A common misconception is that by waiting to purchase extended auto warranty coverage, you will get coverage for a longer time.

While you can purchase your coverage at almost anytime, the cost for coverage rises as your vehicle ages and accrues mileage. In other words, you will be offered the longest term at the lowest rate for a new vehicle.

Even if you have a warranty from the manufacturer, extended warranty coverage is simply an extension of that . . . not double coverage. The manufacturer's warranty has been factored into your price quote. The more factory warranty you have remaining, the lower the cost and greater the length of the warranty extension.

For an extended warranty you may be offered coverage for up to 7 years for a new vehicle. If the vehicle is a year old, you may be offered coverage for up to 6 years and the rate will be higher.

Two years old, coverage may be offered up to 5 years and so on. Waiting does not provide you with a longer warranty; it serves to increase costs, much like life insurance. If you buy an extension to 100,000 miles today or in 2 years, it will still expire at 100,000 miles.

Waiting also carries other risks. Coverage costs rise as repair rates do. In the last 3 years, the average labor rate has increased by $20 per hour. Also, as more repair data becomes available for your vehicle, its costs may also rise. In essence you can lock into low prices the sooner you get covered.