A good contract will include a towing benefit. When you hear or read "free towing including", think "towing benefit included". No contract is going to give you true free towing. You can though obtain a towing benefit. The dollar amount of reimbursable towing money will be disclosed in your contract. This could be $50, $100, etc. The theory of the towing benefit is to get you to the nearest auto repair facility in the event of a breakdown. If you insist that your vehicle must be taken to a shop of your choice, then you will be liable for the difference of price between the actual towing and the towing benefit. The towing benefit is used for the sales pitch to push the warranty on the consumer. Most towing companies charge at least $100 to bring your car anywhere and this amount can be greater in high traffic areas or when you are stranded far away from the nearest repair facility. Do not shop for your extended warranty contract based on benefits such as towing, rental car, travel expense reimbursement, etc. Even if you purchase an extended warranty, you should still keep a service such as AAA in the event of a breakdown.

     Rental car works along the same lines as towing. You will have a pre determined amount of coverage as outlined in your contract devoted to rental car reimbursement in the event of your vehicle being out of commission due to repair. This amount is usually around $35/day, and again, the cost of your rental, with tax, insurance, and various fees will most definitely be higher. Most companies will also outline a maximum amount of days which you will be reimbursed for. This is usually 3, and once again, your vehicle may be in the shop for much longer. Do not factor rental car reimbursement into your decision to purchase. If the contract you are interested in is worth taking, it most definitely has some sort of rental benefit.

     Another benefit companies will try to sell you on is travel expense coverage. The contract will outline that if you are a specific distance from your home they will cover expenses up to a certain amount (motel, food, etc) while your car is being repaired. Again, this is usually capped at a lower amount then you will end up spending (>$100). The maximum amount of covered days will also be outlined, and this will be a short time too (>3 days).

     Other included benefits may be roadside assistance, in the event of a flat tire, dead battery, lockout, running out of gas, etc. In the event of a flat tire, most policies will have roadside assistance change your tire to the spare tire. If you do not have a spare, the car will be towed as per the towing benefit to the nearest repair facility. In the event of a dead battery, your car will be jump started. In the event of a lockout, you will be assisted in gaining entry back into your car, and in the event of running out of gas, assistance will bring you fuel, for which you will pay for.