“I come here to buy old dumpers’ cars,” he said, as the wind rippled through rows of broken car doors and missing hubcaps. It was a dreary Thursday morning and I was staring at a wet old hack of a car and thinking: “Really, how bad can this be?” Alas, not all extended auto warranties look or sound alike. Some stories are fairy tales, while others are court transcripts. But if you squint, the similarities come quickly into view. next page

Most of the reviews look at the claims, where the truth is buried. Good ones are boring and routine: The claim was filed, processed and paid. On the flip side, those that don’t cover it use the same terms—“wear and tear,” “pre-existing condition,” “improper maintenance”—to describe why they won’t pay. That is why you should make a habit of holding on to all of your receipts, oil change logs, and maintenance bills. If you’ve got solid records, it will be difficult for them to turn your claim down.

The enumeration of what is not in there reads like an enigma. Modifications, lifted suspensions, large wheels, ride-sharing, commercial use and parts for emissions are generally not covered. There are gaskets that may not be safeguarded until a piece which does is already shattered them. Yes, it’s weird, but it is so common. Price provides a new twist. Some plans have deductibles that apply per visit.* Others have them that apply per part. Another problem is labor caps. If your mechanic bills $175 an hour and your contact allows only $120, you have to pay the difference. Many contracts don’t include diagnostic fees, and there’s also a lot of controversy around them.

Reviews also say a lot about how company’s approach bad reviews. Silence is a bad sign Under most circumstances, no noise is bad. A straightforward and effortless rejoinder will let the other side know you’re open. But a sudden spike in five-star reviews that all repeat the same slavish formula? Mostly its just garbage,” he said a trial. You should be looking for reviews that have real information like the year, mileage, parts, and dates of payout, etc., as those things do matter. The language of the policy is equally important. It’s better to have contracts that are explicit about what’s not covered, as long as they actually cover claims that are plausible, than not. There is no dissent to disagree with. Always ask for a sample contract to compare to the sales pitch, said Mr. Stultz; the fine print in black and white is far more important than a flamboyant promise on a website.

How you pay is another test. Customers always have great things to say about companies that pay the shop directly, as it is the best way to reduce wait times. Others say they had to wait weeks to receive their money back. For other individuals, the claims process takes so long that they have to defer repairs — and their life. OEM warranties typically receive higher scores simply because they have support networks and claims go through more readily, despite the fact that they are more expensive. A third-party contract purchased from a dealer can be fine or it might not be.Pull-quote the good! Private administrators can also vary significantly. Which is why it’s a good idea to check out licenses, business history, and any complaint records.

“If the provider will not provide you with a complete contract and also include an exclusion, example claim process, or a return window, that is a bad sign. The best businesses respond quickly and directly. If they’re sleazy, they use high-pressure sales, answer questions indirectly, or do not-so-ethical things (like, say, changing their business name every other year). There are still some pluses to seek, however, like a proper contract PDF, transparent terms for cancelling, options for porting and a customer service hotline that is available 24/7, not to mention a human being to speak with to handle questions.

So, to cap my wet Thursday musings, warranties are mere instruments. If your vehicle is reliable and inexpensive to repair, you probably don’t need the warranty and can pocket the money. But if a single repair could blow up your budget, an ounce of prevention may be worth it. Read cautiously, watch for the red blinking lights and pick with a serene counter-grunt rather than a groaning heckle.