The Bottom Line

Like all services, you get what you pay for in extended warranties. If you look for the most inexpensive plan out there, you probably aren't getting the coverage you need. But paying more isn't necessarily better. You have to read the fine print, make sure your needs are met, and feel confident that the plan will be there to protect you when repairs arise.

Don't be pressured into a plan at a dealership. You can always come back and buy the plan another day. Some dealerships force people to take extended warranties if they want to get financing. While not illegal, this usually indicates that the dealer's business practices are less than above board. In these situations, you should probably seek out a different dealer. In the worst case, you can always get your financing through local banks.

The decision to buy an extended warranty comes down to your comfort level. If you don't like dealing with mechanics, are worried that you might not have the cash to cover expensive repairs, or can't do without transportation for even a day, then an extended warranty might be for you. On the other hand, if you have discretionary income, are comfortable with your mechanic, or have alternative transportation, perhaps it is best to invest your money elsewhere.

In the end it is up to the consumer. A car or truck is a big investment and extended warranties don't come cheap. Buyers need to be aware of all their options and keep an open mind when shopping. Extended warranties offer a comfort level that some people don't mind paying for. Just remember that the companies offering the extended warranties are businesses and wouldn't offer the plans if they didn't make money on them.

Company	Background	Phone	E-mail
American Auto Warranty	Web-based. Offering extended service contracts online for eight years; providing automotive products and services for 20 years.	1-800-800-4509	Jonz@iaxs.net
Auto Warranty Brokers (AWB)	Web-based. Owned and administered by an insurance company, providing coverage for more than 20 years.	1-800-372-0665	Insurance@AutoWarrantyBroker.com
Mechanical Breakdown Administrators, Inc	Offering service contracts since 1974 for the Fireman's Fund Insurance Company which has been in business since 1863.MBA also administers policies for several other insurance companies across the country.	1-800-347-0303	websales@mbadirect.com
Warranty By Net	Web-based. The internet marketing arm of Automobile Protection Plan, Inc., selling warranties since 1994. Also offers warranties for other consumer products.	1-877-239-8363	info@warrantybynet.com
Warranty Center	Offering extended warranties since 1985. Based out of Cleveland, OH.	1-800-281-1889	N/A
Extended Auto	Offering warranties online since 1996. Owned by The Executive Group, based in Ohio.	1-888-225-3081	N/A
Car Warranties Direct	Over 20 years of auto-industry experience	1-866-653-3300	info@carwarrantiesdirect.com
1Source Auto Warranty	Over 40 years combined automotive experience and over 1,000,000 consumer warranties sold.	1-800-905-5700	info@1sourceautowarranty.com
Warranty Direct	Offering warranties for 23 years and over 1,000,000 sold. Liscensed for business in all 50 states.	1-800-632-4222	info@warrantydirect.com

Note: Some states -- including California, Florida, and Wisconsin -- have strict licensing requirements, so some companies may not be approved to do business in all 50 states.

For more information on extended warranties and related topics, check out the links on the next page.