How to Cancel an Extended Warranty in Texas
Extended vehicle warranties are typically overpriced and easy to cancel for refund. Here's exactly how Texas handles cancellation, refund amounts, and the process.
Quick Reference
Your Right to Cancel
Yes — Texas Insurance Code Ch. 1304 mandates cancellation right
Texas allows cancellation of motor vehicle service contracts at any time with prorated refund.
Refund Calculation
Full refund within 30 days; prorated after
Texas grants full refund within 30 days of purchase if no claims filed. After 30 days, refund is prorated based on time and miles.
Cancellation Fee
Up to $50 administrative fee allowed
Texas allows up to $50 cancellation fee. Verify the fee is within the policy terms — some warranties charge less.
Where Refund Goes
Lender first (if financed); then borrower
If financed, refund goes to lender first and is applied to loan balance.
Cancellation Process
Written cancellation notice (certified mail preferred)
Texas requires written cancellation notice. Send to dealer or warranty administrator with VIN and policy number.
Who to Contact
Dealer for first 30 days; warranty administrator thereafter
Texas dealers handle cancellations during the 30-day window. After that, go direct to the warranty administrator.
Texas Standout Rule
Frequently Asked Questions
Can I cancel my extended warranty in Texas?
Yes — Texas Insurance Code Ch. 1304 mandates cancellation right. Texas allows cancellation of motor vehicle service contracts at any time with prorated refund.
How much refund will I get when I cancel my warranty in Texas?
Full refund within 30 days; prorated after. Texas grants full refund within 30 days of purchase if no claims filed. After 30 days, refund is prorated based on time and miles.
What's the cancellation fee in Texas?
Up to $50 administrative fee allowed. Texas allows up to $50 cancellation fee. Verify the fee is within the policy terms — some warranties charge less.
Where does my warranty refund go in Texas?
Lender first (if financed); then borrower. If financed, refund goes to lender first and is applied to loan balance.
Who do I contact to cancel a warranty in Texas?
Dealer for first 30 days; warranty administrator thereafter. Texas dealers handle cancellations during the 30-day window. After that, go direct to the warranty administrator.
Selling Your Vehicle Soon?
If you're selling and cancelling your warranty, a Texas bill of sale documents the transfer cleanly while you handle the warranty cancellation in parallel.
Generate Bill of SaleSource: Texas Department of Licensing and Regulation. Read your specific warranty contract for exact cancellation procedures.