When you buy an automobile warranty you are buying coverage for costly repairs and possibly some maintenance. There are thousands of automobile warranty providers -- both through dealerships and stand-alone companies -- that will sell you a policy at a price right for you. But, be aware that many of these companies can offer low prices because they either make a habit of rejecting claims or because they exclude important kinds of coverage. Automotive extended warranties are typically sold in packages that cover a set time period, say two years, or in packages that cover your vehicle up to a certain mileage. New car dealers almost always offer warranties, but if you plan on comparing auto warranty companies to those of your dealership, do it before you go in to buy your car -- you don't want to pass up a warranty from your dealership when you don't have an alternative already in place when you drive off of the lot.

Search for an automobile warranty that suits your needs with the following resources and automobile warranty basics:

1. Auto warranty quote sites

2. Highly-rated warranty providers

3. Discount extended car warranty packages

Action Steps
The best contacts and resources to help you get it done

Get traditional and discount extended car warranty quotes online

If you're just starting your search and don't know where to begin, check out auto warranty quote engines. You'll find they're the easiest way to get multiple quotes and the ability to view standard services and company profiles. Many of these sites also offer customer testimonials and links to entities such as the Better Business Bureau.

I recommend: Auto Warranty Broker explains warranty terminology and offers and instant quote option. Warranty Deals features a three-step process for hundreds of options through their site or toll-free number.

Buy an extended auto warranty as soon as your dealership warranty expires for the best price

Dealerships can -- but don't always -- offer extended auto warranty packages. Your best bet is to buy automotive extended warranties that will cover your car from the time that your previous warranty ends. And, find an automobile service plan offering nationwide coverage and roadside assistance since a running vehicle is what most of us count on for travel.

I recommend: Warranty Direct can get you the popular and reliable Power Shield coverage. AA AutoWarranty offers bumper-to-bumper warranties for vehicles with less than 70,000 miles.

Look for incentives packaged with your vehicle warranty services

Vehicle warranty services are not on the top of everyone's to-do list. We'd rather have car insurance or extra money for gas. Warranty providers realize that, and are offering programs to help you save in a variety of ways. Don't hesitate to take advantage of such incentives, like an automobile service plan, if the protection is right.

I recommend: Carchex boasts low-price warranties as well as free gas programs. Certified Car Care features full refunds on their warranties should you never have to file claims.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you can't afford a vehicle warranty, consider a packaged auto service contract from an auto shop. For a set price they can maintain your vehicle properly so that you may not have to rely on an extended automobile warranty at all.

When purchasing a new or used car, more than likely you will be offered an extended automobile warranty that will pay for repairs to the car after the manufacturer's auto warranty runs out. Purchasing the extended automobile warranty at that time can save you from scrambling to find an extended automobile service plan when the auto service contract runs out.

Unfortunately, not all extended auto warranty providers offer the same types of policies. The best automobile service plan will offer:

1. True bumper-to-bumper vehicle warranty services, which includes everything that can wear out or break down.
2. A claims reserve account, which is where the extended auto warranty provider deposits funds to ensure your auto warranty claims will be paid.
3. No deductible for individual repairs or parts covered by the extended auto warranty.

Action Steps
The best contacts and resources to help you get it done

Compare automotive extended warranties

You can find a discount extended car warranty or companies offering complete vehicle warranty services online (except in California).

I recommend: Make sure you have all the facts before signing with a discount extended car warranty service. If the salesperson tries to rush you or can't satisfactorily answer you questions, it's time to move on. Companies such as SmartAutoWarranty and AA Auto Warranty provide instant quotes for automotive extended warranties online, or you can speak with a service representative. AAA members also get discount warranty coverage.

Buy an automobile warranty from your dealer

Although this can be more expensive than purchasing an extended warranty directly from a warranty provider, you have the assurance that your vehicle model is covered.

I recommend: Check with your dealer to see if he offers extended warranties for your car. A few that do are GM, Ford, and Chrysler dealers. Unfortunately there are many car models that are hard to insure for repairs. These include automobiles with turbo-charged engines; 10- and 12-cylinder engines and vehicles that have a reputation for being expensive to repair such as Porches and BMWs.

Know your basic coverage vehicle warranty services

Almost every automobile sold today comes with some warranty coverage, but coverage differs from manufacturer to manufacturer.

I recommend: CarSmart.com and WarrantyHelper show you basic warranty coverage for all of the automobile manufacturers.

Cover used cars with extended vehicle warranties, too

There are several extended auto warranty providers that can cover you if you've purchased a used vehicle.

I recommend: Since used vehicles often come only with what's left on their warranties or nothing at all, it's a good idea to purchase coverage. A couple of the more reputable companies offering used car coverage include Warranty Direct and CarChex.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If purchasing a used car, find out if there is any warranty coverage left on the vehicle.
• •  Find out who is backing the warranty coverage you're purchasing. It may be the automobile manufacturer, a third-party or an insurance company.
• •  Make sure the warranty coverage you purchase will pay the repair shop directly and will allow you to use any repair shop, including your dealer, without qualification or pre-approval of the repairs.
• •  Make sure there are no hidden costs, such as deductibles for every part replaced or other charges.
• •  Know exactly what is, and is not, covered.

Most automobile warranty companies will cover you car after a mechanical breakdown but what about wear and tear? A automobile warranty offering wear and tear coverage would pay for items like worn belts and damaged hoses. You can find wear and tear coverage, but it's almost always paired with mechanical breakdown coverage and it isn't typically offered on high-end cars or cars with lots of expensive parts. For those cars sometimes your only option is to buy a policy directly from the dealer or to start a savings account specifically for car repairs. Both mechanical breakdown warranties and wear and tear warranties are best bought as soon as you buy your car or as soon as the dealership warranty ends since they are cheapest this way.

Look for specific coverage, such as mechanical breakdown, for your car, truck or RV with automobile warranty key terms as well as the following resources:

1. Warranties offered for mechanical breakdown

2. A discount extended car warranty covering wear and tear

3. Extended vehicle warranties and special terminology for RVs

Action Steps
The best contacts and resources to help you get it done

Read the fine print in automotive extended warranties for basic coverage

Most of us can handle paying for common wear and tear repairs like oil changes or new hoses. Basic coverage for mechanical breakdown will cover high-dollar repairs but, if you're not careful, you could be signing up for automotive extended warranties that don't cover things like fluids and labor charges involved in mechanical repairs.

I recommend: ConsumerAutomotiveResearch.com offers a comprehensive glossary of automotive warranty terms. If you're shopping for a new car, preview the auto maker's warranty before you buy with the Motortrend auto warranty preview tool.

Get even more from your extended auto warranty with wear and tear coverage

If you have a little extra to spend on your extended auto warranty, consider buying from a company that also offers wear and tear coverage. More often than not, tacking wear and tear coverage onto your car warranty increases the price only minimally. And buying wear and tear coverage in addition to mechanical breakdown coverage from a reputable company will make your warranty truly hassle-free.

I recommend: Both Warranty Direct and Auto Protection feature wear and tear coverage with total coverage details online. Vaden Automotive offers a glossary of extended warranty terms.

Find RV-specific vehicle warranty services online

Buying vehicle warranty services is a whole other ball game than buying a discount extended car warranty. Because recreational vehicles are used for extended travel, the wear and tear happens faster than it would on a traditional vehicle. But the sometimes-expensive coverage for RVs is a wise purchase if you plan on doing lots of traveling, especially if the policy comes packaged with roadside assistance.

I recommend: Good Sam Club CSP offers an insurance-type policy on RVs, trucks and SUVs. Vehicle Life Extended Warranty will let you know what to look for in a warranty specific to RVs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Most extended auto warranties are not insurance policies though they are routinely sold and purchased as such. The insurance industry is highly regulated, whereas the auto warranty industry is not, so buyer beware.