Best Car Warranty Companies

If you’d like aftermarket car warranty coverage, shopping for quality options and determining the best warranty provider for your needs can be difficult. While reputable extended car warranty companies can offer decent coverage at good rates, some extended car warranties are little better than warranty scams, taking customers’ money and failing to provide adequate service.

If you know what to look for in a service contract, you have plenty of excellent options for coverage. We typically consider the following five categories when evaluating the best extended car warranty providers.

Industry Standing

Why it’s important: Industry standing is an excellent way to check whether a company is a fraud or legitimate. Our team recommends looking for extended warranty companies that have partnered with other trusted companies and that regularly win industry awards.

How to check: One place to start is the Better Business Bureau (BBB). The BBB rates a provider based on how it resolves customer complaints, the transparency of its business practices, and any known licensing or advertising issues. We also recommend looking into how long a warranty provider has been in business and how many states it serves.

Coverage

Why it’s important: If you are going to spend upwards of $1,000 on an extended warranty, it’s important that your most essential vehicle parts and components are covered.

How to check: Any reputable extended car warranty provider will allow potential customers to review sample service contracts to verify what the warranties cover. These contracts list exactly what is or isn’t covered by the warranty. Carefully read the full list of coverage and exclusions of any extended car warranty before you purchase it.

Cost

Why it’s important: If you want your extended warranty to help you save on repair costs, you need to find the best coverage plan at the lowest possible cost.

How to check: Most extended warranty providers offer easy-to-use quote tools online. In some cases, you may have to call to request pricing. Most providers also offer payment plans, though some may require upfront payment in full.

Transparency

Why it’s important: Any provider that makes coverage details difficult to find should raise eyebrows. Providers should be upfront about contract information – it’s a bad sign when a provider tries to hide important coverage details from its customers.

How to check: Companies that have a good BBB standing and post sample contracts demonstrate a high level of transparency. If you have difficulty finding contract details or even receiving a quote from a provider, this should be a red flag.

Customer Service

Why it’s important: Any extended warranty is only as good as the service it provides when it comes time to file a claim. The worst extended car warranty companies have slow claims processes and regularly look for excuses to deny claims.

How to check: Look at a company’s BBB page, which lists customer reviews and complaints. You can also check websites such as Trustpilot to see what customers are saying. Keep in mind that even the best extended warranty provider is bound to have its fair share of complaints. However, providers with an especially high volume of complaints and few positive comments should be met with skepticism.

1. Endurance: Best Coverage

Years in business: 17

BBB rating: N/A

Provider type: Direct 

Formed in 2006 and based in Northbrook, Illinois, Endurance has grown into one of the largest competitors in the extended warranty market. It’s a well-known direct provider backed by an AM Best A-rated insurance company and holds a place on the 2020 Inc. 5000, the most prestigious ranking of the nation’s fastest-growing companies.

Below are some pros and cons of car warranties from Endurance:

Endurance Customer Reviews

The extended warranty company has a 3.9-star “Great” rating on Trustpilot based on over 6,000 customer Endurance warranty reviews. It has a 3.6-star rating from customers on the BBB based on more than 1,800 reviews. The BBB itself does not currently have a rating for Endurance.

Endurance Warranty Claims

Endurance is great for motorists who want a quick and easy claims process. The reason it’s one of the best extended car warranty companies is that, unlike most competitors, Endurance is a direct administrator of its warranty plans. This means it handles all claims directly, so there’s no go-between involved when filing claims.

Not only can this speed up the process of filing a claim, but it also simplifies the entire customer experience. Because you communicate directly with the Endurance team at every possible touch-point, you won’t be wondering who you should contact for what issue. 

You can connect with Endurance directly for a quick and easy claims process or any other customer service issue over the phone or online. The provider streamlines the direct experience even further with the Endurance Mobile App, which allows customers to conveniently access benefits like roadside assistance from virtually anywhere. 

Endurance Prices And Coverage

Endurance offers six levels of auto protection that can last up to 8 years/200,000 miles, according to our secret shopper analysis. Quotes we received show that Endurance plans range from $107 to $163 per month, which is on par with the industry average. The specific rate you pay will depend on your vehicle, plan, and the level of deductible you choose. 

Below is a summary of each Endurance warranty plan:

2. ForeverCar: Best Value

Years in business: 11

BBB rating: A+

Provider type: Broker

Founded in 2011, ForeverCar boasts some of the strongest online reviews in the extended warranty industry. The company has partnerships with Carvana, The General, American Family Insurance, and Safe Auto.

There are four coverage levels to choose from, all of which have no mileage limits. ForeverCar plans are available for vehicles up to 10 model years old. One area where the provider stands out is with how it transparently provides customer information on its website, where contracts are easy to find and simple to understand. 

Below are pros and cons of ForeverCar:

ForeverCar Customer Reviews

Customers on the BBB give the company only 1.8 out of 5.0 stars, but that rating is based on just five reviews. Most complaints on the BBB involve misunderstandings of what parts are covered, which illustrates the importance of reading the fine print on any vehicle service contract.

ForeverCar Cost And Coverage

The ForeverCar warranty quotes our team received for a 2017 Honda CR-V with 45,000 miles all came out to around $50 per month for 36 months. In our experience, getting a quote from the company was fast and easy. All we had to do was answer a few basic questions to see car warranty costs for multiple plans. We found very affordable monthly payments and total costs from the company.

ForeverCar also keeps things simple and offers unlimited-mileage plans for three-year contracts. The company offers four plans and can cover vehicles up to 10 model years old.

Here’s a further look into the different coverage levels offered by ForeverCar:

3. Olive: Best Online Warranty

Years in business: 23

BBB rating: A+

Provider type: Broker

We give Olive 4.5 stars overall and recognize it as the Best Online Warranty for how easy it is to purchase plans and manage claims online. Having compared many different warranty websites, Olive’s site felt the most modern to our team, as it’s organized and makes comparing coverage easy. It also features an online chatbot that is genuinely helpful to customers and populates some good questions to ask as it helps out.

Olive was founded in 2000 but only began selling its warranty plans online in 2020. We found that the provider generally has affordable plans and a great deal of transparency in regard to what’s covered by each warranty option.

In addition, Olive has a solid reputation, with an A+ rating and accreditation from the BBB. Olive partners with companies like Consumer Affairs and auto repair estimator RepairPal and has been a sponsor of the NHL’s Anaheim Ducks.

Below are some pros and cons about Olive warranty:

Olive Warranty Reviews

Customers on the BBB give Olive 3.4 out of 5.0 stars, although that rating is based on just five reviews. The company has responded to every complaint from customers on the BBB as well. 

Positive Olive reviews focus on the ease of the claims process and the ability to quickly compare coverage levels on the company’s website.

Olive Warranty Cost And Plans

Olive offers three levels of coverage, ranging from bumper-to-bumper coverage to powertrain protection. We found average or lower rates when we gathered quotes from Olive. Total plan costs for a 2017 Honda CR-V with 45,000 miles ranged from $898 to $2,382. The monthly payments we were quoted ranged from $25 to $66 for 36-month terms. Olive offers deductible options of $100, $250, and $500.

Below is a summary of each Olive warranty plan:

4. CarShield: Best Monthly Payments

Years in business: 18

BBB rating: D

Provider type: Broker

CarShield has been in business since 2005 and has the largest market share as far as used cars are concerned. Because of its vast number of reviews and significant market presence, CarShield is one of the most popular extended warranty providers.

CarShield sells plans from multiple providers, including American Auto Shield, and operates as the liaison between the customer and a warranty company. Though CarShield doesn’t administer its own plans, it works with top-rated distributors for customer service and claims. When customers file a claim with CarShield, repairs are paid directly to the repair shop. 

Below are some pros and cons of getting a warranty through CarShield:

CarShield Reviews And Complaints

CarShield has an average rating of 4.0 out of 5.0 stars across more than 36,000 Trustpilot reviews and 4.2 out of 5.0 stars averaged from more than 13,000 Google reviews. Unfortunately, a look at the company’s BBB page shows over 3,000 complaints filed in the last three years. But considering it sold over one million vehicle protection plans in the same time period, the rate of complaints is relatively low. 

There is also a BBB alert against CarShield, so make sure you understand that you aren’t talking to a dealer or manufacturer when you speak with a CarShield representative, and always read the fine print before signing any type of contract.

CarShield Plans

CarShield plans can cover up to 300,000 miles, which is the highest limit in the industry. The company offers six levels of coverage:

5. CARCHEX: Best For Used Cars

Years in business: 24

BBB rating: A+

Provider type: Broker

CARCHEX is one of the most well-known and reputable extended car warranty companies in the industry. Established in 1999, CARCHEX has an A+ rating from the BBB, BBB accreditation, and numerous endorsements from trusted brands like Kelley Blue Book, CARFAX, RepairPal, and Edmunds.com.

Sample contracts are available on the company’s website, and though the contracts are long (14 to 34 pages), CARCHEX representatives will walk you through them to help you understand what is and isn’t covered.

Overall, we found that CARCHEX is a good option for vehicle owners who already have a preferred mechanic or auto repair facility, as the company has a large, nationwide network of approved service providers. Vehicle owners don’t have to go through lengthy claims proceedings. Instead, the auto shop can file the claim directly with CARCHEX, saving you a lot of time and stress.

Check out some pros and cons of CARCHEX:

CARCHEX Warranty Reviews

CARCHEX has an A+ BBB rating and accreditation, and it’s endorsed by several industry leaders. The company has also received numerous awards for outstanding customer service, including:

• TopConsumerReviews.com 5-star rating for six consecutive years
• BestReviewsHub.com Best Choice Award for four consecutive years
• Golden Bridge Awards® “Silver Status” for three consecutive years for customer service

When it comes to customer service, the provider’s No-Haggle, Low-Price, Everyday Guarantee™ differentiates CARCHEX from competitors. The company aims to provide the best possible experience with clear coverage and pricing details, you aren’t pressured to buy, and your questions are fully answered. It’s an experience that can be hard to find in the car warranty industry.

CARCHEX Customer Service

CARCHEX has a no-pressure signup process and generally low prices. You can call the company any time and be sure you’ll get a clear explanation of pricing and coverage terms, without a pushy salesperson on the other end.

The contracts and plans for the different levels of coverage that CARCHEX offers are long and rather confusing, but a representative can walk you through them, which is a major help. If you’re not satisfied with your warranty plan within the first 30 days, you can cancel it and receive a full refund as part of CARCHEX’s 30-Day Money-Back Guarantee.

CARCHEX Warranty Coverage

CARCHEX has five tiers of coverage:

How To Find The Best Car Warranty Company

Below are the steps to take to get an extended warranty for your vehicle:

1. Research different car warranty providers
2. Find the best coverage for your car based on your budget and needs
3. Compare coverage plans from the providers you’re interested in
4. Ask all of the questions you may have about your extended warranty before purchasing

How To Avoid Car Warranty Scams

Unfortunately, some providers take their business practices to new lows and are outright scams. Here are a couple of ways to avoid these companies:

Recognize Unreliable Companies

Outside of these phishing scams, there are vehicle warranty companies that will make it difficult to get the coverage you’re paying. Red flags you should look out for when vetting an extended warranty company are a lack of industry endorsements, major limitations in coverage, and poor ratings on popular review sites.

The BBB lists consumer complaints on its site, so that’s a great place to start. Ideally, you’ll want to look for a company with a relatively low volume of complaints.

Disregard Spam Calls

The Federal Communications Commission (FCC) reports that there are a number of car warranty scams in which a car owner will receive a sales call that states their warranty is about to expire. During these calls, the scammer may pose as an employee from a legitimate company and may even be able to provide specific information about the receiver’s car, further deceiving the receiver into believing the call is from a reputable business.

However, the caller is generally phishing for personal information, so do not provide any sensitive information. If you believe you have been contacted by one of these scammers, you can report it to the FCC.

When it comes to purchasing an extended warranty from a car dealership, 65 percent of consumers we polled trust this process, and 7.6 percent specified that they completely trust in a dealership extended warranty. However, 16 percent of respondents don’t trust purchasing an extended warranty from a car dealership, with only 0.6 percent who don’t trust it at all.

From this data, we can generalize that slightly more consumers have trust in purchasing an extended warranty from a car dealership than from a third-party car warranty company.

It’s important to note that 55.8 percent of respondents polled said that they have never purchased an extended warranty from a third-party extended warranty company. This means that they either chose to purchase from a dealership or chose not to purchase a vehicle service contract.

Manufacturer-Backed Extended Warranties (Dealers)

All new cars leave the dealership with a factory warranty. If you enjoyed the level of vehicle protection that you got from your manufacturer’s warranty, there is the option of buying an extended warranty directly from the carmaker.

Most car dealers and manufacturers offer their own extended warranty options. But typically, extended manufacturer warranties are only available for purchase before a car’s original warranty expires. They are typically less extensive than the bumper-to-bumper warranty and powertrain coverage you get during the first few years of a car’s life, but they do cover many parts. One upside is that repairs are guaranteed to be made by factory-trained technicians using original equipment manufacturer (OEM) parts and accessories.

That said, extended warranties from the dealer tend to come with a higher price tag than a third-party option, so it’s a good idea to try to negotiate the price. You also don’t have as much room to customize your coverage plans. Always be sure of what will and won’t be covered before purchasing an extended warranty from your dealer. Many manufacturers drop coverage soon after your car reaches 100,000 miles.

When you purchase a contract from a dealer, you’re also limited with where you can carry out repairs, which usually means taking your vehicle to dealership repair shops. This comes with ups and downs. On the one hand, you’re guaranteed to get exact replacements for any faulty parts, but on the other hand, you’ll typically have fewer service location choices.

Third-Party Car Warranty Brokers

If unexpected costly repairs are something you’re worried about, you should look into third-party warranty coverage. Make sure you’re looking at reputable extended car warranty companies in order to avoid potential scams. With independent providers, you have the ability to purchase an extended service plan for new and used vehicles at almost any mileage. Third-party providers also typically have more coverage options than manufacturers, so you can purchase a plan that better suits your vehicle and budget.

Weighing coverage options from brands like Endurance vs. CARCHEX can provide a better sense of what you’re getting from each company, and comparing free quotes from multiple providers is a great way to find the best price for car protection.

This type of vehicle service agreement is, in many ways, the reverse of a dealer warranty. While you generally won’t be guaranteed to receive exact factory replacement parts, many third-party warranty companies have much larger networks, meaning there’s a higher chance you can get your car repaired at your favorite local auto body shop and still be covered by your warranty.

The coverage options and additional perks are similar to what you’ll get from the dealership – and sometimes even better. For example, most manufacturer extended warranties don’t have six levels of coverage like Endurance. You’re more likely to find one to three levels of coverage with a dealer.

Direct Service Providers

Car warranty companies that handle their own protection plans are called direct service providers. Being a direct service provider means handling everything from selling the warranty to approving car warranty claims to paying the repair shop after your car is fixed.

The idea is that a customer will always know who they’re dealing with. There’s no confusion about going through a middleman to file a service request, and you ideally avoid extra administrative fees or slowdowns during the claims process.

Extended Car Warranty Waiting Period

After purchasing your contract, most warranty providers require you to go through a waiting period until you can use your coverage. This helps protect the provider from someone purchasing a warranty right after discovering an issue with their car. Most extended warranties require you to wait 30 days and 1,000 miles before making a claim for car repairs.

How To Cancel An Extended Car Warranty

Reputable extended car warranty companies will allow you to cancel a warranty for a full refund within 30 days. They will also provide prorated refunds after that. You will need to contact the contract administrator and provide a written odometer statement to cancel the extended car warranty.