Let's start this morning by answering a question from our inbox:

Dear Dolans,

I'm about to purchase a car. Is an extended car warranty a good bet or a rip-off?

Whether you are buying a new car or a used one, you will probably be offered an extended car warranty these days. Most car owners receive extended car warranty offers again before their manufacturer's warranty ends.

Here are 6 questions to ask before you decide whether or not to buy the extended car warranty:

1.  What does it cost? Extended auto warranties aren't cheap. And the more expensive the car, the more expensive the contract.

2.  What exactly is covered? The broader the policy coverage the better. Does the policy cover electrical systems as well as the power train? Does it cover normal wear and tear (brake pads, belts, etc.)? Does it cover leaking and failing parts, not just broken ones?

The more parts that are specifically mentioned as being covered in the warranty, the better.

3.  What's the deductible? Try to keep your deductible as low as possible. They can range from $50-$500.

4.  Who is behind the warranty? It's usually safer to buy an extended car warranty from the manufacturer than from the dealer. If the dealer goes out of business, you're out of luck. In addition, the contract may only be valid at the dealership where it was issued.

5.  Does it cover reimbursement for a rental car? If the contract provides rental car coverage in the event your car breaks down, make sure you will be reimbursed for the entire time you will be without your car, not just for the time it takes to perform the repairs.

It may only take a few hours to repair your vehicle, but your car could be out of commission for days if they have to wait for parts.

6.  When does your coverage start and end?

Have you ever purchased an extended car warranty? If so, click the comment button in the grey bar at the top of this article to share your story with us and your fellow Dishers!

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