Can I Cancel The Extended Warranty On My Car? is an independent publisher. You will find affiliate links which means we may earn a commission if you purchase through these links. It doesn't cost you anything & it helps us keep the site running.

You were very excited when you bought your last vehicle. It was new when you drove it off the lot, and you wanted to ensure you were protected beyond what your auto insurance covered. The sales rep offered you an extended warranty, which seemed like a great idea at the time. But now you’ve realized you don’t need it. You may be asking, “can I cancel the extended warranty on my car?”

In this guide, we’ll take a look at extended warranties and a bit about what they cover and whether they can be canceled.

What is an Extended Car Warranty?

When you purchase a new vehicle, it usually comes with a standard manufacturer’s warranty. This bumper-to-bumper warranty helps cover the cost of pretty much anything that could go wrong with your car should something fail.

Corrosion, powertrain, drivetrain, and other warranties can be included with your vehicle purchase and will protect you for a certain number of miles or years, typically whichever comes first.

But what happens when that warranty expires? How can you protect your car after the manufacturer’s warranty ends? That’s what an extended car warranty is designed to do. Usually, your extended warranty will “kick in” when the original warranty expires, though sometimes your coverages may overlap.

In short, your extended warranty is an additional warranty you buy for peace of mind should your car experience mechanical issues.

Can I Cancel an Extended Warranty?

Polls have shown that around 55 percent of extended warranty owners never used their coverage. Only about a quarter of owners would purchase a warranty again. If this sounds like you, you’re probably wondering how you can cancel your warranty.

Generally speaking, the answer to this is yes. You can cancel an extended warranty on your car. How you go about doing so will absolutely vary depending upon who you bought your warranty from.

If your warranty was offered to you by the dealership, canceling the service may be as simple as contacting the dealership. Take a look at your service contract and determine the phone number to call to cancel the service.

If you have a warranty through a third-party such as AAA, you’ll need to contact the company directly. The dealership will likely not be able to assist you with your cancellation.

The refund you’ll be issued will also vary. Third-party issuers will likely refund a prorated portion of the amount you paid, either directly to your payment method or via a paper check.

If your warranty was rolled into the amount you financed, your refund might look a bit different. It’s unlikely that you’ll receive a check for the amount you financed. Instead, the refund will probably be deducted from your total loan balance. This may mean you’ll pay your car off a bit earlier than you expected.

Should I Cancel My Extended Warranty?

Whether you cancel the extended warranty on your car is up to you! However, there are a few good reasons you may want to.

  • In some (rare) cases, you may not have been aware that you were purchasing an extended warranty. A dishonest sales rep may have “slipped” the coverage into your terms, and you failed to read the fine print. This is a great reason to cancel, as you didn’t want it in the first place.
  • Sometimes you discover that your warranty is costing you more than you thought. Generally, sales reps will offer you a warranty with the understanding that you’ll pay a certain price per month. However, once you add in interest and other factors, it’s possible that your warranty is more expensive than you’d anticipated.
  • If you do a little bit of research, you’ll find that there are third-party warranties that can be purchased well after the purchase of your vehicle. If you’d rather keep that money, or not pay interest to pay it off, canceling your extended warranty might be a good option.
  • You may simply determine your warranty wasn’t all it was advertised to be. Extended warranties are typically not “bumper to bumper” and therefore may not be worth the price you’re paying.

Again, it’s your decision whether you cancel your coverage. Weigh the costs and the benefits of your warranty to aid you in that decision.

Summary: Canceling an Extended Car Warranty

Extended warranties are typically offered when you purchase a new vehicle, but they’re not for everyone. If you aren’t feeling that your warranty is benefiting you, or you just can’t justify the extra cost anymore, cancellation is quite straightforward in most cases.