Questions to ask my mechanic about extended warranties at an auto repair shop?

Like most warranties, there are good ones and not so good ones. Finding out the difference is the wise thing to do before you make a decision. If an auto repair shop offers you an extended warranty for your vehicle, here are some questions you should ask the mechanic.

1. What does the warranty actually cover?

Read the fine print and have your mechanic explain it thoroughly to you in advance. Not all warranties cover the same things, so don’t assume anything. Is it a drive train warranty or a bumper to bumper warranty? Is it going to cover the most common repairs that might happen to your vehicle? How many miles or months is the coverage for?

2. How much does it cost?

Is it cost effective? Average out how much you spend in car repairs each year. Then average out how much the warranty will cost you per year. Are the numbers similar or very different? Does it have a deductible? If so, how high is it? Do you pay it each time or for just certain types of repairs?

3. What are the rules/stipulations of the extended warranty?

Every extended warranty comes with rules. How stringent are the rules on the particular warranty you are being offered? For example, does it have a disappearing deductible? (A disappearing deductible means that if you bring your vehicle to the original dealer that sold you the new vehicle, you would not have to pay a deductible, but if you brought it to an independent repair shop you have some sort of deductible. This keeps you locked into going to that dealer for the life of the warranty.) Again, remember to read the fine print.

If you are still in doubt after asking the questions above, take the warranty offer in to your local auto repair shop and ask your mechanic to look it over and give you their opinion. They see should be able to spot a good one from a bad one.

Remember, check the coverage, count the cost, and consider the rules before committing to an extended warranty.