You just bought your first car. You just bought a car. It looks shiny, is new (or brand-new to you), has that fresh new-car aroma. What happens if the factory warranty expires? Your safety net against future auto repairs is the Extended Auto Warranty Protection. Let’s get it broken down.

Let’s start by getting one thing straight. An extended auto guarantee isn’t really a warrantee. It is more like an auto insurance policy. You can either pay in full or in installments, to cover any future repair costs. You might think that this is a simple process. It’s not as simple as it sounds.

Imagine yourself driving along the highway. Suddenly, your engine lights flicker on. The thought of the impending auto repair bill makes your heart skip beats. A longer auto warranty could make that sinking feel less intense, as all or some of these costs can be covered.

It’s here that things get interesting – or tricky, depending how you look it. Not all warranty are the same. Some warranties offer protection for major components only, like the engine and transmission. Others cover bumper-to.bumper. Others have so few exclusions that they are like Swiss cheese.

Dave is a friend of mine. He had purchased an extended service warranty for his vehicle, thinking that any problem would be taken care of. Murphy’s Law at its finest! One day his air conditioner decided it was time to retire permanently. He believed he was covered, but the fine prints had other plans.

But don’t be mistaken, these warranties could save your life. This is a bit like dating. You want to pick one that’s compatible with your needs, lifestyle and doesn’t raise too many flags.

The fine print is important! Although it may seem as tedious as watching paint dry, I promise you that it will prevent unpleasant surprises. Check the fine print before you sign any documents.

Another nugget of wisdom is to consider who backs the warranty–manufacturer or third-party provider? Manufacturers’ warranties can be less complicated, but cost more. The third-party option can be cheaper, but it may come with more bureaucracy.

You should also consider the length of time you will keep your vehicle. If you like to swap cars faster that Taylor Swift can change boyfriends, skip it!

Some extended warranties include perks such as roadside service or reimbursement for rental cars. While this may seem great, you might be paying for these services already through AAA or other credit cards.

Let’s take a moment to talk about your wallet, because it matters! Costs can vary wildly depending on factors including car make/model, coverage level and other variables (remember Dave?) Sometimes, negotiating the price can reduce it. Dealers will haggle with you just like they do at flea markets!

It’s important to note that, while extended warranties may provide you with peace ofmind, they aren’t necessary for everyone.

You can use these tips next time someone tries to sell you an extended car warranty. You can determine whether an extended warranty is worth it or not by doing some research beforehand. And maybe avoid anything that resembles Swiss cheese.

It’s time to go! Drive safely and may your engine purr happily forever!