To cancel your car's extended warranty, you'll need to complete a form specifying your miles and the date of cancellation, and then you'll need to get a signed copy of the form from the dealer. You'll probably have to encourage them to process the request, so don't hesitate to call every two weeks. You may need to complete a cancellation form, so be sure to get a copy signed by a dealer representative. Keep copies of your cancellation form or letter and any other relevant documents.
We can say quite objectively that investing in a warranty is always better than paying for repairs directly, but if you want, can you cancel a car warranty? The answer is “yes”, but first we need to go over a few things. If you want to cancel the extended warranty you purchased for a car, you should be prepared to do your homework. Car buyers are often pressured to buy an extended car warranty, so called because it comes into play to cover repairs after the new car warranty expires, even though they don't know their odds of using it or what it actually costs. Some warranty providers stipulate a strict period of time, usually between 30 and 60 days, during which you are allowed to cancel the extended warranty without being charged any fee.
Usually, people want to know how to cancel their car's extended warranty policy when they realize how expensive (and useless) it is. The process of canceling the extended warranty is not complicated, but you have to wait a bit. To make matters worse, many used car dealerships are more than happy to include the extended warranty fee in monthly payments, making it look like you're getting a deal when you're not. The biggest reason you want to cancel your warranty is that you were put in a bind while you were at the dealership and you bought it impulsively.
If you're canceling a warranty plan to switch to another, you'll need to have your new provider ready to pick things up as soon as the old one is fired. Remember that extended car warranties are almost never worth it for a new vehicle, especially if you are the type of consumer who changes vehicles every 3 to 5 years. It's true that being prepared and having peace of mind when buying a new vehicle is good, but it's also worth knowing that extended warranties don't always cover all repairs; there is an “exclusion list” within the fine print of the contract, which omits coverage for certain parts and damages. You may find two types of extended warranties when you buy a new or new vehicle for yourself from a dealer.
On top of all that, if you think you'll save a little money by getting an extended warranty from a third-party vendor, it might be worth reconsidering. The dealer is responsible for submitting your cancellation request and tracking the status. Extended car warranties should reduce the risk of buying an older vehicle; instead, they often inflate the price without providing benefits that most consumers consider worthwhile. An extended warranty can be useful for some people, especially if you bought a car that needs repairs frequently.
If you've found a better option, canceling your current extended warranty is a relatively simple and straightforward process.