Auto Warranty Buyers Guide

Reviewer:  Matthew Ellis | February 13, 2019

Is your auto warranty expired, or about to expire? Or maybe you don’t have an extended vehicle warranty.

Most Americans can’t afford an unexpected breakdown, but they can afford an extended auto warranty. It takes only seconds to acquire vehicle protection, which can save you thousands in the long run.

Summary:

Our guide will help you find affordable auto warranty coverage for your vehicle, avoid auto warranty scams, and protect your vehicle from expensive repairs.


Top Overall Pick

Choice Auto Warranty

★★★★★

Choice Auto Warranty –
Full Review > >

Highest scores in customer service, quality of policies, and bang for the buck…

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Top Low Cost
Coverage Pick

Platinum Auto Warranty

★★★★★

Platinum Auto Warranty –
Full Review >>

Low cost leader
and quick quotes…

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Top Comprehensive
Coverage Pick

Diamond Auto Warranty

★★★★

Diamond Auto Warranty –
Full Review >>

Comprehensive coverage
and trusted partners…

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Auto Warranty Guide:

What is an Auto Warranty?

An auto warranty, or “aftermarket car warranty” protects car owners from costly repairs once their manufacturers warranty has expired. The technology in modern cars has dramatically increased average repair costs, so many consumers purchase extended coverage to protect their investments.

Who Can Get an Auto Warranty?

What most people don’t realize, is that you can purchase purchase an extended auto warranty at any time, even after your original manufacturer’s warranty has expired. You can pick one up from your dealership, or shop a third party option.

What Does an Auto Warranty Cover?

There are many different types of auto warranties. An extended powertrain warranty covers the expensive basic components that keep the car moving, the engine and transmission. A vehicle ‘wrap’ warranty or ‘bumper-to-bumper’ warranty covers everything else, but there are of course some limitations you need to be aware of.

The best extended auto warranties go a step beyond, offering multiple protection plans with low deductibles, 24/7 roadside assistance, complimentary towing, plus rental car, meal and lodging reimbursement if your car leaves you stranded far from home.

Who Needs an Auto Warranty?

Most people would benefit from an auto warranty, so let’s start with describing the type of person who probably doesn’t need one. If you have enough money in the bank to cover an engine, transmission, or expensive electrical malfunction, and are ok with accepting the risk that one of these failures could happen, you probably don’t need it. Or, if you have an extensive auto warranty on your new car already, and you put low mileage on your cars each year, you’re also probably safe.

But if you’re like most people, and would have a hard time paying cash for a $2,000 repair bill, an auto warranty could help you sleep better at night. If you find yourself in one or more of the following situations, you may have much peace of mind to gain from an auto warranty:

  • You just purchased a used car and don’t know how the car has been treated.
  • You have a newer car with expensive-to-fix technology features.
  • An expensive repair would make it difficult for you to pay your bills.
  • You have a hard time saving emergency funds for vehicle repairs.
  • Your car’s dealer warranty is near expiration.
  • You put high mileage on your vehicle.

Are Auto Warranties Worth it?

The peace of mind that comes with additional coverage of an extended car warranty could be enough to make it worth it for you. You just need to be honest with yourself about the level of risk you’re comfortable with.

PROS

✓ Special coverage like car rental benefits

✓ Covers a wide range of vehicle parts and systems

✓ No need to pay for repairs out of pocket

CONS

✕ Large deductibles

✕ Does not cover pre-existing conditions

Final Thoughts

No matter what advice comes their way, some people just aren’t willing to take chances, or they prefer the convenience of an extended warranty. They’re more comfortable knowing that any major repairs will be taken care of. And there’s nothing wrong with that. Just make sure that you do your homework before walking into a conversation with a finance manager or insurance salesman.

Auto Warranty Top Picks:

Our team reviewed some of the best auto warranty providers available to help you find the perfect auto warranty. Our top picks are based on a combination of customer service, value, customer reviews, and quality. We hope you found this guide helpful.

Choice Auto Warranty

4.7 Overall Score

★★★★★

Choice Auto Warranty Review >>

Choice captured the highest scores in customer service, quality of policies, and bang for the buck.

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Platinum Auto Warranty

4.6 Overall Score

★★★★★

Platinum Auto Warranty Review >>

Low cost leader and favorite for easy-to-use website with rapid response quotes.

Get Quote

Diamond Auto Warranty

4.4 Overall Score

★★★★

Diamond Auto Warranty Review >>

Comprehensive coverage for less with trusted mechanic and service partners.

Get Quote

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