Many third-party, extended auto warranty companies have a bad reputations when it comes to customer service and processing claims.
Autowarrantyreviews.com has made it easy to compare the top auto warranty companies.
This will help make picking the best company for you easier.
However some companies offer low monthly payments and some don't.
According to a study taking out a warranty on a month to month payment plan might seem like the more affordable option but if you were to add up all the payments it comes out to be 40%-60% more expensive
compared to paying for the warranty upfront.
If paying for the warranty up front is a option for you that will guarantee you are getting the best price possible.
The industry is made up of companies that are brokers and companies that are a direct administrator.
We recommend going with a company that is not a broker. Brokers are not able to prosses claims inhouse and if you ever needed to submit a claim it would be outsourced to a 3rd party company.
So make sure to ask the company you are interested in if they are a broker. If they are we recommend you keep shopping around.
Going with a company that is the direct provider will guarantee better service and quicker processing of claims.
The price will vary based of the value of the vehicle you are trying to get a warranty for. Average price per year runs anywhere from $400.00-$700.00 per year on economical cars. High end vehicles will be in the $600.00-$1,000.00 per year range. It all depends on the cars KBB value at the time of enrollment. Most companies offer Discounts so if you are a senor or a veteran/military personnel make sure to mention that it might save you a lot of money .
It's important to note that no aftermarket warranty covers breakdowns due to accident .The Regular maintenance such as oil changes ,Brake pads and tires are also the customers responsibility. All new auto warranties policies usually have a waiting period before the warranty goes into effect and consist of a certain amount of time to wait and miles to drive in order to activate the auto warranty.
Most the companies offer 3 different levels of warranty protection .The lowest being power train and the best being bumper to bumper. The amount of miles your vehicle has will determine what plan you qualify to get .Not all vehicles can get the top plan and it is usually offered to vehicles with 100,000 miles or less . If you have over 100,000 miles you will probably be offered a power train plan that will cover all the big ticket items such as the engine and transmission . If you want to make sure you get the best plan it is important that you set something up before you go over the 100k mark on your odometer
If you ever run into a break down or need to get repairs done .Most auto warranty companies pay the mechanic directly .You will need to contact your warranty provider in order to open a claim .The warranty company will ask your shop to reach out as soon as they know what parts are needed to perform the repair. The warranty company will contact your shop with the approval or denial of the repair .Assuming it is something that is covered the shop typically gets paid with a credit card over the phone .If you go with a broker they might make you pay first then get reimbursed by the warranty company . That can take a while resulting in the shop not wanting to release the vehicle until they get paid .That is why we recommend going with a company that is the direct administrator it allows the shop to get paid upfront and in full resulting in a much better experience for the customer .
Most warranty companies offer coverage to vehicles that are no more than 10 years old and have under 130,000 miles .If the vehicle has a salvaged or a rebuilt title you might also have a hard time getting a warranty .Most warranty providers also state that if the car is used commercially or has commercial plates that would also not qualify for the warranty service .
All the companies we feature offer a 30 day full money back guarantee. Some companies will offer prorated refunds if you ever need to cancel in the middle of your warranty agreement. There might be a fee and the refund will be based on the amount of time the warranty was used and how many miles were driven. Most companies also offer the option to transfer the warranty to another vehicle .In the event that you are selling the vehicle you should have the option to transfer it to the new owner as well . This will help make the sale and will also raise the value of your car.
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