Best Car Warranty for 2024- My Independent Research

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Last Updated: March 3, 2023

One of the biggest fears when buying a used car is the cost of repairs if things go wrong. Since I always aim to get the best deal on any vehicle I purchase, I always buy used cars that have depreciated a good chunk of money already. While this is financially smart, it can come with unexpected repair bills. If purchased incorrectly, buying a used car can become a nightmare. To give you peace of mind, you should consider purchasing an extended car warranty to decrease the risk of out-of-pocket expenses.

Finding the best car warranty is no easy feat. It depends on many variables and is usually different for each person and car. For example, while it makes sense to purchase an extended warranty for cars that are prone to breaking down (Land Rover, Alfa, and some German cars), it might not make too much sense to get it for a Toyota Corolla, which is cheap to fix and is known for its reliability. 

Suppose you are a "car guy" or "car girl," you might also have your car modified. If that is the case, you switch over to another bracket of car warranty companies to choose from. Most regular companies do not cover modified cars for obvious reasons. I am not talking about visual modifications; I am talking about performance modifications that increase the limits that your car is being pushed at.

In this article, I will cover the best car warranty companies I have discovered through the research I have conducted for myself and the members of my car family. This article is opinion based (although I try to lean on data as much as I can), so if you strongly disagree with something, please feel free to shoot me a message so that I can do more research into the topic. Now let's get into it.

#1 Endurance: Best Overall

Availability: All States except California

Year established: 2006

Headquarters: Northbrook, Ill.

Endurance is the number one car warranty company in America. Endurance holds the No. 1 spot in our industry-wide best-extended vehicle warranty review. Direct provider means that all customer claims are handled in-house. The company offers six plans that cover up to 8 years and more than 200,000 miles.

Many plans are available, from basic powertrain coverage to comprehensive exclusionary plans. Our research revealed that the average Endurance warranty costs $546 to $612 annually for coverage. However, prices can vary depending on which service plan you choose. All extended car warranty plans include roadside assistance, towing, trip interruption benefits and rental car reimbursement.

Here is a summary of Endurance's auto warranty levels.

Secure: The most affordable car warranty plan that protects the engine, transmission, and water pump

Superior: Maximum coverage of all components

Supreme: The most comprehensive plan covers nearly all electrical and mechanical components, with a few exceptions.

Endurance has a C+ rating from the Better Business Bureau. Although this may sound alarming, it is not unusual for warranty providers to have low BBB ratings. Endurance has an average customer rating (3.4) of 5.0 stars on BBB's website. This means that only a small percentage of contract holders are unhappy.

Endurance could not respond to our request for comment regarding its BBB rating. Trustpilot also gives Endurance a rating of 4.1 stars from customers. Endurance has received many positive reviews. Many customers mention the knowledgeable service representatives and the speedy claims approval process.

Endurance Elite Benefits is a unique benefit that comes with every contract. In addition, this program offers perks such as key fob replacements, replacement tires or repairs, and total loss coverage.

#2 CarShield: Best Value

Availability: All States except California

Year established: 2005

Headquarters: Cottleville, Mo.

CarShield is the best option for budget-conscious drivers. CarShield offers the best value contracts. We have received quotes from warranty companies ranging from $89 to $130 per month. Customers have six options, with the longest lasting up to 300,000 miles. 

This is how CarShield's extended warranty plans work:

Diamond: Exclusionary coverage available for nearly all electrical and mechanical components

Platinum: This product is best suited to high-mileage vehicles. It protects the engine, transmission, and electrical systems and the starter, water pump, fuel pump, and other components.

Gold: Protects engine, transmission, water pump, and alternator.

Silver: The most affordable contract that covers the engine, transmission, and water pump

Aluminium: Protects high-tech and electrical components such as the starter, alternator, and engine control module.

ATV & Motorcycle: Multiple coverage levels for all-terrain vehicles, motorcycles, and other non-standard motorbikes

CarShield has an F rating from the BBB and a 4.0-star rating from customers on Trustpilot. CarShield's low BBB rating is due to past customers having difficulty canceling policies or having claims denied. Claims denials are a frequent complaint in the warranty industry. Therefore, before you commit to any warranty, read every contract.

CarShield contract holders have positive experiences with customer service representatives and are highly satisfied with the overall value of their contracts. Our review team contacted CarShield to comment on its negative scores. We received the following reply: "In the past three years, we have 2,210 BBB complaints, but we sold 1,118 296 contracts. Only 0.2% of our customers complained.

CarShield has the best monthly payment plans for those looking for affordable coverage. However, an extended warranty company might be better suited if you want a great customer experience. Read more in our full CarShield Warranty review.

#3 Autopom!: Best Claims Process

Availability: 50 States

Year established: 2009

Headquarters: Lake Forest, Calif.

Autopom! It stands for "automotive peace of mind" and is the final provider of our top extended car warranty providers. This provider is recommended if you are looking for someone to help you navigate the extended warranty claims process. Autopom representatives! Customers can work with them to navigate the claims process of its administrators.

The company offers the following coverage plans:

Exclusionary: Except as noted, it covers all electrical and mechanical components.

Mid-Level: There is a stated-component coverage for the engine, transmission, drive axle, steering, brakes, air conditioner, and electrical components.

Powertrain Plus: This policy covers the powertrain as well as the air conditioning system.

Every plan includes 24-hour roadside service, rental car reimbursement, trip interruption reimbursement, and tire protection.

autopom is a leader in customer service and industry. High industry and customer service ratings. The provider is accredited by the BBB and has an A+ rating from their organization. It also has a 4.63/5.0 star customer satisfaction score. In the last three years, it has received very few customer complaints. Similarly, autopom! Holds an average customer review on Trustpilot of 4.7/5.0 stars. If you want to read more about autopom!, you can head to the full autopom! review.

#4 Carchex: Best Benefits

Availability: 50 States

Year established: 1999

Headquarters: Hunt Valley, Md.

Carchex has some best-selling contracts, with terms up to 250,000 miles. Based on its wide range of offerings, we consider it one of the top extended car warranty providers for second-hand vehicles. In addition, Carchex is supported by industry leaders such as RepairPal, Kelley Blue Book, and Edmunds.com. According to our research, the provider offers five plans that cost between $120 & $170 per month.

Here is a list of Carchex's service plans:

Titanium: Exclusionary coverage available for most components of a vehicle

Platinum: The highest level of component protection. It covers hundreds of parts.

Gold: It protects all major systems and is ideal for vehicles with high mileage.

Silver: This includes powertrain components as well as a few other key systems.

Bronze: Protects engine and transmission

Carchex has an A+ rating by the BBB and a 3.0-star customer review score via Trustpilot. The provider is one of the most respected extended car warranty companies and works with insurance administrators such as American Auto Shield to provide competitively priced contracts. In addition, the company offers a 30-day money-back guarantee on all Carchex warranties if a customer decides to cancel as covered in our in-depth CARCHEX warranty review.

Customers frequently praise the company for its easy claims process, friendly service representatives, and speedy resolution of issues. Carchex benefits include roadside assistance, trip interruption, and rental car coverage.

#5 Protect My Car: Best Variety Maintenance Plans

Availability: All States except Alaska, California and Hawaii, Missouri, Oklahoma, Oklahoma, and Washington

Year established: 2005

Headquarters: Saint Petersburg, Fla.

Protect My Car is a smart choice for long-term financing. It allows contract holders to make relatively low monthly payments for up to 60 months. Protect My Car contracts can, however, cost drivers more long-term. As a result, these may not be the best options for people with smaller monthly auto budgets. Protect My Car did not respond to our request for comment regarding its pricing or vehicle requirements.

Protect My Car Plans Up to 10 Years/125,000 Miles Below is a list of each level of coverage:

Supreme: Similar coverage to the original factory warranty for a new vehicle

Select: This plan is best suited for vehicles with more than 50,000 miles. It also offers coverage that is a step lower than the Supreme plan.

Driveline: Protection for older vehicles with over 80,000 miles and between 4-10 years of age

Ambassador Elite: This coverage plan is for old vehicles and it covers up to 299,999 miles which is a whole lot. However, you are responsible to pay 50% deductible before Protect My Car steps in.

Ambassador Pro: Very similar to the Ambassador Elite plan. What seems to be different is that Ambassador Pro covers oil changes and tire rotations for your vehicle.

Protect My Car offers additional benefits, such as roadside assistance, rental car reimbursement, oil changes, and tire rotations. In addition, the provider offers five prepaid maintenance plans called Ambassador Maintenance Plans. These contracts are available for most vehicles, not just Protect My Car's extended warranties.

Protect My Car has an A+ rating from the BBB and a 4.2-star customer review score. Trustpilot also allowed customers to rate Protect My Car with a 4.5-star rating. In addition, many reviews mention the responsiveness of the customer service team and the ease of communicating with them.

What is an extended car warranty?

After your factory warranty ends, an extended car warranty (also known as a vehicle protection plan or vehicle service contract) covers the cost of damage due to defective materials and workmanship. Contract holders can purchase a contract instead of paying out-of-pocket for repairs. They only have to pay a deductible if they require one.

Depending on your chosen provider, drivers may pay upfront for extended warranties or through a monthly payment plan. Or, they can roll it into their vehicle's financing plan.

How to file a claim

You must take your vehicle to an authorized repair shop if you have a mechanical problem, such as an air conditioner failure or transmission malfunction. Many warranty companies offer roadside assistance, which allows you to have your vehicle towable to an authorized repair shop if it is not operable.

Your contract administrator must approve any covered repairs before you can begin. This may include a vehicle inspection and tear-down. After completing the repair, you will need to pay a deductible. Your provider will decide if the remainder of the repair bill will be paid directly to the shop or if you want to pay the balance and receive a reimbursement check.

Extended car warranty cost

Based on the quotes from industry leaders, an extended warranty costs $100 per year. So depending on the coverage you choose and your vehicle, your contract price could range from $1500 to $4,000. Extended warranty for SUVs will differ in price due to difference in part cost as well as the higher wear and tear.

What factors affect extended car warranty costs?

Many factors affect the price of an extended warranty. Therefore, it is important to understand how extended warranty providers price coverage to get the best possible coverage at an affordable price.

• Deductible - A lower deductible usually leads to higher contract costs and vice versa.
• Coverage: Longer-lasting agreements tend to be more expensive.
• Coverage type - Exclusionary bumper-to-bumper coverage can often cost more than basic powertrain protection.
• Type of vehicle: Older cars and vehicles with high mileage tend to fail more often, which makes coverage costs more expensive.
• Current coverage: You'll probably pay less if your vehicle is still under warranty when you call for a quote.
• Provider - Increased competition among third-party providers drives down contract costs

Are Extended Warranties worth it?

An extended warranty is a smart decision for some car owners. However, it may not be right for all. You may be better off saving money for repairs if your vehicle is reliable and has low repair costs. For some drivers, however, extended warranties may be worth the price.

Extended warranties are a good investment for the following reasons:

• Drivers who want to have predictable auto budgets
• Drivers who intend to keep their vehicle after the expiration of the factory warranties
• Unreliable vehicles can cause accidents for drivers.

Before you sign on the dotted line, getting free quotes from multiple providers is a good idea.

The Car Data Methodology of Picking the Best Extended Car Warranty

We created a rating system to rank the top extended car warranty companies. This is because consumers trust us to give objective and accurate information. To assess the quality of various auto warranty providers, we collected data. The final result was an overall rating of each provider, with the top-scoring companies topping the list.

These are the factors that our ratings consider:

• Coverage (35% total score): Companies offering a wide range of options for warranty coverage, long-term contract terms, and additional benefits are more likely than others to satisfy consumer needs.
• Reputation (25% o total score): Our research team considered availability, industry ratings, and years of business when calculating this score.
• Cost (20% total score): The highest scoring category in this category is auto warranty companies that offer affordable rates and multiple-deductible plans.
• Customer Experience (20% total score) This score is based on customer satisfaction ratings and contract transparency. There's also a money-back guarantee. Based on our shopper analysis, we also evaluated the responsiveness, friendliness, and helpfulness of each warranty company's customer service staff.