What is an auto repair warranty and is it worth it? (2022)
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Vehicle repairs can be very expensive. While new vehicles are generally protected by a factory auto repair warranty for 3 years or 36,000 miles, once one of these coverage limits is reached, the financial responsibility for the repairs falls on the car owners.
This article makes it easier for you to decide if an auto repair warranty is right for you by describing what auto repair warranties are, what they cost, and who the most reputable suppliers in the industry are.
If you are considering a quote, we recommend that you get a few quotes so that you can see the custom prices side by side. Below are the companies we recommend you get quotes from:
In this article:
What is an auto repair warranty?
An auto repair warranty generally refers to an optional extended auto warranty that can be used for repairs after a vehicle’s manufacturer’s warranty has expired.
These extended warranties, also known as vehicle maintenance contracts, are offered by dealers and third-party suppliers. Compared to dealer warranties, auto repair warranties offered by third party vendors are generally more affordable and better suited for a used or high mileage car.
When you own an auto repair warranty you make relatively low monthly payments for your contract and when your car needs repair you just pay a deductible for the service.
What does an auto repair warranty cover?
Different types of repairs are covered by each provider and plan. There are usually exclusions to every plan.
It’s important to read a sample contract before purchasing an extended auto repair warranty to make sure it covers a wide range of common repairs for your specific type of vehicle.
Major third-party vendors, such as Endurance and CARCHEX, provide examples of exhausted auto warranty contracts on their websites for you to review.
How much does an auto repair warranty cost?
The cost of an auto repair warranty is determined by the supplier you choose to sign your contract with and a variety of factors related to your vehicle.
After examining several suppliers, our review team found that Endurance and CARCHEX provide auto repair warranties at reasonable costs to auto owners.
Here is a list of some of the factors that will determine the cost of your auto repair warranty:
- Vehicle age
- Vehicle mileage
- Buy from a dealership vs. a third-party vendor
- Vehicle year, make and model
- Guarantee coverage level
- Number of high-tech components in the vehicle
- Driving habits and routine vehicle maintenance
Should You Buy A Car Repair Warranty?
In general, if you’re worried that you won’t be able to pay your repair bill and want to keep your car for several years longer, it’s wise to consider purchasing an auto repair warranty to give you peace of mind. spirit.
If this is your case, consider contacting Endurance, our best coverage provider, for a free, personalized quote.
If you can afford expensive repairs, or if you plan to buy another car in the next few years, the cost of the protection plan is likely more than the value you would get from it.
What to look for when buying an auto repair warranty
We recommend car owners to look for the following qualities when evaluating auto repair warranty providers:
Examples of easy-to-find contracts
The best extended auto warranty companies provide sample contracts of their plans online. This way you can find out if the plan is right for you. You won’t be forced to buy anything, as you can choose not to get a quote if the contract isn’t what you need.
Automotive industry partnerships or endorsements help you verify that a business is trustworthy.
Reputable warranty providers offer contracts backed by a financially stable auto insurance company. This gives additional assurance that your covered claims will be paid.
Years of activity
The longer an auto warranty company has been around, the less likely it is to opt out when you need a claim. Most unreliable or fraudulent businesses aren’t around very long, and neither do they stay long.
The more coverage options available, typically ranging from powertrain warranty to bumper to bumper warranty, the more likely you are to find a plan that covers your bigger repair issues without draining your wallet.
Many providers of extended auto warranties offer additional services such as roadside assistance, rental car reimbursement, and towing.
Talk to a representative to find out if the auto repair warranty provider offers payment plans, requires an initial down payment, and offers a money back guarantee.
Our recommendations for auto repair warranty providers
Endurance, which offers direct-to-consumer auto repair warranties, received a 4.6-star rating from our review team. Endurance sets itself apart from its competitors by the following points:
- Vehicle Protection Association Gold Level Certification: The Vehicle Protection Association (VPA) is a non-profit organization that works to ensure that member companies use best business practices. Few companies hold VPA gold level certification, so this Endurance achievement is very impressive.
- Repair possibilities: Endurance allows automobile owners to choose from any repair shop certified by Automotive Service Excellence (ASE) to perform their covered repairs.
- Covers high mileage automobiles: Endurance provides auto repair warranties for automobiles over 200,000 miles. This mileage rate is much higher than many other providers.
CARCHEX received a 4.4 star rating from our review team. Here are a few reasons why CARCHEX is an exceptional auto repair warranty provider.
- A + BBB Rating: CARCHEX’s A + BBB rating establishes that the company takes customer service seriously and listens to its customers.
- Industry endorsements: CARCHEX has received industry approvals from Edmunds.com, Kelley Blue Book and CARFAX. These endorsements are a strong signal that CARCHEX is a leading auto repair warranty supplier.
- Variety of auto repair warranty options: CARCHEX offers five different plan options, each of which can be customized. Plus, each of their plans includes 24/7 emergency roadside assistance, trip interruption services, and lockdown services.
Having trouble deciding between Endurance and CARCHEX? Read our Endurance vs. CARCHEX.
In an effort to provide accurate and unbiased information to consumers, our team of experts collects data from dozens of extended auto warranty companies to formulate rankings of the best suppliers. Companies receive a rating in each of the following categories, as well as an overall weighted rating out of 5.0 stars.
- Industry Ranking: Warranty providers with a history of solid business practices and expert approvals receive the highest scores in this category.
- Blanket: This rating is based on the types of extended warranty plans available, the terms of coverage, and additional benefits such as roadside assistance.
- Cost: Our research team examines sample quotes for a variety of plans and vehicles. Firms with lower prices per year of coverage receive higher scores.
- Transparency: This score takes into account the transparency of the contract and the availability of a money-back guarantee.
- Customer service: We comb through customer reviews and do our own buyer analysis to get a feel for how responsive and helpful each warranty company is.
Learn more about auto repair warranties: