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You can buy an extended auto warranty directly from either a vehicle manufacturer or a third-party warranty company. Extended warranties from independent companies typically feature a wider range of coverage options and more flexible payment terms.

Here are some best practices for using a warranty and getting the protection you need: Read the small print and understand the warranty and any guarantees before you buy. You'll get paperwork?read it! ... Research the company. ... Know who to contact in case you have questions about your warranty. ... Avoid extended warranties.

Like most insurance policies, an extended warranty is something you pay for in the hope that you'll never need to use it. For many owners, it's worth paying the price for peace of mind; even if your car is built by a brand renowned for its reliability, there's always a risk that something could go wrong.

For some, you cancel your warranty coverage easily with a phone call. For others, you'll need to fill out a cancellation form, a letter of intent, and proof of the odometer reading at the time of mailing and either mail it in or bring it to the dealership to initiate the extended car warranty cancellation process.

In most cases, if a product is replaced under warranty, then the replacement product will have the rest of the remaining warranty from the original item. You don't get an entirely new warranty every time you get the item replaced, unless the warranty specifically says that you do.

We'll give you a few tips for getting the most out of your service plan: Research Reputable Car Extended Warranty Companies. ... Find Out What is Covered. ... Understand the Claims Process. ... File a Claim. ... Take Your Vehicle to a Trustworthy Repair Shop. ... Keep Your Information Up to Date. ... Find Out if Your Policy is Transferable.

Extended warranties don't cover everything that can go wrong with a purchase, and they are expensive to boot. Your purchase likely comes with a manufacturer's warranty, and the retailer you buy it from may also stand behind it. The best credit cards also offer purchase protection.