It is necessary to understand that a car extended warranty gives protection beyond the dealership warranty. On top of other features and benefits, an extended warranty allows you the flexibility to have your car repaired at any licensed service center in your area.

In addition to restoring mechanical breakdowns, these extended warranty benefits and features are likely to include:

A) 24 hour roadside assistance up to $100 for a specific number of occurrences,

B) car rental benefits if the car is towed to a repair dealer

C) trip interruption benefits,

D) further towing,

E) other services such as lock out, refilling of oil, or other fluids, and battery recharges.

Car purchasers often know nothing about auto warranties. They recall they are getting a magic golden wand that will reimburse for anything that goes wrong. Not true!

Read the legal print; as even with the greatest car extended warranty service plan, there are exclusions to what is covered. Often you will find so many specifics excluded from the warranty repair that you will wonder what exactly is covered other than the perks of roadside assistance, car rental, and other emergency services.

Many websites give tips on how to buy an extended auto warranty online. Research carefully, but remember many companies sell warranties. Don't buy from the first establishment you look into.

Check out several, making sure the one you finalize on is a financially stable company that administers their own warranties and keeps high enough balances to pay all repair expenses that stretch into the future. Some places where you may obtain warranties from are warranty brokers, and insurance groups.

While your car dealership may offer a car extended warranty, it is sometimes in your best interest to purchase it elsewhere as the dealership many times will employ the warranty as a means to increase their profit by including it in the financing of the vehicle. This causes you to pay interest on the warranty; increasing your overall costs than if you purchase the warranty from an outside company.

Check a credit union, other insurance companies or internet sources for their options on extended car warranties. Buyers usually can negotiate the price of a warranty. A rule of thumb is that buyers may have a gross profit of one-third to negotiate the warranty. However, the less age and mileage your automobile has, the lower an extended warranty will cost.

Before you buy, read service contracts with the manufacture's warranty. These often allow for warranty for three years or 36,000 miles or whichever comes first.

If you regularly trade your new car every three years, you most likely will never need a new car extended warranty as new cars tend to be fairly trouble free during the beginning years. However, if you're ill-fated in life, love, and automobiles, then purchasing a new car warranty would be a valid move.