Many people will tell you that extended auto warranties are a waste of money, but the reality is that if they give you peace of mind, they could be worth the cost.
If you think an extended warranty could be the right choice for you, there are a few things you can do to maximize the returns on your purchase:
Keep up with regular maintenance: The best thing you can do to prolong your vehicle's life and ensure you get the most out of your warranty is to keep up with maintenance. This means oil changes, tire rotations, brake diagnostics and other upkeep. Warranty companies don’t look kindly upon vehicles that have been neglected, so your claim could be denied for failure to maintain the vehicle, even if the repair is for a covered component under the coverage plan.
Don’t modify your vehicle: While some warranty companies allow modifications like lift kits and aftermarket wheels, most deny coverage if there are more extensive modifications, such as added chip tunes, exhaust systems, intake systems, turbos and other mods. Even if you have them professionally installed, modifications can fundamentally alter the way your car works and cause failures that would have otherwise not been a problem.
Drive responsibly: You won’t get much mileage from your extended warranty if you race your car or use it for enthusiast events, even on the weekends. (Many warranty companies consider this abuse.) We’re not knocking high-performance driving; we’re just saying that it’s not a great way to preserve your warranty coverage.