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4 Best Extended Car Warranty Companies
By James F. Trumm MONEY RESEARCH COLLECTIVE
Five coverage tiers: PowerTrain Silver, Gold, Platinum, Diamond
Roadside assistance, rental car reimbursement, trip interruption coverage
30-day refund policy
Motorcycle coverage does not cover GPS or navigation
Two coverage lines: Endurance Elite and Advantage
One year of Endurance Elite membership, 24-hour roadside assistance, tire repair/replacement, trip interruption, merchant discounts
30-day refund policy
Not available in California
An extended car warranty, sometimes called a vehicle service plan (VSP), covers specific vehicle repairs and parts replacements. Extended warranties supplement or replace manufacturers’ warranties on new vehicles, which typically expire after a certain time period or when the car reaches a specific mileage; three years/36,000 miles is a typical milestone.
If your vehicle is no longer covered by an original car warranty, an extended car warranty can help in paying for auto repair bills as the car gets older. While many needed repairs aren’t especially costly — and may not even exceed the warranty’s deductible — some can run into the thousands of dollars.
Below are five companies that we think are among the best extended car warranty providers in 2022. For each, we’ve identified an attribute that we think distinguishes the company’s plans.
Our Top Picks for Best Extended Car Warranty Companies
- Endurance: Best for High-Mileage Vehicles
- CARCHEX: Best Plan Options
- CarShield: Best for Motorcycles & ATVs
- Concord Auto Protect: Best Customer Satisfaction
Best Extended Car Warranty Reviews
Best for High-Mileage Vehicles: Endurance
Why we chose it: While pricier than some competing companies, Endurance warranties combine a lack of mileage limits with direct payment to repair shops. The number of miles you’ve driven your car is a prime indicator of the probability it will need repairs. Endurance’s two chief competitors in the high-mileage extended car warranty space, CARCHEX and CarShield, extend coverage up to the 250,000-mile mark, but Endurance imposes no cap at all on its high-mileage plans. What further separates our choice from those two rivals is that Endurance is a direct provider. Instead of making you pay out of pocket for covered repairs and await reimbursement, Endurance pays the service provider or repair facility upfront.
- Lacks mileage limits, a perk for those with older cars with higher mileage
- Endurance Advantage covers some maintenance repair costs, which few other plans do
- Handles costs directly, so you don't have to pay out of pocket and wait to be reimbursed
- Not available in California
- More expensive than some other high-mileage car warranty choices
If you tend to buy used vehicles or hold onto them for many years, Endurance is a fine car warranty option. Not only will Endurance cover your car regardless of how many miles you’ve logged, but it provides some unusual extra perks through the Endurance Elite program — free for one year with any plan — that may be particularly helpful to consumers with older vehicles. As examples, if your aging key fob stops working, Endurance will replace it. If your car or truck can’t be repaired after an accident (a likely scenario with a superannuated vehicle), the company will provide $1,000 to offset the cost of a replacement.
If Endurance plans offer more than many companies, they also cost more. Accordingly, you can expect to pay more each month than for many other companies’ policies.
Like most providers, Endurance offers multiple tiers of coverage to allow you to select the one that makes the most sense for your needs based on the vehicle that you want to cover.
Best Plan Options: CARCHEX
Why we chose it: One of the biggest challenges to choosing an extended car warranty is feeling like you are limited to very few options. If you’re looking for a wide range of car warranty options, CARCHEX has more than 25 plans to choose from. The company also has quite a few add-ons, making it simple to boost your plan to more precisely meet your needs. As a result, CARCHEX is a clear favorite for the best plan options.
- More than 25 different tiers of coverage
- Includes gas delivery and trip interruption coverage
- Plenty of options for customizing your plan with add-ons
- Not a direct provider, meaning some plans are outsourced
CARCHEX operates as a broker, meaning it is not a direct provider of car service warranties. Being a brokerage is what allows CARCHEX to offer up so many different plan configurations and possibilities, from basic Bronze to top-level Titanium.
From a budget perspective, CARCHEX’s brokerage status can serve as a bonus for you and your wallet, as it ensures you’re getting the best rate possible. However, working with a variety of providers can have a downside. If you need to make a claim, you may have to navigate complex processes.
That said, CARCHEX’s expansive array of more than two-dozen different plans with multiple add-ons makes it our pick for one of the best extended car warranties in 2022. In addition, when you opt for CARCHEX, you automatically get such care plan perks as towing, roadside assistance, gas delivery and rental car coverage.
Best for Motorcycles and ATVs: CarShield
Why we chose it: As one of the few providers that specifically cover motorcycles and ATVs, CarShield gets our nod as being best for motorcycles and ATVs. CarShield offers a service warranty with the additional protection of 24/7 roadside assistance to help in the event of an emergency. Also, CarShield features six vehicle protection plans so you can tailor your annual warranty spending.
- Coverage designed for ATVs and motorcycles
- Multiple warranty coverage option levels
- Most contracts are transferable if you sell the vehicle
- Not a direct provider of warranty plans
Being the owner of an ATV or motorcycle, you know that you can expect to make repairs sooner or later. CarShield’s many plan options keep you covered and allow you to avoid overpaying for coverage. With tiers for everything from basic powertrains to more advanced repairs like fuel pumps, radiators, starters and more, you can configure your ATV or motorcycle warranty as needed.
CarShield is a third-party brokerage, which means that when you make a claim, you may have to deal with a third party provider rather than a CarShield representative.
Like many of the other extended warranty providers featured here, CarShield sells a host of add-ons that you might appreciate, such as coverage for high-tech components or trip interruption. Additionally, your CarShield protection may be transferable. If you decide to sell your ATV or motorcycle, call the company to learn whether the new owner can take over your contract upon purchasing your vehicle.
Best Customer Satisfaction: Concord Auto Protect
Why we chose it: Customer service matters in the car warranty business, especially given the presence of some bad actors in the industry. While some other providers offer greater flexibility in coverage, Concord Auto Protect gleans positive ratings on social media platforms and online review sites, and offers solid, reliable warranty options in addition to its exceptional engagement.
- Excellent customer service and fast response times
- 24/7 phone support for customers
- Direct provider
- Their plans are not customizable
- Limited claim options due to consequential loss clause
Today’s consumers want to be able to connect with car warranty providers anytime, anywhere, and from any device. Concord Auto Protect provides an omnichannel service experience that extends from its site to email to Facebook chats. The company has set itself up as a direct provider of plans, which allows it to control its claims process speed and submit payments faster than many of its competitors.
The Concord Auto Protect lineup consists of three comprehensive service plans. While these cannot be customized with add-ons, the company’s warranties hold up well against other basic warranties.
Best Extended Car Warranty Guide
This guide contains additional information about extended car warranties, including what they are, what they cover, the different types of warranties available and how to choose one.
What is an extended car warranty?
Also known as vehicle service contracts, extended car warranties supplement the car manufacturer’s coverage of certain parts of your vehicle after you’ve exceeded the age or mileage at which said coverage elapses. Car insurance and car warranties have different purposes. For example, car insurance covers some of your damages in the event of an accident but does not pay for routine maintenance (think brake pad and oil changes). Most extended car warranties offer little to no accident coverage but can help you avoid hefty out-of-pocket repair and maintenance bills.
Extended car warranties should not be confused with mechanical breakdown insurance, which is an option most car insurance companies offer as an add-on to standard auto policies. Unlike extended warranties, which only cover the systems and parts listed in the service contract, mechanical breakdown insurance may cover all vehicle parts and major systems. Mechanical breakdown coverage may also be cheaper and have fewer restrictions regarding repair facilities.
How does an extended car warranty work?
Extended car warranties are essentially a kind of insurance policy, and work in a similar fashion to most other types of insurance, from healthcare insurance to dental insurance to cheap car insurance.
First, you pay a premium to ensure coverage. Usually, a low premium means you will have to meet a higher deductible or meet specific circumstances before you can make a claim. Then, you wait to see if you need to use your extended car warranty.
If your car needs repair or maintenance work that’s specifically covered by your plan, or you find yourself able to take advantage of an add-on such as roadside assistance or trip interruption coverage, you’ll receive reimbursement for some or all of your costs.
In certain cases, you might have a deductible that you’re responsible for before your plan starts to pay. Again, the higher your premium, the less likely you will be to have a high deductible as well. Consequently, if you want the lowest deductible, you can expect your premium rates to be higher.
Types of extended car warranties
The varying types of extended car warranties are all dependent on what is covered within the plan. For instance, a powertrain warranty just covers parts like your engine, drive axles and transmission. On the other hand, a bumper-to-bumper warranty provides reimbursement for replacement or repair of additional items, such as other mechanical or electrical systems.
All car warranty policies feature exclusions, with most specifying no coverage for so-called “wear and tear” or regular maintenance. Be sure to check out those exclusions before making your final selection, just as you would when shopping for the best car insurance.
What is the difference between exclusionary and inclusionary warranties?
As you investigate more about extended car warranties, you’ll sometimes see language that notes a warranty as either providing inclusionary or exclusionary coverage. Exclusionary warranties offer you a chance to see upfront all the items that are not covered. In contrast, inclusionary warranties list only items that are covered.
In general, most experts recommend picking exclusionary warranties rather than inclusionary ones. After all, exclusionary warranties have a much smaller list of excluded items, whereas inclusionary warranties have a small list of included items.
From a pricing standpoint, you will pay less for an inclusionary extended car warranty. Yet you will get less comprehensive coverage than you would by paying more for an exclusionary one.
Are extended car warranties worth it?
Although it’s worthwhile to compare the best extended car warranties for various needs, the larger question is whether most consumers should be purchasing them at all. In many cases, the answer is “probably not.”
If your vehicle’s factory warranty is still in effect, you do not need to purchase an extended warranty. That’s likely true even if your bumper-to-bumper coverage has expired. Extended powertrain coverage — beyond the term of the main warranty — may still pay for some of the most costly car repairs, such as those involving electrical components, the engine or transmission.
If your vehicle’s warranty period has completely elapsed, you’ll have to decide whether the peace of mind offered by an extended car warranty justifies the cost of coverage you may never need — and that may be pricier than the cost of many repairs themselves.
Let’s say your extended car warranty costs $99 a month and only use your plan once to offset the cost of a $500 alternator replacement. Once you pay your $100 deductible, you’ll have spent nearly $800 more that year than if you had simply paid for the repair out of pocket. Worse still, you may find that an expensive repair — say, replacing your catalytic converter — isn’t covered by your plan at all, because repairs to that component are listed in the plan’s exclusions.
Even if an extended car warranty plan won’t necessarily pay itself back, it may be worth the cost in cases of particularly bad luck — such as the need, albeit very rare, to replace a $4,000 transmission. The decision to purchase an extended car warranty should be driven by your ability to weather a sizable repair bill and your comfort with risk in general.
How to choose an extended car warranty
Selecting the right extended warranty coverage, whether it is exclusionary or inclusionary, really comes down to the age of your vehicle and total mileage combined with your needs and budget. Some plans are a lot more comprehensive, while others are quite basic. Choosing this type of policy requires knowing the age of your vehicle, its mileage and what level of coverage you feel you need.
Think back to when you learned how to buy car insurance. You probably shopped around based on your vehicle, lifestyle and budget. Purchasing an extended car warranty is no different and requires similar legwork. Of course, looking at car warranty and car insurance comparison tool calculators like ours can jumpstart your process.
When purchasing an extended warranty for your vehicle, read your contract thoroughly — including the fine print — to understand exactly what your plan covers. We also recommend you read customer reviews from trusted sources such as the Better Business Bureau to make sure you’re doing business with a legitimate company and avoiding potential scams.
How We Selected the Best Extended Car Warranties
The extended car warranty industry is plagued by companies that make questionable car warranty calls and otherwise use questionable claims and promises to sell their products. However, the companies on this list have what we consider to be reliable offerings that enable you to keep more of your hard-earned dollars even if you need major work done on your car, SUV, truck, motorcycle or ATV.
When choosing the best extended auto warranties for this list, we looked at multiple factors, from the type of service contracts they offer to how quickly they handle claims. We also looked into each company’s reputation, reviewed how transparent each company is with their contracts and verified whether they offer sample contracts to view as part of the quoting process.
Summary of the Best Extended Car Warranty Companies
- Endurance: Best for High-Mileage Vehicles
- CARCHEX: Best Plan Options
- CarShield: Best for Motorcycles and ATVs
- Concord Auto Protect: Best Customer Satisfaction
