If you’ve ever purchased a vehicle, especially from a dealership, there’s a good chance you’ve heard of an extended warranty. Almost all dealerships will try to sell you one, and you’ve likely heard from somebody at one point in your life that they’re a waste of money. That said, those staunchly negative opinions often stem from someone not knowing their policy and being upset that something that needed fixing wasn’t covered. This is precisely the biggest stumbling block when it comes to these warranties—knowing what needs covering and ensuring the warranty you’re looking at covers those bases. Yes, extended warranties are a controversial and divisive subject among car owners, and like insurance policies, there’s a lot to weigh out when it comes to whether or not they’re worth purchasing.
In this article, we’ll cover what a vehicle extended warranty is, help you answer the question of whether or not you need one, and things to look for if you decide to shop for one. We’ve also extensively researched many of the providers available today, picking out the top 5 for this list.
Truth be told, it’s rather difficult to properly and legitimately review a company that provides an extended warranty for your vehicle. That’s because it’s not really feasible to test several different companies to see how they handle claims and just how flexible they are when it comes to paying for repairs on your vehicle. Even if we were able to delve that far into the topic, this still would not paint a complete picture. These companies have adjusters that at times need to assess the repair request first-hand, and as with any industry there are good ones and bad ones. A former automotive technician on our editorial team was quick to note that in past experience with these warranties, some adjusters would quickly approve things based on an established and trusting relationships with technicians, whereas others would push back and debate how bad something was leaking and whether or not it justified a failure requiring replacement.
Because of this, our angle of approach here is different. We took a look at a wide variety of providers and their coverage plans, along with sample contracts to determine which companies will likely be worth your time and money, if you decide to purchase an extended warranty. We also checked for actual user and customer reviews to see which have the most positive feedback over an extended period.
One thing you need to know is that many of the providers of extended warranty services are actually third-party companies that serve as a middle man for getting you coverage. You’ll notice that some of the companies on our list actually have sample contracts from the same service provider. We do however, also take a look at one company that provides direct coverage. It’s something to keep in mind if you decide to research extended warranties on your own, as you could be paying a higher price for the exact same coverage.
To learn more about vehicle extended warranties, refer to our table of contents.