Are Used Car Warranties Worth It – Editorial Note: This content has been researched and created by a team of experts. The links in this article may result in us receiving a commission, but will not affect our advice or recommendations. Learn more
We compare used car warranties in terms of price, coverage and other benefits to help you decide which one is right for you.
Are Used Car Warranties Worth It
Best coverage 4.6/5 Price: Several discounts available Coverage: 6 plan options, from routine maintenance to full coverage Reputation: Smooth claims experience as a direct provider
Used Car Warranties: 5 Things To Know
Best monthly payments 4.5/5 Price: Flexible monthly contracts Coverage: 6 plan options, some with up to 300,000 miles Reputation: Most popular warranty provider
Best for Used Cars 4.4/5 Price: No down payment required Coverage: 6 plan options, highest similar to manufacturer’s warranty Reputation: Strong Better Business Bureau (BBB) rating
Used car warranty companies promise to cover repairs as cars age, but not all of them follow through on that promise. That’s why our review team spent over 1,475 hours researching dozens of companies through mystery shopping, customer surveys, analyzing reviews and comparing car quotes.
In this article, we reveal our recommendations for the best used car warranty companies. These providers have the best extended car warranties thanks to their claims reputation and wide range of coverage plans.
Best Extended Car Warranty Companies (july 2023)
Why You Can Trust We’re committed to providing car owners with the well-researched and verified information they need to make the right decisions about car warranties. Our team analyzes provider offers and customer information so you can feel empowered to make the best choice.
Before diving into our list of the best used car warranty companies, it’s helpful to understand some basics about how the industry works.
Car companies offer extended warranties on used cars, but they can usually only be purchased before the factory warranty expires. Another option is to consider a reputable third party vehicle service contract provider such as Endurance, CARCHEX or CarShield.
If you’ve bought a used car before, the dealer probably offered you extended coverage. There are many independent coverage providers that work with car dealers to sell used car warranty plans. We recommend avoiding these companies as the dealership is usually a difficult place to compare your coverage options.
Factory Warranty: Everything You Need To Know
Used car warranty companies offer multiple plans that cover different lists of vehicle components. Below are the three main types of coverage you’ll find:
Even with a used car, you’ll likely qualify for a bumper-to-bumper warranty from most third-party providers. Note, however, that many people looking for used car warranties consider listed component coverage instead of full bumper-to-bumper coverage.
The best used car warranty for your vehicle depends on the car model and your budget. A bumper-to-bumper contract covers most parts, so it may be the best option if you want to make sure everything is covered. However, those with some older vehicles may want to save money and get an affordable powertrain plan instead.
Please note that warranties are intended to pay for car repairs when car parts break down or fail due to normal use. This means that the used car warranty will not pay for damage caused by a traffic accident, bad weather or lack of maintenance. Providers also exclude damage covered by insurance companies and worn parts such as brake pads, wiper blades and tires.
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Most extended car warranty plans come with additional benefits beyond the repair contract. These typically include roadside assistance, rental car coverage and trip interruption. In most cases, you will have to cover these costs yourself and submit receipts for reimbursement later.
In our experience, most used car warranty companies offer all three benefits under listed component and bumper coverage contracts. Some offer all three with powertrain plans, while other companies may only offer roadside assistance.
A used car warranty can cost anywhere from $1,500 to $4,000 depending on the provider, coverage plan, and length of period. Some companies require you to pay the entire cost up front, while others allow you to make monthly payments of around $100-$200 per month. Some companies require a down payment of up to $300 in addition to the monthly payment.
Our research team surveyed 1,000 consumers who either purchased or were considering purchasing an extended car warranty. Warranty cost, duration and covered components were the most important factors for consumers when considering purchasing an extended warranty.
Used Car Warranties
Our team collected over 1,800 data points on 46 extended warranty companies to find the best providers. We communicated with customer service agents and received quotes for various warranty plans and terms. We also conducted multiple consumer surveys to find out what people want and have experienced in an extended warranty company. Throughout the year, we refresh our data and update our ratings to keep recommendations current.
If you buy an extended car warranty, you need to know that the company covers claims for covered repairs. Our team looks at the company’s proven reputation in the industry, its expert recommendations and its overall business practices. We also record whether the provider has won business or consumer awards in recent years.
Companies that offer more than three extended warranty plans, different durations, and other useful benefits do well in this category. With multiple plans to choose from, you can customize your coverage to better suit your needs. Other benefits we look for include roadside assistance, rental car coverage and trip interruption benefits.
Our research team checks quotes for different coverage plans and vehicles. We consider plan length and mileage, what’s included, monthly cost, deductibles, total cost and average cost per year of coverage. For our 2023 cost evaluations, we received more than 140 individual plan prices from various extended car warranty providers.
Best Extended Car Warranty Services 2022
This score takes into account the transparency of the contract and the availability of a money-back guarantee. Some companies make it difficult to get sample contracts online and see what the plan includes, while others make this information readily available. We recommend that you read and understand the contract carefully before signing the warranty.
We dig through customer reviews and conduct mystery shopper analysis to get a sense of where each warranty company is willing to respond and help. Our team notices patterns in positive and negative reviews to see what the company is known for. Does the company make it difficult to cover a claim or guide customers through the entire process?
The best used car warranty companies offer several coverage options, affordable prices, and a great customer experience. See the table below for a comparison of the best used car warranty providers:
CARCHEX has been in business since 1999, has an A+ rating from the Better Business Bureau (BBB) and partners with industry leaders such as Edmunds.com and Kelley Blue Book. With coverage for vehicles up to 250,000 miles, CARCHEX is one of the best options among used car warranty companies.
What Is A Manufacturer’s Warranty?
Pros A reputable company with a long history Most plans come with additional benefits Affordable coverage 30-day money-back guarantee
CARCHEX partners with highly rated administrators like American Auto Shield to offer plan options that last up to 250,000 miles. The following extended warranty plans are available from CARCHEX:
Each of these coverage plans comes with benefits such as 24/7 roadside assistance, towing services, car rental reimbursement and trip interruption benefits.
In our experience, CARCHEX offers affordable plans that can run for a long time and many kilometers. The average cost of a warranty from CARCHEX is about $638 per year, which is more affordable than many other companies. The company’s plans don’t require a down payment, so coverage starts with a standard first-month fee.
Best Extended Car Warranty Companies Of 2023
When we asked for quotes, the CARCHEX agents were helpful and walked our team through all the options. Although the discounts are not advertised online, we were offered a few:
CARCHEX has five customizable extended warranty plans, excellent customer service and great added benefits. We recognize CARCHEX as the best for used cars.
Endurance stands out with comprehensive extended coverage options. You can choose between five standard warranty plans or a sixth plan that also includes regular maintenance items. Endurance is also a direct provider, meaning it handles the warranty claim process itself instead of using a third-party administrator.
Endurance offers extended used vehicle warranty plans in every state except California. The Endurance extended car warranty can cover up to 200,000 miles and you have access to six plans with different levels of coverage:
Used Car Warranty: Is Extended Coverage Worth It? (june 2023)
Additionally, the Highline add-on for Supreme coverage offers protection to a variety of luxury and high-performance cars. The Mercedes AMG range, BMW M and 8 models, and various Porsche and Audi vehicles are some that qualify for Highline coverage.
Endurance offers standard warranty benefits such as roadside assistance, towing services, rental car coverage and trip interruption benefits. However, all plans also come with one year of free Endurance Elite benefits such as tire repairs and replacements, key fob replacement, collision discounts and full loss protection.
Like CARCHEX, Endurance offers fairly affordable plans with an average cost of $640 per year. While the offers we received required a down payment of between $150 and $300, the Endurance agents offered
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