To us, that really defeats the purpose of having an extended warranty in the first place. The whole idea is to AVOID paying for costly repairs, not to pay for them and hope some other company is going to cover them at a later date. In addition to the service contract coverage, the plans also provide some added benefits, such as:.
That said, Endurance has some benefits. Unlike Carchex, Endurance is a direct provider, meaning that they not only sell the plan, but they also administer it, too. The difference in those plans is how much the plan is going to cover. Secure, for example, appears to only cover what a Powertrain warranty would. As you step up the ladder, you get coverage on other ancillary services. Supreme appears to be a fairly comprehensive, bumper-to-bumper-style service contract. If you're not exactly sure which level of coverage is right for you and how it may impact pricing, Endurance does a great job of making themselves available to answer questions.
For more in-depth information, read our full Endurance review ». Every one of its plans is administered by another company. You can look at any one of autopom! For example, if you look at the plans detailed, several are administered by Mercury.
Why not just go directly to Mercury Insurance yourself and buy that plan there? The answer is convenience. For more in-depth information, read our full autopom! Toco Warranty Corporation was founded in in California. This reputable company is backed by AmTrust Financial Services. They are known for offering affordable plans with no down payment and the ability to pay monthly. They have plans to fit almost any budget out there.
Toco is also one of the rare companies out there that provides coverage in California. For more in-depth information, read our full Toco Warranty review ». You can cover just about any car with Ally. If other plans are like collision insurance, think of Ally like an HMO. If your car breaks down, you have to contact Ally to receive authorization before the work can begin. You then submit your invoice to Ally and they reimburse you for the expense. While not as convenient as some of the other plans, there are a handful of benefits to consider.
As long as the repair has been authorized, you can use any mechanic you like. If you have someone you trust in town and the dealership is three towns away, that can be a great benefit. It also provides the use of new, used and remanufactured parts.
As we mentioned, Ally is a massive corporation. NONE of the hundreds of complaints we read had anything to do with the extended warranty program. For more in-depth information, read our full Ally Financial review ». CWD is an example of a provider that includes all three of our key attributes.
Chrysler Warranty Direct also utilizes nothing but OEM parts to service your vehicle, meaning that when it leaves the garage, it will have the same quality parts it left the factory with. Finally, all of the work performed is at authorized, franchised FCA dealerships, by technicians trained by the factory.
CWD has two tiers of contracts. Added Care Plus covers over different vehicle components, and you can adjust the term from two to two to eight years, and mileage from 60, to unlimited.
You can also adjust the length of time and the deductible to reduce the monthly cost. The second tier of the service contract is as robust as the original warranty and provides bumper-to-bumper coverage for years after the original warranty runs out. For more in-depth information, read our full Chrysler Warranty Direct review ».
GM administers this plan, but the plans are sold through authorized resellers and franchised GM dealerships. Using your vehicle identification number, any authorized GM dealership in the country can access your plan level and provide services using their factory-trained technicians, and service your vehicle with GM-specific parts. The plan comes in two levels, Silver and Platinum. Silver is an affordable plan that covers major components like the engine, transmission, transfer case, drive axles, factory-installed turbo- or superchargers, steering components, brake components, electrical system components, factory air conditioning components, and seals and gaskets.
For more in-depth information, read our full GM Extended Warranty review ». The difference in coverage is mostly the exclusions. The Diamond level of coverage has the fewest exclusions, while the Aluminum level has the most, meaning that a Diamond plan would theoretically cover more potential service failures than the Aluminum would.
CarShield is located in St. Why not just buy the warranty directly from them and cut out the middleman? For more in-depth information, read our full CarShield review ». Car Talk has spent the last two months doing a deep dive into the warranties industry for the benefit of all our readers. We are about to update all our rankings with the most current and relevant data available in Our process for deciding on the best warranty companies for was uniquely thorough, and involved in-depth research into each company, their customer service practices, their contracts and plans offered, along with cross referencing of respected reviews, official ratings, coverage areas and customer experiences.
Companies like Carchex and Endurance are third-party warranty providers. They exist only to administer extended warranty services. The only car warranty that exists is the warranty your car came with when it was new.
With all that out of the way, what is a prepaid service plan? Prepaid service plans will vary all over the place in terms of both time and mileage. Thinking of keeping your car to , miles? There are service plans out there that will cover you. You can find a service plan that will cover the gap between there and the end of your original warranty.
Some plans will let you use any ASE-certified mechanic for a repair, so you can use the guy you like who happens to work out of a gas station in your town.
As with everything, it depends. What are you waiting for? Your electrical system has already consumed itself. There are services like RepairPal and CarComplaints can give you a good idea of the potential trouble issues. You also want to research the cost of specific repairs. Your car might be generally reliable but prone to failures of the Engine Control Unit, which might be particularly expensive for your model.
We found a Dear Car Talk letter with Tom and Ray that we think does a great job summarizing how you should decide whether an extended warranty is worth the extra cash. Here it is:. We just picked up a new Fiat C, and we were pondering the lifetime warranty. Before the car hits 10, miles, we have to decide whether to buy it. Is something like this worth it? We would like to keep the car for years. RAY: Generally speaking, extended warranties are not worth it. Because if insurance companies didn't take in more money from premiums -- overall -- than they spent on repairs, they would stop selling the things.
TOM: But that doesn't mean it's not worth it to you. Maybe you're buying a car with unknown long-term reliability? Hint: You are. TOM: But there are two variables to consider. The most important is the fine print. RAY: What does this "lifetime warranty" actually cover? Is it a complete extension of the factory warranty?
Is it just the powertrain? Does it cover body hardware and electrical issues? What, specifically, is excluded? TOM: What's the deductible? Are there conditions you have to meet to keep the warranty in force? For instance, do you have to get your car serviced regularly at the dealership? Do you have to keep written records of all of your services and oil changes? RAY: If you don't feel capable of doing a "close read" of the warranty's fine print by yourself, then it's worth paying an independent mechanic you trust to read it and go over it with you.
You want to know what is and isn't covered. Your mechanic also can talk to you about how often he sees the kinds of repairs that are covered, and how often he sees those that aren't. RAY: Also keep in mind that the price of the warranty is negotiable. Like most "parts," an extended warranty is bought by the dealer at one price, and sold to you at a higher price -- sometimes double.
So you often can negotiate a lower price. TOM: But don't do anything until you understand what the warranty actually covers. It may be a great warranty, with a low deductible and very few exclusions or requirements.
And it may help you sleep well for the next 15 years. In fact, we have noticed a sharp up-turn in direct sales online, which have more than compensated for the lost business through the dealer network.
Dr David Cross on 15 April Beejay53 on 16 April Michelle Cotter on 20 April Thanks for your comment, you are correct, I can confirm that the article has been updated to say "Private Hire and Commercial Use vehicles". Alan F on 16 April I bought a Vauxhall Vectra a few years ago, the wife cashed in her life savings to buy it for me, as I have been retired disabled for over 3 decades, and she bought this so called warranty as it was sold then can't comment on new owners, but I will never buy there again , the car was sold with the warranty after the trader explained how useful it could be knowing we didn't have much money, and it cost us everything, the trader knew what he was doing as the lights were dodgy, but buying it at the start of summer I didn't use them for some months as I only use it for shopping and hospital appointments, but one night coming home down an unlit country lane we nearly died.
The amount of complaining and chasing I had to do was totally out of order, and the support was invisible, they point blank refused to sort the lights like they said they would to start with, but after a lot of trouble I finally got my 'non' service and repair money back, but there was no support at all over it all, then the car's turbo died 18 months after I bought it, so it went to the scrapyard in the sky as I was blanked at every attempt to get help, I've heard all about how great these things are, but after that I will never buy one again, as it cost me 3 times as much as it would going to my normal mechanic, and that's not including the cost of the plan, it's left a life long never again sick feeling in me, I only hope that others get a better experience than I got now it has new owners, but if it's the same management team then I would be scared.
Hi David, thanks for raising this the article has been amended to "Private Hire and Commercial Use vehicles", many thanks Michelle Cotter. Hi David, thanks for raising this, the article has been adjusted to say "Private Hire and Commercial Use vehicles". Many thanks Michelle Cotter. Si fra on 12 May Interesting, how does your policy compare to Land Rovers own brand extended warranty?
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Compare two cars to find the lowest fuel cost. Search the forum. Here's everything we know about Warranty Direct's new policies, prices and ownership.
What is FirstBase and why did you buy Warranty Direct? The three key benefits that the transfer of the brand brings are: The Underwriter changes from a subsidiary of BNP Paribas Cardif to QBE — a large well-established global insurance underwriter The warranty product is simplified see more information on this below The experienced customer services team from FirstBase takes over the reins in terms of providing a great specialised experienced service to the Warranty Direct customers to continue and build on the brand.
We do not cover: Vehicles over , miles Vehicles over 10 years old at the point of policy start date Motorbikes Private hire and commercial use vehicles Vehicles registered in the following areas in the UK - Republic of Ireland, Northern Ireland, Jersey, Guernsey and Isle of Man" Are policy prices changing under new ownership? If so, are there changes for new customers who take out a policy? As a company its key strengths are: Strong technical background in the online world, which in a post-Covid digital world is going to be critical for company stability Strong culture of authenticity and transparency in every dealing, be it with customers, suppliers, employees or anyone else Ability to leverage cost savings and offer better value to customers by sharing already deployed back-office staff and processes, while maintaining the Warranty Direct brand Deep understanding of the warranty market by their experience of helping their clients to succeed in it.
We believe that customers will increasingly want simple, easy-to-understand policies and hassle-free process. And most importantly, customers will want to have trust in the sellers of the policies — authenticity and transparency will become more critical. Ease of digital experience — During Covid lockdowns customers have become more used to shopping online. Which one was it? The shop that worked on the car had nothing to gain be calling in the wrong issue.
I would not recommend any policy, but if you buy one do not buy the one from Warranty Direct. Do not buy a warranty from Warranty Direct. When you make a claim, they make it so difficult for you, that you end up paying for the repairs. Read their contract before you waste your money.
I paid for a warranty for over a year and now I have pay for my transmission. Do not waste your money with this company. They are garbage! They will rip you off. The company does not talk to their own departments and end up dropping you without even letting you know. You find out when you put a claim. Then they flat out LIE about a refund and play dumb when you call to complain. Save your money and go somewhere else. Almost a year later in early November , I took my car to the shop and turns out they need to replace two parts that are clearly covered per my contract.
Yes, I read most of it and since it is in PDF format, it is easy to do a search on keywords. So I called and they said they made an "innocent" mistake and that they were using a different contract to review my claim, for some strange reason.
I had to email my real contract to the customer service rep something I should not have had to do and he quickly saw that the two parts were indeed covered! Within the hour, they called my shop and authorized the work.
I simply do not believe that this was an innocent mistake. I think they deny claims on purpose with the hope that customers will just say "OK. But sometimes I think I'm going to regret not dropping them now and finding a better one if there is one. Customers may pay upfront for a big discount or make payments over a short span of three to six months. Claims are handled in-house. Coverage ranges anywhere from one to 12 years and 12, to , miles. Benefits: Warranty Direct plan benefits include rental car reimbursement, trip interruption reimbursement, towing and roadside assistance.
Lauren Fix, also called The Car Coach, is an automotive and auto finance expert. She is a regular guest on major news and morning shows, discussing the latest updates on cars and car financing that will help drivers make smart decisions when buying, maintaining and financing cars. Sign up to receive our free weekly newsletter. We value your privacy. Unsubscribe easily. Are you this business?
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About Warranty Direct. Find Extended Auto Warranties partners near you. Overall Satisfaction Rating 5 stars. Bottom Line Warranty Direct offers a straightforward auto warranty experience with clear plans and an easy quote process.
How do I know I can trust these reviews about Warranty Direct? Martha of Shamong, NJ. Read full review. Zia of Naperville, IL.
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