Extended warranty scam alert
Do not ever do business with extended warranty companies who call you in spite of your name being on the Do Not Call registry list.  Avoid any company calling you with an auto dialer, often using computerized voices claiming, "This is the final notice. The factory warranty on your vehicle is expiring". They give you the impression they are related to the dealer or car manufacturer. The FTC calls these robo-calls. We hear about people who receive calls from warranty companies using auto dialers, which is violating federal law by calling you even though you have registered with the government's do not call list.  If an unethical company is going to dishonor federal law to shove their sales pitch down your throat, how much more do you think they will dishonor your contract when it comes time to make a claim?  Be sure to file a complaint with the National Do Not Call Registry.

Is US Fidelis a good warranty?  How can I run a check on them?
People ask us if US Fidelis a good warranty or not. You've seen their ads on TV they are all over the place.  I tell everyone no matter how big a company appears to be, you still need run the same Better Business Bureau checks on them. For example, US Fidelis had an "F" rating on BBB at the time of this writing, with nearly 1100 complaints. In 2008, the Missouri Attorney General sued US Fidlis under their DBA: National Auto Warranty Services for sending consumers misleading postcards soliciting business.  See this video story with Matt Lauer on Today Show about US Fidelis extended warranties.  The owner of the company is building a $17 million mansion.  That sends up red flag for me.  Makes me question if they are really paying claims.

Some cars you just can't get an extended warranty company to cover them
People ask me why the warranty companies refuse to offer them a warranty on their high performance car. You won't find any warranty company foolish enough to offer coverage on vehicles like Land Rover (poor quality, frequent and expensive repairs), Mercedes AMG ($20,000 engine), and some turbo engines like Porsche, etc. If a warranty company turns you down, don't ask me why, I don't know. You should ask THEM why. If you do find a warranty company stupid enough to cover these cars, you can bet they won't cover wear and tear failures, and they'll try to get out paying repairs. My best advice for you if you have a high end car which no warranty company will touch, then create your own claims reserve account, putting $5,000 into a money market account or long term CD, and send me $100 for giving you that tip! Then you can be your own extended warranty. Don't ask me where to by a Land Rover Warranty, I don't know of any.

WarrantyDirect has warranty for older higher mileage vehicles up to 150,000 miles on the odometer
Called PowerShield, (not available in CA or GA, and excludes some high performance vehicles), see more details further down in the high mileage vehicle section. This is great news for all of you buying used cars with high mileage. Nation Warranty Corporation's program for older higher mileage vehicles, up to 90,000 miles on the odometer, is called AutoXtra.

PowerShield and AutoXtra cover mechanical breakdowns for items such as the Engine, Transmission, Drive Axle, Timing Belt, Water Pump, Fuel Pump and more, benefits package featuring 24 x 7 Emergency Roadside Assistance, car rental reimbursement and travel interruption expenses is also included. No other companies offer wear and tear on vehicles with high mileage. If you are buying a 3 or 4 year old used car, that's when the manufacturer's car warranty expires, all hell breaks loose with your car, and you need protection. Can you afford a $750 radiator repair? You are exposed to potentially large losses. If you can't get a high mileage used car warranty coverage for your car, then I suggest you put $2000 into your own claims reserve account, to fund your own future repairs on that used Ford you just bought.

So buy that used Ford, buy that used Honda and Toyota, then put a high mileage extended warranty on it. Don't email me asking where to buy high mileage extended warranties if you are in CA or GA. If there was one worth mentioning it would be here. Most warranty companies will not cover Land Rovers because of high rate of repairs, and high cost to repair them.

Don't be a fool. Get a free online auto warranty quote BEFORE you go to a car dealer to compare, not after.

You should know... Car warranty companies pay to have their banners here. It keeps our site running free for you to use. I interviewed auto warranty companies and chose those we thought were honest, give you good car warranty coverage, with a track record of paying claims. In 2006 we instituted our improved strict processes for reviewing a warranty company. I'm also a big pain in the butt to auto warranty companies like WarrantyDirect, CARCHEX and Nation Warranty Corporation. I hold them to everything they say, and we often work with them and the consumer to resolve questions. You expect us to be warranty gurus and we deliver, researching deeper than other consumer advocate sites, we visit the warranty companies personally, review their financials, government audits, actuary audit statements, and verify they have enough funds in their claims reserve accounts to cover your repairs. The extended auto warranties here will do good for you. Dealers tell you I'm making a buck off you with scare tactics. We are here to keep you from getting scared! This page is online since 1997, before I had advertisers. One scam is when a car dealer sells you an extended warranty, then without your knowledge, cancels the warranty, and has the funds refunded back to them. We often hear from people who bought a no name car warranty at the car dealer, and the warranty went belly up.

Attention Canadian Residents Buying Extended Warranties!
Lots of Canadians ask me, "Who can I get an extended warranty through in Canada?" As of February, 2007 WarrantyDirect.com is currently available in Manitoba, Newfoundland, Nova Scotia, Ontario, NW Territories, Nunavut, Prince Edward Island and Yukon provinces. See our chapter on Car Buying In Canada for more info, and car buying advice for Canadians.

Auto Warranty Definitions

Extended warranty

Warranty Administrator
This is the company responsible for paying your auto warranty claims. Be careful, it is often not the company you buy coverage from. We recommend a company like WarrantyDirect.com where you are dealing directly with the administrator, or a company like Nation Warranty Corporation where their program is reinsured and administered by an "A" rated insurer. This way you can research their claims handling history before purchasing a warranty. CARCHEX only works with top tier warranty administrators and will give you all the information about them up front before you purchase.

"Mechanical Breakdown" warranties vs. "Wear & Tear" auto warranties
Classic wear and tear failures include: the gradual reduction in operating performance, burned/worn valves/guides, valve grinding, worn rings, burned pistons, any covered part that has not failed this includes seepage of seals and gaskets, fasteners and retainers (nuts, bolts, screws, clamps, brackets), damage caused by overheating.

Is your auto warranty repair due to failure from a "mechanical breakdown" or is it "Wear & Tear"? You want warranty coverage for BOTH! Most auto warranty failures are wear and tear, so you can bet your cheapie "mechanical breakdown" warranty company will classify your warranty repair as wear and tear and reject your warranty claim right off the bat. Thank you for calling. Often the extended warranty sold by car dealers is a confusing mechanical breakdown insurance policy that can cost over $4000! This is not what you want. You want both "wear & tear" AND "mechanical breakdown" coverage in your warranty contract. Many items wear down, they don't break, so they are not covered by most mechanical breakdown warranties. People complain that car dealers lie to them and tell them "everything" is covered, giving a false sense of security. Some car dealer warranties require that you have them do all repairs. What if you can't get your car to the dealer? Before buying a vehicle service contract, carefully review what is covered and not covered to see whether wear and tear claims are excluded from coverage. If you don't get a wear and tear type of warranty, you'll get screwed I guarantee it. Warranty Direct, warranties sold by CARCHEX and Nation Warranty Corporation combine wear & tear and mechanical breakdown, all in one extended warranty contract. You can have any ASE certified repair shop do the work. If you own a Nissan, BMW, Chrysler, Honda, Toyota, Hyundai, etc., you don't have to take it to your Nissan, BMW, Chrysler, Honda, Toyota, or Hyundai dealer unless the repairs are still covered by the manufacturer.

Auto Warranty Buying Tips

Use your car rebate to pay for your auto extended warranty!
If you get a rebate on your new car, use your savings for a discount online extended auto warranty. It's like getting a free warranty. Many online car warranties are 40% cheaper than car dealers, have better wear and tear coverage and you'll still have money left over from your rebate. Tip: When you request your free auto extended warranty quotes online, be sure to enter your full email address so they can instantly email you the warranty price quote. (Example: MyEmail@aol.com). If you don't receive your quote in a few minutes, you probably did not enter your full email address properly, or used a bogus name that their quote filters rejected.

Deal with a solid extended warranty company
You want a car warranty administrator who can pay your claims. You deal with 2 companies when buying an extended warranty. One sells you the auto warranty contract, the other administers your claims. You want a well funded company that markets and administers their own auto warranty or a company like Nations Warranty Corporation that reinsures and administrates the program through their A-rated insurer. Warranty Direct, with over 26 years of proven track record, has been in business for nearly 20 years and also maintains high claim reserve accounts and reinsures policies through their A-rated insurer. CARCHEX works with multiple top tier warranty administrators and gives you multiple options so that you can choose the cost and coverage levels that work best for you.

Understand auto warranty coverage before you buy
People buy auto warranties without considering what they are buying. They buy extended warranties as an afterthought at the register in Best Buy, not knowing the coverage for their TV. Americans hear "extended warranty" and think they are protected by a golden umbrella covering all that goes wrong. Likewise, auto warranty customers fail to read their contract, fail to understand coverage, fail to adhere to proper vehicle maintenance schedules, then wonder why their auto warranty claim was rejected. Some consumers buy a used car, get an extended auto warranty, thinking the warranty company will recondition the whole car for them. They wrongly file complaints against their auto warranty company when repairs are denied, simply because their own foolish definition of coverage differs from the auto warranty company's contract stuffed in a drawer somewhere. You are now smarter than that.

While you shop for that Ford warranty, or your Honda warranty or whatever car warranty you end up with, I recommend exclusionary wear and tear auto warranties over cheaper mechanical breakdown warranties. Some failures might be wear and tear, not covered by a mechanical breakdown car warranty.

New car warranties are cheaper on dependable cars. Lexus warranties, Honda warranties and Toyota warranties are cheaper than unreliable cars like Kia, Land Rover, and Chevrolet. Do you own a Kia? Then it's a given, you better get that Kia Warranty. If you own a Chevy, you better buy an extended Chevrolet warranty. Warranty industry insiders informed us Chevrolet has a high failure rate, hence a high Chevrolet warranty claims rate. So if you bought a Chevy, do yourself a favor and protect yourself. Get yourself an extended Chevrolet warranty online now with a $0 deductible it will pay for itself. BMW cars can be very costly repairs if you don't have a BMW warranty. Remember, if you decide to buy an extended warranty, do it as soon as you buy your car, price goes up as the car gets older.

Typical Exclusions In Extended Warranties
No auto extended warranty covers glass, lenses, sealed beams, light bulbs, trim, moldings, bright metal, upholstery, paint, exhaust systems, tires, air bags, batteries, brake rotors, drums, shock absorbers, throttle bodies, etc. These are standard exclusions, don't let it bother you.

Before you buy an auto warranty, ask to see a sample contract, itemizing what is covered, and what is not covered

Your auto warranty company should fax or email you a contract to read. If they refuse, DO NOT BUY FROM THEM! If a part in question is not listed or implied by the "What Is Covered" list, than it is not covered, and check the "What Is Not Covered" list, but verify it with the car warranty company. The marketing sheet dealers show you is not a contract. If a slick sheet is all they show you, don't buy. You'll be surprised what's not covered thanks to contract weasel clauses not shown on marketing slick sheets.

WARNING! Some car manufacturer auto extended warranties DO NOT pay for car rental reimbursement during the standard warranty period! My GM Protection Plan was a prime example. If you have a 3 year warranty, any car rental expense you incur for the first three years may not be covered. This means even if the engine dies, and it's their fault, and you have no car for a week, you're out of luck!

The better extended auto warranties like WarrantyDirect.com and Nation Warranty Corporation cover your auto rental.

I like WarrantyDirect.com and Nation Warranty Corporation because their coverage begins the day you buy the auto warranty, not the purchase date of your car (with the exception of Wrap programs), like the others. Warranty Direct and Nation Warranty Corporation have the least amount of coverage restrictions. If you buy a 5 year/100,000 mile plan for your Ford, it will expire 5 years from today or when the odometer hits 100,000 miles. It could expire later than a competitor's 7/100. Buy your warranty soon after buying your car.

Yes the car warranty companies we recommend pay your claims

Will they be there to cover your claim when you need them. We have first hand experience that they cover your repairs, so you can sleep at night. In 2002, my coworker Mike got a had a Jeep warranty and his Jeep developed a cracked radiator and needed the freeze plug replaced. The Warranty Direct Jeep Warranty paid his $960 repair bill directly to the Chrysler dealer. The Chrysler dealer was impressed, living proof that they pay your claims. We advised both our friends when they bought their cars, as part of our focus study, we had Mike buy his Jeep warranty from Warranty Direct instead of from Chrysler. Dodge vehicles can be repair prone too so if you drive a Dodge, you might want to consider getting a Dodge warranty. One of our pastors got a Dodge Warranty for his 2006 Doge Grand Caravan, and WarrantyDirect quoted him $500 less than the Dodge dealer for for 7 years/70,000 mile of coverage.

Auto Warranties To Avoid

Sales Tactics from Car Warranty companies

During your car warranty quote process, notice how auto warranty companies treat you. Do they trash their competition instead of walking you through their own contract merits? Are they quick to point out BBB complaints of others? Do they redirect you from their own weasel clauses to meaningless items not covered by a competitor's car warranty contract? If an auto warranty company's product is as good as they claim they don't need to trash the reputation of a competing auto warranty company to make the sale. I get beat up weekly by extended auto warranty companies who want me to link to them, I've received nasty emails from immature company presidents when I reject them for not being good enough. It's competitive out there, companies lie about their coverage, trash their competition, and trip over each other to pay $5 a click on Google to sell you auto extended warranties.

ALERT: I get emails asking about many car warranty companies on the Internet from people anxious to get a warranty on their Chrysler, Dodge, BMW, etc. Based on our research of these auto warranties below, here is why we DO NOT recommend the following car warranty companies, but you should investigate yourself and decide:

• The Auto Club.com–Now Paragon Motorclub A former key employee from Warranty Gold is still selling extended warranties online. Warranty Gold, using a Cayman Islands insurance company, folded in 2004 leaving tens of thousands holding worthless auto warranties. A WHOIS on TheAutoClub.com showed the technical contact to be Warranty Gold's former GM. Dun & Bradstreet lists his name on a Warranty Gold Business Report. Google.com returned these search results showing he was a spokesperson for Warranty Gold as they asked courts to invalidate their obligations and extended warranties. They practice what we consider less than ethical selling practices. Requests for price quotes don't quote all rates and ask you to provide an email address or call. Emails they send omitted prices on all but lowest warranties. We reviewed their contract and found it to be restrictive and limiting, no wear and tear coverage most states, only mechanical breakdown. I got a quote last year, they spam me every week.
• Continental Warranty: A warranty broker, not a direct administrator, no online quotes or rates, 269 Better Business Bureau complaints the past 3 years (January 2008). They do not offer any bumper-to-bumper coverage, no wear-and-tear failures or damage due to overheating. WARNING -Will not allow you to read contract unless you put down a deposit.
• Aaautowarranty: Broker of coverage, not direct administrator, coverage from several small administrators. Displays seals on their web site that probably shouldn’t be there. They display an AM Best seal showing "A" for Excellent. Tricks you into thinking you are getting "A" rated insurance backing. But most of their warranties are only backed with "B" or "NR3" ratings, not "A". Looks like their plans exclude wear-and-tear failures.

Why most car dealer extended warranties are not as good as some online warranties
Dealers don't tell you if they're selling you a mechanical breakdown contract, not as good as wear & tear contracts. They are giving you half the coverage, and most car dealer auto extended warranties don't cover overheating. Then they slap their dealer label on your new Honda so you can be a moving billboard for their dealership. Now That's a scam!

Check The Warranty Contract Before You Buy, NOT After You Buy!
Don't leave a dealer with a false sense of security that you have an auto warranty protecting you from everything. Some warranties have so many weasel clauses you're lucky if half the claims are paid. Car dealer warranty exclusions are printed in the policy book which conveniently arrives AFTER you buy your Chrysler, because they don't want you to dig. The more you dig, the more you'll find. If they can't show you a copy of the contract, DON'T BUY THE WARRANTY! Sales brochures are not contracts. Lies form salespeople are not contracts. Before you buy you want to see IN WRITING "What is not Covered". Savvy car buyers bypass 200% markups of dealers buy directly from trustworthy online warranties at significant savings. Online warranty sites will email you a PDF file of the contract for you to view. Ask the dealer why they refuse to do likewise.

Extended Warranty Myths

"I don't need an extended warranty, I'm covered by the manufacturer".
When your Ford warranty expires, that's when all hell can break loose. You could be exposed to large repair losses. Auto extended warranties have benefits like towing, car rental, toll free assistance, trip interruption, lost key lockout. Once the manufacturer warranty ends, the extended warranty picks up for another few years. It's crucial to buy auto warranties early, right when you buy the car, it's the cheapest. Just like life insurance, the longer you wait, the more it will cost, so if you plan to buy a warranty, lock in your savings now while your car is young and healthy. Danger Will Robinson: As more repair data surfaces on your Ford, BMW, Kia, Dodge or Chevrolet for example, vehicles are placed into higher rate classes. Once you buy your extended warranty, your rate class can not change. Get it now, not later.

"I'll just buy my auto warranty at the dealer, it's convenient".
Wrong. It costs more at the dealer, who are just middlemen marking up what you can buy your Ford or Chrysler warranty direct from a warranty company for much less. Car dealers often resell the extended warranty to you at 2 to 3 times what they paid. I get complaints from buyers whose dealers tried to sell them new car warranties for $3000-$5000. Dealers do not show you the contract in advance, so you have no idea what you are signing up to other than their verbal promise, or marketing slick sheets which are not contracts, and they leave out details that bite you in the butt later. Sure it's convenient to just buy an auto warranty while sitting at your Ford, Honda, or Toyota dealer, but it's also convenient to go online and buy a better extended warranty for half the price.

"My Car dealer told me I have to buy my extended warranty now or I can never get one"
Car dealers love to tell you this lie to force you into buying now. Once you leave, they lose their chance forever of selling you that Ford extended warranty. They make the most commissions on extended warranties, they want you paying interest on that $3000 BMW extended warranty too, which increases your auto warranty cost by hundreds, or even thousands of dollars. Buy your warranty direct from the extended warranty company.

Car dealer lies: "My car dealer told me the bank requires me to buy the extended warranty or I won't get loan approval"
With car dealer extended auto warranties, you often pay double for less coverage, no wear and tear or overheating. Some car dealers lie to you that you must buy a car warranty to qualify for the loan (see our Top 10 Car Dealer Scams). All extended car warranties can be refunded 100% in 30 days if no claims have been made. If you were forced to buy that Ford warranty or Honda warranty you don't want, get your money back. Other consumers complained to me the dealer sold them an extended auto warranty, but never sent payment to the auto warranty company! A car dealer should be your last resort to shop for auto warranties, after you get quotes from online car warranties. No matter what lies dealers tell you about me, they can't argue with my tips on how to choose the best auto warranty.

Do I need an auto extended warranty?

You must decide if you need that BMW extended warranty. The cost to repair today's complex vehicles is rising. If you lease your Honda for 36 months you don't need extended auto warranties, and it's a scam for a dealer to sell you one. If you got suckered into a 60 month auto lease, you should buy a Honda extended warranty, as you are responsible for all repairs. Auto extended warranties protect yourself from inflation later when you need repairs. Like insurance, if you don't buy it, you'll be looking over your shoulder. The most common repairs are A/C, transmissions, and electrical. Most people buy their auto warranty because they know 10 minutes after the car maker's warranty expires, the antenna motor will fail. That's $200-$1000. window motors cost $600-$1000. One covered failure can pay for the cost of the extended car warranty.

The better online extended warranty companies are safe and secure

Some people are nervous about dealing direct with online companies, falsely thinking they are safer buying an auto warranty direct from a dealer. You feel safer sliding over twice the money for an inferior product, to a stranger who is financing your Ford warranty, or your Toyota warranty into your car loan at up to 18% APR? Where's the safety in that? Also, car dealers often resell the same car warranty from the same direct car warranty company you are shopping from online.

Backup for your auto warranty funds

Ideally, the administrator's claims reserve account is insured by an A-rated insurance company or a responsibly managed risk retention group (RRG). Not all RRG's are created equal. Your auto extended warranty is not insurance, so the financial strength of the administrator is crucial. They should insure the claims reserve account to protect you if they go belly up. This happened with Warranty Gold, and other no name auto warranties you buy at some car dealers. Administrators go defunct and leave you holding the empty bag. In addition to insuring the account, they should also reinsure it preferably with an American or large European insurance company rated "A" with A.M. Best (no small no-name offshore Caribbean deals). Hannover Reinsurance of Ireland is an acceptable international re-insurer, because of Hannover's $2 billion plus financial size, AM Best "A" rating, and Hannover is publicly traded on the NYSE stock market. If your administrator goes belly up, and the insurance can't handle all the claims, reinsurance kicks in. Hopefully there was enough reinsurance coverage on the claims reserves to handle all the claims.

You want an auto warranty company who will be there to cover your claims

You also want an auto warranty company with experience. WarrantyDirect.com deposits funds into an insured "Claims Reserve Account" to insure funds which are available to cover claims. Below are ratings of the insurance company who backs Warranty Direct. Many warranty companies won't give you this information. The order of importance of protecting you is

1. Financial strength and competency of the auto warranty administrator
2. Insurance company backing the auto warranty administrator

Example: Warranty Direct:

Warranty Administered By: Interstate National Dealer Services, DBA Warranty Direct
Insured By: Dealers Assurance Company (A- Excellent A.M. Best rating)

Nation Warranty Corporation's Advantage Coverage:

Warranty program is administered and insured by an A-rated insurer (A.M.Best rated) whose financial size category is VIII ($100 Million to $250 Million).

Common repair costs with 2004 pricing, and expected costs in 5 years:

Engine, $2400: $3254
Transmission, $1700: $2738
Brakes, $1050: $1525
A/C System, $895: $1322
Radiator, $400: $692

Beware of repair shops that refuse to work with your warranty company
There are a few scam artists out there. Before your warranty pays the service shop, they ask for a detailed written estimate of the repair, the parts, and the labor from the repair shop. They know if the repair shop is overcharging standard repair labor hours, or forcing extra parts on you that you don't need. The guilty shops lie and tell you they don't like your warranty company because their "checks bounce". Leave that service shop immediately.

Chrysler extended warranty
I checked the Chrysler site to get info about the Chrysler warranty, but could find no information about Chrysler extended warranties. You have no idea what you would be signing up to when you buy a Chrysler warranty.

GM Extended Warranty (Major Guard Protection Plan)
Searching for details on the GM warranty, I viewed a poorly disclosed GM extended warranty site for contract info, the site says "see your local GM dealership." Go visit the dealer, and ask for GM extended warranty details, they say you'll get it in the mail with your GM warranty agreement. Thanks for not letting us see all the terms of our GM warranty BEFORE we buy.

Ford Warranties: Cost Effective? Not Sure
I get asked a lot if the Ford Warranty, the Honda Warranty, the Toyota Warranty, etc., are any good. A few years ago a Ford dealer had sold my friend a Ford extended warranty on his 1997 Ford Mustang at $1100 for 2 years and 39000 miles beyond the standard warranty, creating a 5 year 75,000 mile plan. They hyped the "extra 39000 miles" extension to his Ford warranty, a farce, as he reached 2 years before 39000 miles. WarrantyDirect.com and Nation Warranty Corporation quoted 1/2 the dealer's price for a better Ford Warranty with more coverage.

Why many car dealers sell cheap 3rd party extended warranties
Why did your Ford dealer not sell you a Ford extended warranty? What about your Honda dealer with no Honda Warranty? Or your Toyota dealer with no Toyota warranty? Car makers dictate how much they'll pay the dealer to perform repairs. Sometimes these conditions are not in favor of the dealer, so they look to cheap 3rd party extended auto warranties that provide better profit margin for them. Some car warranty companies are not backed by insurance or claims reserve accounts, and go out of business, and you lose. As contracts expire, the remaining reserve dollars and any earned income belongs to the dealer.

Problems I had with my GM Warranty
The dealer will say you'll get car rental reimbursement with your GM extended warranty. You may find out later, it's not during the 3 year standard GM warranty. I got stung by this the first year I owned my Trans Am. The GM warranty refused to pay me $650 for car rental bills, saying it was not covered. So why did I buy this GM warranty? Why did the GM dealer lie to me and say that anytime my car breaks down I get rental coverage under this GM Extended Warranty? Check your auto warranty contract, look for the section titled "What is NOT covered", and the obscure phrase "any repair covered by the standard warranty". GM car dealers hype car rental reimbursement that you cannot use. It's more like roadside Ass-istance.

It is industry standard procedure to sometimes not use original parts. Not a problem. But GM went over the line with me with my GM Protection Plan. In 1994 Pontiac repaired a hole on my fuel tank seam under the extended warranty, but they should have replaced the tank instead. Why take a chance with someone's life? They repaired it, 2 months later I'm back, same problem. They fix it again, 2 months later, it's leaking again. I take it to another shop and discover Pontiac had welded a penny to the tank as a plug! Copper is corrosive! They refused to reimburse me. GM's complaint line was a joke, offering to replace the tank if I paid them $500. How generous. Once I got the State of Florida Attorney General's Consumer Affairs Division after the dealer, they reimbursed me only $300 worth of parts for my car, even though I spent hundreds on car rental, and a new tank. So save all your records in a notebook. That's why I drive a Lexus now, I got sick of that "great GM feeling". That Pontiac dealer has since gone out of business.

GM's 5 year/100,000 Mile "Limited Warranty" on 2007 Models. Don't be fooled, you don't have full coverage, you'll lose thousands of dollars in uncovered repairs
GM is trying to close the gap between themselves and Honda, Toyota, and Kia by boosting warranty coverage. But don't get suckered in by the headline hype, don't focus on "5 year warranty" or "100,000 miles", you should focus on the words "limited warranty". GM's new extended warranty is not a full blown bumper to bumper extended warranty as they would have you believe, rather it is a "LIMITED" warranty. If you have prior experience dealing with GM extended warranties like me, I'm ready to rename it the "Extremely Limited, or GM's "good luck cashing in on it" warranty. How the GM warranty works: After 3 years your standard full coverage GM warranty expires and their "limited" extended warranty covering only the power train kicks in for 2 more years with a lot less coverage. Once the smoke clears and you read GM's short list of what is really covered, they are only giving you a 2 year extension on the power train warranty and little else. The fact that it's a "named component coverage" and not bumper to bumper is proof of it's limitations. I noticed a couple of weasel clauses for them too; they don't explicitly cover wear and tear so expect your claims to be rejected as wear and tear failures. They have a weasel clause for "poor quality fuel". By whose definition? What if you use 89 octane gas instead of 93 octane to save a few bucks when gas hits $3 per gallon? Will General Motors dealers reject your repair? While the GM extended warranty is an improvement, the headline hype has you thinking you have a full 5 year umbrella protection warranty, when in fact you are left exposed for numerous uncovered repairs due to gaping holes in the coverage. You should consider protecting your investment with a wrap warranty such as PowerWrap+ or Preferred Wrap to cover these gaping holes left by GM's warranty like A/C, electrical, Luxury, navigation, DVD players, brakes, cooling systems, emissions, fuel system, the stuff that most commonly fails after 3 years. Engines and transmissions are usually reliable so GM will hardly ever have to pay out on this, and they have excluded the items that do fail the most after 3 years. A Good wrap warranty is the perfect solution for you because it costs less money and only needs to cover just the items left out by GM's warranty.

After You Buy Your Extended Car Warranty

Your work is not done. Auto extended warranty contracts warn you to maintain your vehicle according to the manufacturer's instructions in the owner's manual, perform all the required maintenance, oil changes, fluids, etc., and only use approved parts and liquids, you know the drill. So buy a 3 ring binder to store all your receipts as proof that you had all proper maintenance performed. Every oil change, I just add the receipt to the notebook. Some car warranty companies are strict, and use it as a weasel clause to avoid paying repairs that should be covered. Some car warranty companies have maintenance logs in their contract books that you log each service performed on your car. Your owner's manual has maintenance schedules for "normal" and "more severe" driving conditions of your car. You are required to follow the maintenance schedule that applies to your operating conditions.

My car has high mileage, can I still get an extended warranty?
Yes, Warranty Direct's PowerShield and Nation Warranty Corporation's AutoXtra are a comprehensive, low-cost, major component coverage designed for older and higher mileage vehicles with up to 150,000 miles on the odometer (Not available in CA or GA). PowerShield and AutoXtra cover mechanical breakdowns for items such as the Engine, Transmission, Drive Axle, Timing Belt, Water Pump, Fuel Pump and more, benefits package featuring 24 x 7 Emergency Roadside Assistance, car rental reimbursement and travel interruption expenses is also included. As far as I know, no other companies offer wear and tear on vehicles with high mileage. If you are buying a 3 or 4 year old used car, that's when the manufacturer's car warranty expires, all hell breaks loose with your car, and you need protection. Can you afford a $750 radiator repair? You are exposed to potentially large losses. If you can't get a high mileage used car warranty coverage for your car, then I suggest you put $2000 into your own claims reserve account, to fund your own future repairs on that used Ford you just bought.

If your used car is over 10 years old or over 100,000 miles, do not ask me which other auto warranty companies I recommend, because there are none. Warranty Direct's PowerShield and Nation Warranty Corporation's AutoXtra are the only major players in the high mileage auto warranty arena. I doubt other extended auto warranty companies are financially able to cover cars that old.

Used Car Extended Warranties

Used car extended warranties are available. Most used car warranties, only offer their bumper-to-bumper coverage for vehicles with less than 50,000 miles. With high mileage cars, your used car extended warranty only covers half your failures. Luckily, in 2006 Warranty Direct began to offer PowerShield, for older and higher mileage vehicles with up to 150,000 miles on the odometer.

If you buy a used car, you absolutely must get a AutoCheck Vehicle History Report on the VIN number and have a mechanic inspect the car on a lift. If you do not do both of these, then do not buy that used car. You have been warned. When purchasing a used car, it is a good idea to check and see if there is a warranty already in place. This can also be a good negotiation tool for the buyer. You can purchase an extended warranty right before the manufacturer's original warranty runs out. By getting a Vehicle History Report on the car, you can determine if it has or had a salvage or junk title in its past.

Buy the most complete coverage auto warranty

Some companies charge extra for high tech sensors, ABS, emissions systems related components. Better warranties like the top plans from companies like WarrantyDirect.com and Nation Warranty Corporation include coverage for your mass air flow sensor, oxygen sensor, MAP sensor, and knock sensor. I recommend that you buy the top plan, usually called "bumper to bumper", or "exclusionary bumper to bumper package". If you get a plan that is not an exclusionary bumper to bumper plan, then many expensive parts on your car might not be covered. Some sensors cost hundreds of dollars.

Are my MacPherson struts covered by the extended warranty?
The better auto warranties cover MacPherson struts, but not the inserts. These inserts can be thought of as shock absorbers, which no one covers, as they are a maintenance item. Some warranties won't cover your struts at all.

Don't buy an auto warranty to cover pre existing failures. Don't file a claim within the first 60 days!
When you buy a used car with no pre existing conditions, the car runs fine with no issues for several months. These are accepted odds by warranty company actuaries. When abnormal things occur, red flags go up. When a sell your used Ford, you don't have 4 parts break in the first 30 days. If this happens, industry standard red flags go up. Contracts have verbiage that even if your car was an inspected prior to selling you a warranty, it can still be shown to have a pre-existing condition. Don't buy a problematic used car expecting the auto warranty to cover repairs. They are a lot smarter than you. I tell people don't file a claim within 60 days to stay off the radar map and avoid triggering red flags. Warranty companies know that 90% of the claims filed in the first 30 days are fraudulent claims on pre-existing failures, that can often be proven by independent inspectors. Don't do it.

Click Here To Get Started: How To Buy A New Car & Avoid Scams

Jump to any chapter. I suggest you read each chapter in order.
Chapter 1 Get your credit report, how to get a car loan, scams, online car loans, first time car loans, budget & loan excel spreadsheets, credit repair.	Chapter 2 Reviews of internet discount car buying sites, new car prices, find dealer's invoice cost. Get a new car quote.	Chapter 3 What to bring to a dealership, what to say, how to act, what not to do, what to look for at the dealership, and a glossary of all dealer fees.	Chapter 4 How to read dealer invoices, finding dealer's cost, how much to offer the dealer, buyers offer spreadsheet, examples, trade-ins.
Chapter 5 Negotiating tips, dealer scams & tricks to watch out for, dealing with aggressive salespeople, choosing between rebates or low APR loans.	Chapter 6 Close the deal, avoid needless extras, scams in the business office, extended warranty scams, options, buying warranties online.	Chapter 7 Actual misleading dealer ads, and what to do when you've been ripped off, customer satisfaction surveys, how I bought my Lexus.

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