Choosing Extended Warranty Company, Considerations


There are a lot of considerations to be made when selecting which extended Warranty Company to go with. Choosing the right company to purchase your warranty with is very important as you do not want to be in a situation where the lack of due diligence up front causes you to incur a cost you otherwise thought was covered.

To be clear, this isn’t a discussion on the differences between a third party or manufacturer offered extended warranty, but an analysis on how to choose warranty companies to protect your car purchase.


Different companies have different coverage policies depending on the year, make and model of the car that is being considered for extended warranty. However, based on what packages are offered, you can compare different coverages available between different companies.

Variables to consider

  • Years of Coverage – Extended warranty can range between 3 to even 10 years
  • Extent of Coverage – whether it is exclusionary or inclusionary coverage, warranty coverage can range from minimal to basic.
  • Extra Frills – Some extended warranties provide roadside assistance, high mileage allowance and rental car reimbursements.

Regional coverage is also something to be considered. If you are looking to physically move to another geographic location, you might want to go with a larger company that has connections in various states/provinces instead of a smaller company based out of one region.

For all coverage considerations, you can look into the cost against amount of coverage to compare different extended warranty companies.

Warranty Policies

Typically extended warranty costs are expected to be paid up front as a lump sum for the warranty coverage for the agreed upon term. The whole amount upfront for the extended warranty a very large cost for most used car buyers on top of already purchasing a car, so larger extended warranty companies will offer financing terms for the cost of the warranty. There is usually an interest portion associated with this payment schedule, but it can also be negotiated.

Additionally, it is important to look into the policies associated with ensuring that the extended warranty remains valid. Some extended warranty policies have certain restrictions such as maintenance at certain dealers or requiring certain repairs at mileage intervals. Being able to choose where to do your repairs when a claim is made or regular maintenance can save you a lot of headaches and additional costs. We hear from a lot of car buyers who want to use their own trusted mechanic of 20 years to do their extended warranty covered repair, but their third party warranty company wants to use their own preferred garage. Due to the large scale repairs of most warranty claims, most car buyers want to go with someone they trust. Warranty policies are extremely important to look into and represent a significant factor in selecting an extended warranty company.

Customer Service and Availability

Above all customer service should be professional. Try calling their claim or help hotline to see how they approach and handle customer service. Availability is also a minor consideration, as cars don’t always breakdown during their office hours. See if they have a 24/7 hotline or at the very least consistently

We would also suggest looking online briefly to get a glimpse of the type of service that is offered to people who have purchased their warranty in the past. Do keep in mind that online you will hear a lot of complaints as happy customers rarely post reviews, so take all that is read with a grain of salt. However if you see a common trend or perhaps a large volume of complaints relative to other companies, then this starts to paint a picture on warranty reliability.


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  • Sophia

    One another way to find a good extended warranty company is that you can look for a company that has been in business for at least several years. AMT Warranty is the good company I found for extended warranty.

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