When purchasing a used car, most dealerships will offer a limited used car warranty. If the car is a newer model, it may even come with the remaining original factory warranty. If it is an older model car, past the original factory warranty period, the dealership typically offers at least a ninety day or 9,000 mile warranty on the car, whichever comes first. Beyond that, it is your responsibility to pay for any service needed on the used car unless you obtain an extended warranty.

There are several different kinds of used car warranty coverage available. Probably the most common one is an extended warranty that will cover major parts and components of the car and is similar to the original factory warranty. These types of extended warranties will cover major parts like the engine, engine head, cylinders and transmissions. They will not pay for normal wear and tear parts like hoses, wiper blades, brake pads and oil changes.

However, there are extended service warranties available as well. The extended service warranties are essentially paying for routine services in advance. Since parts and service increase all the time, this type of plan is a good choice, in order to lock in a lower service rate. These plans are designed to cover oil changes, tire rotations and other normal wear and tear parts.

You can purchase a used car warranty that provides both extended warranty and service warranty coverage. If you finance the used car, it is a good idea to have an extended warranty, at least for the length of the loan period. If you plan on keeping the used car past that time, then you should determine how long you want coverage. Some plans will offer the option to renew the policy at the end of the period. If you are not entirely sure, at least get coverage for the length of the loan.

Purchasing a used car warranty is a contract. Prior to signing you should read all the fine print and understand the policy. It is important to know the list of approved mechanics and service centers. You should know what company is underwriting the policy. You should understand the claim process. Some companies may require you to pay the full amount for the service and parts upfront, and then submit a claim form to be reimbursed. Other companies may only require you to pay a deductible before service is authorized.