This makes it even more imperative you understand every letter of the contract. These warranties vary because there are a variety of firms offering them. If you buy a Miata from a Mazda dealer, the limited warranty will come from Mazda. However, the extended warranty can come through some third party that has no ties to Mazda whatsoever. These independent companies are known as administrators.
Administrators are something like claims adjusters in the insurance industry.
If you need a repair, they will decide whether it is covered by your extended warranty or not. Many purchasers of extended warranties don't find this out until too late, said Ward. A lot of the time people don't even know. For this reason, it is important to make sure the administrator of your extended warranty isn't going anywhere soon. Learn about the reputation of the company and find out from your Department of Motor Vehicles who fulfills the contract if the administrator goes out of business.