{"id":869915,"date":"2020-07-30T14:22:01","date_gmt":"2020-07-30T18:22:01","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=869915"},"modified":"2026-04-14T22:28:53","modified_gmt":"2026-04-15T02:28:53","slug":"cancel-extended-car-warranty","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/buying-a-car\/cancel-extended-car-warranty","title":{"rendered":"How to cancel an extended car warranty"},"content":{"rendered":"

Also called vehicle service contracts, extended warranties cover repair costs after your manufacturer warranty ends. But because many come with a deductible and may end up being worth more than the actual cost of repairs, these warranties are rarely worth it.<\/p>

The cost of an extended warranty often falls anywhere between $800 and $5,000 depending on the length and scope of coverage as well as the type of vehicle. While this includes both high and low estimates, the average cost of an extended warranty is more likely to fall between $1,500 and $2,500.

Why you may not want to cancel your extended warranty<\/h3>

An extended warranty does have one benefit: peace of mind. Sales teams bank on this by offering a low monthly payment in exchange for potential savings on repairs down the road. It could be worth it if you’ve bought a used vehicle or one known for mechanical problems.<\/p>

Although many people may not end up using their extended warranties, there may come a time when you need an expensive part replaced. In this case, an extended warranty could make the difference between paying a small deductible and being out-of-pocket thousands of dollars for a repair.<\/p>

What to do if the dealer refuses to cancel your extended warranty<\/h3>

Sometimes, even if you want to cancel your car’s extended warranty, the dealer might refuse or make it difficult for you. Unfortunately, that sometimes happens in Canada if you don’t actually have the option to cancel your extended warranty after signing the contract. If the dealership already submitted your loan documents to the lender, and your contract doesn’t include any cancellation option, then you’re likely stuck with your extended warranty.<\/p>

There are, however, a couple of situations where you might still have an out. Extended warranty contracts often include a cancellation period in the fine print, where you’ll be able to cancel the warranty within a certain window of time after signing the contract (like 30 days) and get a full refund. In that case, even if your dealership refuses to help you, you can directly contact the company who backed the warranty and request the cancellation.<\/p>

You may also be able to cancel your extended warranty if you can prove that you were tricked into signing the contract without realizing that you were agreeing to it. This process involves getting a lawyer and perhaps going to small claims court. At this point though, you should weigh the cost of how much you’ll get back on your warranty refund with how much you have to pay in lawyer fees, to decide if it’s worth it.<\/p>

Bottom line<\/h3>

If you’ve decided to cancel your extended warranty, stick to your guns and don’t let up. But if you’re on the fence, check out our guide to extended warranties and car loans<\/a> to help you make an informed decision.<\/p>

Frequently asked questions<\/h3>