In This Review:
- Best Extended Car Warranty Companies
- Compare Car Warranty Company Ratings
- Guide To Car Warranty Companies
- Shopping For The Best Car Warranty Company
- Best Car Warranty Providers: Our Take
- Car Warranty Companies: FAQ
Written by:
Dash Lewis, Writer
Written by: Dash Lewis Content Writer
01/27/2024 08:23 PM
View Plans For Our #1 Rated Provider – Endurance
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Key Points:
- Car warranty companies cover specific mechanical breakdowns outlined in a contract.
- Endurance is the best car warranty company considering its coverage options, average cost, and reputation.
- You can expect to pay between $1,500 and $4,000 for an extended warranty depending on the coverage and vehicle.
You might depend on your vehicle to get the kids to all their after-school activities day in and day out, or you might enjoy the thrill of driving a sports car out on country roads on the weekends. Regardless, your vehicle’s parts will age and break down over time.
The best car warranty companies help with some of the financial burden, but not all companies are equal. We’ve compared dozens of the best extended car warranties and in this article we’ll recommend our top picks for reliable coverage.
Endurance
4.6
Reliability: 4.3/5.0
Coverage: 4.9/5.0
Pricing: 4.8/5.0
Transparency: 4.8/5.0
Customer Experience: 4.3/5.0
Quick Facts
- Best Overall
- Plan Coverage: 6 plans with wide range of coverage
- Covered Miles: Up to 200,000 odometer miles
- Money-Back Guarantee: 30 days for full refund
- Longest Warranty plan: 8 years from plan start
- Discounts: $300 same-day signup discount, $250 shopping voucher, and others
Plan Coverage and Perks
| Plan coverage includes | Endurance Elite perks™ |
|---|---|
| Exclusionary plan | One-year membership for free |
| Powertrain plan | Tire repair and replacement |
| Maintenance coverage with Endurance Advantage | Key fob replacement |
| Roadside assistance | Total loss protection |
| Towing | Collision discount |
| Rental car | $250 rewards voucher |
| Trip interruption coverage | Endurance Protect app |
Best Extended Car Warranty Companies
The best car warranty companies offer a good balance of service reliability, industry longevity, value, transparency, and coverage choices. Below you will see our top eight picks for extended warranty companies based on these criteria.
| Car Warranty Company | Overall Rating | Reliability Score | Monthly Cost Range | Plan Levels |
|---|---|---|---|---|
| Endurance | 4.7 | 4.3 | $114 to $156 | 6 |
| Carchex | 4.5 | 5.0 | $137 to $140 | 5 |
| autopom! | 4.5 | 4.8 | $103 to $124 | 3 |
| Olive | 4.4 | 4.8 | $29 to $63 | 3 |
| CarShield | 4.4 | 4.0 | $120 to $140 | 7 |
| Concord Auto Protect | 4.3 | 3.8 | $85 to $86 | 3 |
| Omega Auto Care | 4.3 | 4.6 | $119 to $175 | 5 |
| Toco | 4.0 | 4.2 | $68 to $88 | 4 |
*CarShield and Carchex offer month-to-month contracts which may affect the total price depending on how long you have a plan.
#1 Endurance: Best Coverage (4.7 Stars)
Founded: 2006
Number of plans: 6
Availability: 50 states
Read more: Endurance Warranty review
What We Like About Endurance
Overall, Endurance is our top recommendation because it has a strong industry reputation, good customer service, a wide array of plans, and excellent transparency. Some companies refrain from explicitly showing the fine print until you call or, in some cases, until after you purchase a plan. Endurance lays it all out in sample contracts easily accessible on its website.
Endurance is also a direct warranty provider, not a broker. This means you only work with Endurance when filing a claim–you don’t have to call any other company. Another way Endurance stands out is for its maintenance plans that cover things like brake pads in addition to mechanical breakdowns. Our ratings for the warranty company are below.
| Review Category | Our Score |
|---|---|
| Reliability | 4.3 |
| Coverage plans | 4.9 |
| Pricing | 4.8 |
| Transparency | 4.8 |
| Customer experience | 4.3 |
| Overall | 4.7 |
Company Reputation
Endurance, founded not long ago in 2006, has a strong reputation. The company offers warranties in all states, including California, where plans are called mechanical breakdown insurance (not all companies operate in California). The company has a 3.7-star rating from customers on the Better Business Bureau (BBB), which is fairly high for the extended warranty industry.
Pros And Cons
ProsDirect warranty providerSix levels of coverage including routine maintenance optionMost plans cover up to 200,000 miles and some cover more
ConsNot accredited by the BBBNot the cheapest warranty company
Endurance Plan Levels
You can find a wide range of coverage options from Endurance:
| Endurance Warranty Plan | Covered Systems |
|---|---|
| Supreme | The Supreme plan is an exclusionary contract that covers any breakdown except for a list of excluded parts and situations. |
| Superior | This plan covers hundreds of components on most major systems of the car. |
| Secure Plus | This option covers the powertrain plus the brakes, steering, electrical, and air conditioning. |
| Secure | This is a basic powertrain warranty that covers the engine, transmission, and drive axle. |
| Select Premier | This plan covers the powertrain plus luxury electrical components, the fuel system, the cooling system, and air conditioning. |
| EnduranceAdvantage™ | This plan includes mechanical breakdowns plus maintenance coverage for oil changes, tire rotations, brake pads, cooling system service, and more. There are three options within this plan. |
Added Benefits
Endurance warranties come with the standard benefits of roadside assistance, trip interruption, and rental car coverage. Endurance also offers Elite Benefits that are free for the first year of the plan. These benefits include:
- Key fob replacement
- Tire replacement/repair
- Up to $500 in collision repair discount ($1,000 maximum)
- Up to $1,000 in Total Loss Replacement
Endurance Warranty Costs
Our team found Endurance to be reasonably priced considering the coverage you get from the company. We found that monthly payments were between $114 and $156, which is on par with the industry. Annual costs range from $2,052 to $4,368 depending on the plan.
#2 Carchex: Best For Used Cars (4.5 Stars)
Founded: 1999
Plan levels: 5
Availability: 50 states
Read more: Carchex warranty review
Compare: Carchex vs. Endurance
What We Like About Carchex
Along with its strong reputation in the industry, Carchex covers vehicles up to 250,000 miles, which makes it a great option for used cars. The company has five plans, one of which enhances an existing powertrain warranty (Extra Care).
| Review Category | Our Score |
|---|---|
| Reliability | 5.0 |
| Coverage plans | 4.8 |
| Pricing | 4.0 |
| Transparency | 4.8 |
| Customer experience | 3.9 |
| Overall | 4.5 |
Company Reputation
Carchex has the strongest industry reputation out of any major warranty company. It has been in business since 1999 and maintains an A+ rating and accreditation with the BBB (not many other warranty companies have this). Carchex is also a trusted warranty partner for industry leaders like Kelley Blue Book (KBB) and Carfax.
Pros And Cons
ProsA+ BBB ratingFive coverage plans to choose fromCovers up to 250,000 miles
ConsNot the cheapest option
Carchex Plan Levels
Carchex offers coverage levels ranging from powertrain protection to exclusionary plans:
| Carchex Warranty Plan | Covered Systems |
|---|---|
| Titanium | As the highest plan, Titanium covers any breakdown except for excluded parts and situations. |
| Platinum | The Platinum plan covers many major systems of the vehicle. |
| Powertrain Plus | This plan covers the powertrain along with the cooling system, AC, electrical, and fuel system. |
| Powertrain | This basic plan covers the engine, transmission, drive axle, cooling system, transfer unit, and turbocharger. |
| Extra Care | This plan can be added to an existing powertrain factory warranty as it covers cooling, AC, electrical, steering, suspension, brakes, high tech, and audio. |
Added Benefits
Carchex provides roadside assistance, rental car coverage, and trip interruption reimbursem*nt on all plans. It also covers alternative transportation from companies like Uber or Lyft.
Carchex Warranty Costs
We received quotes from Carchex that were month to month, similar to CarShield. Carchex prices range from $109.99 to $119.99 per month with a discount or $136.99 to $139.99 without.
#3 autopom!: Best Claims Process (4.5 Stars)
Founded: 2009
Plan levels: 3
Availability: Available in most states
Compare: autopom! vs. CarShield
What We Like About autopom!
Autopom! stands out for having a good customer service record specifically for claims. If you’re wondering about the name, it’s a contraction, “automotive peace of mind.” It would appear that the company does just that–provides peace of mind to many customers.
| Review Category | Our Score |
|---|---|
| Reliability | 4.8 |
| Coverage plans | 4.5 |
| Pricing | 4.7 |
| Transparency | 4.3 |
| Customer experience | 4.6 |
| Overall | 4.5 |
Company Reputation
Autopom! has very high customer ratings across multiple review sites. It has a 4.7-star customer rating on the BBB and a 4.9-star rating on Trustpilot. These ratings are almost unheard of in the extended warranty industry.
Pros and Cons
ProsHigh customer service ratingsPays the repair shop directlyPlans come with 30 or 60-day money-back guarantees
ConsOnly three coverage plansBenefits vary by plan
autopom! Coverage Levels
Autopom! keeps things simple with three plans. See below for details.
| autopom! Warranty Plan | Covered Systems |
|---|---|
| Exclusionary | This top-of-the-line plan covers any breakdown except for a list of exclusions. |
| Mid-Level | This is a good middle ground plan for covering most major systems of the vehicle. |
| Powertrain Plus | The Powertrain Plus plan covers the engine, transmission, drivetrain, air conditioning, and basic electrical components. |
Added Benefits
Autopom! offers rental car coverage, trip interruption, roadside assistance, and tire repair. However, not all benefits come with all plans. Benefits can vary by plan and state.
autopom! Warranty Costs
Like Omega Auto Care, autopom! offers 24-month payment terms, which could lead to above-average monthly costs ranging from $103 to $124 per month. Its total plan costs are lower than the industry averages, ranging from $3,607 to $3,933.
#4 Olive: Best Online Process (4.4 Stars)
Founded: 2000
Number of plans: 3
Availability: 50 states
What We Like About Olive
When it comes to purchasing and managing an extended warranty policy, Olive stands out as offering the best online experience. On the site, you can compare each level of coverage to understand the differences. If you want to buy a plan, you can fill out its simple and intuitive purchase form. Olive also offers low monthly rates compared to other companies.
| Review Category | Our Score |
|---|---|
| Reliability | 4.8 |
| Coverage plans | 4.1 |
| Pricing | 4.8 |
| Transparency | 4.5 |
| Customer experience | 4.1 |
| Overall | 4.4 |
Company Reputation
Olive is a newer warranty company, founded in 2019, which makes sense considering its modern website design. It is a subsidiary of Repair Ventures, which began in 2000. It has an A+ rating and accreditation with the BBB.
Pros And Cons
ProsA+ rating from the BBBFast and easy online warranty experienceLow monthly rates
ConsPlans don’t come with roadside assistanceOnly three options for coverage
Olive Plan Levels
Olive offers three plans, while many other companies offer four to six.
| Olive Warranty Plan | Covered Systems |
|---|---|
| Complete Care | This is an exclusionary plan that covers nearly any mechanical breakdown or component. |
| Powertrain Plus | Powertrain Plus covers the engine, transmission, and drive axle plus the front suspension, steering, brakes, electrical, and more. |
| Powertrain | This plan covers the engine, transmission, drivetrain, and fuel pump. |
Added Benefits
One reason why Olive’s plans are cheaper than others is because they don’t come with full roadside assistance or trip interruption. Nonetheless, plans do come with towing and rental car reimbursem*nt.
Olive Warranty Costs
Olive is one of the more affordable companies on the market–total costs range from $944 to $2,252. They will also cover $100 of your deductible if you visit a RepairPal-certified shop for warranty work. Olive’s maximum term length is three years, so if you want longer coverage, you’ll have to reapply.
#5 CarShield: Best Monthly Payments (4.4 Stars)
Founded: 2005
Number of plans: 7
Availability: 49 states (not available in California)
Read more: CarShield review
Compare: CarShield vs. Endurance or CarShield vs. Carchex
What We Like About CarShield
CarShield is another reliable warranty company that offers a variety of plans and covers vehicles up to 300,000 miles. In particular, CarShield has some coverage options designed specifically for fully electric vehicles, which sets it apart from many other warranty companies.
| Review Category | Our Score |
|---|---|
| Reliability | 4.0 |
| Coverage plans | 4.8 |
| Pricing | 4.0 |
| Transparency | 4.8 |
| Customer experience | 4.0 |
| Overall | 4.4 |
Company Reputation
CarShield is the most popular third-party extended warranty company. It has over 44,000 reviews on Trustpilot that rate it 4.1 stars overall. That said, CarShield has a C- rating from the BBB for a pattern of complaints. Considering the company has covered over 2 million vehicles, the number of negative BBB reviews accounts for a small fraction of customers.
Pros And Cons
ProsMany coverage plan optionsCan cover electric vehiclesCoverage up to 300,000 miles
ConsC- rating from the BBB
CarShield Plan Levels
CarShield has seven main warranty plans that come with unlimited mileage and time, as long as your car is eligible with under 300,000 miles. Below are the plan details.
| CarShield Warranty Plan | Covered Systems |
|---|---|
| Diamond | This plan is like a factory warranty. It covers almost any breakdown except for a list of exclusions. |
| Platinum | Platinum covers many major systems including air conditioning, electrical, steering, suspension, brakes, and more. |
| Gold | This is a mid-level plan designed for older cars with over 100,000 miles. It covers the powertrain plus the AC, electrical, fuel system, and cooling system. |
| Silver | This powertrain warranty covers the engine, transmission, drive axle, turbocharger, and cooling system. |
| Aluminum | Aluminum covers high-tech components and systems outside of the powertrain. It can augment existing powertrain coverage. |
| Motorcycle & ATV | CarShield offers various warranty coverages under this plan for motorcycles and ATVs. |
| Electric Vehicle Coverage | This plan provides two options for EV coverage: one covers the electric drive unit and the other adds coverage for more systems like the AC and steering. |
Added Benefits
CarShield plans come with roadside assistance, trip interruption, and rental reimbursem*nt.
CarShield Warranty Costs
In our cost analysis, we found quotes from CarShield that ranged from $109.99 to $119.99 per month with a discount. CarShield offers unlimited terms, which means you have a plan as long as your car is within the 300,000 mileage limit.
#6 Concord Auto Protect: Best For Luxury Cars (4.3 Stars)
Founded: 2013
Plan levels: 3
Availability: All states except California, Florida, and Washington
Read more: Concord Auto Protect Review
What We Like About Concord Auto Protect
Concord Auto Protect wraps up our list of the best extended auto warranty companies. It offers roadside assistance, a 30-day money-back guarantee, and low average rates.
| Review Category | Our Score |
|---|---|
| Reliability | 3.8 |
| Coverage plans | 4.3 |
| Pricing | 4.7 |
| Transparency | 4.5 |
| Customer experience | 4.1 |
| Overall | 4.3 |
Company Reputation
Concord Auto Protect doesn’t have a great reputation compared to other companies on our list. It has a F rating from the BBB and is currently not accredited by the organization, though it does have a 3.8-star rating from customers.
Pros And Cons
ProsA good option for luxury vehiclesAffordable plansCar warranty plans range from exclusionary coverage to basic powertrain
ConsOnly three available plansF rating from the BBBNot accredited by the BBB
Concord Auto Protect Coverage Plan Levels
This extended warranty provider offers three coverage levels. You can choose between basic powertrain coverage, mid-level coverage, or comprehensive coverage. Below are the details.
| Concord Warranty Plan | Covered Systems |
|---|---|
| Premium | This is a bumper-to-bumper warranty that is similar to a new vehicle manufacturer’s warranty. |
| Advanced | The Advanced plan covers the powertrain plus the electrical, AC, cooling, brakes, and steering systems. |
| Powertrain | This basic plan is good for high-mileage vehicles as it covers crucial components in the engine, transmission, and drivetrain. |
Added Benefits
You’ll get standard benefits like roadside assistance, trip interruption coverage, and rental car coverage. Concord Auto Protect is a direct provider so you don’t have to work with another company to handle car repairs.
Concord Auto Protect Warranty Costs
When comparing free quotes we found Concord Auto Protect to be affordable for both monthly payment plans and total costs. We also learned that monthly payments were about $85 and total costs ranged from $391 to $427 annually for five-year service plans. This is a low annual cost in comparison to other companies.
#7 Omega Auto Care: Best Maintenance Benefits (4.3 Stars)
Founded: 2013
Plan levels: 5
Availability: 50 states
What We Like About Omega Auto Care
Omega Auto Care is another great provider if you’re looking for both maintenance service and mechanical breakdown coverage. Omega offers five plans that cover a range of repairs plus benefits for oil changes and other maintenance services.
| Review Category | Our Score |
|---|---|
| Reliability | 4.6 |
| Coverage plans | 4.9 |
| Pricing | 4.1 |
| Transparency | 3.8 |
| Customer experience | 4.2 |
| Overall | 4.3 |
Company Reputation
Omega Auto Care has a 3.8-star rating from customers on the BBB and an A+ rating with accreditation from the platform itself. This shows that the company responds to all complaints promptly and has resolved all issues.
Pros And Cons
ProsA+ rating on the BBBMaintenance coverageTire repair benefits
ConsNot the most affordable monthly payments
Omega Auto Care Coverage Levels
You’ll find five different warranty plans from Omega Auto Care. The extended warranty coverage plans include hybrid drive components (battery excluded).
| Omega Auto Care Warranty Plan | Covered Systems |
|---|---|
| Exclusionary | This is a bumper-to-bumper coverage that includes almost any breakdown. |
| Used Stated | This plan is the highest level of stated component coverage as it covers numerous systems of the vehicle. |
| Powertrain Enhanced | This plan covers the powertrain plus air conditioning, electrical, cooling, and fuel systems. |
| Powertrain Plus | This plan covers the powertrain plus the air conditioning and electrical system. |
| Powertrain | This plan covers the engine, transmission, and drive axle. It also covers hybrid drive components. |
Added Benefits
Omega Auto Care provides rental coverage, roadside assistance, and trip interruption on all its plans. It also has tire repair and maintenance coverage, which are less common benefits. With tire repair, the company will reimburse you up to $20 for repair or $100 for a replacement due to road hazard damage. Maintenance coverage includes reimbursem*nt up to a certain limit for oil changes, brake pads, cooling system maintenance, and more.
Omega Auto Care Warranty Costs
We received quotes from Omega Auto Care which included 24-month payments, while other companies offer 36 or 48-month payments. This means monthly payments for Omega may be higher than average, but the total cost of the warranty might be more affordable than average. Monthly payments we found ranged from $119 to $175 while total costs ranged from $2,856 to $4,200.
#8 Toco (4.0 Stars)
Founded: 2013
Plan levels: 4
Availability: All states except Alaska, Missouri, or Washington
What We Like About Toco
Toco is another warranty company that stands out for its customer service while also showcasing the differences between each plan with its intuitive website design.
| Review Category | Our Score |
|---|---|
| Reliability | 4.2 |
| Coverage plans | 4.4 |
| Pricing | 3.7 |
| Transparency | 3.5 |
| Customer experience | 4.5 |
| Overall | 4.0 |
Company Reputation
Toco has been around since 2013 and has an A+ rating and accreditation with the BBB along with a 4.1-star rating from reviewers. Customer reviews on Trustpilot give Toco a 4.6-star rating. According to customers, the company fulfills its claims duties and responds to issues.
Pros And Cons
ProsHigh customer service ratingsFour coverage plansGreen plan can cover up to 250,000 miles
ConsNot available in Alaska, Missouri, or WashingtonTotal costs can be on the higher side
Toco Coverage Plan Levels
Toco offers four color-coded extended warranty plans. Check it out below.
| Toco Warranty Plan | Covered Systems |
|---|---|
| Orange | This is Toco’s exclusionary program that covers almost any mechanical breakdown. It’s available until the vehicle has 100,000 miles. |
| Yellow | The Yellow plan covers most major systems of the vehicle and is available until the vehicle has 150,000 miles. |
| Blue | The Blue level covers the powertrain plus the cooling system, AC, fuel, and electrical systems until the vehicle has 200,000 miles. |
| Green | This powertrain plan covers the engine, transmission, drive axle, and hybrid drive components. The maximum is 250,000 miles. |
Added Benefits
Toco offers trip interruption, rental car reimbursem*nt, and roadside assistance on all plans. Roadside assistance covers things like battery jump-start and locksmith services at no cost to you, while other companies only cover up to a certain value. However, Toco only covers 15 miles of towing for free.
Toco Warranty Costs
Toco offers unlimited-term contracts as long as your car is within the mileage limit. Monthly payments range from $68 to $88. Similar to a subscription, you continue to make payments as long as you have the plan. This means that, as long as you have the plan, even if you aren’t using it, you’ll continue to pay for it making this a potentially more expensive option in comparison to limited payment terms.
Compare Car Warranty Company Ratings
In addition to the top eight providers we chose to highlight, we’ve reviewed many more warranty companies. From national providers to dealer-based services, we’ve reviewed a large portion of what’s available in the market.
Our Car Warranty Company List
Below, you will see how we ranked 48 different companies based on reputation, coverage, cost, transparency, and customer service.
| Warranty Company | Our Rating |
|---|---|
| Endurance | 4.7 |
| Carchex | 4.5 |
| autopom! | 4.5 |
| Olive | 4.4 |
| CarShield | 4.4 |
| Concord Auto Protect | 4.3 |
| Omega Auto Care | 4.3 |
| MPP | 4.3 |
| Everything Breaks | 4.3 |
| Ally | 4.2 |
| Select Auto Protect | 4.2 |
| Toco | 4.0 |
| CornerStone United | 4.0 |
| American Dream Auto Protect | 4.0 |
| EasyCare Warranty | 4.0 |
| ASC Warranty | 4.0 |
| Safe-Guard | 4.0 |
| AutoAssure | 4.0 |
| Vehicle Assurance | 4.0 |
| American Auto Repair Coverage | 3.9 |
| National Auto Care | 3.9 |
| CNA National Warranty Corporation | 3.9 |
| National Vehicle Protection Services | 3.9 |
| Century Warranty Services | 3.9 |
| NVP Warranty | 3.9 |
| Warranty Solutions | 3.9 |
| Smart AutoCare | 3.9 |
| GWC Warranty | 3.9 |
| Zurich | 3.8 |
| Fidelity Warranty Services | 3.8 |
| Elite Warranty | 3.8 |
| Old Republic Insured Automotive Services | 3.8 |
| Route 66 Warranty | 3.8 |
| Gold Standard Automotive Network | 3.7 |
| Cars Protection Plus | 3.7 |
| Assurant | 3.7 |
| Wholesale Warranties | 3.7 |
| MasterTech | 3.7 |
| Allstate | 3.6 |
| Carvana | 3.6 |
| AutoNation | 3.6 |
| Autoplex Extended Services | 3.6 |
| Fenix Protect | 3.5 |
| Carefree Auto | 3.5 |
Guide To Car Warranty Companies
From different plans and coverage limits to different ways of purchase, there are many options for car warranties–but not all of them are worth it. So, how do you tell what the best option is? In this section, we’ll go over the types of protection plans, different ways to purchase them, and some average costs.
What Is Considered A Car Warranty Company?
In the strict sense of the word, only manufacturers offer warranties and extended warranties. In this case, a car warranty company is a company that sells vehicle protection products, whether it’s the manufacturer (like the GMC Protection Plan) or another company (like Carchex).
An extended warranty or vehicle service contract (VSC) is designed to cover specific repair costs after the factory warranty expires. A vehicle warranty may have perks like roadside assistance or even regular maintenance coverage.
Types Of Car Warranty Companies
There are generally two types of extended warranty companies: manufacturers and third-party companies (also called aftermarket warranty companies).
Manufacturer Extended Warranties
Manufacturers like BMW and Kia offer their own extended warranties. These plans cover repairs made by factory-trained technicians at their dealerships. They may be called extended warranties, protection plans, service contracts, or something else–but they often come with a few restrictions. Here are some examples:
- Terms: Manufacturer extended plans often only last up to 100,000 miles.
- Purchase time: If you want an extended warranty, you might only be allowed to buy it right when you buy the vehicle or before the factory warranty expires.
- Repair network: Most manufacturers require you to visit the dealership for repairs. Only some cover repairs at licensed facilities.
- Cost: These plans are generally more expensive than comparable plans from third-party companies.
Aftermarket Warranties
You can also purchase a protection plan from an aftermarket company. In this case, a different company will pay for repairs–not the manufacturer. Some third-party companies are differentiated by how reliable they are with paying for these repairs than others.
Here’s how these plans compare to manufacturer extended warranties:
- Terms: Many companies can cover up to 200,000, 250,000, or even 300,000 miles.
- Purchase time: You can usually get a third-party plan at any time–even long after the factory warranty has expired.
- Repair network: Reputable car warranty companies cover repairs at any licensed facility, which is handy if you already have a repair shop that you like.
- Cost: Coverage is generally cheaper with an aftermarket warranty versus a manufacturer warranty for the same level of coverage and the term/mileage limits.
There are some things to be aware of, however. Used car dealerships often offer aftermarket warranties at the time of sale. We recommend being wary of these plans because they are often more expensive and have more restrictions. For example, the dealer might require you to go to an exact location for repairs.
It’s important to do your research when shopping for a car warranty company, since not all of them have reliable reputations.
Car Warranty Company Cost
Another good reason to compare companies is because you’ll get different quotes. Some companies also give discounts if they know you’re shopping around and are considering other offers. Our research shows monthly rates can range from $26 to $215 depending on the coverage, term, and company. Total extended warranty costs range from $944 to $4,368.
As you shop around, make sure to compare apples to apples. For example, a Supreme plan from Endurance that lasts for six years will be more expensive than a Powertrain Plus plan from Olive that lasts for three years. The Endurance plan might provide more value for your situation, or you might prefer to save money with a cheaper plan.
What Car Warranty Companies Don’t Cover
Warranties and protection plans are meant to cover unexpected breakdowns, not parts that are expected to wear out like brake pads. All warranties have lists of excluded parts and situations. Common exclusions are:
- Deterioration from normal wear and tear
- Damages normally covered by car insurance (such as from the environment, accidents, theft, or vandalism)
- Damage from lack of maintenance
- Cosmetic damage
- Wear-and-tear parts like brake pads, filters, and wiper blades
- Aftermarket modifications
- Damage to a covered part by a non-covered part
- Damages from misuse, like off-roading or street racing
A warranty company can look at your service history to make sure you’re up to date. Be sure to take good care of the car so your claim isn’t denied.
There are some things you may look for to ensure finding a reliable company. These include industry ratings, transparency, a good repair network, and longevity in the industry.
Industry Ratings
Comparing ratings from the BBB, Trustpilot, and Google is a good way to see how the company treats its customers. Take a look at complaints on the BBB to see if the company responds and how it resolves them.
Transparency
A company is transparent if it provides full sample contracts online or before you have to buy a plan. If you’re expected to make a purchase after only hearing the sales pitch, ask for a sample contract. It’s important to read contracts for the fine print on things like:
- Exclusions
- Repair authorization process
- Labor rate
- Limits on benefits like roadside assistance or rental car coverage
Companies like Endurance, Olive, Carchex, and CarShield provide full contracts for you to read before you make a purchase.
Repair Network
A reputable warranty company should allow you to get repairs at any licensed facility, including dealership service departments. This is one of the main benefits of a third-party plan. If the company only lets you go to specific dealers or repair locations, consider shopping around some more.
Speaking of repairs, make sure the company pays the repair facility directly. Some warranty companies only reimburse you after you pay for the repairs. This kind of defeats the purpose of having a warranty in the first place.
Longevity
Generally speaking, companies that have been in business for a long time have handled many claims. As you’re shopping around, look into a company’s founding and read about its origins. If you can’t find any of this information, it might be a clue to move on.
Best Car Warranty Providers: Our Take
At the end of the day, you have many options for repair coverage, but some are better than others. We recommend comparing multiple quotes from the top providers on our list to find the best coverage for you.
Endurance
4.6
Reliability: 4.3/5.0
Coverage: 4.9/5.0
Pricing: 4.8/5.0
Transparency: 4.8/5.0
Customer Experience: 4.3/5.0
Quick Facts
- Best Overall
- Plan Coverage: 6 plans with wide range of coverage
- Covered Miles: Up to 200,000 odometer miles
- Money-Back Guarantee: 30 days for full refund
- Longest Warranty plan: 8 years from plan start
- Discounts: $300 same-day signup discount, $250 shopping voucher, and others
Plan Coverage and Perks
| Plan coverage includes | Endurance Elite perks™ |
|---|---|
| Exclusionary plan | One-year membership for free |
| Powertrain plan | Tire repair and replacement |
| Maintenance coverage with Endurance Advantage | Key fob replacement |
| Roadside assistance | Total loss protection |
| Towing | Collision discount |
| Rental car | $250 rewards voucher |
| Trip interruption coverage | Endurance Protect app |
Car Warranty Companies: FAQ
Below are some frequently asked questions about car warranty companies:
What is the most reliable car warranty company?
Carchex is our pick for the most reliable warranty company. It’s a popular provider and has an A+ rating and accreditation with the BBB. Other reliable options include Endurance, CarShield, and Olive.
How much should an extended warranty cost?
An extended warranty usually costs between $1,500 and $4,500 since coverage and terms vary. Our data shows extended plans cost about $977 per year of coverage. You can use this to determine the affordability of quotes you get.
How long do you have to have CarShield before you can use it?
CarShield plans come with a waiting period of 20 days and 500 miles (both conditions must be met). This is slightly shorter than the waiting period of 30 days and 1,000 miles, which is more common in the industry.
Is it worth getting an extended car warranty?
It may be worth getting an extended warranty if you don’t have money set aside for repairs or if you want peace of mind that major repairs are covered. It might not be worth getting one if you can pay for repairs on your own.
How We Rate Car Warranty Companies
Our review team extensively researches extended car warranty providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:
- Reliability: Warranty providers that earn strong ratings from the Better Business Bureau (BBB), work with reliable partners and administrators, and have a long history in the warranty industry score well in this category.
- Coverage Plans: We take a close look at the coverage plans available through each provider, including how many are offered, maximum term limits, plan exclusions, and more. We also evaluate the added benefits companies include with their warranty plans, such as roadside assistance and trip interruption benefits.
- Pricing: Our team performs a secret shopper analysis for a variety of vehicles and coverage plans to get a sense of a provider’s average costs. We see how each company’s pricing, deductible options, and discount opportunities compare to competitors when determining this score.
- Transparency: We evaluate the availability and transparency of each company’s contracts, as well as whether each provider offers a money-back guarantee.
- Customer Experience: We consider customer reviews and complaints from sites like the BBB and Trustpilot. Our team also reaches out to customer service reps during our secret shopper analysis to get a sense of the customer experience with each company.
*Data accurate at time of publication.
Dash Lewis Content Writer
