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Top 5 Extended Car Warranty Companies 2022

When shopping for vehicle protection, it’s best to look for reputable extended car warranty companies. You don’t want to work with a company with poor business practices or a spotty customer service record.

We at the InterestArticles reviews team have compared dozens of providers to find the five most reputable extended car warranty companies available, all of which also ranked highly in our best extended car warranty 2022 review (see methodology below). We’ll discuss each provider in detail, focusing on business practices and industry reputation. We’ll also touch on what makes a company reputable and how to choose the right provider for your needs.

What makes an extended warranty company reputable?

Any reputable and worthwhile extended car warranty companies in 2022 should tick the following boxes:

Strong industry reputation

We turn to the Better Business Bureau (BBB) and AM Best when considering a company’s industry standing. The BBB grades companies on their ability to respond to and settle customer issues. If a provider holds a high BBB rating, there’s a good chance it effectively communicates with contract holders in a timely manner. 

Some providers work with vehicle service contract underwriters to guarantee claims payouts. To check these underwriters’ financial strength ratings, we look to AM Best, which rates a business’s financial ability to pay claims and manage risk.

Some extended warranty providers, like Carchex, are also endorsed by industry-leading companies. Prominent partnerships are a sign of a reputable provider.

High customer satisfaction ratings

The BBB, Google and Trustpilot all provide customer review scores for extended warranty companies. We recommend using multiple review sites when deciding on a provider. It’s not uncommon to see low customer review scores on the BBB, as customers looking to resolve complaints are more likely to post reviews on this platform. 

Positive customer reviews are an important way to gauge how you’ll be treated by an extended warranty company. Look for companies with reviews that mention a quick claims process and helpful service representatives. Also, beware of companies that customers say practice poor habits, like scam calls and misleading advertising.

Transparent business practices

Many reputable extended car warranty companies offer sample contracts online so customers can read coverage details before signing on the dotted line. A common issue among contract holders is claims denials. 

By choosing a provider that readily offers information about its contracts, you’ll be better equipped to understand what is and isn’t covered. However, you should always read the fine print regardless of the provider you choose.

Long-standing company history

In our research, we’ve found the best, most reputable providers have been in business for more than a few years. The warranty industry is highly competitive, making it easy for companies to come and go, especially if they have negative customer reviews and shady business practices.

Ease of use

It’s also important to find a service plan that is easy to use. Does it pay the repair facility directly? Are there extra benefits like roadside assistance and rental car reimbursement? Is there a 30-day money-back guarantee to use if you change your mind? All of our recommendations offer these benefits. 

Top 5 reputable extended car warranty companies

When identifying the five most reputable extended car warranty companies on the market, we considered the factors above, as well as cost and coverage options. After we researched auto warranty companies throughout the industry, Endurance, Carchex, Protect My Car, CarShield and autopom! topped our list for reputability

#1 Protect My Car: Most Maintenance Plans

Availability: All states except Alaska, California, Hawaii, Missouri, Oklahoma and Washington
Highest mileage limit: 125,000 miles
Extra benefits: Roadside assistance, rental car reimbursement and trip interruption

Protect My Car holds some of the highest customer review ratings of any extended warranty provider. The company has an A+ rating from the BBB alongside a 4.5-star customer review score at the time of publication. Customers weighed in on Trustpilot to give it an average of 4.5 stars with over 2,300 reviews.

Protect My Car’s employees are certified by the Association of Certified Vehicle Protection Professionals (ACVPP). The certification focuses on ethical business practices, consumer protections, the Magnuson-Moss Warranty Act and more. According to the Federal Trade Commission, the Magnuson-Moss Warranty Act “requires warrantors of consumer products to provide consumers with detailed information about warranty coverage.”

Protect My Car’s customers often mention positive experiences with the service team and the ease of the claims process.

Protect My Car extended warranty plans

Protect My Car offers three coverage options, which can extend up to 10 years/125,000 miles. These include:

Protect My Car PlanWhat It Covers
SupremeSimilar coverage to the vehicle’s original factory warranty
SelectBest suited for vehicles over 50,000 miles and offers coverage a step below the Supreme plan
DrivelinePowertrain protection for vehicles between four and 10 years old with more than 80,000 miles

Protect My Car also has five prepaid maintenance programs called Ambassador Maintenance Plans. An Ambassador Maintenance Plan covers a combination of car repairs and regular maintenance.

#3 Endurance: Most Comprehensive Coverage

Availability: All states except California
Highest mileage limit: 200,000+ miles
Extra benefits: Roadside assistance, rental car reimbursement and Endurance Elite Benefits

Endurance is our top pick for reputable extended car warranty companies. The company is a direct provider, which means it handles claims without a separate administrator. This means you’ll work with the same service representatives when filing a claim as you did when getting a quote. That said, Endurance plans are backed by highly rated insurers, meaning the company should be able to pay out customer claims regardless of the cost.

Regarding its industry standing, Endurance has a C rating from the BBB. This lower score is due in part to mailers sent out by the company, which sparked confusion among consumers. 

At the time of publication, the provider held a 3.3 out of 5-star customer review score on the BBB and a 4.4-star rating on Trustpilot. Endurance reviews often mention positive experiences with the provider’s knowledgeable customer service representatives.

In 2020, Inc. 5000 named Endurance one of the fastest-growing privately held companies in the U.S. The provider was also a Bronze Award winner at the 2019 Stevie Awards for Great Employers, which emphasizes the company’s efforts toward employee well-being.

Endurance car warranty cost

According to the quotes we received, Endurance warranty plans cost between $90 and $105 per month. Total costs for a variety of plan options range from $2,500 to $3,900. Endurance auto protection costs vary depending on the vehicle and coverage.

Endurance extended warranty plans

Endurance offers six coverage plans, starting with an exclusionary plan that covers all components except for those specifically listed as excluded in the contract. There are also several stated-component plans, which list every covered component in the agreement, and a plan that combines warranty and maintenance coverage. Here’s an overview of what each warranty covers:

Endurance PlanWhat It Covers
SupremeMost comprehensive plan, which covers almost all mechanical and electrical components, aside from a few exclusions
SuperiorHighest level of stated-component coverage
Secure PlusCovers the powertrain as well as the brakes, air conditioning and steering and some electrical components
SecureMost budget-friendly plan, which protects the engine, transmission and water pump
Select PremierPlan tailored to older vehicles that covers the powertrain, electrical, cooling, air conditioning, heating and fuel systems
EnduranceAdvantageTMCombines prepaid maintenance and stated-component coverage

Endurance customers also get one free year of Endurance Elite Benefits, which includes: 

  • 24/7 roadside assistance
  • Up to $1,000 toward total loss replacement
  • Collision discount of $500 per accident ($1,000 total limit)
  • Up to $500 for key fob replacement
  • Tire repair/replacement

#2 Carchex: Highest Mileage Limits

Availability: 50 states
Highest mileage limit: 250,000 miles
Extra benefits: Roadside assistance, rental car reimbursement and trip interruption

One of the longest-standing vehicle protection companies, Carchex is backed by industry leaders including Kelley Blue Book, Edmunds.com, RepairPal and CARFAX. The provider has also received several awards, including:

Carchex holds an A+ rating from the BBB with relatively few customer complaints in the past three years, especially for a company of its size. At the time of publication, backed by over 1,400 customer reviews, Carchex had a 3.2-star customer review score on Trustpilot. While this is an average rating overall, the majority of customers (86%) give the provider a 4.0-star rating or higher.

To offer financially sound contracts to drivers, Carchex works with insured administrators like American Auto Shield and Royal Administration Services. You can learn more about this provider in our Carchex review.

Carchex warranty cost

The Carchex quotes we received ranged from about $100 to $160 per month, depending on the plan. The total cost averaged $3,000. What changed the monthly amount was the payment schedule, which ranged from 18 to 24 months.

Carchex extended warranty plans

Carchex offers coverage for vehicles with up to 250,000 miles, which makes it a great option for older cars. The company offers a variety of plans, from powertrain coverage to comprehensive coverage. Here’s a quick look at Carchex’s customizable coverage plans:

Carchex PlanWhat It Covers
TitaniumExclusionary coverage for most vehicle components
PlatinumHighest level of stated-component coverage, which covers hundreds of parts
GoldProtects all major systems and is the best coverage for high-mileage vehicles
SilverCovers powertrain components and a few other key systems
BronzeProtects the engine and transmission

#4 autopom!: Excellent Customer Service

Availability: 50 states
Highest mileage limit: 150,000 miles
Extra benefits: Roadside assistance, rental car reimbursement and trip interruption, plus tire protection on some plans

The last provider on our reputable extended car warranty companies list is autopom!, which stands for “automotive peace of mind.” At the time of publication, the company held an A+ rating from the BBB as well as a 4.5 out of 5-star customer review score. 

In the past three years, autopom! has only fielded one customer complaint logged with the BBB. Compared to other providers, autopom! takes the most hands-on approach with customers, having service representatives work with potential buyers to navigate its administrators’ contracts.

On Trustpilot, autopom! has an impressive 4.8 out of 5.0-star customer review rating, though fewer than 100 customers have weighed in to give it this score. Customer feedback is largely positive, and many customers note the provider’s reputability, knowledgeable service representatives and wide variety of coverage plans.

autopom! extended warranty plans

Extended warranty plans from autopom! include:

autopom! PlanWhat It Covers
ExclusionaryCovers most mechanical and electrical components unless stated otherwise
High-LevelInclusionary coverage for major systems like the engine, transmission, drive axle, steering, suspension, brakes, air conditioning, cooling, fuel and electrical
Mid-LevelStated-component coverage for the engine, transmission, drive axle, steering, brakes, air conditioning and electrical components
Powertrain PlusCovers the powertrain as well as the air conditioning system

#5 CarShield: Most Affordable

Availability: All states except California
Highest mileage limit: 300,000 miles
Extra benefits: Roadside assistance, rental car reimbursement and trip interruption

CarShield is our top choice for affordable extended warranty contracts. Based on quotes we’ve received from several providers, CarShield coverage plans are often the lowest-cost options.

Compared to other extended warranty companies, CarShield has a low BBB rating. In the past three years, CarShield has fielded over 2,500 customer complaints through the BBB. This may raise red flags initially, but it’s important to consider the number of drivers CarShield covers versus the number of complaints against the company. 

Since its founding in 2005, CarShield has covered over 1 million vehicles, making it one of the largest providers in the industry. Its customer complaints represent only a small portion of its contract holders.

Our review team reached out to CarShield for a comment on its rating and complaint volume 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.”

Is CarShield expensive?

On average, we found that CarShield is not expensive in terms of monthly payments. The quotes we received ranged from $89 to $130 per month, which is cheaper than many other competitors on the market.

CarShield extended warranty plans

CarShield contracts are administered by American Auto Shield, which is backed by insurers that have received financial strength ratings of A from AM Best. An A rating is awarded to companies that have an “excellent” ability to pay out customer claims.

CarShield’s six warranty plans include:

CarShield PlanWhat It Covers
DiamondExclusionary coverage for almost all mechanical and electrical components
PlatinumBest suited for high-mileage vehicles with protection for the engine, transmission, air conditioning, electrical system, starter, water pump, fuel pump and more
GoldProtects the engine, transmission, water pump, alternator, starter, air conditioning and power windows
SilverMost affordable contract, which covers the engine, transmission and water pump
AluminumProtects electrical and high-tech components, including the engine control module, starter, alternator and navigation system
Motorcycle & ATVMultiple coverage tiers for motorcycles and other non-standard vehicles

Average cost of an extended car warranty

On average, an extended car warranty costs between $1,500 and $3,500. According to our consumer survey, about 67% of respondents paid between $1,500 and $2,500 for an extended warranty. Extended auto warranty prices are based on your vehicle, so comparing quotes will allow you to find the best price.

Is an extended warranty worth it?

Extended warranties can be worthwhile for many car owners, but it’s best to consider your situation when shopping for a contract. If you own a highly reliable vehicle or plan to sell your car before the factory warranty expires, a vehicle protection plan may not be worth the cost. This is also true for drivers with savings set aside for auto repairs.

However, you should consider added coverage if the following situations apply to you:

You want peace of mind

Vehicle repairs can be costly to pay for out of pocket. Once your manufacturer’s warranty expires, you’re financially responsible for any mechanical or electrical breakdowns. Extended warranties foot the bill for covered repairs, easing anxiety over future issues.

You want a predictable auto budget

By paying for a vehicle service contract up front, through a monthly payment plan, or as part of your vehicle’s financing, you’re protected against paying for a surprise repair bill after an unexpected mechanical breakdown.

You plan on owning your vehicle for a long time

According to research from IHS Markit, the average age of operable light vehicles in the U.S. was 12.1 years as of 2021. Since most manufacturers’ bumper-to-bumper warranties expire within 4 years/50,000 miles, you could be driving an unprotected vehicle for over half its life span.

You should also consider your vehicle’s repair costs. The more you can expect to pay in repair costs, the more likely you are to benefit from extended warranty coverage. Here are some average annual repair costs for popular automakers, according to RepairPal:

Car BrandAverage Annual Repair Cost
Honda$428
Acura$501
Lexus$551
Subaru$617
Ford$775
BMW$968
Land Rover$1,174

What do consumers say?

Our team polled 1,000 consumers who had experience purchasing or shopping for an extended car warranty plan. Of this sample, about 75% had purchased a dealership extended warranty, while 44% had purchased a third-party extended warranty. 

Survey respondents said pricing was the most important factor, followed by the length of the warranty and levels of coverage. Overall, 64% of the respondents were satisfied with their extended warranty, and 13% said they were neither satisfied nor dissatisfied. 

On the other hand, 13% said they were dissatisfied with the warranty. Some said the vehicle warranty didn’t cover expected repairs, while others said they thought the company tried to get out of paying for repairs. 

Should you consider an extended warranty from the dealership?

In addition to reputable extended car warranty companies, drivers can purchase coverage from their vehicle manufacturers. Since these contracts are usually backed by automakers themselves, they can reduce buyer anxiety about reputability. 

Manufacturer contracts guarantee factory-trained technicians and the use of genuine parts for repairs. However, they also come with a few limitations, including:

Limited repair shop choice

Most manufacturers require drivers to go to the dealership or a branded repair center for service. While this may not seem like a big deal, some automakers have relatively few dealerships nationwide. For example, there are just over 100 MINI dealerships in the entire U.S.

Expensive vehicle service contracts

You may face dealership markups on top of the contract’s price if you purchase manufacturer-backed protection.

Fewer coverage options

Typically, manufacturers only offer one to three vehicle protection plans. Depending on your needs, you may purchase too little coverage or pay for unneeded coverage.

What to know before buying a third-party extended warranty

With a third-party warranty, a company besides your car’s manufacturer covers certain repairs. The main advantage is that it’s usually cheaper than a manufacturer’s extended warranty. 

However, a third-party plan may or may not cover original equipment manufacturer (OEM) replacement parts. If you go to a dealer and get OEM parts, you may have to cover a portion of the repair cost depending on the contract terms. 

The most reputable extended car warranty companies will pay the repair shop directly, so all you have to pay is your deductible. Some less-reputable providers will require you to pay for repairs up front and submit receipts for reimbursement, so watch out for those companies. 

Read through the contract thoroughly before buying the plan. Look for specifications on:

  • Labor rate coverage limits
  • What defines mechanical failure
  • Maximum payout per contract
  • OEM parts coverage
  • Waiting periods or inspections required before coverage
  • Required maintenance documentation
  • Emergency repair procedures
  • Cancellations and contract transfers

Finally, all extended warranty contracts come with exclusions. These can include specific parts, such as cosmetic items or emissions components, and maintenance items such as brake pads and oil changes. Understand what isn’t covered to avoid disappointment down the road. One of the top complaints about extended warranties is repairs not being covered. 

Sometimes, a company doesn’t cover a valid repair. But, in many situations, the contract clearly excludes the repair in question. Read all the fine print, and don’t count on a salesperson to read every exclusion to you.

Can you buy an extended warranty after purchasing a vehicle?

Some dealerships allow you to add an extended warranty before your factory warranty expires, while others require you to get it at the time you purchase a new vehicle. However, almost all third-party providers sell plans for used vehicles that are out of the factory warranty period.

How to cancel an extended warranty on a car

To cancel an extended warranty, you need to contact the contract administrator and submit a written cancellation request. You may also need to provide a notarized odometer statement. Reputable extended warranty providers offer 30-day money-back guarantees and prorated refunds beyond that point.

How to find the right warranty provider for you

When considering extended car warranty providers, it’s best to compare quotes. That way, you can ensure you find the right coverage plan that fits within your budget. Look at some sample contracts to know what the plan covers before making a purchase.

ProviderTrustpilot RatingNumber of PlansHighest Mileage
Endurance4.4 / 5.06200,000
Carchex3.3 / 5.05250,000
Protect My Car4.6 / 5.03125,000
CarShield4.0 / 5.06300,000
autopom!4.4 / 5.04150,000

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.

Originally Published On: InterestArticles.com

By Interest Articles

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