Everyone knows how important it is to carry auto insurance, but even the best car insurance companies don’t provide warranties for vehicle breakdowns and mechanical issues. To protect themselves from emergency car repair bills, many drivers turn to car warranty companies. There’s just one problem: Telling the best extended car warranties apart can be difficult until you’ve already handed over your money and are experiencing a claim.
Technically speaking, extended car warranties aren’t warranties at all – they’re service contracts. These plans may be offered to you by used car dealerships, but there’s no guarantee that you’ll be given a fair price, especially since most dealers get a commission for every service plan they sell.
Before you purchase an extended car warranty, we recommend researching your options. To help you get started, we’ve performed our own extended car warranty reviews and compiled a list of the best options based on our assessment.
The 5 Top Extended Car Warranty Companies
- Infinite Auto Protection: Best Basic Coverage
- Ally: Best for Newer Cars
- Endurance – Best for High-Mileage Vehicles
- CARCHEX – Most Customizable
- Autopom! – Best for Frequent Travelers
Best Basic Coverage
Why We Chose It
Why we chose it
Pros
- Budget-friendly foundation plan covers basic mechanical and electrical components
- Provides a rental car for up to six days
- Cancel anytime for a prorated refund
Cons
- Limited plans to choose from
- No full-coverage option
- Trip interruption capped at $50 per day for three days
Types of Coverage Available
- Engine and transmission
- Major systems
- 4X4/AWD
- Electrical components
- Towing
- 24/7 roadside assistance
Add-on Options
- High-tech parts
Best for Newer Cars
Why We Chose It
Why we chose it
Pros
- All plans include 24/7 roadside assistance
- Zero-deductible options
- Renewable for up to 10 years
Cons
- Only covers vehicles made in 2015 or later with fewer than 75,000 miles
- Higher deductible for high-mileage drivers
- Claim assistance only available during business hours
Types of Coverage Available
- Engine and transmission
- Major systems
- Electrical components
- A/C and heating
- 24/7 roadside assistance
Add-on Options
- High-tech parts
- Safety components
Best for High-Mileage Vehicles
Why we chose it
Why we chose it
Pros
- Accepts vehicles with up to 200,000 miles
- Administers its own plans
- No dollar limit for towing, battery jumpstarts, flat tire changes, or fuel delivery
Cons
- Requires a deposit
- Standard waiting period of 60 days
- Not available in California
Types of Coverage Available
- Engine and transmission
- Major systems
- Electrical components
- A/C and heating
- 24/7 roadside assistance
Add-on Options
- Identity theft
- Personal concierge
- Key fob replacement
Most Customizable
Why we chose it
Why we chose it
Pros
- More than 20 different plans available
- Offers its own plans in addition to third-party options
- Transferable if you sell your vehicle
Cons
- Five- to seven-year limit on most plans
- Low coverage limits for towing and roadside assistance
- Terms vary widely by plan and can be difficult to understand
Types of Coverage Available
- Engine and transmission
- Major systems
- Electrical components
- A/C and heating
- Full-coverage exclusionary package
- 24/7 roadside assistance
Add-on Options
- Luxury electronics
- Emissions
- Market labor rate
Best for Frequent Travelers
Why we chose it
Why we chose it
Pros
- Reimburses up to $125 per day for trip interruption and $50 per day for a rental vehicle
- Coverage for GPS and navigation systems
- Four plan levels ranging from basic to full comprehensive coverage
Cons
- Each plan administered by a different company
- Deposit required
- Website difficult to navigate
Types of Coverage Available
- Engine and transmission
- Major systems
- Electrical components
- A/C and heating
- Full-coverage exclusionary package
- 24/7 roadside assistance
Add-on Options
- GPS/navigation
- Night vision
- Luxury components
Guide to Extended Car Warranties
What is an Extended Car Warranty?
An extended car warranty is a service plan that covers certain repairs to your vehicle. They’re typically purchased once the car’s manufacturer’s warranty expires following a certain number of years or miles. Many warranties also include roadside assistance and trip cancellation benefits.
What is Covered by Extended Car Warranties?
The coverage you get from an extended car warranty depends on the plan you choose. Some service packages only cover a short list of essential components, such as the car’s engine and transmission. These options are usually the cheapest. On the pricier end are exclusionary packages, which cover all issues that may arise except for a handful of listed exclusions.
What’s typically included
- Service, repairs and replacement for listed items
- Roadside assistance and towing
- Trip cancellation, including reimbursement for hotels and meals
- Rental car costs if your vehicle is undrivable
What’s excluded
- Pre-existing issues
- Interior details such as upholstery
- Custom parts that aren’t factory-installed
- Issues that arise from a lack of timely maintenance
Decide Whether You Need an Extended Warranty
Unlike auto insurance, extended warranties aren’t required by law or by the vast majority of lenders. Ultimately, it’s up to you to decide whether a service plan is in your best interest. Make sure you check for any manufacturer’s warranties or used car warranties from the dealership to avoid purchasing duplicate coverage.
Watch Out for Red Flags
If you encounter any of these warning signs, it’s probably best to steer clear of a company:
- You get an urgent notice about your warranty expiring: If you get a phone call or a letter claiming that your vehicle’s warranty is about to expire, proceed with caution. Many companies use this tactic to sell you an auto warranty you don’t need.
- The dealer says it’s required: Some used car dealers may claim your lender requires an extended warranty, but this is often untrue. Check with the lender directly if you’re unsure.
- It’s included in your loan: Dealerships should never sell you an extended warranty without your consent. If your sales contract includes a service plan that you didn’t agree to, ask the dealer to remove it.
Decide on the Type of Extended Warranty You Need
Extended warranties aren’t one size fits all. To help you choose the right type of plan, you’ll need to think about the type of vehicle you own and how long you plan to drive it.
Older vehicles may be best suited by a basic plan that protects essential mechanical and electrical components. Comprehensive packages might be worth it if you drive a newer car with high-tech systems.
You should also think about the warranty term and how long you plan to own your vehicle. Contracts are usually renewable for five to 10 years and may or may not be transferable if you decide to sell the vehicle.
Choose the Best Coverage for Your Needs
Most extended warranty providers let you choose from specific types of coverage to create a plan tailored to your vehicle.
Before purchasing a plan, read carefully through the list of items covered and compare them to your car’s specs. Make sure all the components you want covered are named; avoid paying for coverage that includes features your vehicle doesn’t have.
If you frequently drive long distances, you should also consider a package that includes roadside assistance and trip cancellation protection, unless you have this coverage elsewhere. This coverage will make sure you aren’t stranded if your car breaks down away from home. Just check your auto insurance policy first to see if you already have these coverages.
How We Chose the Best Car Warranties
Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. To find the best car warranty companies, we took the most popular companies in the U.S. and distilled them by looking at prices, plan options, coverage exclusions, and average customer ratings from the BBB.
Extended Car Warranties FAQ
About the Authors
Lorraine Roberte is a South Florida-based personal finance writer. Her work has been published on sites such as Thrive Global, Elephant Journal, Red Tricycle and Tweak Your Biz.
