We take a few main factors into account for our extended warranty review and pricing pages.
We look at which cars the extended warranty would cover based on the driver’s place of residency, the car’s make, model year, mileage, and any existing mechanical issues.
Buying and Claims Process
We favor companies that give customers the option to get quotes and purchase warranties over the phone and online. We also prefer companies that don’t require pre-inspection or waiting periods.
In terms of claims, we like businesses that cover repairs at any authorized repair facility in the U.S. or Canada, pay the provider directly (as opposed to asking customers to pay upfront and wait for reimbursement), and charge deductibles per visit rather than per repair.
The more coverages, the better, but the best selection truly depends on what coverages the customer is looking for. Coverage can vary greatly between providers and plans within providers. We prefer businesses that, at the very least, offer 24-hour roadside assistance, coverage for parts and labor, payment for rental cars, tire repair or replacement, and trip interruption protection.
We compare the cost of services that each company provides to average costs across the industry. We must rely on averages, though, as almost no extended warranty provider is transparent about their costs. According to our research, the average cost of extended warranties ranges from $100 to $300 a month and $1,200 to $3,000 annually.
We prioritize companies that allow customers to contact them by email, web forms, or over the phone. We also look at Trustpilot and the BBB, two reliable sources that have feedback from thousands of customers.
Some companies offer iOS and Android mobile apps allowing for easy claim submission, repair shop location searches, and other tools. We look for well-designed apps that have ratings of at least three stars in both the Apple and Google Play stores.
Though it’s uncommon, some extended warranty companies offer extra benefits. For instance, Protect My Car offers a points-based loyalty program called PMC Rewards, whereas Toco offers a discount on Hotel.com bookings. We reward companies with these extras, but they are just that: extras.