Warranty services in some countries are not predominantly provided by the dealer. However, many dealers are in partnership with insurance brokers and agents who are able to provide the necessary warranty facilities for the customer’s personal needs. However, what must be noted before the consideration of any reputable extended car warranty Companies service is the necessity of the individual user.
As logic dictates, there is no point in obtaining a service that will cost you more if you are not going to use it. It will only add up to your monthly expenses in the form of premiums or be added to the initial cost as a one-off payment, which is a rarity.
The most common trend in consumer behavior is the pre-purchase decision making process being centered on reviews or peer opinions. However, many reviews given by the company itself are not reliable as it would avoid any mention of limitations or drawbacks of the provider. Hence, reviewing has become art itself by a researcher with the hope of providing a guide to the pre-purchase decision making process.
Everything You Need To Know About Car Warranties
A car warranty is an agreement between the provider and the owner of the car. The vehicle service contracts decide the kind of repairs and replacements that come with the warranty. Also, it determines what the car owner will pay for, and the number of years or miles the contract should last.
So, if you are buying a vehicle, it is vital to read the policy documents to see if you are getting value for money. The warranty is a promise by the dealer or manufacturer that they will replace defects or do repairs on the car. Also, the provider is pledging that your vehicle will be of specific quality for a particular duration.
Note that warranties don’t just cover new cars and aren’t always in writing. There are cases where “as is” used cars come with a warranty. Therefore, we recommend that you take the time to figure out the kind of warranty your vehicle provides. Know all the repairs your agreement specifies, and how to enforce it. It might save you a significant amount of money during repairs.
Types of Car Warranties
You are preparing to sign documents for a new vehicle, and the provider recommends that you get an extended service contract catering to repairs once the factory warranty expires. You struggle. The thought of extra protection feels pleasant, but you don’t know if the deal is excellent. Making a smart choice starts with learning how various car warranties work and what they cover.
A car warranty will cover different systems depending on what you purchase. For example, if you buy:
- Bumper to bumper extended warranty: It will include all major car systems, save for a few exclusions.
- Powertrain extended warranty: It covers the transmission with its vital parts and the engine, among other components.
- Corrosion: Including corrosion in your extended warranty can prevent you from paying for damages resulting from rust.
1) Included / Factory Car Warranties
When you buy a new car, it comes with different warranties.
Bumper to bumper factory contract
It is the most popular coverage in the market. While the dealer sells this warranty, the carmaker often backs it. Most new vehicles offer a three-year or 36k miles guarantee. The offer is available in the bumper to bumper coverage protecting repairs and most parts on your car except for items that wear out like windshield wipers, tires, and brake pad. Besides, this warranty does not pay for regular maintenance, such as tire rotation and oil changes.
Car manufacturers know that providing an excellent contract is a high selling point. For example, automakers like Hyundai see better sales, partly due to offering a five-year, 60k-mile bumper to bumper protection. On the other hand, automakers know for dependability like Toyota and Honda, provide shorter contracts. For these carmakers, their reputation is their vehicle service contract.
Powertrain Factory Coverage
Once your bumper to bumper warranty runs its course, there is still the powertrain factory warranty that comes with your new car. It covers repair costs and all parts that make the car move down the road. Some of the significant parts include:
- The engine
- Vehicle transmission
Companies offer powertrain protection because they are practical sales tools. Plenty of the carmakers carry lengthened plans to increase sales. Chevrolet is a perfect example with a five-year, or up to 60k-miles powertrain cover.
2) Extended Auto Warranties
So, how does an extended vehicle warranty come into play?
Dealership Extended Vehicle Warranty
When your vehicle fails after the bumper-to-bumper factory contract runs out, it leaves you responsible for all repair costs. Some vehicles such as BMW can be more expensive to maintain without an extended warranty. However, if you purchased the extended warranty on the dealer’s advice, you will get cost-free repairs.
Extended car warranties come in different blends of mileage offers and deductibles. The service contracts can increase the bumper to bumper cover by around 20k miles or more. You will find limited details online since dealerships expect you to reach them directly for a sales promotion. Dealers often include other benefits like free rental cars and trip interruption compensation.
You’ll want to carefully review the items covered by an extended service contract from your dealer before you buy it. Watch out for third-party deals from the dealer. Even though they cost less, these warranties have no connection with your carmaker. One of the downsides is that you might have to pay for repairs before applying for compensation.
- More Profit For Dealerships: It is common for dealerships to market extended service contracts as a protection for your investment. But, vehicles increasingly lose value, which barely makes them an investment. The price of these contracts might seem low, mainly because the provider gives it for a slight extra monthly fee to pay the supposed expensive car repair bills. You might decide better if you knew that extended vehicle service contracts are profitable products for the dealerships.
Independent Third-Party Extended Car Warranties
After your factory warranty ends, you can opt for an extended warranty. Cover options for these warranties are different from your original factory contract. Besides, extending your service plan does not limit you to getting it from the manufacturer or dealer. You can decide to buy an extended car protection plan from a reputable third-party provider like Endurance, AAA, or CARCHEX, among others.
Independent third-party extended warranties offer a wide selection of plans to choose from. Besides, they often provide better flexibility on;
- Repair shop options
- When you can join
- Money-Back Guarantees
- Customized plans based on a customer’s unique needs
3) Other Car Warranties
Carmakers provide several other auto warranties, some of which are uncommon. They include:
- Federal emissions warranty: It covers repairs for defective parts that might prevent the vehicle from meeting EPA standards.
- Rust or corrosion warranty: It pays for rust in the sheet metal components of your automobile.
- Roadside assistance: It compensates tire changing and towing costs when your vehicle breaks down on travel.
Who Needs An Extended Car Warranty?
Car owners with almost expiring or expired factory warranties should get an extended car warranty. If an expired contract vehicle develops mechanical issues, you will be paying for the repairs. Also, you can get an extended service contract with your new car. However, we recommend that you compare the extended warranty benefits against the added cost.
Car owners can get the extra coverage later and avoid getting into an immediate expense with the vehicle purchase. Dealerships will conveniently overlook the part where you can purchase the package at any time before the original factory warranty expires.
Therefore, you can hang onto your cash for three years and get the lengthened agreement if you need it. By then, you will have a better idea of the car’s reliability. Alternatively, you may want to sell or trade it in. It means you will not need a warranty.
Tips on Selecting the Right Extended Auto Warranty Company
Finding reputable extended car warranty companies can be challenging. Getting a factory extended car warranty from your dealer could be a sure deal. However, their contracts could be limit you to specific repair auto shops.
Some third-party providers are trusted throughout the industry. You can look for companies with partnerships and endorsements from RepairPal, Autoblog, Kelley Blue Book, and The Motoring Club, among others. Before making your final decision, check out online reviews from the provider’s customers.
So, selecting the right extended auto warranty company will save you stress in case any part of your car gets faulty. This is because such companies will help you cover all the repair costs of your vehicle.
However, some of these warranty companies are grossly overpriced and aggressively marketed. It is quite important to evaluate your car warranty needs beforehand. This will help you to avoid spending money on coverage which you may not require in the long run.
Here are some tips on selecting the right extended auto warranty company:
- Decide beforehand if you really need an extended warranty: Sometimes, you may be much better off without extended warranty coverage. After all, you don’t want to spend $1000 on coverage and you end up getting $250 as compensation.
- Know whether you are buying or leasing: You don’t require an extended warranty cover on a leased vehicle. If you have a leased car, inform your warranty representatives upfront. Then, request them for specific warranty options for leased vehicles.
- The value of the coverage should be based on the lifespan of your car: If you want to keep your car for many years, you will have to conduct some major repairs. Therefore, the value of your cover will naturally be higher. If you get a new car before this warranty expires, you will only be entitled to a partial refund. This will make you lose your money.
- Do your research well before selecting a particular warranty company: Before you choose an extended coverage plan, make sure you know everything about it. For instance, you should know what exactly covers, its cost, and the terms and conditions.
- Find out about upgrades: Sometimes, you may discover that you need extra coverage for your vehicle. Inquire whether the warranty plan which you choose has an option of a coverage upgrade.
- Make sure that your selected extended car warranty company is financially stable: Your coverage plan will be worthless in case your warranty company goes bankrupt before you file any claim. Always opt for a warranty provider that is financially stable, and has an excellent rating on BBB.
The Importance Of A Reputable Provider
Going with reputable extended car warranty companies comes with numerous benefits, including:
- Freedom to select your repair shop: Nearly all carmaker warranties need you to use their dealer facilities, mechanics, and parts, which are often expensive. A reputable provider lets you find an independent, trusted mechanic. You can also use the dealership service center.
- Direct payments: Trusted providers will pay the repair shops directly. You do not have to pay out the expenses and wait for compensation.
- Different coverage levels: Trusted providers offer an array of plans, from comprehensive protection to coverage for your vehicle’s essential parts.
- Extra benefits: Almost all reputable providers provide 24-hour roadside assistance, which offers towing, rental cars, gas delivery, and trip-interruption services, among others.
- Excellent customer service: Trusted providers are dedicated to making sure you understand car warranties as well as your needs, through exceptional customer experience.
- Budget-friendly prices: Apart from offering low monthly rates, most trusted providers give a wide range of discounts such as 30-Day money-back guarantee, no-haggle, everyday guarantee, and low-price offers. All these come with your extended vehicle service contract.
Choosing The Best Plan For You
Selecting the best plan to meet your needs can be a frustrating decision, especially if it is your first time. It might help to ask the following questions as you think about the kind of extended car warranty to purchase;
What does the vehicle service contract cover?
Are you looking for comprehensive, bumper-to-bumper protection, or do you only want to protect your powertrain?
Is your vehicle reliable?
If your car model and make needs several repairs or you have a luxury model with expensive components, getting an extended contract can help pay for those costs. RepairPal is an excellent place to confirm the average cost of repairs for your vehicle.
How much is the car warranty?
When considering the cost of your vehicle service contract, you should find out whether the monthly payments will be more affordable than making large up-front deposits.
Who is the best provider of an extended car warranty?
Carmakers and third-party companies both have extended warranties. You’ll want to review each providers terms while comparing their pros and cons against your needs.
How You’ll Pay for a Car Warranty
Depending on who is your car warranty provider, you can opt for monthly payments instead of significant upfront premiums. Monthly payments are often affordable than wholesome upfront deposits. But, you should choose from reputable extended car warranty companies with flexible auto payment options.
The best providers will offer customers multiple ways to save. Some companies will make sure you have all available payment options. In this way, you can easily afford to make payments for your extended warranty protection. Some standard options for activating your car protection plan include:
- Debit and credit cards: You can make monthly payments through debit or credit cards.
- Phone checks: Thanks to technology, some providers let you deposit checks via phone for your extended warranty payments.
- Finance plan: Trusted providers usually give customers different financing plans, making their monthly premiums more affordable.
Car Warranty vs. Insurance
Vehicle warranties and auto insurance both give financial cover from the costly car repairs, though they are two different products. It’s vital to understand the difference so that you will know the type of coverage and protection your car needs.
Are Auto Warranties And Auto Insurance Mandatory?
One essential difference is that almost every state requires car owners to have insurance, but vehicle warranties aren’t mandatory. Auto insurance helps to compensate other people for the losses they suffer when your car causes an accident. So, you can understand why local state laws make it compulsory.
The only exemption is New Hampshire, which doesn’t need you to have car insurance. Instead, they require drivers and vehicle owners to show the ability to compensate damages in case they are at fault during car accidents.
1) Car Insurance
Many different companies sell auto insurance. Customers pay a specific amount known as a premium to receive protection in the event of collisions, theft, or other forms of damage to the car. If you are opting for vehicle insurance, it might help to know that your policy will come with financial limits. The insurance provider will not pay additional amounts beyond the set limit.
Types of Vehicle Insurance: How it Works
- Collision Insurance: If a driver hits your vehicle and they are at fault, their liability insurance will pay for your car’s repairs. On the other hand, if you cause the accident, your vehicle protection policy will pay for the damages in your car. Besides, it will pay for costs to damages that other drivers sustain. Your collision insurance only pays for damages third parties incur if they are underinsured or uninsured.
- Comprehensive Insurance: Getting comprehensive insurance can save you in case of severe damages to your car. In addition to paying third party damages, your comprehensive vehicle insurance pays for your car in the event of other damages and losses. For example, the optional full cover pays in case of vandalism, theft, or if you accidentally hit a deer.
2) Auto Warranties
We have already discussed what auto warranties are, the available options, and how they work. For example, by now, you already know that vehicle service contracts cover repairs. However, unlike auto insurance, these are non-collision repairs and fixing non-external sources damages. A warranty covers repairs caused by factory defects.
All new vehicles come with a factory service contract covering specific parts for a specified duration or number of miles. For instance, one major carmaker offers a ten-year or 100k-mile powertrain warranty covering a particular engine and transmission parts. Also, it includes other parts like the audio system and paint for five years or 60k miles. It protects other components for an additional period.
Providers include this basic warranty in the price of your car at the time of purchase. So, you don’t pay extra charges for it. Some used vehicles also come with manufacturer-backed warranties, especially for certified pre-owned models. But, they are only as good as the provider.
You can get extended warranties from carmakers, dealers, and third-party companies. If you are opting for extended protection, you will have to pay extra money. You can pay for it upfront or choose to fold it into your car loan. Watch out for the worst extended auto warranty companies. You may have to copay a percentage of each repair cost, depending on the type of extended warranty you secure.
Auto insurance and car warranties provide distinct types of financial protection. Car insurance covers you in the event of a collision, while warranties cover specific parts of the vehicle. Additionally, vehicle insurance pays for physical injuries that other drivers sustain during accidents that you are at fault. Regardless, they are both safety nets, offering financial protection from the potentially costly car repairs under different situations.
What Should I Consider When Shopping for a Used Car Warranty?
Stepping onto a car lot to buy a pre-owned vehicle can be excited. But, you often don’t imagine what the future might hold concerning potential repair costs. Moreover, used cars don’t always offer a factory or certified pre-owned contract, leaving you responsible for significant vehicle expenses. With plenty of choices available, choosing between extended warranty providers for used cars can be overwhelming. How do you tell the best used car warranty for your needs? Here are some factors in evaluating for easy decision making.
- Level of Coverage: It is vital to research what each plan covers to avoid surprises when fixing your car. For example, you should ask beforehand if you need an extended warranty for cars over 100k miles. Moreover, consider reading a sample vehicle service contract if possible.
- Providers Reputation: Used car warranties are only as good as the provider. Take time to do your homework on each of the providers you are considering. You should check their customer service ratings, as well as reviews from other vehicles. Look into endorsements or awards they hold.
- Extra Perks: Compare the benefits each company offers with their car service agreement before committing to any. Knowing if your contract comes with car compensation or towing services in case your vehicle ends up in the auto shop could be vital.
- Lowest Rates: Consider getting a used car warranty quote for free from each of the used car warranty companies on your list. Note the most affordable provider, but remember to compare the coverage options against each other to ensure you get the plan you need.
Benefits of a Used Car Warranty
Purchasing a used vehicle can often feel like a gamble. Even though companies such as CARFAX offer incredible background details, you can’t tell how the previous owner treated the car. So, when you get an extended vehicle service contract on a used car, it provides the mechanical breakdown protection you might require.
Moreover, you’re probably going to experience more part failure or malfunctions as the vehicle ages. Frequencies in the repair shop can add up to influence your budget, particularly if you intend to keep the automobile till its life’s end. If you want to drive a car for several years, it is another good reason to buy a vehicle service contract.
Below are other reasons we recommend purchasing an extended warranty for used cars:
- Far-reaching Knowledge: Your used car warranty provider will often ask repair shops to send in estimates before starting to work on your vehicle. The report is another confirmation of the list of problems and costs in your car. If a mechanic wants to rip you off, the provider is likely to recommend a repeat estimate at another repair shop.
- High Resale Value: The majority of used car warranty providers allow owners to transfer their vehicle service contracts when selling the car. As the vehicle ages, you’ll want any benefits that increase its value so you can maximize the resale value.
- Peace of Mind: Warranty providers for used cars can offer you a sense of stability. They cover repairs during mechanical problems, in addition to benefits such as rental car coverage and roadside assistance.
How Much Does a Used Car Warranty Cost?
While prices vary between providers based on specific vehicle service contracts, an extended car warranty cost is averagely between $1,000 and $1,500. The majority of warranty companies will let you set up payment plans, making it easy to understand the sum. Besides, keep in mind that most vehicles have an average repair cost starting at $500. So, if your car will require some repairs in its lifetime, you can quickly get the average price of your used car warranty.
Manufacturer Warranty vs Extended Car Warranty
New vehicles usually come with a manufacturer warranty. There is a difference between a manufacturer warranty and an extended warranty.
Typically, a manufacturer warranty is issued by your car dealer. For each new car you purchase, you will get a manufacturer warranty plan. Some top brands such as Volkswagen, Hyundai, Kia, and Mitsubishi offer long new warranty plans which may be up to ten years.
The manufacturers warranty normally provides coverage for essential items such as drivetrain, transmission, and engine problems. Most car brands provide little manufacturer’s coverage since they believe that their cars are high-quality and can’t easily get damaged. For example, Honda, Toyota, Subaru, and Mazda only offer basic manufacturer coverage for up to three years.
On the other hand, you can purchase an extended car warranty plan regardless of whether you have a new or used car. Most car owners normally start looking for extended coverage when their manufacturer warranty has expired. Here are the three main situations in which you must buy an extended auto cover plan:
- After you have bought a new car and you have driven it for over 36,000 miles.
- After you have purchased a used car which has exceeded its manufacturer’s warranty limit.
- If you have driven your car for more than 100,000 miles and you can’t afford extensive car repairs.
The 10 Best Reputable Extended Car Warranty Companies
The main feature of the Warranty extended by Endurance to its customers is Roadside Assistance. They provide Assured 24/7 roadside assistance to all of their customers which is one of the key features highly regarded by both male and female customers as most vehicles are damaged while trying to fix it on the road.
This is certified by the 350,000 highly skilled mechanics spread across the USA and Canada. Hence this is a highly valued feature offered by Endurance. Similarly, the company also offers a 30-days money-back guarantee to ensure that all of their customer bases are happy and satisfied with the get-go.
Endurance also provides convenient rental car benefits while your auto is being repaired or services for their customers when the car is being serviced as well as when the customer needs for other requirements. Upfront payments for the claims are not required are required for any of the aforementioned services. Endurance has been ranked 1 in customer satisfaction.
Carchex offers a wide range of warranty plans for the customer. The advantage of this is that the customer is able to choose the warranty package which is suitable and mandatory for his or her vehicle. As the warranty servicing cost is mostly factored into the cost of the vehicle, this ensures that the customer only pays for what he or she will have use of in the future.
The warranty period can even extend up to six to seven years, depending on the desire of the customer. Carchex provides an assured and verified 30-day money-back guarantee (subject to conditions as per the contract or the policy) and will allow the customer up to 21 months to finance the selected warranty.
3) Concord Auto Protect
One of the main features provided by this warranty is the Assured 24/7 roadside assistance. Similarly, Concord Auto Protect offers nationwide support through any available ASE facility which establishes a large spread across the country.
They too provide an assured and verified 30-day money-back guarantee (subject to conditions as per the contract or the policy). The unique feature of Concord extended warranty service is the unlimited claim limits and free online quotation which provide ease to both existing and potential customers.
4) Liberty Bell
The warranty services extended by Liberty Bell have been rated 9.3 (scored out of 10) by Trustpilot.com which provides added assurance regarding the service provider. Customers are able to obtain a free quotation online. Liberty Bell also provided Assured 24/7 roadside assistance to their customers as well as an assured and verified 30-day money-back guarantee (subject to conditions as per the contract or the policy). Three warranty coverage plans and convenient rental car benefits while your auto is being repaired or services are given to the customers as well.
5) Infinite Auto Protection
Similar to some of the services mentioned above, Infinite Auto protection also provides online quotations as well as an assured and verified 30-day money-back guarantee (subject to conditions as per the contract or the policy). However, the specialized feature provided by Infinite is the 24/7 claims processing facility which allows the customers to claim the service they require at any given time. similarly, Infinite is in collaboration with many dealerships and repair stations and hence can extend the service of these to their customers as well.
autopom is a licensed California agent providing insurance for mechanical breakdowns of automobiles. The special benefit of having an insurance agent at your disposal is that you can select the service provider of your choice and claim the cost later on.
However, the practicality of this could be subjective. autopom serves in most states and provides insurance covers for used vehicles as well. Assured 24/7 roadside assistance is assured to the customer while the customer is able to choose the repair facility of their choice.
7) Complete Car Warranty
The prominent feature of this product is the instant quotation system available online for customers. Complete Car Warranty is also accepted by all dealers and mechanics while unlimited repair claims are provided to the customers. Given the coverage as determined in the contract, the customer can get either full protection or up to 60% off on all dealer prices.
8) Platinum Auto Warranty
Platinum auto warranty provides free online quotation similar to the rest of the service providers detailed in this review. However, the unique feature provided by Platinum Auto Warranty is nationwide coverage to all of their policy or contract holders.
However, even though roadside assistance is provided, this is not available 24/7. Another key aspect of Platinum that should be noted is that they cover all parts of the automobile such as mechanical, electrical and engine. An unlimited amount of claims are provided to the customer which ensures that the customer is able to enjoy the car for a really long time.
9) Protect My Car (PMC)
PMC is an Assured 24/7 roadside assistance provider of extended warranty schemes for automobiles. Whilst a 30-day money-back settlement is ensured by the provider, the automotive service rendered by the service provider is accredited. Customers are provided with an online free-quotation service as well as flexible payment terms offered.
CarShield prides itself on the car rental facility that is extended to its customers alongside their prided Assured 24/7 roadside assistance. One of the unique selling points of CarShield is the flexible payment plans that they’re willing to go into with the customers, providing ease of mind.
Similarly, the customer is able to obtain coverage from an ASE-certified mechanic as it ensures that the customer is given the best service whilst the warranty service is not being taken advantage of. However, the most beneficial feature is that the company offers towing services to the repair facility of the customer’s choice.
Our Car Warranties Review Summed Up
The best reputable extended car warranty companies detailed in this review is Endurance. More than the ranking of the provider, the amenities provided are flexible and suitable for many customers. their many benefits include;
- Assured 24/7 roadside assistance
- 350,000 qualified, skilled and verified mechanics spread across the USA and Canada
- Assured and verified 30 day money back guarantee (subject to conditions as per the contract or the policy)
- Convenient rental car benefits while your auto is being repaired or services
- Upfront payments for the claims are not required
Frequently Asked Questions (FAQ)
Are extended car warranties worth it?
Extended car warranties are worth the expense, especially if you can’t afford to pay for the costly repairs out of pocket. Moreover, the extended service contract can increase the resale value of your vehicle in case you are considering trading it off or selling it for a new car.
Should I buy an extended warranty on a new car?
Whether you should get an extended warranty on a new car is a personal decision. You will need to consider what the factory warranty covers and what it doesn’t offer. If you can afford to pay for the exclusions out of pocket, then you can skip on the extended warranty at the time of purchase.
What company has the best extended car warranty?
It is difficult to tell what company has the best-extended car warranty for you because each provider has an array of packages to suit different customer needs. Regardless, we would recommend CARCHEX for the best service and Endurance for the best coverage. Those who need the best prices should consider RepairBanc.
Is it good to buy an extended car warranty?
Buying an extended car warranty is a good decision since the factory warranty eventually runs out, leaving you exposed to costly repairs for your vehicle.
Does AAA offer extended car warranties?
Yes. AAA offers extended car warranties both for new and for used vehicles covering different parts.
The main point which must be noted is that there is no hard and fast rule that the best product out of the lost must be subscribed to. What must be remembered when making the decision is that your automobile is a personal artifact. It is the one place where your entire family gets together.
The safety, comfort, and convenience of your automobile can only be decided by you. Hence, first, your base requirement and expectation from the worst extended auto warranty companies must be ascertained before comparing reviews of each product. This will ensure that you are able to have the best experience with your car for a long time.