Best Used Car Warranty Companies

Comparing the best used car warranty companies to find the right plan for your budget and driving habits can save you time, money, and trouble in the long run. To make it easy, we’ve done the research for you. We’ve compiled a comprehensive list and compared the best used car warranty companies below.

Keep reading for a clear comparison of providers and plans and why CARCHEX comes out on top.

You’ll also learn:

• Features you should look for in reputable used car warranty companies
• Benefits of a warranty for a used car from CARCHEX
• What to consider when shopping for a used car warranty company
• The difference between auto insurance, mechanical breakdown insurance, and extended car warranties
• What a used car warranty covers
• How a used car warranty works
• Auto warranty provider reviews

Comparison of Car Warranty Companies

Finding the right warranty provider can make all the difference when it comes to extending the life of your car. Similar to the best home warranty providers or other service contract providers, a good used car warranty company should be accredited, offer multiple plans, have affordable, flexible payment options, and above all, be transparent and trusted in the industry.

To help make the buying process easier for you, we’ve put together a list of what the best warranty companies should offer their customers:

• A commitment to providing excellent customer service and representative availability whenever you need it
• Accreditation from the Better Business Bureau and backing by solid participants in the auto industry
• Competitive prices and affordable, flexible payment plans to fit any budget
• A wide range of auto warranty plans and customizations to fit your specific needs
• Transparency about the benefits they do (and do not) offer
• Ability to use the repair shop you trust most
• Claims that are paid directly to the repair shop (so you don’t have to wait for reimbursement)
• Ability to cancel anytime and a 30-Day Money Back Guarantee (with prorated refunding after the guarantee is up)
• Contracts that are easily transferable to a different owner
• Easy-to-find sample contracts listed on their website

The chart below compares some of the most well-known car warranty companies in the industry on these factors.

How CARCHEX Compares to the Competition

Updated May 2020

The Best Overall Used Car Warranty Company

CARCHEX leads the competition with its extended auto warranty plans for several reasons:

• Our A+ customer service rating from the BBB places us among the best used car warranty companies in the market. Our promise to you is “Customer Experience Above All,” whether you’re getting a quote or filing a claim.
• We’ve been endorsed by top industry-leading companies such as Edmunds, Kelley Blue Book, RepairPal, Thoroughly Reviewed, and CARFAX.
• CARCHEX has had a 99.9% customer satisfaction rating for the past three years as measured by the BBB.
• We offer affordable, flexible payment plans that are customized to your driving needs.
• If your car is used or certified-pre owned, or if it has more than 100,000 miles, you’re still eligible for one of our Extended Vehicle Protection Plans. In fact, we have several plans designed for vehicles with high mileage.

Benefits of a Used Car Warranty with CARCHEX

Here are some other benefits of CARCHEX used car warranties:

• We offer affordable payment plans for those who can afford low monthly payments but would be weighed down by an untimely $3,000 repair. Deductibles are as low as $0.
• CARCHEX provides consultative customer service, so you don’t have to worry about haggling, limited choices, or high markups. You get customized quotes tailored specifically to your budget, driving habits, and needs.
• We provide 24/7 roadside assistance that includes gas delivery, towing, and trip interruption service.
• You get to choose your repair facility and aren’t forced to take your car to the dealership. We partner with more than 30,000 certified facilities nationwide, so whether you prefer Firestone, Pep Boys, Goodyear, a dealer, or are loyal to your local garage, you’ll be able to take your car to the mechanic you trust most.
• CARCHEX offers a No-Haggle, Low Price, Everyday Guarantee™ and a 30-Day Money Back Guarantee with an Extended Vehicle Protection Plan to ensure you’re completely satisfied with your used car warranty.
• You can enjoy the peace of mind that comes with having best extended car warranty and rest easy knowing your vehicle and budget are protected.

With these benefits, CARCHEX makes it easy for you to compare the best vehicle protection plans for your needs.

What Should I Consider When Shopping for a Used Car Warranty?

When you have a used car, it’s important to maintain it with a used car warranty, but not all car warranties are created equal. Here are some important items you should consider when buying a used car warranty to make sure that you’re getting what’s right for your car, lifestyle, and budget:

• How much coverage you’ll get—This is one of the most important factors to look at when buying a used car warranty. Many extended warranties will come with different coverage tiers, each with its own price and level of coverage. Take the time to read the fine print and determine what is and isn’t covered by your warranty. Make sure the coverage is for repairs and replacements to the parts of the car you want covered. For example, if you live up north and drive on salted streets for five months out of the year, it makes sense to see if rust or corrosion damage is covered by an extended car warranty. If your car has high mileage, you’ll want to make sure there are no mileage restrictions on your plan. You know your car and your lifestyle, so look for a warranty that meets your needs.
• How long the coverage lasts—You’ll want to get a used car warranty that goes beyond your original manufacturer’s warranty. You also want to make sure that you get a warranty that is transferable, should you decide to sell the car.
• Cost of the warranty—When you’re shopping for a used car warranty, look at different quotes before making a purchase. This will typically vary based on the make and model of your vehicle, as well as its mileage and age. Make sure you understand the complete price of your warranty and determine if there are monthly costs you will have to pay.
• Better Business Bureau (BBB) rating—This rating is based on the BBB’s opinion of how the business interacts with its customers and is obtained from information on the business and public complaints. You want a reputable extended car warranty company, so checking the BBB rating is a good way to make sure that both your warranty and the provider are reliable.
• Extra benefits—Paying for extra expenses like rental cars at the same time of a repair cost can really add up. The best extended auto warranties include roadside assistance and related benefits such as towing, rental car reimbursement, lock out services, gas delivery, and trip interruption services with their plans. That way, you keep out-of-pocket costs to a minimum.

What Do I Need: Auto Insurance, Mechanical Breakdown Insurance, & Extended Vehicle Warranty

If you have a used car, you may be wondering, “What’s the best protection for my vehicle?” Mechanical breakdown insurance, auto insurance, and extended warranties are three different options you might be considering. Here is an overview of all three options, and the similarities and differences between them.

Similarities Between Breakdown Insurance and Extended Warranties

Mechanical breakdown insurance and extended car warranties share these features:

• Both pay for repairs that don’t occur from normal wear and tear.
• Both require a monthly payment.
• Both will make you pay a deductible before any repairs are covered.

Differences Between Breakdown Insurance and Extended Warranties

While these two options are similar, the main difference between them is that only business entities with a Property and Casualty insurance license can provide mechanical breakdown insurance. Extended car warranties (or vehicle protection plans), however, are provided by companies that specialize in these plans, and they may offer additional benefits and perks. If you want more comprehensive coverage and a variety of benefits, you should consider purchasing an extended warranty.

What Does a Used Car Warranty Cover?

There are many different used car warranty plans that each offer various levels of coverage. Remember, a reputable used car warranty company will have lots of flexible coverage options that suit your vehicle’s specific needs. At CARCHEX, we provide a variety of extended warranty options for you and your vehicle that include protection for your:

• Engine components, like the water pump, oil pump, and connecting rods
• Transmission components, like the torque converter, vacuum modulator, and transmission mounts
• Drive axle components, like the axle shafts, universal joints, and hub bearings

Coverage of your fuel delivery, electrical, air conditioning, braking, steering, suspension, enhanced electrical, high-tech, and heating and cooling components is included within our higher-tier plans. We also cover components for hybrid or electric vehicles.

Here’s a quick look at the industry-leading coverage levels we offer—with a number of plans within each—so you can ensure that you get the plan that’s right for you.

How Does a Used Car Warranty Work?

Though it’s a technically a type of service contract, an extended warranty works like an insurance policy for your car. You pay a small, predictable amount up front, often over the course of several months—a good warranty will have several affordable payment options. Your warranty goes into effect in the next 30 or so days and protects you against surprise repairs in the future, which can be costly and throw even the best budgets out of whack.

Here’s how an extended warranty goes to work for you when you need to file a claim.

1. When your car needs a repair, the first thing you’ll do is gather your warranty documentation and get an estimate for the repair.
2. Next, you’ll call the warranty company. They will confirm that the repair you need is covered. They’ll also tell you if your warranty requires that you take your car to a specific mechanic (or group of approved mechanics). The best warranty companies will let you pick any repair shop you like.
3. Then, you just take your car in for a repair, same as always. Your warranty company may pay your mechanic directly, or they may reimburse you for the expense. This will depend on the terms of your specific warranty.

Research Auto Warranty Provider Reviews

When comparing your used vehicle warranty options, don’t forget to review third-party reviews and comparisons of used car warranty companies. You can learn a lot about a company from other peoples’ experiences. It’s also smart to learn what the experts have to say about used car protection. Used car warranty company reviews and endorsements can help you find a company you trust.

Here’s What CARCHEX Customers Are Saying:

“CARCHEX has good service and I’ve never had a problem. I have three vehicles covered by them currently and also had one before. Everything that’s covered has been covered. Whenever I’ve taken a car in, my service advisor takes care of the problem. I’ve recommended CARCHEX to a couple of people who would’ve taken advantage of it.” — Dave (Peoria, AZ)

“I’m still satisfied with my car and I wanted to keep it longer beyond the original warranty. I found CARCHEX online and I talked to someone over the phone and he was very courteous and knowledgeable. It was a good experience and CARCHEX should keep up the good work.” — Bervin (Virginia Beach, VA)

“I was very impressed with the professional service and would highly recommend to anyone needing their product.” — Gerald

“The representative I worked with was very knowledgeable, helpful, and not pushy. Talked where I could understand him and explained everything very well.” — Cynthia

“Working with the representative to find the best warranty product for my vehicle(s) was a breeze. He was able to take my information and quickly find a product that was within my budget range.” — Dennis

Call a CARCHEX Representative Today About Your Used Car Warranty

Find the affordable coverage you’re looking for with one of our used car warranties. Call us at 866-261-3457 and speak to one of our representatives about purchasing a used car warranty today.

Our specialists will listen to your needs, and help you find the best extended warranty plan that’s right for your vehicle, your driving habits, and your budget. And we’ll do it in a low-pressure environment. Our Brand Promise to you is “Customer Experience Above All,” which means our dedicated team works hard every day to make sure our customers’ needs are being met.

Learn More About Car Warranties

If you’d like more information about car warranties before making a decision, here are some helpful places to start.

• What does a powertrain warranty cover?
• Extended warranty for cars over 100K miles
• How much does an extended car warranty cost?
• How to find the best third-party car warranty
• Buying an extended warranty on a new car
• How to purchase a used car warranty
• Six things to know about the best extended warranty providers

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Sources:

Better Business Bureau: bbb.org/greater-maryland/business-reviews/extended-warranty-contract-service-companies/carchex-in-hunt-valley-md-23015869

Edmunds: https://www.edmunds.com/auto-warranty/five-questions-to-ask-before-you-say-yes-to-an-extended-warranty.html

Better Business Bureau: https://www.bbb.org/council/overview-of-bbb-grade/

FTC: https://www.consumer.ftc.gov/articles/0054-auto-service-contracts-and-warranties

Edmunds: https://www.edmunds.com/auto-warranty/understanding-extended-warranties.html

Consumer Affairs: www.consumeraffairs.com/auto_warranty/carchex.html

CARCHEX: https://www.carchex.com/research-center/auto-warranties/mechanical-breakdown-insurance-vs-extended-car-warranty/