However, the internet has become one of the best places for the keen car buyer to purchase auto extended warranties, since there aren't dealer markups. It can be a daunting task, with so many scams and ramshackle, fly-by-night operations out there, but these tips will help you to make an informed decision.

First of all, be sure you're dealing with a solid company. See that they're listed in the Better Business Bureau or Web Assured, and that they have years of experience. For example, Warranty Direct has been in business for 26 years and NWC have been in business for 20 years. Read consumer comments and testimonials, check to see if the company services any dealerships and ask if they have a reinsurance program, which means they will be good for the money, even if many people are filing claims all at once.

Once you've purchased your extended warranty plan, understand that there are several tips you must follow to avoid your claim from being denied, which can be really agonizing if you've paid thousands for coverage! One rule of thumb is to get approval from your warranty company before repairs are done.

Sometimes, your company may want to inspect the car for themselves before work is done to protect themselves against fraudulent claims. Some warranties require oil changes every six months and if you don't follow the rules, they won't pay for your repairs! Similarly, always pull over if your car overheats.

Some warranty companies won't pay for damage caused after overheating. If you don't get your fluids topped up or your worn gaskets replaced in a timely manner, then your claim may also be rejected. In some cases, the mechanics have to rip your car apart to get to the damaged part, which may not be necessarily covered. If you have added alterations, like unauthorized tow hitches, then you may also not be eligible for your warranty any longer.

As a general rule, new car warranties are cheaper on reliable cars like Honda and Toyota than on cars like Kia, Land Rover and Ford. You won't lose much coverage or money by waiting 100 miles or even 14,000 miles after purchasing your vehicle, but after that, you will get less bang for your buck.

The more repair data that surfaces on your vehicle over time, the more the extended warranty plan companies will charge for your make and model. Don't get scammed by your dealership, but certainly do your research and aim to buy before your mileage accrues.