When it comes to buying an extended car warranty, you have two main options: you can get one from the manufacturer or from a third-party provider. Each option has its own pros and cons, so it's important to do your research before making a decision. Manufacturer warranties offer factory-trained technicians and OEM parts, but they require you to go to a dealer for repairs and may not last as long as third-party options. Third-party providers, on the other hand, offer more flexibility and often have longer coverage periods.
Third-Party ProvidersForeverCar is one of the few third-party providers that offer plans with unlimited mileage. They also offer the most affordable warranty contracts, making them worth checking out. Their Olive plan covers all mechanical and electrical components, unless listed as excluded. The Silver plan is the most cost-effective contract and covers the engine, transmission and water pump.
CarShield is another great option. They offer Elite plans that don't cover vehicle maintenance costs, but their Endurance Advantage plan does. This plan offers one year of free Endurance Elite benefits, plus annual periodic maintenance, including engine diagnostic tests, tire rotations, alignment checks, and up to three oil and filter changes. Endurance contracts have a consequential loss clause, which means that the company will only cover the components contained in the contract and not incidental or consequential damages, such as loss of time or transportation.
Carchex also offers easy and flexible payment options, so you don't have to pay the full price of the warranty up front. It always ranks high when it comes to customer service and has a good reputation for living up to its guarantees. That said, the company requires providing personal information to get a quote, so it's not as simple as getting a quick quote online.
Manufacturer WarrantiesManufacturer warranties are often among the best options available. However, they may not cover all mechanical components or provide additional benefits such as towing services or rental car coverage.
If you want to buy an extended warranty for your car, you should get quotes from several sources to find the best price.
Is an Extended Warranty Worth It?When deciding whether or not an extended car warranty is worth it for you, consider your expected vehicle repair costs. Not all major car repairs are necessarily covered by an extended warranty, especially for older vehicles which may have more coverage exclusions than newer ones.
Recommended ProvidersIf you're looking for reliable third-party providers for extended warranties for cars, we recommend Toco Warranty, Endurance, Select Auto Protect or CARCHEX. GMAC also offers its own service contract offering (GMAC), used to manage a plan similar to GM's Extended Protection Plan. Headquartered in Lake Forest, California, AAA Vehicle Protection Plan is technically a vehicle service plan offering the same coverage as an extended warranty.To cancel an extended warranty contact a customer service representative from your extended warranty provider.
It's also worth noting that people with higher repair costs benefit most from extended warranties.