5 Best Auto Warranty Companies in 2024

How Does An Extended Auto Warranty Work?

Many individuals begin their search for an extended car warranty plan (also known as vehicle service contracts) after their factory warranty expires. Factory warranties typically conclude within 3 to 5 years or after 36,000 to 60,000 miles. An extended warranty extends your vehicle's coverage, resulting in significant cost savings and peace of mind for potential future car issues. By securing your vehicle with an auto warranty, you can help ensure its ongoing maintenance and care.

Each warranty comes with a predefined set of coverages and exclusions. In general, when a component covered by the warranty experiences a breakdown, you take your vehicle to a qualified mechanic for necessary repairs. The cost of the repair, minus any applicable deductible, forms the basis of your claim submitted to the warranty company. Upon validation of the claim, the warranty company disburses the approved claim amount.

The deductible represents a predetermined amount that you must pay out of your own pocket before the warranty coverage comes into effect. Deductible structures can vary, with some companies employing an annual deductible, while others apply it on a per-claim basis. The process of claim settlement also differs among extended warranty providers; some directly pay the repair shop, while others require policyholders to cover the expenses upfront and seek reimbursement later.

It's crucial to note that for a claim to be approved, it must be authorized by the extended warranty company. Disputes may arise if there is a misunderstanding regarding which components are covered, potentially resulting in unintentional authorization of repairs that fall outside the contract's scope.

How To Choose The Best Auto Warranty

Selecting the best car warranty involves careful consideration of several key factors. Assess your specific needs and priorities, such as coverage duration and budget constraints. Scrutinize the warranty terms and conditions, paying close attention to coverage details, exclusions, and any additional benefits like roadside assistance or rental car provisions.

1. Understand The Total Coverage You Might Need

Consider your vehicle's age, how much you drive, and the average cost of repair for the car's major systems. This should help you decide the right amount of coverage for your budget.

• Entry-Level vehicle service contracts cover the powertrain, including the transmission and engine.
• Named Component protection plans are more comprehensive, but they will only cover specific listed parts and systems.
• Bumper-To-Bumper coverage is usually defined in terms of the relatively few parts it doesn’t cover.

Make sure your vehicle service contract explicitly covers the components that you will need most.

• If you live in a hot climate, make sure the air conditioner is covered.
• If your car has an onboard computer system (as most do now), look for contracts that include it. Otherwise, you might end up stuck with one of the most expensive repairs.
• Rust and corrosion are often excluded, so check for this coverage if you live in a rainy or snowy area where road salt is common.

Lastly, think about any additional benefits you may want. Many providers offer extra perks like 24/7 roadside assistance or towing.

2. Shop Around For Quotes

Shop around for quotes before committing to a vehicle service contract. Most companies provide a free, no-obligation cost estimate to help you decide if it's a good fit for your car and budget. We suggest requesting at least 3 to 5 quotes from different providers.

Don't just shop for the lowest price -- make sure it covers everything you might need.

3. Don't Forget To Read The Fine Print

It's crucial to have an understanding of what the warranty does or does not cover. In addition to reviewing the parts being covered, understand which mechanics and dealers will be included.

Most contracts will also stipulate that you must maintain your car per the manufacturer's recommendations. Regardless of what contract you purchase, it's always a good idea to keep up with oil changes and routine service.

Lastly, make sure to check the rules for filing a claim.

Why Endurance Is Our #1 Choice for the Best Auto Warranty

Endurance provides comprehensive coverage options for vehicles up to 20 years old, including unlimited mileage. All protection plans come with valuable features such as 24/7 roadside assistance (with towing and fuel delivery), car rental reimbursement, and trip interruption coverage.

Furthermore, Endurance offers additional perks through its Elite Benefits package. For a nominal activation fee, drivers can access key fob replacement, up to two tire repairs or replacements annually, collision discounts, and more.

In reviews, customers often highlight their positive experiences with Endurance's attentive customer service representatives.

Endurance offers a range of customizable coverage options, including Secure, Secure Plus, Select Premier, Superior, Supreme, and Advantage. Each plan provides protection for essential vehicle components, with variations in the breadth of coverage. Endurance customers can service their vehicles at any mechanic certified by the National Institute for Automotive Service Excellence (ASE) or at any licensed repair facility.

Endurance coverage plans include:

• Secure: The most affordable plan covers crucial components, including lubricated parts in the engine, transmission, and water pump.
• Secure Plus: The next affordable option designed for older vehicles, Secure Plus safeguards major components like engines, transmissions, air conditioning systems, steering systems, and electrical components. It also has the shortest waiting period.
• Select Premier: Tailored for high-mileage vehicles with up to 150,000 miles, Select Premier extends coverage to essential vehicle components, select air conditioner parts, and electrical systems.
• Superior: Offering stated-component coverage, Superior includes rear suspension components in addition to those covered by lower-tier plans.
• Supreme: As the most comprehensive plan, Supreme provides breakdown protection for all vehicle parts, with only a few exclusions. It also offers an add-on for luxury vehicles. Advantage: This plan provides extensive breakdown coverage and includes up to $3,500 yearly in routine maintenance, including oil changes. Available in three tiers, Advantage offers unlimited mileage coverage. 

Extended Car Warranty Costs

Vehicle service contracts typically cost from $500 to $2,000, with an average price of around $1,200. Typically, you don't have to pay for the full plan upfront -- you can make payments over 12 or 36 months.

The specific price will depend on a variety of factors. The more extensive the coverage, the higher your price will likely pay. For example, exclusionary coverage costs more than a powertrain plan.

Older cars are more likely to break down, so plans may become more expensive as your car ages. Companies also consider the make, model, year, mileage, and condition of your car.

Final Thoughts

Choosing an extended car warranty demands diligent research. Once you've identified the right coverage for your situation, it's essential to scrutinize the contract's details before making any commitments. It's your right to have a clear understanding of what is included. Additionally, be cautious of companies employing high-pressure sales tactics, and don't hesitate to seek clarification by asking questions.