For a high-mileage car, ask what the agreement would actually pay toward a repair you might face. Eligibility for the contract and the amount payable on a claim are separate questions.
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What to check before you buy
Check the offered form for repair caps, cumulative limits, valuation rules and any mileage-based reductions. Ask each seller to apply those clauses to the same itemized estimate.
Work through your own numbers
If a $3,500 repair is eligible but the hypothetical maximum payment is $2,100, your share is at least $1,400 before any further deduction. Add the contract price when comparing with self-pay.
For a closer look, see our related buying guide. The FTC’s auto warranty and service contract guide explains what to review before signing.
