Monday, February 26, 2024

Who Has The Best Extended Car Warranty

Don't Miss

Is An Extended Warranty For A Car With Over 100k Miles Worth It

Top 5 Considerations – Extended Car Warranties – CARFAX

Whether or not an extended warranty is worth it for you and your vehicle depends on your individual situation and your personal goals. If you cannot afford costly repairs and you would like to keep your vehicle for at least a couple more years, then an extended warranty might be worth the cost.

On the other hand, if you can afford expensive repair costs out of pocket and plan to purchase a different vehicle in the near future, an extended warranty is probably not worth the cost.

But for many, the main benefit of a vehicle service contract is simply peace of mind. With affordable payment plans, you can eliminate the anxiety of worrying about how to pay for the next big, expensive car repair.

How Does An Aftermarket Car Warranty Work

An extended warranty helps protect you by promising to pay for the cost of certain repairs should a mechanical or electrical component break down. Exactly which parts are covered depends on your contract. Typically, there are two types of coverage plan options: exclusionary coverage and named-component coverage.

  • Exclusionary coverage: This type of car warranty plan covers all parts of your vehicle from mechanical breakdown due to normal driving activities, except for a short list of excluded parts and components.
  • Named-component coverage: This auto warranty, also known as inclusionary coverage, is essentially the opposite of exclusionary coverage. Your contract will have a list of the parts and systems that are covered. Any parts that aren’t listed aren’t covered.

Within named component coverage, you can find a variety of plan levels. Typically, companies break this section into three or four types like the following:

What About My Certified Pre

The only real extended warranty that comes from the manufacturer is the extension of coverage that comes if you purchase one of the cars it offers through a Certified Pre-Owned program.

Manufacturers like Lexus will extend the original Basic Coverage out to six years with unlimited mileage, which is pretty sweet if you drive a lot. It also throws in things like up to four factory recommended services in the span of two years or 20,000 miles.

If youre looking at used cars and you have the choice between a car with or without the Certified Pre-Owned stamp of approval with the extension of the original warranty coverage, the one with it is almost always the better deal.

Recommended Reading: Remove Scratches From A Car

Is An Extended Auto Warranty Worth It

First let’s take a look at how much a car warranty costs. Extended warranties from manufacturers and third-party companies start at about $1,000 for a protection plan that runs for two years and run to about $3,000 for a five-year plan.

Premiums vary depending on the make, model, and age of your car Other factors are also considered, like your driving habits and the deductible per repair you select. Deductibles typically range between $50 and $250 and, as with most forms of insurance, the lower the deductible, the higher the premium.

Lets look in rough terms at how a warranty that costs $500 or $600 a year might stack up against your likely repair bills without a warranty as your car ages.

Although mechanical breakdown frequency varies greatly from make and model, the causes and repair costs related to these are easier to estimate. According to Haynes, the most common car breakdown causes include dead batteries, flat tires, alternator faults, broken clutch cables, and damaged spark plugs, among others. Most of these repairs wont dig deep into your savings: a damaged alternator costs around $130-$250 to replace, while a new battery can cost around $60-$120.

A car warranty is most useful if you are anticipating — or want the peace of mind that you are protected against — major car repairs. These include transmission replacementswhich can range from $3,500 to $5,000and cylinder repair or replacement, which can cost from $3,000 to $10,000.

Best Customer Service: Concord Auto Protect

The costs of a car extended warranty. Who has the best AND ...

Concord Auto Protect

  • No bumper-to-bumper plans offered.

  • Cannot get pricing unless you request a quote.

Concord Auto Protect has been in business since 2013. It offers the best customer support of the companies we reviewed, with options to connect by phone, online, email, and via Facebook Messenger 24/7.

Concord Auto Protect offers many industry standards with its plans, including free 24-hour roadside assistance and transferable plans. As a direct provider of its vehicle service contracts, Concord Auto Protect pays claims directly to auto repair facilities and lets you choose any ASE-certified mechanic.

Although Concord Auto Protect wont disclose the price of its plans without a quote request, most reviewers find its pricing equal to if not less than their competitors. Each plan also comes with a 30-day money-back guarantee.

Unfortunately, Concord Auto Protect offers no bumper-to-bumper plans, so a lot of parts are not covered, including tires and regular maintenance items like filters and brake pads. Also, because Concord Auto Protect backs its own extended warranty plans, there is no insurance company protecting your investment if the company were to go out of business.

Also Check: Florida Vehicle Title Transfer

Manufacturer Used Car Warranty

If you buy a certified pre-owned vehicle, it may include a limited manufacturers warranty. However, this option is only available for CPO vehicles and typically provides a single year of bumper-to-bumper warranty coverage. After that, itd be smart to consider purchasing a third-party vehicle service contract.

How Do You Cancel An Extended Warranty On A Car

In most cases, youll need to take a few steps to cancel an extended warranty on a car. Youll likely need to fill out a cancellation form and then talk to customer service to notify them of your intent to cancel your extended car warranty. In many cases, youll also need to mail a physical copy of your cancellation request to the company.

Recommended Reading: Car Salesman Earnings

How Much Does A Used Car Warranty Cost

The price of a used car warranty depends on your specific vehicle as well as on your level of coverage, length of protection, and deductible amount that you select. We conducted a car warranty survey in 2021 that polled 1,000 consumers and about half claimed to pay between $1,500 and $2,500 for their extended car warranty plan.

To find out exactly how much you can expect to pay for an extended warranty, call the team at CARCHEX. Well tailor each available Extended Vehicle Protection Plan to make sure that our options suit your specific needs and budget.

What Are The Different Types Of Extended Warranty

CAR EXTENDED WARRANTY- TOP 5 QUESTIONS (Service Contract, Prepaid Auto Maintenance) THG Kevin Hunter

There are three main types of extended car warranty or mechanical breakdown insurance: a manufacturers own extended warranty, which you can purchase when the car is new or before the original warranty runs out a used car warranty supplied by a franchised car dealership or car supermarket, and a warranty that you can buy from an independent provider.

Also Check: How To Make Car Freshies Diy

How Does The Claims Process On Extended Warranties Work

Reputable extended warranty companies should walk you through the claims process when youre buying an auto protection plan. While it may not be the same for every company, here is an overview of how repairs are typically handled:

  • Pick a repair facility: If you experience a mechanical breakdown for a covered component, you can take the vehicle to a repair shop within the providers network.
  • Have the vehicle assessed: A technician will diagnose the vehicle to find the faulty part. At this time, you should also give the contact information for your warranty provider.
  • An administrator will review the claim: After the problem is diagnosed, a claims administrator will review the claim to verify the repair is covered under your warranty plan.
  • Pay your deductible: If the repair is approved, youll then pay your deductible. Some providers offer $0 deductibles for work performed at select facilities, but most deductibles are around $100.
  • Of course, there are times that a warranty wont cover a repair. Most providers dont replace common wear-and-tear parts like windshield wipers or perform oil changes. Additionally, warranties typically do not pay for damage from an accident or anything covered by your car insurance.

    Benefits Of Selecting A Third

    If your vehicle is equipped with an extended guarantee, thats great! If not, or youre seeking more flexible coverage, extended warranties from a third-party provider can be a valuable addition. Extended warranties from third-party providers for used vehicles offer the following benefits:

    • Additional options for service So you dont need to depend on the dealer of your vehicles manufacturer, even if youre already accustomed to plans from the manufacturer.
    • No interest. Contrary to extended warranties from manufacturers and third-party warranties, extended warranties for used vehicles arent incorporated into the car loan. Thus, you will not be charged interest on warranty payment. Theyre charged separately to save your money.
    • A lot of third-party extended car warranties can be transferred. This means that when you decide to sell your used vehicle, the warranty will be transferred to a new owner, which will increase the price of resales.

    Recommended Reading: How Much To Get Car Detailed

    How Much Does A Car Warranty Cost

    Ah, thats the eternal question and were providing a slippery answer: It depends.

    There are simply too many factors to nail down exactly what a service contract or extended warranty is going to cost. In the table, weve provided some sample costs from research weve done, but we cant cover every single car, every single plan and all the variables that impact cost, like the length or mileage of the contract, or the mileage on the car. The cost to you depends entirely on a bunch of unique factors, like the age of your car, the make and model, the mileage, the reliability of it, and the actuarial tables used by the warranty providers to determine the probability of the life of your vehicle.

    The greatest cost advantage youll realize is if youre buying a service contract at the time you purchased a new car. In general, the company providing the service contract is going to be more likely to cut you a deal on a service contract if your original warranty is still in effect. Theyre also more likely to be less expensive if youre attempting to buy a service contract for a one-owner, low mileage vehicle than something thats had more owners than your local newspaper.

    Genesis: 5 Years/60000 Miles

    I have been trying to reach you about your car

    As the luxury brand associated with Hyundai, Genesis offers one of the best new vehicle warranties on the market. The automaker has a positive industry reputation and offers factory warranties with long coverage terms. It also matches Hyundais 5 years or 60,000 miles of bumper-to-bumper protection and 10 years or 100,000 miles of powertrain protection.

    Recommended Reading: How To Apply Touch Up Paint To Car

    Is 100k Miles A Lot For A Car

    For owners that would like to keep their vehicle, another consideration is whether you own a vehicle that is very likely to run for more than 100,000 miles. Fortunately, many vehicles are lasting longer as auto manufacturing technology has improved. The J.D. Power 2021 U.S. Vehicle Dependable StudySM begins by mentioning vehicle dependability is at an all-time high.

    What Is A Fair Price For An Extended Car Warranty

    Youre going to read all kinds of nonsense elsewhere that will tell you that a warranty should cost around $1,500. If you can find a warranty that covers anything but a Toyota Corolla with zero miles for any more than two years and 24,000 miles, buy it. Most warranties are going to be WAY more expensive.

    The staff and research team at Car Talk has now spoken with a good amount of players in the warranty industry. It appears that the average price across all categories, all make/models, all car types is roughly $3000. Again, this figure will depend on all the factors listed in the section above. Reliable cars will cost less, unreliable cars will cost more. Expect to pay way more if you are driving a luxury car, like a Bentley or a Range Rover. Each provider has a number of plans, and payment options available, including monthly installments which make things easier on the consumer.

    We took a look at what a bunch of random internet dopes told us they were quoted for a range of warranties, and whether or not they came with a deductible. There was ONE that was $2,000. All the rest were significantly more expensive. Warranties for cars like the BMW X5 are breathtakingly expensive, especially if youre trying to buy one for a used car.

    Vehicle* Deductible**

    You May Like: How Do You Make Car Freshies

    Manufacturer Extended Warranty Vs Third

    These days, many car brands offer their own extended warranty programs. Your cars manufacturer may offer a warranty plan when you buy it these. These warranty plans typically ensure that your car will be worked on by brand-certified mechanics using OEM parts. However, there is one big sticking point most of these warranties require you to visit an official dealership for repairs.

    Independent warranty providers, on the other hand, offer flexible coverage plans and let you choose when to purchase coverage. They also have larger repair networks compared to coverage from the manufacturer.

    That said, there is no guarantee that all your repairs will be covered under the warranty. You also run the risk of purchasing coverage you may not use, so the choice is ultimately up to the vehicle owner.

    How Does A Used Car Warranty Work

    Are Extended Vehicle Warranties A Scam?

    Though its technically a service contract for your vehicle, an extended warranty works similarly to an insurance policy. You start out by covering a minimal upfront payment over the course of several months. Your warranty typically goes into effect after a 30-day waiting period and protects you from unexpected and costly future repairs.

    Heres how a used car warranty works when you have to file a claim:

  • When your car needs a repair, gather your warranty documentation and get an estimate for the repair.
  • Take your car in for repairs. Your warranty company may directly pay your mechanic or it may reimburse you for the expenses.
  • Used car warranty plans should be simple enough to take the hassle out of vehicle repairs. To ensure that you get complete peace of mind from your extended warranty, be sure to pick a reputable provider like CARCHEX.

    You May Like: How To Remove Scratches From A Car

    Protect My Car: Best Maintenance Benefits

    Established in 2005 and today based in St. Petersburg, Florida, Protect My Car is a popular choice among car owners for vehicle service contracts. On the surface, the company looks attractive, with hundreds of five-star customer reviews on the BBB website, as well as over 1,300 on Trustpilot.

    With Protect My Car’s two highest levels of protection, you will have a $100 deductible. Its lowest level of protection has a $200 deductible. A $0 deductible option is not available.

    Protect My Car Aftermarket Auto Warranty Plans

    Warranty Plan

    Comprehensive extended warranty for cars


    Vehicles that are 4 to 10 years old with more than 80,000 miles

    Covers many of the same components as the Supreme and Select plans, but excludes the front and rear suspension, turbocharger, and navigation system

    Although vehicles over 13 years old cant take advantage of an aftermarket auto warranty with Protect My Car, the company does offer Ambassador Maintenance Plans. These car maintenance contracts offer guaranteed discounts between 50 and 75 percent on repairs, plus rental car reimbursement and more for older cars. However, they do not provide protection on the same level as a standard extended warranty for cars.

    Added benefits of Protect My Car include:

    For more information on this extended car warranty provider, check out our Protect My Car review.

    Gm Extended Protection Plan

    Similar to the Chrysler warranty, GM Extended Protection Plans cover GM vehicles and extend the coverage of the bumper-to-bumper warranty up to 10 years. GM administers this plan, but the plans are sold through authorized resellers and franchised GM dealerships.

    With a GM Extended Protection Plan in place, you dont need to carry paperwork or special membership cards. Using your vehicle identification number, any authorized GM dealership in the country can access your plan level and provide services using their factory-trained technicians, and service your vehicle with GM-specific parts.

    The plan comes in two levels, Silver and Platinum. Silver is an affordable plan that covers major components like the engine, transmission, transfer case, drive axles, factory-installed turbo- or superchargers, steering components, brake components, electrical system components, factory air conditioning components, and seals and gaskets.

    Platinum offers everything in the Silver plan, but adds essentially an extension of the factorys bumper-to-bumper coverage, protecting you from expenses related to failures in items like the entertainment system, rear vision camera, blind spot monitoring system, adaptive cruise control, and anything else that isnt a normal wear item.

    In addition to vehicle protection, the plan includes several built-in benefits:

    GM Extended Protection Plan Pros and Cons

    Don’t Miss: What Is An Equus Car

    How To Find The Best Car Warranty For You

    Are you searching for a way to protect your vehicle against expensive repairs? If so, you might have considered an extended car warranty. Remember that you need to be well informed about car warranties to ensure you get the best deal.

    Car repairs are costly, and most people cant manage a £1,500 repair cost without running into debt, making an extended car warranty a worthy investment.

    Here is how you can find the best car warranty for you.

    Assess the Warranty Cost

    The extended car warranty cost varies from one provider to the other. In general, the amount of coverage, mileage, cars age, cars make and model determines the price to pay. With plenty of factors to consider, its hard to say the exact cost of an extended car warranty.

    While a warranty from a third party is cheap, you should expect to pay upwards of £1,000 if you get your warranty from a dealership. Its advisable to shop around and acquire several quotes personalised for your car. The rule of thumb is to remember that the cheapest warranty isnt always the best option.

    Check Whats Covered

    An extended warranty may not be all-inclusive. For instance, some vehicle components that will ultimately become faulty may not be covered in some extended warranties.

    Whats more, some warranties are offered in tiers basic, premium, and gold, where each has its coverage and cost. So, take time and consider your needs to figure out the package that suits you best.

    Coverage Length

    Extra Benefits Offered

    More articles

    Popular Articles