Under the right circumstances the extended auto warranty can be a cost saver by covering the price of expensive repairs while the car owner only has to cover the cost of the warranty deductible. The more attractive extended warranties offer zero deductible contracts for some repairs.
While this sounds very attractive, anxious car owners need to take it slow and do some homework before selecting an extended auto warranty plan. Even more important than scrutinizing the warranty contract, consumers must take time to investigate the company that holds the contract.
The best and most attractive contract in the world is useless if the company is unscrupulous and doesn't honor the agreement. Before signing with an extended auto warranty company here are a few pre-contract items to consider: