A new car extended warranty is a policy that is bought with the intention of providing the car owner with some protection against any mechanical failures and breakdown to the new car. This policy has to be bought with its term being effective upon the expiry of the car manufacturer's warranty. However, if you are one of those who buys a new car and trades it in every two to three years, it is of no use getting a new car extended warranty as the factory warranty provides enough coverage for this period.

The main reason you should consider purchasing a new car extended warranty for your new car is because the newer the car is, the cheaper is the warranty. The reasoning being that you won't keep the car longer than two years, or 24,000 miles of the manufacturer's warranty, whichever comes first. Depending on the make and features of the car, there are different types of new car extended warranties. Cars costing less than $5,000 don't actually need an extended warranty. The middle-priced warranties don't usually cover breakable items or offer $0 deductibles either. The top-of-the-line plans include all the complex computer systems that may be in the new car. Sometimes even towing and rental cars costs are covered in these extended warranties. Most of the new car extended warranties exclude coverage for breakable parts like headlamps, tires, batteries, and other parts. However, it has to be noted that there is coverage providing assistance in the eventuality of the car breaking down due to a blown tire or dead batteries. All the new car extended warranties require that you maintain the car according to your manual; as such, it is necessary to keep receipts for proof of maintenance.

Before actually buying a new car extended warranty, it is better to get different quotes from various warranty companies. Review their policies thoroughly and have your mechanic look over the car for the required coverage for the new car. Make sure that all the major systems with consequential failures are covered, with a signature on the new car extended warranty. Be wary when buying the new car extended warranty as there are many people making lots of money selling inferior products. If you try to save money here, you will later find that the extended warranty proves to be more trouble to you than it's worth.