When you buy a new car, it comes with a manufacturer warranty that covers most mechanical failures for a set period of time. After that, you have the option to purchase an extended vehicle warranty for added peace of mind. The best extended warranty providers provide affordable coverage that can save drivers money on repair bills. However, many consumers are unsure of what to look for when shopping for a provider. To help, WalletHub analyzed data from hundreds of customer reviews to determine the top extended warranty companies. We focused on cost, coverage, and transferability, among other factors.
We also found that some of the biggest extended warranty companies often have more stipulations than others, such as a requirement to use certain mechanics and exclusions for parts like cosmetic items and emissions components. It is important to read the fine print so that you know exactly what the plan covers and doesn’t cover.
A reputable extended warranty company will allow you to submit a claim easily and quickly. When selecting a company, make sure they offer phone or email support as well as an online portal for claims submission. We also looked for the ability to submit photos and videos of the breakdown, which is an additional feature that can make a big difference in getting the repairs you need quickly.
You should also consider if the warranty can be transferred to a new owner if you sell your vehicle, as well as any mileage or age limits that will trigger an end of the policy. Some extended warranties may also have a specific list of approved repair shops where the repairs can be done, so it is important to know what these requirements are before purchasing the policy.
It is not necessary to purchase an extended warranty for your vehicle, but if you do decide to get one, make sure you choose a trustworthy company. Look for a company with high customer satisfaction ratings and financial strength, and check to see how the company is rated by consumer watchdog groups and the Better Business Bureau. Considering the extra peace of mind an extended warranty can bring, it could be worth the investment for some drivers. However, the price of an extended warranty can vary considerably depending on the coverage, duration, and manufacturer. It’s best to buy the warranty before your manufacturer warranty expires or before you start to have issues with your vehicle. Ideally, you should purchase the warranty from the same place where you bought your car. This will ensure the company has records of your vehicle and is prepared to honor the policy. Otherwise, you can get an extended warranty from another company that specializes in providing them.