So you are completely clued in on why buying an extended auto warranty is a great idea. New car or old car, you have to be covered because having a car is just too essential to getting to your job and a number of other things. Let's look at a few tips for the best practices there are to buying an auto warranty.

Your first mantra to a successful time with an auto warranty is only buying from a company that's completely believable. Any time you buy an auto warranty, there are two businesses involved in the transaction - the business that will actually stay with you for the duration of the warranty and give you your repairs and replacements, and the business that sells this deal to you. Go with a company that sells and administers their own product. A reputable company like WarrantyDirect or NationWarranty is what you're looking for. And they will even cover you for a car rental when your car is in the shop in for repairs.

If you find that the thought of laying out big bucks for an extended car warranty bothers you, there is a way to psychologically trick yourself into looking the other way. When you go in to buy that new car and they give you a rebate on it, you can right away use the rebate to buy an extended warranty. You don't see the money coming out of your pocket, and it'll weigh less heavily on your budget-conscious mind. Buying an extended auto warranty at the car dealership though is rarely a good idea. Go online and buy from one of the online firms. They're usually much cheaper.

Not all auto warranties are created equal. You need to really study the policies of a company before you sign up with them. Just because something's called a 'warranty', it doesn't mean that it covers everything you need. Lots of people file lawsuits against their auto warranty company just because they thought that a warranty protected them against everything. If for instance, you don't stick to your schedule of maintenance services, you lose your warranty. And most warrantys exclude upholstery, paint scratches, tires, air bags, glass, shock absorbers and so on You need to be conversant enough with the terms and conditions to not let that happen.

If you want an affordable auto warranty, you had better get a car that's known for its dependability - like a Toyota or a Honda. A Buick or Chevy is known for its high rate of failures; a BMW or Mercedes-Benz can be dependable, but expensive to fix should anything go wrong. Cars like these will have expensive warranties. But you had better buy those warranties, expensive or not. Because repairs are something will really have your shirt.