Best Extended Car Warranty Companies in 2024 - Car Talk (2024)

• Written ByCraig Fitzgerald, John Goreham
• 4/19/2024

Extended warranty companies can range from honest, fair providers, to call center flim-flammers whose only goal is to separate you from your hard earned money. There are many excellent reasons to purchase an extended warranty, but identifying the reputable companies from the bad apples can be a hard challenge.

We found that the automobile companies’ own extended warranty contracts tended to be among the best. Based on our extensive research of third-party contract providers, we recommend CARCHEX or Endurance.

Our Methodology For Best Warranty Providers

Car Talk has spent the last two years diving deeply into the warranties industry for the benefit of our readership and long-time listeners. Our process for deciding on the best warranty companies is exceptionally thorough, involving in-depth research and our unique secret shopper initiative. We compiled over 700 data points across all reviewed companies to refine and inform our selection process. Car Talk reviewed the following important criteria for each company:

• Consumer Satisfaction: Cross referencing multiple trusted resources to pull our fair and balanced customer reviews.

• Cost: Utilizing our secret shopper initiative, we got comparable quotes across all companies so we can validly compare pricing.

• Coverage and Offerings: Our research team delved into the coverage and offerings for each company, comparing what is available, including extras and discounts.

• Official Ratings: We consulted a wide range of verified review sites to extrapolate a ratings score for each.

What is an Extended Car Warranty?

Everybody -- including us now -- is using “car warranty” incorrectly. The only car warranty that exists is the warranty your car came with when it was new. Everything else -- Literally everything else -- is a prepaid service plan. It’s not an “extended warranty,” no matter what these companies, or people like us who have to live by the vagaries of Google search optimization would like to call it.

With all that out of the way, what is a prepaid service plan? It’s a service contract, where you pay a monthly fee to avoid having to pay a huge bill if something really bad happens to your car when your original new car warranty runs out of time or mileage. Prepaid service plans will vary all over the place in terms of both time and mileage. Thinking of keeping your car to 120,000 miles? There are service plans out there that will cover you. Figure you’ll trade this car in at no more than 80,000 miles? You can find a service plan that will cover the gap between there and the end of your original warranty.

How these plans differ is the rules under which they’ll pay for a repair. Say your transmission falls out at 92,000 miles: Some of these plans are only affiliated with franchised new car dealerships, so you’ll have to have it towed to a dealer. Some plans will let you use any ASE-certified mechanic for a repair, so you can use the guy you like who happens to work out of a gas station in your town.

The plan that makes you use a dealership might seem like it’s at a disadvantage, but consider this: Those plans also require the repair to be performed by factory authorized technicians, using only OEM replacement parts. The plan that allows you to use your gas station guy might force him to select the cheapest replacement parts available, which you’ll be replacing again in a much shorter period of time.

That’s why reading the contract and understanding the advantages and disadvantages is so critical.

How Do Extended Car Warranties Work?

Extended car warranties are coverage policies that help cover the cost of repairs on your vehicle, after your factory warranty has expired. These policies consist of a monthly fee that is designed to give you peace of mind for the future health of your car. The idea is, should something fail on your car, the policy will then kick in and the cost of the repair will be covered, if that certain repair is covered in your contract.

A good car warranty is one that clearly explains what it’s going to cover and not cover long before you need to use it. At this point, we’ve read about 93,397 complaints about car warranty companies in our research on this topic. The complaints about “bad” car warranty companies come in two categories: The first is “They won’t stop calling me.” The second is “I thought my timing belt was covered but it wasn’t.” Frankly, if you didn’t know what was covered in the warranty, you should never have signed the contract. That’s on you.

In general, we’d choose a warranty provider using factory trained technicians and OEM parts before we chose anything else. If you’re within the strict mileage and year of manufacture caps on some of these service plans, they offer a much better product, with repairs that are going to last longer than those using aftermarket parts.

The other thing a good car warranty provides is additional services when you’re out of town. About the worst thing that can happen is a major automotive failure when you’re on the road with your family, loaded with a week’s worth of luggage, on your way to a vacation. You want an extended warranty that is going to get you on the road as fast and as cheaply as humanly possible with things like towing assistance, rental car coverage and even lodging if you need to stay overnight before you hit the road again in the morning.

What Does an Extended Warranty Cover?

First, stop reading and go back to the top of the section above this one and read it again: What’s covered in a warranty is only what’s detailed in the contract. Read the contract. Then read it again.

You also need to understand that there are two main types of warranties offered in the industry. Exclusionary policies and inclusionary policies. It may appear that they offer similar coverage, but they do so in dramatically different ways. This is why it is of vital importance that you read your contract thoroughly. An exclusionary policy lists the items that are NOT COVERED under the policy. Anything not listed under the list of exclusions is covered under that policy. An inclusionary policy, sometimes referred to as listed-item coverage, works the exact opposite way. These policies provide a detailed listing of what is covered. If something is not listed specifically in the policy, it is not covered under that plan.

In general, most warranty providers are going to offer several levels of service, and what’s covered in those levels of service varies wildly from plan to plan. A basic extended warranty will typically cover engine and transmission components, drivetrain components, transmission, cooling, steering, drive axel, brakes, AC, suspension, possibly hybrid and EV components.

What is Not Covered Under a Car Warranty?

At the risk of being repetitive: READ THE CONTRACT. It will detail exactly what’s not included in the plan. Also, remember the very significant difference between exclusionary and inclusionary policies. Exclusionary policies list what is NOT COVERED, while inclusionary policies list what IS COVERED. So, one more time, with feeling… Read your contract.

In general, there are categories of things that an extended warranty is never going to cover:

• Aftermarket Parts: This may come as a shock, but your extended warranty provider is not responsible for covering the Wu Tang War Whistle turbo you bought off of Amazon Prime for $59.95. Read your contract about what it will cover. Some aftermarket items may be covered, but don’t bet on it.

• Normal Wear Items: Tires, brakes, mufflers and windshield wipers are generally not part of the list of things an extended warranty is going to cover. That’s hugely problematic in 2021, when a set of factory 22-inch tires, brake rotors and pads can easily set you back $3,500. It stings even more when you’ve paid for a $3,500 warranty and you find out you’re still on the hook for 100 percent of the cost.

• Hybrids and EVs: Make sure you read the contract carefully if you’re attempting to cover your EV or hybrid. A LOT of extended warranty providers exclude a lot of repairs on EVs and hybrids. Again, it’s good to look to the manufacturer who built these things for coverage. You may be surprised to find out that the hybrid or EV components of your vehicle have coverage from your manufacturer to as many as 150,000 miles.

• “Exotic” Cars: Exotic is in quotes because most people don’t consider a BMW “exotic,” but quite a few extended warranty providers do. We researched one extended warranty provider that refused to cover anything from BMW, Audi, Jaguar, Land Rover, Porsche, Mercedes-Benz, or even some more expensive cars from American manufacturers, like the Corvette. That’s about 40 percent of the cars sold in the United States. Find somebody else.

• Emissions-Related Parts: This seems like a negative, but it’s not unless you’re driving something much older with a ton of miles. The federal government makes manufacturers cover most of the expensive emissions-related parts until 100,000 miles.

• Collision Repair: You’d be shocked at how many complaints we read from people who are mad that their extended warranty provider denied their smashed bumper cover. Wake up, people. An extended warranty isn’t a force field.

What is the Cost of an Extended Car Warranty?

Ah, that’s the eternal question and we’re providing a slippery answer: It depends.

There are simply too many factors to nail down exactly what a service contract or extended warranty is going to cost. In the table, we’ve provided some sample costs from research we’ve done, but we can’t cover every single car, every single plan and all the variables that impact cost, like the length or mileage of the contract, or the mileage on the car. The cost to you depends entirely on a bunch of unique factors, like the age of your car, the make and model, the mileage, the reliability of it, and the actuarial tables used by the warranty providers to determine the probability of the life of your vehicle.

The greatest cost advantage you’ll realize is if you’re buying a service contract at the time you purchased a new car. In general, the company providing the service contract is going to be more likely to cut you a deal on a service contract if your original warranty is still in effect. They’re also more likely to be less expensive if you’re attempting to buy a service contract for a one-owner, low mileage vehicle than something that’s had more owners than your local newspaper.

If we looked at an average cost for a warranty, you’re looking at around $1,400. The thing to consider, though, is based on surveys from consumer groups, the average savings for repairs paid for with a service contract only amounts to about $900. In other words, if you end up getting more repairs paid for than you paid in service contract fees, you’re kind of a rarity.

The Subaru Example

One of the few providers of extended warranties who doesn’t hide their pricing like it’s the formula for Coca-Cola is Subaru. You can view what Subaru charges here. We suspect these prices are similar to what you’ll end up paying if you find a quality extended warranty product for a similar vehicle.

What is a Fair Price for an Extended Car Warranty?

You’re going to read all kinds of nonsense elsewhere that will tell you that a warranty should cost around $1,500. If you can find a warranty that covers anything but a Toyota Corolla with zero miles for any more than two years and 24,000 miles, buy it. Most warranties are going to be WAY more expensive.

The staff and research team at Car Talk has now spoken with a good amount of players in the warranty industry. It appears that the average price across all categories, all make/models, all car types is roughly $3000. Again, this figure will depend on all the factors listed in the section above. Reliable cars will cost less, unreliable cars will cost more. Expect to pay significantly more if you are driving a luxury car, like an Infiniti or an Acura. Each provider has a number of plans, and payment options available, including monthly installments which make things easier on the consumer.

We took a look at what a bunch of random internet dopes told us they were quoted for a range of warranties, and whether or not they came with a deductible. There was ONE that was $2,000. All the rest were significantly more expensive. Warranties for cars like the BMW X5 are breathtakingly expensive, especially if you’re trying to buy one for a used car.

Are Extended Car Warranties Worth It?

As with everything, it depends. If you’re driving something with an exceptional reputation for reliability, you probably shouldn’t spend the money. However, if you’re driving something dodgy, you should’ve bought that service contract already. What are you waiting for? Your electrical system has already consumed itself.

The best thing to do is spend some time researching your car’s (or your intended car’s) repair history. There are services like RepairPal and CarComplaints that can give you a good idea of the potential trouble issues. You also want to research the cost of specific repairs. Your car might be generally reliable but prone to failures of the Engine Control Unit, which might be particularly expensive for your model. You’d want to know that before you make a decision on whether to purchase a warranty or not.

We found a Dear Car Talk letter with Tom and Ray that we think does a great job summarizing how you should decide whether an extended warranty is worth the extra cash. Here it is:

Dear Tom and Ray:

We just picked up a new Fiat 500C, and we were pondering the lifetime warranty. Before the car hits 10,000 miles, we have to decide whether to buy it. The cost is around $3,000. Is something like this worth it? We would like to keep the car for 10-15 years. Cheers!

Karl

RAY: Generally speaking, extended warranties are not worth it. Why? Because if insurance companies didn't take in more money from premiums -- overall -- than they spent on repairs, they would stop selling the things.

TOM: But that doesn't mean it's not worth it to you. Maybe you're buying a car with unknown long-term reliability? Hint: You are.

RAY: Or maybe you're someone who sleeps better knowing for certain that you'll never get a call from the service manager telling you that the estimate for your new engine is $6,400.

TOM: But there are two variables to consider. The most important is the fine print.

RAY: What does this "lifetime warranty" actually cover? Is it a complete extension of the factory warranty? Is it just the powertrain? Does it cover body hardware and electrical issues? What, specifically, is excluded? "Wear items," like brakes and shocks?

TOM: What's the deductible? Are there conditions you have to meet to keep the warranty in force? For instance, do you have to get your car serviced regularly at the dealership? Do you have to keep written records of all of your services and oil changes?

RAY: If you don't feel capable of doing a "close read" of the warranty's fine print by yourself, then it's worth paying an independent mechanic you trust to read it and go over it with you. You want to know what is and isn't covered. Your mechanic also can talk to you about how often he sees the kinds of repairs that are covered, and how often he sees those that aren't.

TOM: Once you know what kind of warranty you're actually buying, then you can try to guess the likelihood that you'll spend $3,000 on those kinds of repairs in the years that you own your car.

RAY: Also keep in mind that the price of the warranty is negotiable. Like most "parts," an extended warranty is bought by the dealer at one price, and sold to you at a higher price -- sometimes double. So you often can negotiate a lower price.

TOM: But don't do anything until you understand what the warranty actually covers. It may be a great warranty, with a low deductible and very few exclusions or requirements. And it may help you sleep well for the next 15 years.

RAY: Or it may have more holes in it than my brother's favorite underwear. And you may decide you're better off buying a second Fiat 500C and just driving whichever one is working on a given day. Good luck, Karl.

When to Consider an Extended Car Warranty

The biggest thing to consider when you think about buying an extended warranty is how much you could possibly cover if your car suffered a significant failure. According to the internet, half of Americans have less than $5,000 in liquid cash. A third of us have less than $1,000. As you can see in the “Cost of Service of a Modern Vehicle” section below. You can see that a thousand bucks doesn’t provide a lot of service if you really need it. But that’s not the only consideration when thinking about a service contract like this. You should ask yourself the following questions:

• How long will I keep this car? This is key. If you’re honest with yourself and you realize that you’ve never kept a car for more than four years, an extended warranty probably isn’t a good use of funds, unless the warranty is transferable, and you can use it as a selling feature if you’re going to sell the car privately.
• Do I have the money to fix something that’s broken? According to AAA, the average repair bill amounts to about $500, a figure that ⅓ of Americans don’t have the money to pay for. If you’re that person, you might be better off buying an extended warranty and spreading the cost of repair bills out over time. If you have the cash to cover a failure, an extended warranty is almost NEVER a good idea, especially if it’s one of the plans that don’t cover the repairs directly, but instead makes you pay for them and wait for a reimbursem*nt.
• Am I going to read the service contract? The biggest complaint about extended warranties is related to the fact that most people have ABSOLUTELY no idea what the hell they purchased. They need $2,000 worth of brakes and tires, and they’re shocked to learn that the extended warranty doesn’t cover it. This is your homework: If you want one of these plans, download the available sample contracts from the website and READ THEM. It’s vital to understand the exclusions in the extended warranty before you buy one.
• What kind of car am I buying? You can roughly predict how reliable your car is going to be by researching its history with services like Consumer Reports or CarComplaints.com. In general, if you’re buying a brand new vehicle with a stellar track record of reliability like a Toyota Prius, you’re less likely to require major services than you are if you bought a Nissan Sentra. One has an unbroken record of 5-star reliability rating, the other a one-star rating going back a decade. Car repairs on anything are going to be expensive. If you’re one of the few people who happens to be driving a Honda with a bad transmission, writing the check for five grand to repair it isn’t going to sting any less than if you were driving a BMW.
  
• Is my car covered under a new car or CPO warranty? You need to understand what protections you have already as part of a new car warranty or a certified pre-owned warranty before you purchase additional protections. Buying additional warranties on top of your original new car warranty is a bad use of your money. You typically have time to purchase an extended warranty if you’re buying a new car, so there’s no point in choosing one at the time of purchase, unless you’re insistent on rolling the monthly cost into your car payment (which is not a good idea if you’re also paying high interest.)
• Is the warranty transferable? There is some value in an extended warranty even if you do decide to sell the car before the warranty period is over, IF the warranty is transferable to the next owner. Usually the transfer comes with a nominal fee, but sometimes the warranty expires when ownership is transferred. Take a close look at the terms in the contract to understand the limitations.

There are more questions to answer in our “Should I Get an Extended Warranty” infographic.

Best Selection of Plans

If your car doesn’t fall into one of the brand-specific service contract companies, check out CARCHEX. They offer service plans for all brands, both new and used. They also have an A+ rating from the Better Business Bureau, meaning that they respond to whatever complaints they get, and they’re probably not hounding you on the phone late at night.

CARCHEX is a service contract broker, so within every tier of their coverage, they have several offerings from third party vendors that can meet your needs. For example, at the highest level, (Titanium Coverage) CARCHEX offers plans from six agencies that run from seven to 10 years worth of coverage.

That’s very important to understand. CARCHEX does NOT administer these plans. They only sell them. Several of the vendors in this list are going to be the same, but others are direct providers, meaning that they administer what they sell. All things being equal, we’d choose a direct provider over anything else. The not-so-hot part of the coverage is that the plan is a reimbursem*nt. Remember the health plan you had years ago that paid for nothing until you paid for it first, then you had to go through a labyrinthine procedure of filing claims with receipts and that whole deal? That’s kind of what’s happening here. It’s not the most convenient thing in the world, and you’re still going to have to pay for the repairs up front. To us, that really defeats the purpose of having an extended warranty in the first place. The whole idea is to AVOID paying for costly repairs, not to pay for them and hope some other company is going to cover them at a later date.

You’ve also got a paradox of choice going on with CARCHEX. They have 21 different plans ranging from Titanium, Platinum, Gold, Silver, and Bronze, and then down at the bottom somewhere Brass, Tin, Wax Paper, and Doublemint Gum Wrapper (we’re kidding about the last ones.) This makes it REALLY, REALLY DIFFICULT to figure out what one plan offers versus one of the other CARCHEX plans. Again, all things being equal, we’d choose a vendor with, oh, maybe SIX plans that are easy to understand. The number of plans alone makes it feel like you’re missing something, and you probably are.

In addition to the service contract coverage, the plans also provide some added benefits, such as:

• 24/7 Roadside Assistance
• Towing
• Rental Car coverage
• Gas Delivery
• Trip Interruption protection

CARCHEX Pros and Cons

For more in-depth information, read our full CARCHEX review »

#2. autopom!

Great Customer Service

autopom! (the exclamation point is part of the name, don’t blame us for terrible marketing) stands for “automotive peace of mind,” and claims to be protection from expensive auto repairs.

What’s important to note right up front is that autopom! is one of those extended warranty brokers, meaning that they don’t actually provide the services that you’re paying them for. Every one of its plans is administered by another company. The question you have to ask yourself is “Why would I pay money to this company, when the services are being rendered by yet another company?”

It’s a good question. You can look at any one of autopom!’s plans, figure out who administers it, and buy it directly through them, which cuts out the middleman. For example, if you look at the plans detailed, several are administered by Mercury. Why not just go directly to Mercury Insurance yourself and buy that plan there?

The answer is one part convenience and one part cost. Because autopom! is a very large client of the plans it acts as a broker for, it can offer you a plan for about the same cost that the plan’s creator will sell it to you directly for. This is similar to shopping for other consumer products. The manufacturer of an item may sell directly, but they try hard not to undercut the large retailers they work with as partners. Have you ever compared the prices of a smartphone from your cell service provider to the price of the same model from the manufacturer? The convenience part comes from these specialist brokers’ ability to quickly know which contract provider will offer which contract for your situation at the best price.

autopom! appears to have a fairly decent reputation on Yelp, as well as a strong profile on BBB with a 4.5 out of 5 rating with 40 reviews there.

It’s important to note that none of the plans autopom! offers are available in every state, and several of the plans are only available in California.

Depending on which contract you purchase, there are some side benefits to the warranty as well:

• Rental vehicle reimbursem*nt
• Emergency trip interruption reimbursem*nt
• Towing and Roadside assistance

autopom! Pros and Cons

For more in-depth information, read our full autopom! review »

#3. Endurance

Best Direct Service Provider

Endurance is the provider you’re likely to hear the most about because they spend a gazillion dollars marketing everywhere. If you’ve ever searched “extended warranty” in Google, these people have been following you around like they used to threaten you about your “permanent record” in junior high. Kidding aside, the Better Business Bureau posts a warning on its website about Endurance. However, the company’s practices seem to be improving. BBB has monitored mailers recently being circulated by Endurance Warranty Services, LLC and the most recent mailers appear to meet the BBB Code of Advertising.

Although Endurance isn’t accredited by the BBB, they have a solid 4.4-star rating with TrustPilot.

Unlike CARCHEX, Endurance is a direct provider, meaning that they not only sell the plan, but they also administer it, too. That’s a benefit that we can’t stress enough. In the business world, it’s known as “one throat to choke” when things go wrong. The same company that sold you the plan is the one that’s administering it, so a problem is less likely to turn into a circular firing squad.

Unlike some of the other providers, there aren’t 839 confusing plans to figure out. They have four levels of coverage: Select Premiere, Secure, Superior, and Supreme. The difference in those plans is how much the plan is going to cover. Secure, for example, appears to only cover what a Powertrain warranty would. As you step up the ladder, you get coverage on other ancillary services. Supreme appears to be a fairly comprehensive, bumper-to-bumper-style service contract.

If you're not exactly sure which level of coverage is right for you and how it may impact pricing, Endurance does a great job of making themselves available to answer questions. They can be reached at (855) 534-1173, or they have a chat function on the website that’s actually responsive and helpful.

Again, with a program like this, you’re going to pay for the repair up front and get reimbursed for the repair when you’ve submitted receipts, which, frankly, kind of stinks. If you’re going to have to have money available to pay for repairs, you might as well just put money in a savings account and not pay for an extended warranty, right?

One of the positives is that you can get your car serviced at any ASE-certified shop, which means you’re a lot closer to getting your car fixed if you’re in the middle of nowhere with a breakdown. That’s not an unwarranted concern. For example, if you are away on a ski vacation in the Great White North, towing the car all the way to a dealer is going to be a problem.

Other benefits to the program include:

• Roadside Assistance
• ID Theft protection
• A member rewards program
• Financing for repairs
• Concierge service for reservations, tickets, directions, and emergencies
• Key fob replacement
• Tire Repair/replacement

Endurance Pros and Cons

For more in-depth information, read our full Endurance review »

More Popular Warranty Companies

Toco Warranty Corp

A+ BBB Rating

Toco Warranty Corporation was founded in 2013 in California. This reputable company is backed by AmTrust Financial Services. Despite being a new kid on the scene, Toco has quickly built a solid reputation with an A+ rating from the Better Business Bureau. Customer reviews of Toco also run above average. On Yelp, the Toco reviews average to 3-stars and at BBB Toco has earned a 4.5-star average.

Toco is known for offering affordable plans with no down payment and the ability to pay monthly. They have plans to fit almost any budget out there. Toco is also one of the rare companies out there that provides coverage in California.

Additional benefits in all Toco plans include:

• Roadside Assistance
• Rental Car
• Trip Interruption
• Hotel and Motel Discounts

Toco Pros and Cons

For more in-depth information, read our full Toco Warranty review »

Mercury Extended Warranty

Mercury Insurance Company was founded in 1961 and provides a variety of insurance products to cover everything from your house to your car to your business. The company also offers mechanical protection policies, which are their offering for extended warranty coverage.

Mercury maintains has an A+ rating by A.M. Best and is the fourth largest automotive insurance provider in the state of California. The company features an A+ rating with the Better Business Bureau and offers additional benefits like roadside assistance and trip protection to all their plans.

Mercury Pros and Cons

For more in-depth information, read our full Mercury Extended Warranty review »

Select Auto Protect

Any ASE Certified Facility

Select Auto Protect has been in business since 2020 and has collected many excellent reviews and ratings since then. There are three coverage options available for policy holders. Select Auto Protect does not limit the number of claims that can be filed, which is a rare offering in the warranty industry. The company also offers a 30-day money-back guarantee and states that if a covered component can’t be fixed, they will replace it.

Select Auto Protect Pros and Cons

For more in-depth information, read our full Select Auto Protect Warranty review. »

Protect My Car

Protect My Car is a very reputable extended warranty provider in the industry. The company was founded in Saint Petersburg, Florida, and has been in operation since 2005. Protect My Car maintains very good consumer ratings and reviews. The company has established itself as a significant player in the game.

Protect My Car has garnered a stellar A+ rating with the Better Business Bureau, and excellent customer service reviews compared to many of their contemporaries in the extended warranty industry. The company offers maintenance plans for older cars and has tiered coverage options to choose from.

Protect My Car Pros and Cons

For more in-depth information, read our full Protect My Car review. »

CarShield Warranty

We provided a full review of CarShield, and it doesn’t fare very well compared to some of its competitors, mostly because its reviews on several review sites were dismal.

CarShield offers six different levels of coverage (Diamond, Platinum, Gold, Silver, Aluminum, and coverage specific to Motorcycles and ATVs). The difference in coverage is mostly the exclusions. The Diamond level of coverage has the fewest exclusions, while the Aluminum level has the most, meaning that a Diamond plan would theoretically cover more potential service failures than the Aluminum would.

Again, CarShield is a broker of these plans, not the company that’s actually going to administer them. To us, that’s a negative. There’s not much reason to buy a warranty from a broker, when the companies that provide those warranties are clearly spelled out in the company’s product offerings. CarShield is located in St. Peters, Missouri, but all of the warranties it offers under “Diamond” level protection are administered by American Auto Shield, located in Lakewood, Colorado.

Depending on which level of service you select, CarShield does provide some additional benefits:

• Roadside assistance
• Car rental reimbursem*nt
• Trip interruption reimbursem*nt

CarShield Pros and Cons

For more in-depth information, read our full CarShield review. »

Additional Extended Warranty Providers

Ally Financial

Before the Federal Government’s bailout of General Motors, Ally used to be called GMAC and was GM’s captive finance company. After the bailout, GMAC was spun off into a new company called Ally, and when it was, it launched its own service contract offering (GMAC used to administer a similar plan to the GM Extended Protection Plan

It’s a bit of a hybrid because Ally isn’t manufacturer-dependent. You can cover just about any car with Ally. It’s also important to note that it’s a reimbursem*nt plan. If something fails that’s covered by the plan, you submit the receipts and Ally reimburses you for the expense.

If other plans are like collision insurance, think of Ally like an HMO. If your car breaks down, you have to contact Ally to receive authorization before the work can begin. You then submit your invoice to Ally and they reimburse you for the expense.

While not as convenient as some of the other plans, there are a handful of benefits to consider. You aren't restricted to using a dealership’s service department. As long as the repair has been authorized, you can use any mechanic you like. If you have someone you trust in town and the dealership is three towns away, that can be a great benefit. It also provides the use of new, used and remanufactured parts.

The thing we like best about Ally is that the plans are very clear cut, and the contracts contain the specifics for every plan that Ally offers, making it much easier to figure out what’s covered and what’s not by any given plan.

What’s difficult to figure out with Ally is if anybody likes it. As we mentioned, Ally is a massive corporation. It’s real bread-and-butter is auto financing, so when you go to the Better Business Bureau or any rating agency, all -- and we mean ALL -- of the complaints are about people who defaulted on their car loans being harassed to pay their monthly note or run the risk of having the car repossessed. NONE of the hundreds of complaints we read had anything to do with the extended warranty program.

Like the other plans, there are also some significant side benefits to Ally Flex Coverage:

• 24/7 Roadside Assistance
• Rental Vehicle Coverage
• Trip Interruption Prevention (not available in Kansas)

ALLY Pros and Cons

For more in-depth information, read our full Ally Financial review »

Chrysler Warranty Direct

If you’ve got a Stellantis brand vehicle (Chrysler, Dodge, RAM, Wagoneer, Jeep, Alfa Romeo, Fiat), you should be taking a serious look at Chrysler Warranty Direct before you even consider any other service contract provider.

CWD is an example of a provider that includes all three of our key attributes. They’re a direct provider, meaning that while they’re selling you a contract, they’re also administering the contract when things have gone wrong with your vehicle. Chrysler Warranty Direct also utilizes nothing but OEM parts to service your vehicle, meaning that when it leaves the garage, it will have the same quality parts it left the factory with. Finally, all of the work performed is at authorized, franchised FCA dealerships, by technicians trained by the manufacturer.

Finally, all of the work performed is at authorized, franchised FCA dealerships, by technicians trained by the factory.

CWD has three tiers of contracts. Its most basic plan is called powertrain plus and focuses on about 350 parts of your engine and transmission. Added Care Plus covers over 850 different vehicle components, and you can adjust the term from two to two to eight years, and mileage from 60,000 to unlimited. Maximum Care offers the same flexibility in time and mileage, but covers significantly more, with 5,000 components covered, replicating the factory’s original bumper-to-bumper coverage.

In addition to vehicle protection, the plan also provides several other benefits:

• Towing and Roadside Assistance – 24 hour “Sign & Go” towing and roadside assistance also includes flat tire change, vehicle lockout service, and out-of-gas fuel delivery.
• First Day Rental - $35 first day rental allowance in case you need a rental car.
• Rental Car Allowance – Beyond the first day, the plan covers $35 per day for a maximum of five days.
• $1000 Trip Interruption Coverage – If you’re on the road and your car breaks down, the plan reimburses you for meals, lodging, and transportation expenses up to $1000.
• One Time Plan Transfer – If you’ve purchased either plan, you can transfer it to the next owner for a nominal transfer fee.

You can also adjust the length of time and the deductible to reduce the monthly cost. The second tier of the service contract is as robust as the original warranty and provides bumper-to-bumper coverage for years after the original warranty runs out.

Chrysler Warranty Direct Pros and Cons

For more in-depth information, read our full Chrysler Warranty Direct review »

GM Extended Protection Plan

Similar to the Chrysler warranty, GM Extended Protection Plans cover GM vehicles (Chevrolet, Buick, GMC, and Cadillac) and extend the coverage of the bumper-to-bumper warranty up to 10 years. GM administers this plan, but the plans are sold through authorized resellers and franchised GM dealerships.

With a GM Extended Protection Plan in place, you don’t need to carry paperwork or special membership cards. Using your vehicle identification number, any authorized GM dealership in the country can access your plan level and provide services using their factory-trained technicians, and service your vehicle with GM-specific parts.

The plan comes in two levels, Silver and Platinum. Silver is an affordable plan that covers major components like the engine, transmission, transfer case, drive axles, factory-installed turbo- or superchargers, steering components, brake components, electrical system components, factory air conditioning components, and seals and gaskets.

Platinum offers everything in the Silver plan, but adds essentially an extension of the factory’s bumper-to-bumper coverage, protecting you from expenses related to failures in items like the entertainment system, rear vision camera, blind spot monitoring system, adaptive cruise control, and anything else that isn’t a normal wear item.

In addition to vehicle protection, the plan includes several built-in benefits:

• Rental Car Coverage – Up to $40 per day, with a maximum benefit of $280 per repair visit.
• Towing and Roadside Assistance – Up to $150 per occurrence.
• Trip Interruption – In breakdowns that occur more than 100 miles from home, the plan reimburses you up to $200 per day for meals and lodging, with a maximum of $800 per occurrence.
• Lost Key and Lockout – If your keys are lost, stolen, broken or locked inside the vehicle, the plan reimburses up to $35 for locksmith services.

GM Extended Protection Plan Pros and Cons

For more in-depth information, read our full GM Extended Warranty review »

Olive (A Repair Ventures Brand)

Olive is a company which offers mechanical breakdown insurance coverage (a.k.a. An extended warranty). Olive is part of Repair Ventures, the company that also offers contracts under the name TriStar. Olive is a legitimate company in business for over a decade that has solid credentials.

Repair Ventures is rated A+ by BBB and reviews posted there have an average of 4.5-stars, though that rating is based on very few reviews. We dug into the BBB complaints and noted quickly that almost all of them were responded to by Olive with a statement that reads, “Olive sells mechanical breakdown insurance to consumers for their automobiles. Please note that Olive is not the coverage administrator of the mechanical breakdown insurance and does not therefore review, grant, or deny claims.” So add Olive to the long list of brokers that sell you something and then point to others when things go sideways. This example epitomizes why Car Talk harps on the difference between a contract provider and a broker.

Olive offers three tiers of coverage similar in most ways to the programs other similar companies offer. Powertrain is bare bones and covers very few things. Powertrain Plus is similar to your vehicle’s powertrain warranty with a few added protections like your AC compressor and alternator. Complete Care is the most comprehensive and most like a bumper to bumper warranty. Be sure to read your contact closely for details on what is, and what is not, included.

Olive partners with RepairPal to provide repairs. That’s great if you don’t already have a trusted mechanic, or want your brand’s dealer to work on the car. It’s bad if RepairPal isn’t local to your driving area. Olive also allows you to use an ASE-certified repair shop of your choosing.

Like Car Shield, Olive offers a subscription-based payment plan. You pay about $130 per month for the top tier plan, or less for the plans that offer less coverage.

Olive Pros and Cons

For more in-depth information, read our full Olive Warranty review »

ForeverCar

ForeverCar is one of the most unique companies on Car Talk’s list of service contract providers. Unlike almost every company of this type, ForeverCar does have a plan that includes a list of wear items. Also, ForeverCar wants to be more than just a place that argues with you about a bill after you need a repair. The idea is that you rely on ForeverCar for a lot more.

ForeverCar’s pitch is that you call them when you break down or need something fixed and they sort of “take it from there.” They even suggest where you should take the vehicle for the needed service. Like almost all plans, emergency towing and rental car coverage can be part of your contract.

There are four plans offered by ForeverCar, and our analysis of what is offered impressed us. Particularly the Platinum Plus plan. Here’s how they break down in summary form:

• Platinum Plus - Almost everything including a handful of “wearable” items. This is the contract most similar to a bumper to bumper warranty, but has some notable exclusions such as CV joints and suspension components.
• Platinum - Like Platinum Plus but without the added wearable items.
• Gold - Perfect for those that don’t want the full whammy, but can afford more than basic.
• Silver - Protects a specified list of components in many areas such as: Engine, Transmission, Steering, Front Suspension, Brakes, Electrical and A/C.

We were happy to see that ForeverCar earned an A+ rating from the Better Business Bureau. A handful of Google Reviews averaged 3.4-stars. Many of the most recent were positive. If you are looking for a vehicle service contract company that breaks the mold a bit, ForeverCar is worth checking out.

ForeverCar Pros and Cons

For more in-depth information, read our full ForeverCar Warranty review »

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