Cost Of Extended Car Warranty
If you are looking for protection for your vehicle, it's best to look for reputable extended warranty firms. You don't want to be working with a company that has poor business practices or a spotty customer service record.
Our review team has evaluated several providers to identify the most reliable extended car warranty companies that all ranked highly in our best extended car warranty for 2022 review (see methodology below). We'll discuss each provider in depth, focusing on business practices and industry reputation. We'll also discuss what constitutes a reputable company and how to select the right provider for your requirements.
What makes an extended warranty company trustworthy?
Any reliable and trustworthy extended warranty company in 2022 should be able to tick the following boxes:
Strong industry reputation
We consider our sources of information, the Better Business Bureau (BBB) and AM Best when considering a company's industry standing. The BBB grades companies for their ability to respond to and settle customer issues. If a provider holds a high BBB rating There's a high chance it effectively communicates with contract holders promptly.
Some companies work with underwriters of vehicle service contracts to ensure claims payouts. To check these underwriters' financial strength ratings, we use AM Best, which rates an organization's ability to pay claims and manage risks.
Certain extended warranty providers, like Carchex, are also endorsed by industry-leading companies. The presence of prominent partnerships is a mark of a reliable service.
Excellent customer satisfaction ratings
The BBB, Google and Trustpilot all offer customer reviews for extended warranty firms. We suggest using multiple review sites when deciding on a company. It's not uncommon to have low scores for customer reviews on the BBB because customers trying to resolve complaints tend to leave reviews on this site.
Positive reviews from customers are an important method to determine the level of service you'll receive from an extended warranty company. Check for reviews that highlight a speedy claims process and helpful service reps. Also, beware of companies that customers say practice poor habits, like fraud calls and misleading advertisements.
Transparent business practices
A number of reputable extended warranty companies provide the opportunity to view sample contracts on the internet so that customers can review the coverage details before signing the dotted line. The most common complaint for contract holders is claims denials.
By selecting a company that readily offers information about its agreements and contracts, you'll be better prepared to understand what is not covered. But, it is important to be sure to read the fine print regardless of the provider you choose.
A long-running company's history
In our investigation, we've found that the best, most reputable providers have been in business for more than a few years. The warranty industry is highly competitive, making it very easy for businesses to change their minds and go, especially when they have bad reviews from customers and have shady business practices.
Easy to use
It is also essential to locate an insurance plan that is simple to use. Does it reimburse directly to the repair facility? Are there extra benefits like roadside assistance and rental car reimbursement? Are there a 30-day money-back guarantee to use if you are not satisfied? All of our recommendations offer these advantages.
A reputable extended warranty for cars. company
In determining the top five reliable extended warranty companies on the market we looked at the elements previously mentioned, along with costs and the options for coverage. After we researched insurance companies in the industry, Endurance, Carchex, Protect My Car, CarShield and autopom! topped our list for reputability
#1 Guard My Car: The Most Maintenance Plans
Accessibility: All states except Alaska, California, Hawaii, Missouri, Oklahoma and Washington Maximum mileage limit: 125,000 miles
Additional benefits: Roadside assistance, rental car reimbursement and trip interruption
Protect My Car holds some of the highest customer review ratings that any other extended warranty company. The company has an A+ score by the BBB alongside a 4.5-star rating on customer reviews at the time of its publication. Customers reviewed the company on Trustpilot and gave the company an average score of 4.5 rating with more than 2,300 reviews.
The employees of Protect My Car are accredited through the Association of Certified Vehicle Protection Professionals (ACVPP). The certification focuses the ethical conduct of business, consumer protections, The Magnuson-Moss Warranty Act and more. According to the Federal Trade Commission Magnuson-Moss's Warranty Act "requires warranty providers of consumer products in order to give consumers clear details about the warranty coverage."
Customers of Protect My Car frequently report positive experiences with their service staff and the ease of the claims process.
Protect My Car extended warranty plans
Protect My Car offers three choices of coverage that can be extended to 10 years/25,000 miles. This includes:
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"Protect My Car Plan |
What it covers |
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Supreme |
Similar coverage to the original factory warranty of the vehicle. |
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Select |
Ideal for vehicles with more than 50,000 miles and offers coverage one step lower than the Supreme plan |
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Driveline |
Protection of the powertrain for vehicles that are between four to 10 years old and with more than 80,000 miles |
Protect My Car also has five maintenance programs that are prepaid and referred to as Ambassador Maintenance Plans. The Ambassador Maintenance Plan includes a mix of car repairs and regular maintenance.
Average cost of an extended warranty on a car
On average, an extended warranty on a vehicle costs between $1500 and $3500. Based on our survey of consumers approximately 67% of those who responded paid between $1,500 and $2,500 to get the extended guarantee. Extended auto warranty prices are determined by the model of your car and the comparison of quotes will help you to get the best price.
Is an extended warranty worth it?
Extended warranties are beneficial for many car owners, but it's best to consider your circumstances when deciding on the right contract. If you own a reliable vehicle or plan to sell your vehicle before the warranty on the factory expires, a vehicle protection plan may cost more than the cost. It is the same for those who have savings that are set aside for repairs to their vehicles.
But, you must think about adding coverage if the following situations apply to you:
You want peace of mind
Repairs to your vehicle can be expensive to cover out of pocket. Once your manufacturer's warranty expires you're financially responsible for any mechanical or electrical failures. Extended warranties foot the bill for covered repairs, easing the anxiety about future problems.
You want a predictable auto budget
If you pay for a car service contract upfront or through a monthly payment arrangement, or part of the financing of your vehicle and insurance, you're not responsible for a repair bill that comes up after an unexpected mechanical breakdown.
You intend to own your car for a long period of time
According to research from the IHS Markit The average age of operable light vehicles within the U.S. was 12.1 years in 2021. Since the majority of bumper-to bumper warranties end after 4 years or 50,000 miles, you could be driving unprotected vehicles for more than half its life span.
It is important to think about the repair costs of your car. The more you anticipate to pay in repair costs, the more likely you will be to be able to take advantage of extended warranty protection. Here are some typical annual repair expenses for top automakers, based on RepairPal:
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Car Brand |
Average Annual Repair Cost |
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Honda |
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Acura |
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Lexus |
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Subaru |
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Ford |
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BMW |
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Land Rover |
What are the opinions of consumers?
Our team polled 1,000 consumers who had experience purchasing or searching for an extended car warranty plan. In this sample, around 75% of them had purchased extended warranties from dealerships 44% purchased an extended warranty through a third-party.
Survey respondents said pricing was the primary factor, followed by the length of the warranty and the extent of coverage. Overall 64% of people who took part were satisfied by their warranty and 13% said they were neither satisfied nor dissatisfied.
On the other hand 13% of respondents said they were not satisfied regarding the warranties. Some said the vehicle warranty didn't cover expected repairs, while others said they believed the company was trying to defraud customers of making repairs.
Are you considering an extended warranty offered by the dealership?
In addition to reputable extended car warranty providers customers can also buy coverage from their vehicle manufacturers. Because these warranties are generally backed by automakers themselves, they can reduce the buyer's anxiety regarding reliability.
The contracts of manufacturers guarantee factory-trained technicians and the use of genuine parts to repair. However, they also have a few restrictions, including:
Limited repair shop choice
Many manufacturers require that their drivers visit the dealership or a repair center that is branded to get repair. While this may not appear like a big deal there are some automakers that have only a handful of dealerships across the country. For instance, there are only about 100 MINI dealerships throughout the U.S.
Expensive vehicle service contracts
You could face dealer markups on top of the cost of the contract if you purchase manufacturer-backed protection.
A broader range of options of coverage
Typically, companies only offer a few car protection plans. Depending on your needs, you may purchase too little coverage or buy coverage you don't need.
Things to consider prior to buying a third-party extended warranty
Through a third-party guarantee, an outside company other than your vehicle's manufacturer will cover certain repairs. The major benefit is that it's generally less expensive than a manufacturer's extended warranty.
However, a third-party insurance plan may or may not cover OEM (OEM) spare parts. If you visit a dealer and get OEM components, then you could have to cover a portion of the repair expense based on the terms of your contract.
The most trusted extended vehicle warranty providers will pay repair shops directly, so all you have to pay is your deductible. Some less reliable providers may insist that you pay for repairs up front and submit receipts for reimbursement Beware of those companies.
Review the contract thoroughly before you purchase the plan. Find the specifications for:
Labor rate coverage limits
What defines mechanical failure
Maximum amount of money that can be paid per contract
OEM parts coverage
Inspections or waiting periods are required before coverage
Documentation for maintenance that is required
Emergency repair procedures
Contract cancellations and transfer of contracts
Finally every extended warranty contract have exclusions. This can be a case of specific parts that are cosmetic, like the or emissions components, and maintenance items like brake pads and oil changes. Know what's not covered in order to be sure you aren't disappointed in the future. One of the top complaints regarding extended warranties is that repairs aren't being covered.
Sometimes, companies don't guarantee a legitimate repair. In many instances the contract specifically excludes the repair in question. Read all the fine print, and don't count on a salesperson to explain every clause you're not aware of.
Can you buy an extended warranty after purchasing a vehicle?
Some dealerships allow the purchase of an extended warranty before the warranty ends, whereas others require you to get it when you purchase a new vehicle. But, nearly all third-party providers sell plans for cars which are outside of the warranty period of the manufacturer.
How can I stop an extended warranty from a car
In order to terminate an extended warranty, must to contact the contract administrator and submit the cancellation request in writing. You might also have to present a notarized declaration. Reputable extended warranty providers offer 30-day money-back guarantees and prorated refunds beyond that point.
How do you find the best warranty provider
When considering extended car warranty providers, it's best to check out estimates. So, you can be sure to find the perfect coverage plan that is within your budget.