While most new and certified pre-owned (CPO) cars come with a manufacturer’s guarantee that covers repairs for at least three years or 36,000 miles, once the warranty has expired, car owners must pay for all repairs in full. If you don’t have the funds to have your automobile repaired, you may end yourself paying monthly for a vehicle that you can’t use.
That is, unless you acquire an extended car warranty plan, which will cover your vehicle even after the manufacturer’s warranty has expired. It’s common knowledge that most automobiles require major repairs as time passes, which is why, in the correct conditions, an extended car warranty is a viable alternative.
The firms we feel to be the top extended auto warranty providers in the country, as well as relevant information to help you make an informed decision, are listed below.
Companies to Watch in 2022 for Extended Car Warranty
- Concord Auto Protect
- Toco Warranty
- Infinite Auto Protection
Guide to the Best Extended Car Warranty
What is a car warranty extension and how does it work?
An extended warranty, not to be confused with auto insurance, is a car-repair service contract that kicks in after the manufacturer’s warranty has expired. These warranties can be purchased through dealerships or third parties, and rates and coverage differ based on the provider and the plan you select.
The following are the three primary types:
This sort of extended warranty covers only automotive components that create power, such as the transmission, engine, and drivetrain, and is the most basic and affordable choice.
This type of warranty will only cover repairs that are included in the contract. This is the one to consider if you know exactly which portions you want covered.
Exclusionary Warranty: Also referred to as “bumper-to-bumper coverage,” this type of warranty covers all automotive parts except those that are specifically excluded from the contract. Of the three types of extended car warranties, this is the most extensive.
The value of an extended automobile warranty is determined by the projected repair costs and potential breakdowns of your vehicle. Small repairs, such as replacing batteries, alternators, or spark plugs, are usually less expensive than the deductible on a guarantee. If you only expect these types of breaks from your vehicle, you could be better off foregoing an extended auto warranty and paying for this periodic maintenance yourself.
Car warranties, on the other hand, are incredibly valuable for significant car repairs that might cost thousands of dollars. Some of the most expensive auto breakdowns are major engine damage, transmission replacement, or suspension overhauls, with repair costs ranging from $3,000 to $10,000.
These problems are less common than the smaller repairs outlined above, but they can happen depending on your car’s make, model, and mileage. Knowing how much these unforeseen repairs will cost you ahead of time will make it easier to choose suitable coverage for your vehicle.
If you do decide to go with the product, keep in mind that most auto warranty firms do not provide quotations through the internet. High-pressure sales and aggressive selling over the phone are common in this industry. As a result, expect a slew of follow-up vehicle warranty calls.
What is the best way to discover the greatest extended auto warranty?
To begin, you should be aware that extended auto warranty pricing, deductibles, and coverages may all be negotiated, just like the price of a new or used car. Comparing the following variables across various warranties might help you identify the best solution for you:
Actual Coverage: What is and isn’t covered by an extended car warranty, as well as whether or not this is the ideal coverage for your needs.
Transparency: Ascertain that all coverage includes and exclusions are given in a clear and understandable manner. Otherwise, you risk being denied coverage for something you thought was covered by your extended car warranty contract throughout the claims process.
Price: When shopping for the best extended car warranty, fees, premiums, and deductibles must all be considered. To avoid any hidden fees, make sure to read the fine language of each contract thoroughly. When evaluating extended car warranties, “more for less” is a wonderful strategy.
Policies on the Waiting Period and Refunds: This refers to a 30-day “review period,” during which you can examine, alter, or cancel your extended car warranty contract without incurring any fines or penalties.
FAQs about Extended Car Warranties
What is the greatest extended car warranty company?
The “best” extended auto warranty is determined by the extent to which you wish to protect your vehicle, the sort of vehicle you own, and your financial resources. While there is no single “best” extended vehicle warranty, the firms featured in this analysis are among the most well-known and well-liked in the United States for their above-average coverage, user evaluations, financial strength, customer experience, plan diversity, and cost.
What is the duration of an extended warranty?
Most extended car warranties include an age and mileage coverage cap of 10 years or 100,000 miles (whichever comes first), after which your automobile is no longer eligible for a contract renewal.
What is the cost of the finest extended auto warranty?
A normal two-year protection package costs around $1,000, while a five-year plan can cost up to $3,000. However, these are merely averages; premiums can vary significantly based on the car’s make, model, and age, your driving habits, and the deductible per repair you choose (which, on average, runs from $50 to $250).
What are the advantages of purchasing an extended car warranty?
Because cars break down as they age, the main advantage of purchasing an extended car warranty is to avoid having to pay for a significant auto repair and to have peace of mind after the manufacturer’s warranty has expired. If your automobile is not insured, major repairs (such as gearbox replacements or engine repairs) can cost thousands of dollars, which is normally far less than the cost of an extended car warranty.
How We Discovered the Best Extended Automobile Warranties
We looked at the following elements when deciding on the best-extended vehicle warranty companies in the United States:
Plan Variety: Different car owners want and need different things from an extended auto warranty, so we looked for providers that offered a variety of plans and coverage alternatives. Unlike firms that just offer a few plan alternatives, the ones in our evaluation offer an above-average variety of plans to ensure that everyone, regardless of whether they have an old or new automobile, receives the one that is exactly suited for them.
Transparency: One of the primary issues with inferior extended auto warranties is that car owners frequently feel their guarantee covers a certain repair when it does not. This is due to deceptive, concealed, or ambiguous language in the warranty contracts. As a result, we gave preference to organizations that provided sample contracts as well as contracts with clear inclusions, exclusions, fees, and limitations.
Freedom of Choice: Some extended auto warranty companies will not allow you to use a repair service provider who is not part of their network. However, we discovered that allowing automobile owners to choose their own provider is the most beneficial way. As a result, we awarded extra points to extended auto warranty companies that allow car owners to have their vehicles repaired in a shop they know and trust.
Financial Strength: Vehicle warranty providers, like the top car insurance companies, must have strong financial ratings. This is what determines whether or not the warranty provider will be able to cover the costs of the repairs. We looked at the ratings of extended auto warranty companies from agencies like A.M. Best and Standard & Poor’s for this factor.
The Most Important Factors to Consider When Choosing the Best Extended Car Warranty Companies
- Pre-existing faults are not covered by car warranties.
- Cars with a lot of miles on them or that are older are normally more expensive to insure than new cars.
- Before activation, most companies impose a 30-day waiting period.
- When a warranty expires, it may or may not be renewed.
- Unlike car insurance, getting an extended car warranty is optional.