If you ask this question to any aftermarket auto warranty provider, they will most likely answer yes, and tell you that today's automobiles are more advanced then ever and repairs and labor have become more expensive. The real answer to this question can only be found on your own. Only after you do your own research and understand what is offered in a good aftermarket warranty will you know if such a policy is good right for you.

     One way to decide if an aftermarket auto warranty is a good idea for your situation is to evaluate the alternatives. We get more in depth into the alternatives to an extended warranty contract further on. For now think about the answers to the following questions: How long do you plan on keeping your car? How many miles per year do you drive (on average) ? How much is your car worth?

     It is fairly obvious that if you do not plan on keeping your car for a long time you should not buy an extended warranty contract. Plan on keeping the same vehicle for at least two years before looking into a third party warranty. The amount of driving you do is an important variable to consider. The industry average for mileage driven in the United States is 15,000 miles per year. Lets say you drive 5,000 miles per year. This means that in 6 years you would only cover 30,000 miles. At that rate the probability of something breaking on your vehicle is drastically reduced. You may be better off keeping a savings account comprable to the amount of a good warranty policy. You also need to remember that proper maintenance will cost you more, on average, then unforeseen repairs. Keeping up with all your maintenance will also prevent those unforeseen repairs from occurring. Sometimes it is better to invest your money in meticulously maintaining your car. If your car is worth about the same as a warranty policy, then you are better off saving your money for a rainy day. Check the value of your car prior to purchasing an extended warranty. You may be surprised what the value of your vehicle is in today's market. Many warranty contracts also state that they will only cover repairs up to and not exceeding the value of the car at the time of repair.

     Think about how handy you are. Many common problems among the most popular brands of cars are documented and the repair procedures are available on the internet. If you are a big DIY (Do It Yourself) person, you may not benefit from a warranty extension. Also, if you do your own maintenance, make sure to read your warranty contract carefully. Many warranty providers will require up to date maintenance records, and your personal ones will not suffice. I will get more into maintenance later on. Like I stated earlier, purchasing a warranty contract is purchasing piece of mind. Knowing you are covered in case of an unforeseen repair is usually worth the cost of the policy.