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- A vehicle protection plan covers the cost of expensive repairs.
- Make sure you get multiple quotes when shopping for extended coverage.
- Our most recommended extended vehicle warranty providers offer high quality vehicle protection plans.
A vehicle protection plan is a way to protect yourself against the often unexpected costs of vehicle ownership. Vehicle protection plans work much like new car warranties in that they promise to pay for vehicle repairs or replacement parts in the event of a mechanical failure.
But how do you find the right vehicle protection plan? There are dozens of extended auto warranty providers in the market, including many who are known for shady business practices and aggressive marketing campaigns. But not every company has such practices, and many vendors offer valuable contracts.
In this article, we’ll help you understand what a vehicle protection plan is and how to find the right plan for your needs and budget. We will also introduce you to the top 5 best extended car warranty Companies in the market.
If you want to know what a vehicle protection plan would cost for your car, get free quotes from our top recommended vendors by clicking below.
What is a vehicle protection plan?
With a vehicle protection plan, you can budget for the cost of repairing your vehicle. Customers purchase contracts that list a range of vehicle parts (e.g., engine, transfer case, and air conditioning). If a covered part is damaged or has stopped working, the contract administrator pays for it to be repaired or replaced.
Vehicle protection plans are offered at different levels Powertrain warranty Cover only for engine, transmission and drive axle up to the exclusion cover, which covers almost all mechanical and electrical components minus a short list of uncovered parts.
Exclusions from the vehicle protection plan
Even the most comprehensive vehicle service contracts have their limits. While certain exclusions vary from contract to contract, there are some points that vehicle protection plans often fail to address, such as:
- Interior padding
- Doors and door handles
- Emissions system components
- Damage caused by improper maintenance
- External damage including dents, scratches and dents
- Damage caused by an accident, a collision or a natural act
- Wear parts such as brake pads, wiper blades and light bulbs
How does a vehicle protection plan work?
Vehicle protection plans can be purchased from most dealers and through many third-party providers.
When a covered component needs to be repaired, drivers must take their vehicles to an appropriate service location. Typically, vendors allow customers to visit a dealer or repair facility that has been certified by the National Institute for Automotive Service Excellence (ASE)®). Either the plan owner or the repair shop will then contact the contract administrator. If a repair is proven, the administrators usually pay the repair facility directly.
Some contracts include deductibles that drivers pay out of pocket for each repair. It’s common for vehicle protection plans to include deductibles between $ 0 and $ 200.
Are vehicle protection plans worthwhile?
Vehicle protection plans can be worthwhile for many customers. To determine if extended coverage is right for you, consider the following pros and cons:
|Benefits of vehicle protection plans||Disadvantages of vehicle protection plans|
|You are protected from sudden and costly repairs.||You may not need all of the coverage you are paying for.|
|You can budget for repairs by paying a fixed monthly cost.||Not all components of your vehicle are covered.|
|Your plan can increase the resale value of your vehicle.||Repairs can take longer if your provider is slow to prove claims.|
|With many plans, you will get additional benefits like
Roadside assistance around the clock.
|You will enjoy extra safety on the road.|
Before purchasing a vehicle protection plan, be sure to check the reliability of your vehicle. Try to estimate how much you pay for repairs each year and compare that to the cost of coverage. Also, look around to find the best value contract for your needs.
Manufacturer Extended Auto Warranties
Most manufacturers offer extended vehicle warranties at the dealership. These work much like vehicle service contracts – they promise to pay repair costs for covered components – but there are some key differences between an extended manufacturer warranty and a third-party vehicle protection plan.
While an extended manufacturer’s warranty usually offers more complete and reliable coverage, third-party vehicle protection plans are usually cheaper. Here are some other benefits for third-party providers:
- They offer longer coverage periods and higher mileage limits.
- Vehicles can be repaired at a number of facilities, not just dealerships.
- They can be purchased at any time, while extended factory coverage will usually be required when purchasing your car.
How much do I have to pay for a vehicle protection plan?
There are several factors that are typically considered to determine the final price of a vehicle protection plan, including:
- Place: The contract prices differ depending on the city and state.
- Degree of coverage: Comprehensive coverage costs more than a basic plan.
- Vehicle age and mileage: Newer vehicles with low mileage are encouraging.
- Deductible: Most vehicle service plan providers offer several deductible options. A higher deductible means a lower price.
- Vehicle model: Cars with more expensive components and those that cost more to maintain also cost more protection.
We have endeavored to obtain offers from many providers of vehicle protection plans. The average cost of a full insurance plan for a relatively new vehicle is $ 607 per year of coverage. This means a five-year contract will cost around $ 3,000. Of course, these prices can fluctuate greatly depending on the vehicle. The best way to find the most affordable vehicle protection plan is to compare offers from multiple vendors yourself.
Top 5 providers of vehicle protection plans
Our review team looked at all of the major advanced vehicle protection plan vendors in the industry, examining the cost, coverage, customer ratings, and more of the protection plan. Based on our research, we have identified the following warranty companies as the best choices for vehicle protection plans:
- endurance: 5.0 stars
- CARCHEX: 5.0 stars
- CarShield: 4.5 stars
- Protect my car: 4.5 stars
- Autopom!: 4.5 stars
Here’s a look at how we rated each provider:
|# 1 perseverance||# 2 CARCHEX||# 3 CarShield||# 4 Protect my car||# 5 autopom!|
|superlative||Overall best||Best for
|Number of plans||6th||5||6th||3||4th|
|Get quote||Get quote||Get quote||Get quote||Get quote||Get quote|
It can be difficult to compare prices between providers as different providers offer you plans with different durations. The easiest way to compare costs is to look at the cost per year of coverage. We do this by dividing the total cost of the plan by the number of years you would be covered for. Please note, however, that the term of the cover is given in both years and miles. If you have reached your maximum mileage before a certain number of annual passes, your guarantee will expire.
Here is the annual cost to cover a bumper-to-bumper plan for a 2018 Toyota Camry with 28,000 miles for each of the vendors listed above. Note that your own prices will vary based on your vehicle make, model, age, mileage, and more. These prices are only representative of what we have quoted for the Toyota.
|endurance||CARCHEX||CarShield||Protect my car||Autopom!|
|Price per year
|$ 546.58||$ 490.21||$ 358.81||$ 1,067.73||$ 366.00|
You will find that the Protect My Car vehicle protection plan price is significantly higher than other providers. Protect My Car actually offers one of the lowest monthly costs, but because of its long funding terms, plans can get more expensive in the long run. However, if you are looking for a low monthly payment, the provider can be a great choice. It also offers excellent maintenance contracts that are not rated here.
More about our recommended top provider: Perseverance
Endurance offers the most comprehensive coverage of any extended warranty provider. The six levels of endurance insurance are divided as follows:
- Highest: A bumper-to-bumper cover-only warranty for most mechanical and electrical parts, minus a brief list of uncovered parts
- Think: A named component map for hundreds of parts listed, including the cooling system, suspension, and fuel system
- Safe plus: A mid-level plan that offers slightly more coverage than the lower-level Secure plan, including coverage for air conditioning, braking components, seals, and steering
- To back up: A basic powertrain plan that covers the engine, transmission, and powertrain
- Choose Premier: A plan specifically designed for high-mileage vehicles and primarily covering powertrain components
- Endurance advantageTM: A combination plan that offers maintenance and warranty coverage
Although both Endurance and CARCHEX received perfect 5.0-star ratings from our review team, Endurance caught on because it offers much broader benefits, including:
- Towing courtesy
- Identity theft protection
- Repair finance loan
- Roadside assistance around the clock
- Trip interruption triggered
- Reimbursement of rental cars
- Tire repairs and replacement
- Repairs and replacement of key fobs
- Access to a personal concierge service
- $ 250 worth of vouchers for shopping, dining, and hotels
Get a free, personalized quote from Endurance to see how much you’d pay for coverage.