Best vehicle extended warranty companies consumer reports

Buying an extended car warranty can give you peace of mind after the factory coverage on your new car expires. And after a thorough review of the warranty industry, we at the Home Media reviews team found that Endurance, Carchex, Protect My Car, CarShield and autopom! are the best extended car warranty companies.

In this article, we’ll discuss these top five providers and their offerings in detail. We’ll also name five more extended car warranty companies that stood out from the competition. When conducting our industry-wide review, we considered each company’s reputation, coverage options, affordability and customer experiences.

Our Top Picks for the Best Extended Car Warranty Providers

After thoroughly researching every major vehicle service contract provider, we identified the following 10 companies as the best extended car warranty companies on the market. Each provider is graded on a 10-point scale.

#1 Endurance: Most Comprehensive Coverage

Availability: All states except California
Year established: 2006
Headquarters: Northbrook, Ill.

Endurance holds the No. 1 spot in our industry-wide best extended car warranty review. The company is a direct provider, meaning it handles all customer claims and contracts in-house. It offers six coverage plans with term limits up to 8 years or over 200,000 miles.

Plans range from basic powertrain coverage to exclusionary plans. During our research, we found that an Endurance warranty tends to cost around $546 to $612 per year of coverage, with total costs between $2,990 and $3,990 depending on the service plan you choose. All extended car warranty plans also come with roadside assistance, towing, trip interruption benefits and rental car reimbursement for the duration of the contract.

Here’s an overview of Endurance’s warranty levels:

Endurance holds a C+ rating from the Better Business Bureau (BBB). While this may seem like a red flag, low BBB ratings are not uncommon among warranty providers, and the company has an average customer rating of 3.3 out of 5.0 stars on the BBB’s website. This indicates that unhappy customers make up only a small portion of the provider’s contract holders.

Our team reached out to Endurance for a comment on its BBB rating but did not receive a response.

Endurance also has a 4.1-star customer review score on Trustpilot. Many reviews mention knowledgeable Endurance service representatives and a quick claims approval process.

A unique benefit of Endurance is the free year of Endurance Elite Benefits that’s included with all contracts. This program includes perks like key fob replacements, tire repairs or replacements and total loss protection.

Learn more about the provider in our complete Endurance warranty review.

#2 Carchex: Great Industry Reputation

Availability: 50 states
Year established: 1999
Headquarters: Hunt Valley, Md.

Carchex offers some of the longest-lasting contracts on the market, with term limits up to 250,000 miles. Based on its extensive offerings, we recognize it as one of the best extended car warranty providers for used vehicles. Carchex has over 20 years of experience and is backed by industry leaders like CARFAX, Kelley Blue Book, Edmunds.com and RepairPal.

The provider offers five plan options that generally cost between $120 and $170 per month, according to our research. Here’s an overview of service plans from Carchex:

Carchex holds accreditation and an A+ rating from the BBB as well as a 3.0-star customer review score on Trustpilot. As one of the industry’s most reputable extended car warranty companies, the provider works with insured administrators like American Auto Shield to offer competitively priced contracts. If a customer wants to cancel their Carchex coverage, the company offers a 30-day money-back guarantee on all warranties. Customer reviews frequently mention the company’s smooth claims process, helpful service representatives and ability to resolve issues quickly.

Carchex perks include roadside assistance, trip interruption coverage and rental car coverage.

Learn more about the provider in our complete Carchex warranty review.

#3 Protect My Car: Most Maintenance Plans

Availability: All states except Alaska, California, Hawaii, Missouri, Oklahoma and Washington
Year established: 2005
Headquarters: Saint Petersburg, Fla.

Protect My Car can be a smart option for long-term financing, as it allows contract holders to pay relatively low monthly payments for periods up to 60 months. This can, however, cause Protect My Car contracts to cost drivers much more in the long run. They may be the best option for those with lower monthly auto budgets, though. 

Our team reached out to Protect My Car for a comment on its pricing and vehicle requirements but did not receive a response.

Protect My Car plans extend up to 10 years/125,000 miles. Here’s what each level of coverage includes:

Protect My Car has added benefits with its warranty plans, including roadside assistance, towing, rental car reimbursement, oil changes and tire rotations. The provider also offers five prepaid maintenance plans called Ambassador Maintenance Plans. Most vehicles are eligible for these contracts, unlike with Protect My Car’s extended warranties.

Protect My Car holds an A+ rating from the BBB as well as a 4.1 out of 5-star customer review score. Customers also weighed in on Trustpilot to give Protect My Car a 4.5-star rating. Reviews often mention the provider’s responsive customer service team and ease of communication.

Learn more about the provider in our complete Protect My Car review

#4 CarShield: Most Affordable

Availability: All states except California
Year established: 2005
Headquarters: Cottleville, Mo.

CarShield is our go-to choice for budget-conscious drivers. Based on quotes we’ve received from warranty companies, CarShield consistently offers some of the most affordable contracts, with prices ranging from about $89 to $130 per month.

Customers can choose from six plans options that last up to 300,000 miles, the longest in the industry. Here’s how CarShield’s extended vehicle warranty plans break down:

CarShield holds an F rating from the BBB and a 4.0-star rating from customers on Trustpilot. CarShield’s low BBB score reflects past customers’ difficulties with canceling policies and having claims denied. Claims denials are a common complaint in the warranty industry, so read each contract in full to make sure you understand the coverage before committing to a warranty from any provider.

Other CarShield contract holders report positive experiences with customer service representatives and high satisfaction with their contracts’ overall value.

Our review team reached out to CarShield for a comment on its negative scores and received the following response: “In the last three years we have 2,210 BBB complaints, but we sold 1,118,296 contracts. So only 0.21% of our customers complained.”

If you’re looking for affordable coverage, CarShield offers month-to-month payment plans some of the lowest rates on the market. But if you want to ensure a good customer experience, another extended warranty company may be better suited for you.

Learn more about the provider in our complete CarShield review.

#5 Autopom!: Excellent Customer Service

Availability: 50 states
Year established: 2009
Headquarters: Lake Forest, Calif.

The final provider on our best extended car warranty list is autopom!, which stands for “automotive peace of mind.” If you’re looking for a company to guide you through the extended warranty claims experience, we recommend opting for this provider. Representatives from autopom! work with customers to navigate its administrators’ claims processes. 

The company offers the following coverage plans, which can last up to 7 years/150,000 miles:

Each plan comes with 24-hour roadside assistance, rental car reimbursement, trip interruption reimbursement and tire protection.

Compared to competitors, autopom! holds high industry and customer service ratings. On the BBB, the provider has accreditation and an A+ rating from the organization and a 4.5-star customer review score. It has also received very few customer complaints in the past three years. Similarly, autopom! holds a 4.7-star customer review average on Trustpilot.

What Is an Extended Car Warranty?

An extended car warranty, also called a vehicle protection plan or vehicle service contract, foots the bill for damage caused by defective materials and workmanship after your factory warranty expires. Rather than pay for repairs out of pocket, contract holders purchase a contract and only pay a deductible when they need a repair.

Depending on the provider, drivers can pay for their extended warranty plans upfront, through a monthly payment plan or roll it into their vehicle’s financing plan.

How Do Extended Warranties Work?

Extended car warranties protect you from having to pay for certain vehicle repairs or part replacements for your new car after damage caused by normal use. Unlike some auto insurance policies, warranties don’t cover collisions, environmental damage, theft or vandalism. They also generally don’t cover routine maintenance services, like oil changes, or normal wear-and-tear parts, like brake pads.

Drivers have two main options for getting extended coverage: through their vehicle manufacturer or through an independent provider. Here are a few things to consider when you’re deciding which extended warranty is best for you:

Most companies that offer aftermarket warranties require a waiting period for new vehicles before filing a claim, which typically lasts for 30 days and 1,000 miles. Additionally, most providers will offer a 30-day money-back guarantee if you are not satisfied with your coverage.

Types of Extended Auto Warranties

There are three main types of extended warranty coverage: bumper-to-bumper, stated-component and powertrain. Some aftermarket contracts include prepaid maintenance or tire protection as well, but these are less common.

• Bumper-to-bumper warranty: These plans are also referred to as comprehensive or exclusionary contracts. They protect almost all mechanical and electrical components between your bumpers, aside from a list of exclusions. Bumper-to-bumper warranties are most similar to your original manufacturer’s warranty.
• Stated-component warranty: These plans may also be called named-component warranties and are considered inclusionary coverage. This means contracts will list each covered component, whereas an exclusionary contract will only list the parts that aren’t covered.
• Powertrain warranty: These warranties cover only your vehicle’s major systems, including the engine, transmission and drive axles.

How to File a Claim

If you experience a mechanical breakdown, like an air conditioning failure or transmission malfunction, you’ll need to take your vehicle to an in-network repair facility. Most warranty providers offer roadside assistance benefits, so if your vehicle is inoperable, it can be towed to the nearest authorized repair shop at no charge. 

Before any covered repair work begins, you’ll first need your contract administrator to approve the service, which may include a vehicle inspection or tear-down. After the repair is performed, you’ll pay a deductible to the facility. Based on your provider, either the rest of the repair bill will be paid directly to the shop or you’ll pay the balance and be sent a reimbursement check.

Cost of an Extended Car Warranty

The average cost of an extended warranty is about $100 per month based on quotes we received from the industry’s leading providers. The price of your contract could be between $1,500 and $4,000 depending on your coverage and vehicle.

Here are a few quotes we received from Endurance, Carchex and CarShield:

What Factors Affect Extended Car Warranty Costs?

Several factors affect the cost of an extended warranty. To ensure you get the best coverage at a price you can afford, it helps to understand how providers determine extended warranty pricing.

• Deductible: A low deductible usually leads to a higher contract cost, and vice versa.
• Coverage length: Longer-lasting contracts typically cost more.
• Coverage type: Exclusionary, bumper-to-bumper coverage often costs more than basic powertrain protection.
• Vehicle type: Older cars and high-mileage vehicles tend to break down more frequently, making coverage costs higher.
• Existing coverage: If your vehicle is still covered by the factory warranty when you reach out for a quote, you’ll likely pay less for added coverage.
• Provider: Increased competition between third-party providers drives contract costs down.

Are Extended Warranties Worth It?

Purchasing an extended warranty can be a smart choice for some car owners, but it’s not right for everyone. If you own a highly reliable vehicle with inexpensive repair costs, you may be better off setting savings aside for car repairs. However, the peace of mind extended warranties offer may be well worth the cost for some drivers.

Extended warranties can be worthwhile investments for:

• Drivers looking to establish predictable auto budgets
• Drivers who plan to own their vehicles past the factory warranties’ expiration
• Drivers with unreliable vehicles

It’s best to compare free quotes from several providers before signing on the dotted line.

Best Extended Car Warranty: FAQ

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best extended car warranty companies. We collected data on dozens of auto warranty providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost (30% of total score): Auto warranty companies with affordable rates and multiple deductibles scored highest in this category.
• Coverage (30% of total score): Companies that offer a variety of choices for warranty coverage, long contract terms and added benefits are more likely to meet consumer needs.
• Reputation (20% of total score): Our research team considered availability, ratings from industry experts and years in business when giving this score.
• Customer Experience (20% of total score): This score is based on customer satisfaction ratings, contract transparency and the availability of a money-back guarantee. We also considered the responsiveness, friendliness and helpfulness of each warranty company’s customer service team based on our own shopper analysis.

*Data accurate at time of publication.

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