For Consumers

Extended warranties & service contracts

When you buy a car, appliance or other product, the retailer may offer to sell you an extended warranty, service contract, or maintenance agreement. Before you say, "Yes," here are some tips to consider:

Review the contract and what it covers

  • Read the contract to make sure you're getting what you think you are buying.
  • Are you duplicating coverage you get for free with a product's regular manufacturer's warranty?
  • When does the coverage take effect? How long does it last?
  • What is covered? What's excluded? For example, even "bumper-to-bumper" auto coverage almost always includes limitations and exclusions.
  • If you buy the contract, be sure to get — and keep — your receipt and a copy of the contract.

Service contract prices are negotiable

  • Don't be afraid to ask for a better price.
  • The majority of the sales price is the seller's profit. 

Your rights if you want your money back on an auto service contract

Under state law, if you buy an auto service contract and make no claims, you can get a refund if you return it to the contract seller as follows: 

Time from the date of purchaseRefundCancellation fee
Within 9 calendar daysFull refundNo cancellation fee
Within 10-30 calendar daysFull refundContract seller can charge you a cancellation fee of no more than $25
After 30 calendar days Refund is prorated against time remaining in the service contract or mileage calculated — depending on your contract's details.Contract seller can charge you a cancellation fee of no more than $25

Check out the company

Make sure it's registered to do business in Washington state.