Finding Hidden Cash in Extended Car Warranties

Ever cave into the pressure to buy an extended warranty for your car and then experience some buyer's remorse over the costly warranty contract you've signed? Money tight and you're looking to tight your budget and find hidden money in your budget? Well, here's your chance to find that spare change, and it involves your extended warranty for your car.

Did You Know?

Every state has a law that gives you the right to cancel your extended warranty (also known as an extended service program (ESP) or a vehicle service plan) before it expires and receive a pro-rated refund on the unused portion, irregardless if you've ever filed a claim.

Criteria for Qualifying for a Pro-rated Refund:

• You've purchased an extended warranty contract for your car, or you've purchased a car from someone else who did have an extended warranty for the car and the warranty contact was transferable.
• Your name appears on the title for the extended warranty contract. (If you purchased your car from someone else, make sure to get the warranty transferred into your name before you call for the refund).
• You still own the car, or traded the car in before the warranty expired.
• You're calling before the warranty expires.

Calculating the refund. Check your contract to determine how the pro-rated refund is calculated. Typically, the pro-rated amount is based upon:

• unused portion of time remaining on the contract, or
• unused mileage remaining on the contract, and
• date you've called requesting the refund.

Ordinary Girl Observations & Tips:

• Read the contract before you call. Make sure you understand the terms for pro-rating the refund and that you qualify for the refund.
• Some extended warranties only will be refunded to the original purchaser make sure to have it transferred to your name before calling.
• Call the number on the warranty contract to begin the process. Don't call the dealer who sold you the third party warranty contract.
• Many contracts include is an administrative fee for processing the refund. This amount is typically deducted from the final value of your refund amount.
• -Refunding processes can take up to 90 days. If you can't wait this timeframe, consider using a company like WarrantyRefund. that can get a refund within 2-3 weeks. But beware, this company charges a steep charge of 33% of the refund amount recovered. Ouch!
• If you're selling your car and you have an extended warranty with an unused portion, offer to transfer/sell the usused portion to the new buyer.