For our extended warranty review and pricing pages, we take into account several factors.
We examine which vehicles the extended warranty would include, such as what vehicle year, type, and mileage. We also take into account whether the company allows the vehicle to have any preexisting conditions. Finally, we consider where the warranty company offers coverage in the U.S.
Buying and Claims Process
We like companies that give drivers multiple options to receive quotes and purchase warranties, such as online and over the phone. Companies that don’t require pre-inspections or waiting periods receive priority treatment.
We rank companies that allow customers to access any licensed repair shop in Canada or the U.S. higher. We also prefer companies that pay facilities directly rather than having the customer file for reimbursement. We find that companies with deductibles per visit, rather than per repair, save customers money.
Because of the wide differences in coverage for providers and their plans, we prefer companies that offer more coverage options. Companies with 24/7 roadside assistance, towing, coverage for parts and labor, tire repair/replacement, and rental car reimbursement offer more to consumers than companies that offer repairs only.
The average yearly cost for an extended warranty in the auto industry is $5,195, with an average of $4,967 on the lower end and $6,423 on the upper end. As almost no extended warranty company posts its prices, we have to use averages.
We like companies that give multiple options for customers to contact them, such as email, online forms, and phone. We also view customer service ratings on Trustpilot and the BBB to see how the company rates with real customers.
More companies have Android and iOS mobile apps for claim submissions, policy checks, and repair facility locators, among other tools. We prefer well-designed apps with at least three-star ratings in both Google Play and the App Store.
Extras can make companies stand out among the competition, but not many extended warranty companies have them. For example, Toco offers customers a discount on reservations made through Hotels.com. However, we don’t expect every company to have add-ons.