Extended Warranties

But wait, there's still more: For one, the terms of the policy might differ based on time and mileage. If you figuratively live in your car, opt for a policy that covers fewer months but more miles. Other features can include emergency towing, reimbursement for some costs if stranded away from home, transferability should you decide to sell the car and even partial or full reimbursement if you never use the coverage. In general, the better the coverage and lower the deductible, the more expensive the policy.


So forewarned is forearmed, both when buying a new vehicle and an extended warranty. Just remember that everything is negotiable at a car dealership. If you want extended coverage and identify the policy that suits your projected needs, haggle the actual cost of the premium—don't be smoke-and-mirrored by the "few extra bucks" it'll add to the monthly payment. Also remember that the dealership is trying to make as much money as possible. Its first offer is seldom its best. As the consumer, you should ultimately control what best suits your needs.

Resources
A.M. Best, www.ambest.com


Standard & Poor's, www.standardpoor.com