Smith 
One of the BEST warranty buying tips is to buy your warranty directly from the seller of the warranty. The car dealer does not originate any warranties. They only resell other warranties that you can buy from the original company directly. For providing this service the dealer will make between $500 and $1,500! Buy direct after you buy your car.
Use the new car rebate to cancelling extended warranty! When you receive your rebate on your new car, use it to buy an auto warranty from an online warranty seller cheaper than the dealer. Many online extended warranties are 45% cheaper than your car dealers and have broader wear and tear coverage.
Only deal with a financially solid warranty company. Your warranty administrator should be one who will still be in business when you need them!
When you buy an extended warranty, you deal with two companies. One is the seller of the auto warranty contract; the other company administers your claims. The best choice is the well funded company. A company that sells as well as administers their auto warranty.
Understand what your auto warranty covers before you buy it. The only way to do this is to read the warranty before you buy it. If you cannot do this, be aware that ALL warranties can be canceled within 30 days.
Be sure to read it as soon as you receive it. Be absolutely sure to read it before needing to file a claim. Many people hear “extended warranty” and think this is coverage of every thing that can go wrong with their car. These are the people who fail to read the contract, fail to perform to proper car maintenance schedules, fail to comprehend coverage. They then wonder why their car warranty claim was rejected.
Some people buy any old used car without inspecting it. They then buy an extended auto warranty, thinking that the warranty covers any repair to the car and make it like new. They then file complaints against the company when repairs are denied. This sounds funny, but the agreement is what the contract says, not what the buyer thinks it says.
