Key Takeaways
- The cost of an extended warranty varieties from concerning $1,600 to $4,500.
- A vehicle solution agreement covers fixings to essential parts as well as parts such as the engine and transmission for an established number of years or miles.
- Endurance is the most effective extended car warranty company, closely adhered to by CarShield and also CARCHEX.
- Extended coverage is worth it for lots of motorists that want assurance on the road.
Should You Get an Extended Warranty for Your Car?
Some car customers want extra protection, however these strategies aren’t for everybody.
Car buyers long for dependability: 95 percent of new- and also used-car consumers place it high when selecting a car, according to a nationwide survey performed by Customer Records. But for several consumers, even knowing which cars are reliable isn’t sufficient. They desire security.
Automobile solution agreements, often described as extended warranties, are an appealing alternative for consumers that purchase a secondhand car or for those that wish to extend the bumper-to-bumper coverage on a new car.
No matter the specific type, extended warranties are an investment in satisfaction that restricts economic threat for a set amount of time. Yet beware: A CR member survey carried out in 2013 showed that car proprietors generally paid more for the insurance coverage than they returned in direct benefits. This isn’t unexpected, due to the fact that extended warranties make a lot of cash for those who market them.
” The truth is, extended warranties are overpriced. That’s the factor individuals sell them, due to the fact that they make a bundle on them in payments,” claims a cash specialist and also radio talk show host, Dave Ramsey. “I do not recommend acquiring extended warranties, ever before. If you can not pay for to fix your car, then you can’t pay for the car.”
Rather, Ramsey suggests that owners develop a reserve for repair services that they can tap into when required. And if that money isn’t needed for fixings, it can approach the purchase of the following car.
If you do wish to purchase an extended warranty, keep in mind that the rate can be discussed, similar to the acquisition rate for the car.
Extended warranties may lower economic stress for those that own designs from unstable brands. They’re readily available through dealerships, auto clubs, as well as insurer (which in some cases call them mechanical breakdown insurance coverage). The plans can vary in length of time, what they cover, and also rate. As well as the small print absolutely matters, because aftermarket programs have details constraints on what repairs are covered and also where the work can be done.
The very best time to purchase security for more recent vehicles is while they’re still under the original factory warranty, according to AAA. This helps maintain the cost down, as well as you can get a higher option of longer protection terms.
For those driving pre-owned vehicles, normally the best insurance coverage choices are for cars with under 80,000 miles. The club advises that used-car buyers factor in how long they plan to maintain the car; how many miles they drive each year, as well as whether they can manage to spend for repair work expense. AAA’s typical case is $850.
The national car club provides an automobile service agreement that combines warranty defenses with additional services, such as battery substitute, trip repayments, and rental-car protection. AAA told CR that 30 to 40 percent of their clients call for a minimum of one covered repair work.
From a pure numbers standpoint, the smart money is on missing the protection and instead concentrating on buying a model with better-than-average predicted dependability, and afterwards correctly preserving it. Prior to acquiring a new or secondhand car, inspect our integrity rankings.
If you do want to acquire an extended warranty, be sure to acquire one from a company with a lengthy history, such as with a car manufacturer, as well as recognize the small print. There are commonly lots of limitations with extended warranties, including what’s covered as well as where the car can be serviced.
Robocalls pitching extended warranty services are rampant. We suggest being hesitant of any type of sales call using such defense.
Best Extended Car Warranty Companies
Our study team assembled key details on all of one of the most preferred extended auto warranty suppliers. Requirements consisted of market standing, coverage, cost, transparency, and also customer support. Based upon these total scores, below are the very best extended car warranties in the sector:
- Endurance: Best Coverage
- CarShield: Best Worth
- CARCHEX: Best for Utilized Cars
- Protect My Car: Best Maintenance Perks
- Concord Automobile Protect: Best for High-end Cars
- autopom!: Best Claims Process
- Olive: Best Short-Term Warranty
- Liberty Bell Car: Best Armed Forces Discount
- Toco: Best Consumer Assistance
- ForeverCar
- Infinite Auto Protection
- AA Auto Protection
# 1 Endurance: Best Coverage
A straight service provider for automobile security, Endurance is an extended car warranty company with over 10 years of experience that is backed by an AM Best A-rated insurance provider.
Unlike a lot of car warranty business, Endurance is a straight manager of warranty plans, which indicates it deals with all claims directly, so there’s no middleman entailed. You talk to simply the Endurance team at every factor of the procedure. Not just can this speed up the claims procedure, but you won’t be questioning that you ought to ask for what problem.
Maximum term sizes aren’t noted on the Endurance site. In our secret shopper analysis, the lengthiest insurance coverage we could obtain was 8 years/200,000+ miles. We advise calling Endurance to obtain a quote for your car, because vehicle age and also mileage factor into the total cost.
Each Endurance plan covers roadside help, rental car compensation, journey disruption protection, and also a 1 year Endurance Elite subscription that consists of tire repairs and also replacements, vital fob substitutes, repair work financing, and also more. These benefits are some of the most effective you will find in the extended auto warranty sector.
Additionally, the EnduranceAdvantage strategy is distinct in the market because it uses both extended warranty insurance coverage as well as vehicle upkeep. There are 3 degrees of insurance coverage within the strategy– Prime, And Also, and Preferred– every one of which include high-level, stated-component protection and numerous maintenance services.
Other functions that make Endurance our premier company include:
Quick and also easy asserts procedure: Planholders can make an insurance claim online or by phone.
Identification burglary security: Every strategy includes identity security devices to guarantee you receive reimbursement ought to your identity be compromised.
Personal assistance: When you invest in a plan, you get personalized assistance from a live, responsive concierge who can assist when an emergency arises.
# 2 CarShield: Best Value
CarShield started in 2005 and has since protected over one million automobiles. We’ve recognized it for having the Best Value because of its low rates and positive online reviews. CarShield boasts more than 16,000 Trustpilot reviews, much more than the competition, and over 6,000 Google reviews. It ranks 4.0 stars or higher on both sites.
CarShield brokers plans from multiple providers, like American Auto Shield, and operates as the middleman between the customer and a warranty company. It has several levels of coverage for new and used cars, but we especially like its protection for specialty cars and high-tech systems and components.
As with Endurance, the maximum number of coverage years isn’t readily listed on the CarShield website. To make coverage as flexible as possible, many of the company’s plans are month-to-month contracts, so you’re not locked in for any number of years. Since your car’s age and mileage help determine eligibility, the best way to find out how long you can cover your vehicle is to call CarShield.
We found CarShield to be a popular choice among consumers because of its many perks, including:
- Low or $0 deductibles
- 24/7 roadside assistance
- Courtesy towing
- Claims paid directly to the auto repair facility
- Rental car reimbursement included in most plans
# 3 CARCHEX: Best For Used Cars
CARCHEX’s credentials speak for themselves. CARCHEX has been in the business for more than 20 years, has an A+ BBB rating and accreditation, and is endorsed by industry leaders like Kelley Blue Book, the Car Protection Association, CARFAX, and Edmunds.com. The company has also received numerous awards for outstanding customer service, including:
- 2017 Top Pick by Thoroughly Reviewed
- TopConsumerReviews.com 5-star rating for 6 consecutive years
- BestReviewsHub.com Best Choice Award for 4 consecutive years
- Golden Bridge Awards ® “Silver Status” for 3 consecutive years for customer service
- On customer service, the company’s No-Haggle, Low-Price, Everyday Guarantee ™ is a differentiator from competitors, as CARCHEX aims to provide the best possible experience where coverage and pricing details are clear, you aren’t pressured to buy, and your questions are fully answered– an experience that can be hard to find in the car warranty industry.
Additionally, CARCHEX’s 30-Day Money-Back Guarantee means you can give the company a try and get a full refund if you’re not satisfied with the service within 30 days. We found a 30-day guarantee period is fairly standard among the car warranty companies we reviewed.
CARCHEX offers five coverage tiers with several plan options under each tier– a total of 16 different warranty plans. Sample contracts are available on the company’s website, and though the contracts are long (14 to 34 pages), CARCHEX representatives will walk you through them to help you understand what is and is not covered.
# 4 Protect My Car: Best Maintenance Benefits
Established in 2005 and today based in Saint Petersburg, Florida, Protect My Car is a popular choice among car owners for automobile service contracts. On the surface, the company looks attractive, with hundreds of five-star customer reviews on the BBB, as well as over 1,400 on Trustpilot.
Although automobiles over 13 years old can’t take advantage of an extended warranty with Protect My Car, the company does offer Ambassador Maintenance Plans. These car maintenance contracts offer guaranteed discounts between 25 and 50 percent on repairs, 24/7 roadside assistance, rental car reimbursement, and more for older cars. However, they do not provide protection on the same level as an extended car warranty.
Added benefits of Protect My Car include:
24/7 roadside assistance is included with all warranty plans.
Protect My Car customers have access to PMC Rewards, a shopping and dining discounts reward program.
Protect My Car has flexible payment terms, with monthly payment plans that last between 36 and 60 months, allowing you to finance your coverage over many years.
# 5 Concord Auto Protect: Best For Luxury Cars
Concord Auto Protect is another direct provider of extended car warranties. Founded in 2013, the relatively young company has a B rating from the BBB and many positive customer reviews. Concord has earned a 4.72-star rating from customers on the BBB and a 4.7-star rating on Trustpilot– which are higher scores than any other provider on our list of the industry’s best extended car warranty companies.
# 6 autopom!: Best Claims Process
Autopom! is named after the company’s mission: to provide automotive peace of mind. Since its founding in 2010, the company has earned BBB accreditation and an A+ rating, with only a few customer complaints, compared to dozens if not hundreds of complaints for most other competitors. Autopom! is rated 4.7 stars on Trustpilot with over 80 customer reviews.
The warranty company prides itself on its consultative approach to customer service and a low-pressure quotes process, which we like. Of the companies we’ve reviewed, autopom!’s quotes process was the fastest and most convenient. Within just a few minutes of submitting a quote request on autopom!’s website, we received an email with details on the recommended plan, term, waiting period, deductible, down payment, and total price, in addition to a sample contract. The quote also included the email address and direct phone number to a Coverage Consultant for questions and to complete the warranty purchase.
Autopom! also promises never to leave customers to fend for themselves through the claims process, and its agents will investigate on behalf of the customer when a claim is taking too long to process. The company works with the claims administrator to understand why a claim was denied if you feel you were entitled to coverage.
What Is An Extended Car Warranty?
An extended car warranty, also called an automobile service contract, is an optional service plan that helps cover the cost of certain car repairs or part replacements that your car may need while you own it. Unlike car insurance, extended warranties only cover damage caused by normal use. An extended car warranty usually takes effect after your manufacturer’s factory warranty has expired, though the two warranties sometimes overlap.
The main difference between a manufacturer’s warranty and an extended auto warranty is that a manufacturer’s warranty is included at the time of sale. Extended car warranties, on the other hand, cost an additional fee.
What’s Covered Under An Extended Warranty?
Extended car warranties cover repairs and replacements for breakdowns that come from normal use. Depending on your plan, it may cover your powertrain, electrical system, air conditioning, and other systems.
Most extended warranties do not cover routine maintenance for your vehicle. Things like oil changes, brake pads, and tires are usually the owner’s responsibility. The best extended car warranty companies have several coverage options, so you can select a plan that fits the needs of your vehicle.
How Much Does An Extended Auto Warranty Cost?
Based on our research, extended warranties lasting between three and six years cost anywhere from $1,600 to $4,500 on average. Bumper-to-bumper warranties tend to be more expensive, as they cover more components. Longer-lasting coverage also increases the contract price. Other factors that affect warranty costs include:
- Deductible
- Vehicle age, make, model, and mileage
- Existing coverage
- Location
- Provider
Types Of Extended Warranties
Similar to manufacturer’s warranties, extended warranties generally fall under three main types. Of these service contract types, most extended warranties are either exclusionary or inclusionary. Exclusionary contracts only list items specifically excluded from coverage, while inclusionary warranty contracts list all parts that are included in the coverage. Be sure to read the fine print of your warranty or take a look at a sample contract to make sure you know what type of service contract your extended warranty falls under.
We’ve outlined some of the basics for each type of warranty below:
- Powertrain: Powertrain warranties cover the drivetrain of your automobile. This includes most of the internal parts of the engine and transmission. Extended powertrain warranties are usually recommended for high-mileage or older vehicles.
- Bumper-to-bumper: Bumper-to-bumper warranties usually offer the most comprehensive coverage. Most include the car’s major mechanical systems, except for certain excluded items. The excluded components of a bumper-to-bumper extended warranty should be listed in the warranty details.
- Named component: A named-component extended car warranty is usually an inclusionary contract. You might consider a named-component contract the opposite of a bumper-to-bumper warranty. As mentioned, instead of a list of excluded parts or services, a named-component service contract gives you a list of included parts. Everything else is considered not covered.
Benefits Of An Extended Car Warranty
Purchasing an extended car warranty can be a great way to continue to protect your car after the manufacturer’s warranty has expired. As cars become more complex, there is a higher chance that something could go wrong.
With so many computers, parts, and systems controlling your car, it probably doesn’t surprise you that these technological advances might fail. Unfortunately, if your automobile is only covered by a manufacturer’s warranty for, say, three years, your warranty may be expired by the time you really need it. Extended car warranties keep your car covered in the case of a mechanical or technological failure. Based on what type of car you have and how much it costs to own over its lifetime, this can potentially save you money.
Besides protecting your vehicle after the manufacturer’s warranty expires, the best extended car warranties provide benefits such as:
- Convenience: If you have an issue covered by your service contract, you’ll know exactly who to call to get it fixed. Most warranty providers let you choose your own mechanic or repair facility. The best companies will pay your repair shop directly, meaning you won’t have to wait for reimbursement.
- Risk mitigation: While some vehicles cost less than others to repair, any car with recurring issues– or even just one costly repair– can quickly add up to a hefty repair bill. An extended car warranty alleviates those potential repair costs as your automobile ages.
- Added perks: Many of the best extended car warranty companies include added benefits with their protection plans, such as roadside assistance, rental car reimbursement, or towing services.