An extended vehicle warranty covers the cost of repairs after the manufacturer’s warranty expires. These warranties can save drivers money, but it is important to find one that offers the right coverage and value. There are many factors to consider when selecting a provider, including types of coverage plans, warranty terms, and added benefits like roadside assistance. We’ve analyzed hundreds of provider reviews and ratings to create this list of the best extended warranty companies. The providers on this list offer affordable plans with good coverage, and they are transparent about their policies and costs.
The amount of coverage an extended warranty provides can vary widely, but most include the major parts of a car. A powertrain warranty, for example, usually covers the engine, transmission, and other major components of a vehicle. More comprehensive warranties may also cover accessories like air conditioning and entertainment systems. However, some extended warranties exclude parts that have a high rate of failure due to normal wear and tear, such as the air conditioning compressor and transmission.
When shopping for an extended warranty, it is important to read the fine print and understand the deductibles and monthly payments involved. It is also a good idea to shop around and compare prices from different providers. In some cases, you can save by buying an extended warranty at the same time as you’re purchasing a new or used vehicle.
In addition to cost, drivers should consider whether or not the provider has a waiting period for coverage to start, as well as how long it can take to receive reimbursement for an approved claim. Some extended warranty providers require that drivers pay for repairs upfront and then get reimbursed, while others make the process more convenient by allowing the driver to use a credit card to cover the cost of the repair.
Buyers should also pay attention to the company that backs an extended warranty. A reputable provider will stand behind the policy with excellent customer service and a solid reputation. A good place to start is by checking a company’s profile on WalletHub, which includes details about the number of satisfied customers, the average customer rating, and a summary of the company’s business practices and financial strength.
The company on this list, Olive, is a good option for buyers who are looking for an extended warranty that is both affordable and comprehensive. This provider has a great reputation for customer service and provides an easy-to-use website with clear information about their coverage options. Olive is also a good choice for drivers who want to avoid paying expensive out-of-pocket repair bills after their manufacturer’s warranty expires. However, drivers should keep in mind that the warranty can add thousands of dollars to the cost of a new or used vehicle, especially if it is rolled into a loan. This can be a big price to pay, particularly if the warranty is not used often enough to justify the premium cost.