Extended warranties typically can and do save you money in the long run. If you're going to lease the vehicle and turn it in at the end of the lease period then this extra cost is probably not for you. If you purchased your vehicle, you may want to consider one based on your planned length of ownership. While any extended warranty may seem expensive at the time of purchase, they typically pay for themselves for long-term owners, and some even have a buy-back clause that makes them a "can't lose" investment.

Maintenance may be pricey these days, but car repairs can be even more expensive. If you have only one big repair bill that is covered by your extended warranty, an automatic transmission failure for example, then your policy just paid for itself. Repairs to transmissions are frequently close to the cost of a remanufactured unit, which can easily be $2000 or more to replace. How about an air-conditioning failure? Based on typical repair costs, figure on spending $700 or more to keep your cool. Even if you have a $100 deductible you're still way ahead of the game compared to footing the entire bill yourself.

Warranties available from 3 month, 3,000 miles up to 84 month, 100,000 miles. Depending on mileage and year of vehicle being bought there is great versatility in warranties that are available for every driver's needs.