Skip to main content

    Extended Warranty

    Mostly scams. Sometimes useful.

    Robocall scams

    • "Your warranty is expiring" calls.
    • NEVER from your dealer.
    • Always scams.
    • Block + report.
    • Robokiller app — auto-block.
    • FCC has issued warnings.

    When extended warranty MIGHT help

    • European luxury (BMW, Audi) — expensive repairs.
    • Hybrid / EV — battery replacement risk.
    • Used car post-warranty.
    • Drive 100K+ miles plan.
    • Anxiety about big repairs.
    • Toyota / Honda almost never need.

    Manufacturer-backed only

    • Buy from car maker (Ford, Toyota, Honda).
    • Repairs at any dealer.
    • Quality parts.
    • $1,500-3,000 typical cost.
    • Negotiate — same as price.
    • Don't pay full price.

    Avoid third-party

    • Endurance, CarShield — avoid.
    • Heavy advertising = high cost.
    • Complex claim denials.
    • BBB complaints common.
    • State AG complaints common.
    • Worth less than premiums paid.

    Self-warranty alternative

    • Save warranty cost in dedicated account.
    • $3,000 in repair fund.
    • Earn interest until needed.
    • Average car costs $700/yr in repairs.
    • Rarely use $3,000 in any year.
    • Keep difference if not used.

    Read fine print

    • Wear-and-tear excluded usually.
    • Brakes + tires excluded.
    • Pre-existing conditions excluded.
    • Maintenance neglect = void.
    • Deductibles per visit.
    • Dealer of record limits.
    • Pro-rated cancellation fees.

    Skip them mostly

    Consumer Reports — most extended warranties not worth cost. AAA — same finding. The financial industry profits from selling them. Senior strategy: buy reliable car (Toyota, Honda), maintain it, save for repairs. Dealer pressure to buy = big margin to dealer. Just say no.