Extended Warranty Refund Calculator
Estimate your prorated refund for a vehicle or product service contract.
Estimated Refund Amount
How Your Extended Warranty Refund is Calculated
Most vehicle service contracts (extended warranties) are refundable on a prorated basis. This means the administrator calculates how much of the "life" of the warranty you have already consumed and returns the remainder, minus a small administrative fee.
The "Lesser Of" Rule
In almost all cases, the refund is calculated using the factor that has the greatest impact—either time or mileage. For example, if you have used only 10% of your time but 50% of your miles, your refund will be based on the 50% mileage usage.
Example Calculation
- Warranty Price: $3,000
- Term: 60 Months / 60,000 Miles
- Current Usage: 12 Months and 20,000 Miles
- Time Factor: 48/60 months left (80%)
- Mileage Factor: 40,000/60,000 miles left (66.6%)
- Calculation: $3,000 × 66.6% = $1,998.
- Final Refund: $1,998 – $50 (Fee) = $1,948.
Steps to Cancel Your Warranty
- Locate your contract: Find the original paperwork to identify the administrator and policy number.
- Contact the Dealer or Administrator: If you financed the car, you may need to go through the dealership. If the car is paid off, contact the warranty provider directly.
- Provide Documentation: You may need to provide an odometer disclosure statement or a bill of sale if the vehicle was sold.
- Verify the Refund: If you still have a balance on your auto loan, the refund usually goes directly to the lender to reduce your principal balance.