From a pure numbers standpoint, the smart money is on skipping the protection and instead focusing on buying a model with better-than-average predicted reliability, and then properly maintaining it. Before buying a new or used car, check our reliability ratings. If you do want to buy an extended warranty , be sure to purchase one from a company with a long history, such as through an automaker, and understand the small print.
There are often many restrictions with extended warranties, including what's covered and where the vehicle can be serviced. Robocalls pitching extended warranty services are rampant. We recommend being skeptical of any cold call offering such protection. Check our car repair shop buying guide and ratings. A New England native, I have piloted a wide variety of vehicles, from a Segway to an aircraft carrier.
All told, I have driven thousands of vehicles—many on race tracks across the globe. And if some tires must be sacrificed in the pursuit of truth, so be it. Before you make a decision, consider what makes the most financial sense for your circumstances and check if you have any existing coverage. Depending on the age, mileage, and make of your vehicle, you might still have some warranty coverage from the manufacturer.
Some used vehicles are covered under certified pre-owned CPO warranties that offer similar levels of protection as the factory warranty. If you can afford the monthly payments, a vehicle service contract could help you budget for any sudden repairs.
To better understand what contract holders and potential customers want in their warranty coverage, our experts polled 1, consumers who have purchased or considered purchasing an extended car warranty.
We found that the extended warranty cost is the most important factor to consumers, with covered components and warranty term lengths ranked similarly in importance. Other findings from our survey include:. If you are considering a protection plan for your vehicle, we recommend using reputable extended car warranty companies as your starting point.
Unfortunately, some warranty companies use aggressive marketing tactics and push warranties with shoddy coverage. Plenty of reputable providers post sample contracts on their websites for customers to review. It allows consumers to see covered components and exclusions in detail and get an overview of the claims process. A salesperson should also give you a detailed overview of the coverage you qualify for during the quotes process.
The larger the company, the more negative reviews it is likely to have. You want to work with a company that takes time to respond to customer complaints and offers solutions to the problems.
Just like getting the best price on car insurance, taking time to compare warranty companies can help you get the best value. We recommend getting quotes from at least four companies to see what levels of coverage you qualify for and to compare service and costs. Based on our research, Endurance and CarShield are top-rated companies with affordable extended warranty costs and quality coverage options.
Our pick for Best Coverage is Endurance. The company has been providing extended warranty coverage for over 15 years and has built a reputation for great customer service. Endurance operates as a direct provider, meaning it manages all the plans it sells—an uncommon feature in the warranty industry. The company is also highly rated by consumers on Trustpilot, with a score of 4. You can read more about this provider in our Endurance warranty review. Powertrain warranties may last for up to 60 months or 60, miles.
It may be tempting to purchase an extended warranty plan to protect against unexpected repair costs. But before you do, consider both the pros and the cons.
An extended warranty could add thousands of dollars to the purchase of a car. If you do decide to purchase an extended warranty, be sure to do your homework, watch out for auto warranty scams and work with a reputable company. Read this post in Spanish. Image: Mechanic explaining the cost of a car repair to car owner. Unless you have a large emergency fund, footing a hefty repair bill could do some damage to your bank account. However, there's no guarantee you will ever need such a repair.
Online reviews vary depending on the warranty provider, but many customers of companies like CARCHEX and CarShield think that extended car warranties are worth the cost — even if the return is just peace of mind.
No nonsense sales. There are plenty of negative reviews for car warranty companies, too. Most of the time, this can be avoided by reading your contract and making sure you have a thorough understanding of your policy. Before you decide that extended warranties are worth it, you should look at this short list of disadvantages as well:. You have several options if you decide to purchase extended coverage.
Manufacturer-backed plans are usually only available at the dealership. If you decide to go this route, be wary of including the coverage with your car loan. This might not be a good idea for multiple reasons:.
If you want to purchase an extended warranty from a dealer, consider paying for it upfront instead of including monthly payments with your loan. Another option is to purchase an extended warranty from a third-party provider like Endurance.
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