The world of auto warranty companies is a fiercely competitive one. There are a limited number of cars on the road – granted, there are millions of them, and every one of them, at one point or still, has or had a warranty – but with the large number of companies fighting for the business of those drivers, it means that every car owner is the target of some very hungry sales reps.

This can be quite a daunting position to be in for a car owner. Whether you are buying a new car from a dealership, or purchasing a used car, there will be people trying to sell you their warranty services.

In the dealership, you might run into a pushy sales person who will try everything they can to get you to sign on for an extended warranty when you make your initial purchase. There are benefits to buying at that time, including having the costs of the warranty rolled up into the financing for the car, and knowing that your dealership will continue to be the place to have any repairs or replacements done. But these comforts might end up costing you hundreds or thousands of dollars in the long run. Sales people make very large commissions on warranties, so they’re eager to get you to sign up for one. But the price that is rolled into the financing will likely be a lot higher than it would if you sought out your own quotes from third-party extended warranty providers. Granted, you will have to pay more up-front with those third-party companies, instead of adding a small number to your monthly car payment bills. But it could very well save you money.

But just as not every car sales person is out to rip you off, not all third-party providers are good guys, either. There are some risky ventures out there, so a wise shopper will compare not only the prices offered by these vendors, but the terms and conditions of the warranties they offer. If a company won’t let you review the warranty before you buy, don’t waste your time or money – it’s likely a scam, or just a really bad set of terms that will tie you to some big costs further down the road. Auto warranty companies will fight to gain you as a client, so use that to your advantage. Compare prices, look at all of the terms of the warranties offered, and tell the companies you speak with “hey, make me the best offer.” If they can’t, someone else will.

The problem with looking for an auto warranty is that often it after the fact. Many consumers neglect this most important part of a car maintenance plan, because they don’t know what to purchase. Additionally, a great deal of people have been ripped off by fly by night firms who either direct mail or cold call potential buyers. This is typically done just as the original vehicle service contract is about to expire. The problem is these companies don’t provide adequate customer service.

Before purchasing a car warranty, it is important to get the facts straight first. Know who is providing the coverage — is it the actual vehicle manufacturer or a newcomer to the field. This is crucial information to know before the first call for service happens. If the underwriter is not reliable, chances are that the service level won’t be either.Find out what is actually covered in the plan and the length of time as well. Some of the language provided in the vehicle warranty contract can be misleading. If there is something that is not clear, then don’t sign it. Find somebody to explain the items that are not specific, then proceed to purchase the proper coverage.

Typically most of these car warranty contract agreements list the responsibilities of the owner. It is important to keep track of these requirements and follow the recommended dates for service. These manufacturer recommendations have been determined to optimize the useful vehicle lifetime. Make sure to keep detailed records of any work done, including time, dates and location. This is most useful when filing a claim.Some items will not be covered because they are considered part of normal car maintenance. These include belts, hoses, oil changes etc. Know that is the duty of the vehicle owner to take care of any wearable issues as part of the contract.

This industry has come a long way in the past 2 decades. There are fewer tales of mistreatment and poor customer service as seen on previous occasions. Consumers have become more educated, and are not getting “ripped off” as many times as before. Firms have become more customer friendly, offering different vehicle warranty packages — even for private transactions. This is a great step forward, as some huge conglomerates like AIG have decided to provide auto warranty