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Questions To Ask Auto Warranty Provider
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The 10 Crucial Questions to Ask Your Auto Warranty Provider

The 10 Crucial Questions to Ask Your Auto Warranty ProviderThe 10 Crucial Questions to Ask Your Auto Warranty Provider
10 questions every extended auto warranty provider should answer

Published: November 21st, 2023

When it comes to purchasing an auto warranty, navigating the plethora of options, understanding the fine print, and avoiding scams can be as daunting as driving through a dense fog. An auto warranty is not just an add-on; it's a crucial investment in your vehicle's longevity and peace of mind. To cut through the confusion and ensure you're making a smart choice, it's crucial to ask pertinent questions before committing to a provider.

In this blog post, we'll walk you through the ten most vital questions to ask your provider. From understanding the basics of an auto warranty to exploring coverage plans, components, and claims processes to evaluating costs, deductibles, exclusions, and the provider's reputation. 


The Types of Auto Warranties

What types of auto warranties are there?
What types of auto warranties are there? 

Extended warranties serve as valuable shields for vehicle owners against electrical and mechanical issues, and comprehending the types of auto warranties before purchasing one is advisable, given their varied forms, as each one serves a unique purpose. 

Manufacturer’s warranty:  The first type is a manufacturer's or factory warranty. Although not an extended car warranty, it's noteworthy because car owners can still purchase an extended warranty while under the manufacturer's warranty. It typically guarantees that the manufacturer will repair or replace defective parts after the car dealership sells the vehicle.

Covering crucial components like the engine, transmission, and electrical systems, this warranty provides peace of mind for new vehicle owners but has limitations. These include specific time and mileage limits, with eligibility for used vehicles being less common.

A manufacturer’s warranty can be limited to failures and defects caused by factory and manufacturing issues. In contrast, an extended warranty provides additional layers of protection that the original warranty does not cover. 

In some instances, an extended auto warranty provider offers coverage for components not covered by the manufacturer, making it a smart investment. Additionally, an excellent time to purchase an extended auto warranty is when your original warranty is about to expire, decreasing the likelihood of unexpected breakdowns.  

Bumper-to-bumper warranty: This extended warranty is the most comprehensive, covering nearly all vehicle components from front to rear bumper. When exploring this coverage option, the contract will outline what is excluded from coverage rather than what is included. This is because the components not covered are fewer than those included. This is for those seeking the most thorough level of coverage possible. 

Powertrain warranty: Powertrain warranties focus on crucial components, such as the engine, transmission, and drivetrain. While not as extensive as a bumper-to-bumper warranty, it provides coverage for expensive, vital components to repair or replace. This is your basic warranty that covers the main parts that keep your vehicle running and are also some of the most expensive parts of your car. It is cheaper than other types of warranties and is for those seeking basic protection at an affordable price. 

Now that we’ve covered the different types of warranties you can get let's explore the key questions to ask your provider to ensure you get the best coverage possible. 

Question 1: What Types of Coverage Plans Do You Offer?

An auto warranty provider's coverage plans.
An auto warranty provider's coverage plans.

Understanding what types of coverage a company offers significantly helps with the decision-making process. This information allows you to assess the diversity of plans the provider offers.

Moreover, knowing the types of coverage plans lets you align your vehicle's specific needs with the chosen plan. Different cars have varying requirements, and clarity on the available plans ensures you can find the right coverage plan to suit your vehicle's unique characteristics. 

Question 2: What Components Are Covered in Your Plans

Only when you know your vehicle’s needs, condition, and budget will you be able to comprehend the level of coverage you need. For example, opting for powertrain coverage proves to be a sound financial decision as you save money, but only if your vehicle is in good condition. While it does not provide the same level of security as other coverage plans, it focuses on essential components that, if well-maintained, may have a lower likelihood of failure. 

While more expensive, a bumper-to-bumper warranty is the best option when you need complete protection for your vehicle. This is especially true if you have a new car, drive a lot, or have a vehicle with high-tech features. In these cases, opting for a bumper-to-bumper warranty is a smart decision.

When looking into an auto warranty, it's crucial to inquire about the components covered by the plan. Knowing exactly what type of protection you're getting, especially regarding limitations like the exclusion of normal wear and tear parts, is key to making the best decision for your needs.

Question 3: How Long Does the Coverage Last?

Depending on the coverage option, mileage of the vehicle, and warranty provider, the coverage duration can vary, and inquiring about this is a fundamental step when exploring auto warranties. By seeking clarity on the coverage's longevity, you can make informed decisions about the warranty's suitability for your vehicle's lifespan. 

Depending on the specifics outlined in the provider's fine print, an extended auto warranty typically lasts two to seven years. Some providers may offer coverage for a specific mileage limit and a time duration.

This can be advantageous or unfavorable, as individuals may reach the mileage limit before the time duration is up and vice versa. This question, therefore, helps you navigate the different providers with a clear understanding of the time frame.

Question 4: Are There Any Restrictions or Limitations?

Many providers will not cover all components or modifications, pre-existing conditions, normal wear and tear, and regular maintenance, and they will not provide service contracts for certain vehicles based on their age and mileage. 

On the other hand, some companies provide auto warranty coverage for high-mileage vehicles, which benefits the owner of a used car. At the same time, some providers do not protect high-mileage vehicles or will do so depending on the chosen coverage plan. 

When you request a free quote from a provider, they typically ask for details about the type of car you own, like its model, age, and history; however, the provider might not disclose other restrictions up front. Therefore, asking this question helps you choose a coverage plan and provider that fits your vehicle and driving habits. 

Question 5: What Is the Claims Process Like?

To ensure prompt completion of any repairs or services covered by your provider, it's important to understand their claims process. Typically, you'll need approval from your provider before receiving repairs or services, which can impact how quickly the work is done. Knowledge of the claims process will help prepare you for necessary repairs or services.

Some providers require you to pay the repair costs upfront and then wait for reimbursement, while others pay the repair shop directly. It is much easier when the provider pays the repair facility directly, as you may not have the funds available, or the reimbursement process can take several months, leaving a dent in your finances. 

It is important to understand the repair process from start to finish, including the required approvals, fund allocation, and estimated timeline for completion. This will help you better understand the process and give you a general idea of how long the repair will take.

Question 6: How Much Does the Warranty Cost?

How much does the auto warranty cost?
How much does the auto warranty cost? 

When looking at auto warranty options, it's a good idea to carefully examine the costs since they can vary from provider to provider. It's not just about the price tag, though. Check out what each warranty actually covers for the price you're paying. Sometimes, spending a bit more upfront for a warranty can give you better coverage or lower deductibles and might save you money down the road. 

Also, keep an eye out for any extra fees, like service or cancelation fees. Remember, the cost of a warranty can depend on what kind of coverage you're getting and the specific plan you choose. Some places even let you customize your plan, so you only pay for what you need. 

Getting a clear picture of all these costs and how they fit into your budget will help you pick a warranty that keeps your vehicle safe without putting a strain on your wallet. It's all about finding that balance and making sure you're comfortable with your choice.

Question 7: How Does the Deductible Work?

When you buy a warranty contract, you might think the provider will cover all costs, but that's not always true. You must remember that you have to pay a certain amount, called a deductible, for each repair or visit. This amount is agreed upon with the provider when you buy the contract, and you have to pay it out of your own pocket. After you pay the deductible, the warranty will cover the remaining repair costs.

Deductibles can vary among providers. Some set a fixed amount, while others determine the deductible based on the level of coverage. Some providers allow customers to choose their deductible amount based on their upfront payment of the warranty, and a few providers may advertise a $0 deductible, subject to some restrictions.

It's crucial to understand how the deductible works and how it applies, as it directly impacts your out-of-pocket expenses when your vehicle requires repairs. 

Question 8: What Additional Benefits & Perks Come With the Warranty?

What kind of additional benefits do I get with my auto warranty plan?
What kind of additional benefits do I get with my auto warranty plan?

An auto warranty these days is much more than just coverage; it's a package brimming with additional perks. Gone are the days when a provider's service offerings only included coverage. Nowadays, providers add several perks to enhance the protection of your vehicle. 

24/7 roadside assistance, trip interruption coverage, tire replacement,  and rental car reimbursements are only some additional benefits. However, these benefits are not the standard and can vary among providers. 

When choosing between providers, it's important to consider what additional benefits they offer beyond basic coverage. These benefits can enhance your overall experience and provide extra coverage in the event of a breakdown. 

Question 9: Are There Any Additional Costs in the Contract?

Before buying a warranty, customers should carefully read the fine print since it may involve several costs that the provider may not directly advertise. Some of the fees to ask about include transfer fees if you want to sell your vehicle, cancellation fees if you choose to terminate the contract, and hidden costs you may have to pay to use the warranty. Inquiring about these costs allows you to negotiate the terms and possibly have them waived or reduced. 

Question 10: What Company Backs the Plan?

Which company backs my auto warranty plan?
Which company backs my auto warranty plan?

Extended auto warranty companies play different roles in providing coverage. There are three types: direct providers, brokers, and administrators.

A direct provider sells and administers their own coverage plans and handles all claims and customer interactions internally. On the other hand, brokers act as middlemen who connect customers with warranty providers. As for a third-party provider, they do not sell warranties directly but sell them to brokers.  

When a company works with a third-party provider, customers will have to contact the third-party supplier for any claims and repairs. The advantage is that if there are any disputes, the company from which the buyer purchased the warranty will back them up. 

American Auto Shield is one of the nation's leading third-party suppliers; however, not all brokers use their services. If you're considering using a broker instead of a direct provider, it's vital to ensure they're trustworthy. You can do this by checking their reputation with respected sources like the Better Business Bureau (BBB).

When choosing your auto warranty plan, evaluating the provider's reliability, reputation, and financial stability is essential. Investigate the company's history and financial health to ensure they are capable of meeting their commitments if you need to make a claim. This research ensures your confidence in the warranty's effectiveness and security.


In conclusion, asking important questions is vital when considering extended car warranties. These questions help you clearly understand what's covered, the costs, deductibles, and any extra perks. They guide you through the often complex world of car warranties, helping you find a balance between good coverage and what you can afford. With this clear understanding, you can confidently pick a reliable extended warranty that protects your car without straining your budget.

If you want to learn more about the top companies in the extended auto warranty industry, we suggest checking out our auto warranty reviews, blog, and comparison tool. We believe you'll find a warranty that perfectly aligns with your needs.

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