to 60% over a dealer warranty for the exact same policy the dealer is offering.

The insiders tip is look for warranty companies that are “direct insured”. Direct insured companies have another independent insurance company backing them. This is the safest and most secure purchase you can make. A step down in security is a warranty company backed by an RRG (Risk Retention Group) which is typically a group of warranty companies who have gotten together to insure each other. These are much less stable and much less regulated than a direct insured company. And the least secure purchase is a “self insured” company. You will pay a slightly higher premium for a direct insured warranty but safely securing your investment is well worth the few extra dollars.