Advertiser Disclosure. Unfortunately, not all extended warranties are equal, so it's important to do the research to ensure that you are purchasing coverage from a reputable provider. Extended warranties can help you avoid draining your savings account or relying on credit cards to cover repairs. But, without properly vetting companies, you could end up wasting your hard-earned money on an extended warranty that has bad coverage or customer service.
Our team polled 1, consumers who have purchased or thought about purchasing an extended warranty. Of those who had extended warranties, 65 percent were satisfied with the provider whether they had used coverage or not. However, 7. Here are the five most reputable extended car warranty companies:. Each of these providers scored highly for industry standing and transparency in our in-depth market review.
Get Quote. Protect My Car. Endurance is a well-known direct provider backed by an AM Best A-rated insurance company. It holds a place on the Inc. The extended warranty company has a 4. The BBB itself rates Endurance at a C due to promotional mailers sent out in the Chicago area that were confusing to consumers. Endurance is a direct administrator of warranty plans, so there is no middleman when filing claims. What you pay depends on the type of coverage you want, your deductible, and your vehicle.
Endurance offers six tiers of coverage that range from basic powertrain warranty coverage to factory-level coverage. However, the term lengths are not specified for each tier. Let's take a look at the different tiers and what each car warranty plan covers:. Covers steering, electrical, and brakes, with a shorter waiting period 30 days and 1, miles than the lower-tier Select Premier plan.
Endurance is great for motorists who want a quick and easy claims process. Customers can file claims through an online portal or by phone, making the process pain-free. With a free year of Endurance Elite Benefits, Endurance offers two free tire repairs or replacements per year, which is uncommon among extended warranty companies.
Like all extended warranties, Endurance doesn't cover everything. Plans exclude damage from the environment and lack of maintenance. Finally, you get a day money-back guarantee with every policy. Unlike Endurance, Carchex is a broker and not a direct provider. As a result, you may have to pay more in out-of-pocket costs, since each provider will have its own limitations and exclusions. Though in business only since , Autopom—stylized as autopom!
As a broker, Autopom partners with three warranty providers—Mercury Insurance Group, Royal Administration, and Integrity Admin Group—giving customers a choice of mileage caps and term from three to eight years. Although most plans require cars to be in good mechanical and electrical shape, Autopom also offers optional mechanical breakdown insurance which covers the cost of vehicle breakdowns caused by engine problems, transmission issues, or a faulty electrical system.
The company provides a range coverage options for every budget, from high-level coverage for specific parts within the major systems to extended coverage that covers most of the mechanical and electrical components on your vehicle. You also get nationwide roadside and rental car assistance and can choose any licensed repair facility for your vehicle repair with no restrictions. What makes Autopom appealing to most reviewers, however, is the quick, hassle-free quote process.
Because Autopom is a broker, coverage, exclusions, and limitations apply depending on the provider you choose. Not every plan is available in every state, and some are strictly state-specific. CarShield has been in business since In this time it has covered more than one million vehicles and has a reputation for excellent customer service.
With six plans available, CarShield offers coverage for almost any vehicle with less than , miles. Its wide variety of plans for new, used, and pre-owned vehicles make it easy to qualify for a warranty. Most plans are monthly, and most warranties also can be transferred.
And even though CarShield is a broker like Carchex, it still offers the flexibility of taking your vehicle to any dealer or ASE-licensed mechanic for repair. CarShield also offers a maximum payment schedule of 24 months. Concord Auto Protect has been in business since Concord Auto Protect offers many industry standards with its plans, including free hour roadside assistance and transferable plans.
As a direct provider of its vehicle service contracts, Concord Auto Protect pays claims directly to auto repair facilities and lets you choose any ASE-certified mechanic. Each plan also comes with a day money-back guarantee.
Unfortunately, Concord Auto Protect offers no bumper-to-bumper plans, so a lot of parts are not covered, including tires and regular maintenance items like filters and brake pads. Also, because Concord Auto Protect backs its own extended warranty plans, there is no insurance company protecting your investment if the company were to go out of business.
Liberty Bell Auto Protect has been in business since It covers a wide range of vehicles, up to 46, from Acura to Volkswagen. The company offers three plans that cover the basic range of components and breakdowns. To be eligible, vehicles must have fewer than , miles and must have been built after the year To file a claim, you must call the service line to get authorization first.
All repairs must be done by an ASE-certified technician or repair facility. While the companies we researched refer to their products as "extended car warranties," the term is a bit misleading. True car warranties are offered and administered only by car manufacturers and are included when you buy your car.
Plans typically include bumper-to-bumper protection, powertrain coverage, or a combination, and come with time and mileage limits. Extended car warranties are service contracts offered by third parties that extend some of the terms of the original car warranty. Many new cars come with a three-year or 36,mile manufacturer's warranty, so if you plan to keep your car for at least 10 years, you might consider an extended warranty for peace of mind for the first few years after your manufacturer's warranty expires.
Extended car warranty companies offer a range of plans that extend the manufacturer's warranty for the powertrain, which is the largest and most expensive part of the car to repair. For such small-potato repairs, an extended warranty makes little sense financially. For one, the chances of any part failing in any one year are low; as examples, a car battery typically lasts 3 to 5 years , an alternator 6 to 10 years. A car warranty is most useful if you are anticipating -- or want the peace of mind that you are protected against -- major car repairs.
Be aware that warranty prices may not be set in stone, and you might want to haggle over an extended car warranty just as you would the cost of a new or used car. You could, for example, negotiate both on the premiums and the deductibles. Keep in mind that a warranty may not necessarily be renewed when it expires. Extended car warranty companies have authority not to renew a contract and even to suspend it.
They may elect one of these options if your vehicle no longer meets the requirements set by the company — as is usually the case with older or higher-mileage vehicles. Extended warranty providers have a maximum age and mileage coverage limit for vehicles, which typically caps at 10 years or , miles , over which your car is ineligible for a contract renewal.
Another variable: not all car brands are covered by all warranty companies -- because some makes may be considered too repair-prone or too expensive to repair, or both. With coverage options for classic cars as old as and up to , miles, Endurance stands out as one of the best extended warranty options for vehicles that are older and have higher mileage.
The company has four service plans for new and used cars: Secure, Superior, Supreme, and Select Premiere. Their Secure policy offers industry-standard benefits and is equivalent to powertrain coverage, while the Supreme has the same benefits as an exclusionary plan. Finally, Endurance also offers the Select Premiere, an intermediate option between their Secure and Superior plans. Endurance has some of the best trip-interruption coverage on the market, too.
From Acura to Volkswagen, Liberty Bell offers one of the most comprehensive make lists in the industry. Their warranty plans — Platinum, Platinum Plus, and Platinum Prime — offer industry-standard coverage, although it offers more added benefits than most.
Their Modern policy works similarly to an inclusive plan, but is more limited when compared to others in the industry. The Foundation plan stands out the most, since it also includes cooling and differential assembly as standard.
An extended warranty could add thousands of dollars to the purchase of a car. If you do decide to purchase an extended warranty, be sure to do your homework, watch out for auto warranty scams and work with a reputable company.
Read this post in Spanish. Image: Mechanic explaining the cost of a car repair to car owner. In a Nutshell An extended car warranty may save you some money if your car ends up needing repairs that are covered under the plan. But many people who buy extended warranties never use them. Advertiser Disclosure We think it's important for you to understand how we make money.
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