Things you should know before shopping for Auto Warranty

• The Federal Trade Commission says consumers, before signing any extended coverage contract, should fully understand its terms and coverage. The agency also stresses that what consumers are actually buying is not an extended warranty but a "service contract." "A service contract is a promise to perform, or pay for, certain repairs or services. Although a service contract is sometimes called an extended warranty,' under federal law, it is not a warranty," the FTC said. "A warranty comes with the original price of the car, whereas a service contract costs extra. It is mainly this separate and additional cost that distinguishes a service contract from a warranty."

• Check out a business with your state Attorney General's Office and your local Better Business Bureau before you agree to do business with them.
  

• Always ask for copy of service contract and read through terms most important what's cover and what's not cover.
  Most of the after market auto warranty companies expects car owner to keep service / oil change records, if car owner fails to do so they have reason to deny repair claim.
  

• Get at least 3 competitive quotes and compare coverage, warranty length and prices.

• Many after market warranty companies lure customers by offering 7 Year / 100,000 mile warranty, remember 7 year is from your car's model year, not from the date of warranty purchase. If you are out of your manufacture warranty then there may be "waiting period" - during this period warranty company wont process any repair claims.
  
  

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