An extended car warranty company is a third-party service that covers repair costs to your vehicle after its factory warranties expire. These companies typically charge a fee to cover the cost of repairing certain parts and systems in your vehicle. Most of these companies offer different tiers of plans that cover various aspects of your car’s system. Some of these tiers, like the Named Parts Warranty or the Inclusionary Warranties, only cover specific parts and systems; while others, like the Exclusionary Warranties, are more comprehensive in coverage. The best extended warranty providers will have a good track record of customer service and a reputation for being transparent about their policies.
Purchasing an extended warranty can help you save money in the long run and prevent you from experiencing unexpected auto repair bills. However, it’s important to find a reliable extended warranty company and read the terms and conditions carefully. Generally, extended warranty providers will ask that you keep receipts for routine maintenance, so it’s vital to follow the manufacturer’s recommendations on routine service and oil changes. Additionally, many providers have language in their service contracts that require you to perform the recommended maintenance or risk being denied coverage for your car.
It’s also important to avoid extended warranty scams. If you receive unsolicited calls that seem too good to be true, hang up the phone or report the call to your provider. Most importantly, never provide personal information to any extended warranty company over the phone. Robocalls from these companies are a common scam, and they can misuse your personal information to steal your money or identity.
In our research, we evaluated more than 11 major extended warranty companies to determine which ones offered the best overall experience. We looked at pricing, policy options, and consumer reviews. We also analyzed the companies’ cancellation protocols, refund policies, and limitation and liability amendments to make sure they were reputable.
We found that Carchex was the best overall extended warranty company because of its low prices, wide variety of coverage options, and good ratings from industry watchdogs. We also liked the fact that Carchex doesn’t have a waiting period and offers a 30-day money-back guarantee.
Another excellent choice is Toco Warranty, which has a strong reputation for providing competitive service to customers and an easy-to-understand policy. Their coverage plans range from a basic powertrain plan to a bumper-to-bumper warranty for older vehicles. They also include perks like roadside assistance, rental car reimbursement, and trip interruption insurance with all of their plans.
Other great extended warranty companies that made the cut include Endurance, which is backed by AmTrust Financial Services and has a C rating with the Better Business Bureau. However, its plans aren’t available in California, and it doesn’t disclose which contract administrator manages its specialized plans for commercial and high-mileage vehicles. best extended car warranty companies