Don't Waste Your Money: Extended Warranties

(Toledo News Now) - Whenever you buy a car or appliance, chances are the salesman will push an extended warranty. If you're not careful, you could end up wasting your money.

Extended warranties, or service contracts, promise peace of mind from car repairs, but at at their high cost, are they really worth it?

Lonena Henn was worried about repair costs on her 2007 Lincoln which was approaching 100,000 miles. She agreed to pay over $3,000 for an extended warranty, but when her Lincoln recently broke down, the dealership her car was towed to told her they would only cover the repair if she could produce receipts for oil changes and filters.

The warranty company was denying her repair because she did not have all her records.

A company spokesman pointed us to the contract, which states you must save every oil change receipt, and be able to prove it was changed every 5,000 miles. Those changes had to also be done by a commercial facility, not by a family member, which Henn said she'd done a few times.

After we got involved, her repair shop agreed to lower her bill from $500 to $400, but the warranty company would only say it will re-examine her claim.

Henn says she'll think twice before buying coverage again.

"Before you think of investing in something like this, get all the information, all the paperwork and read it very thoroughly," she said.

The company that administers Henn's warranty still gets a A-rating from the Better Business Bureau, because it clearly spells out the rules in the contract.

Make sure you read the fine print before you buy, and don't waste your money.

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Don't Waste Your Money: Extended Warranties