Top 5 Auto Warranty Providers in the US
With so many auto warranty providers out there, it can be hard to know who to
Top 5 Auto Warranty Providers in the US
With so many auto warranty providers out there, it can be hard to know who to choose. That’s where we can help.
What is an Auto Warranty?
An auto warranty works a bit like car insurance but, while car insurance is legally required in most U.S. states, an auto warranty is completely voluntary. Also, while car insurance covers damages from accidents, an auto warranty provides financial protection against failures and problems with your vehicle.
If you’re reading this page, you’re probably thinking that an auto warranty is a good thing to have, and you’d be right. Most car dealerships will say the same thing; having a warranty means there’s less to worry about if things go wrong. Now, every new car sold in the US comes with a warranty but they eventually expire and, if you want protection beyond its expiration, an extended warranty can provide just that.
Extended warranties offer similar benefits to those of a new auto warranty, including financial coverage for unexpected issues and the assurance that necessary repairs will be handled professionally.
Different Types of Auto Warranty
Extended warranties are available through dealerships or third-party providers or, if you so choose, through your manufacturer when you buy a new car. These warranties vary in the kind of coverage they provide, but all of them help you manage the costs of unexpected problems with your vehicle.
There are various warranty options available to suit different cars and different drivers and you can read more about the different types of warranties in our auto warranty ultimate guide. The best warranty for you will depend on factors like your car’s make, how many miles you drive, its age, and general condition. As we take you through the best auto warranty providers, we’ll take a look at the range of warranty types each of them provides, as this will have an impact on which is the best one for you. Whatever your situation, there’s a warranty provider here that will suit your needs.
The Best Car Warranty Providers For You
The best auto warranty provider for you will depend on your specific coverage needs. Do you want affordable, flexible coverage? Or do you want the most comprehensive coverage possible? The answers to these questions are a good place to start, and there’s a provider on this list to suit your needs regardless of your answers.Â
The most important thing is to take time to evaluate your priorities, such as the quality of service or range of coverage. By carefully considering these factors, you’ll be well-prepared to make the decision that’s right for you. Below are the warranty providers that feature on this list, so feel free to click on the one you want to find out more about.Â
American Dream
Offers tailored options that allow you to build a protection round your specific requirements.
American Dream offers three levels of extended warranty plans, all of which include 24/7 roadside assistance and, what’s more, a lot of its plans are transferable if you choose to sell your car. It offers a great level of coverage, with a typical plan covering your engine, transmission, brake system, and cooling system to name a few.Â
If you want a deeper level of protection, you can opt for a more comprehensive plan. The Gold Plan, for example, adds coverage for your steering system. In addition to the basics covered by its plans, you can add specific protection for things like your suspension, fuel system, and air conditioning system to create a warranty plan that is suited specifically to your needs.Â
How Much Does American Dream Coverage Cost?
American Dream’s coverage mainly focuses on powertrain warranties (a specific type of auto warranty coverage that focuses on the core components of your vehicle) and, as such, its coverage plans all cover the same basic things. Some plans cover more than others though, with the Silver Plan covering the very basic powertrain systems and the Platinum Plan covering everything from your engine to your GPS navigation system.
The plan for you will depend on your needs and, while there are no transparent fees, more protection will cost more money. To get an accurate quote, you’ll have to get a quote from the company directly.Â
CARCHEX
Five types of plan to choose from, making it suitable for a range of needs.
Like American Dream’s coverage, CARCHEX also mainly focuses on providing powertrain warranties and, also like American Dream, it offers a range of protection levels. Where CARCHEX differs is with its range of plans available. In total, there are five plans to choose from, with the most basic (the powertrain coverage) offering you core protection and the most comprehensive (the Titanium Coverage) providing the maximum level of protection that essentially works like a factory-standard warranty.
The coverage best for you is recommended to you by CARCHEX directly, who assess your needs and circumstances to cater their recommendations accordingly. This means you know you’re getting the best coverage for you, and not relying on your own limited expertise to choose. Your cost of warranty is then broken down into monthly payments, adding to its affordability. One thing to remember though, is that your vehicle isn’t guaranteed to be offered protection, with restrictions applying for certain vehicle types.
How Much Does CARCHEX Cost?
While CARCHEX’s pricing structure matches that of American Dream’s; whereby it prefers to cater its quotes directly to you and doesn’t have any transparent pricing structure, it does make some encouraging promises.
Its customized quoting process, for example, matches you with the best plan for you, so you won’t be spending money on coverage you don’t need or want. This translates to savings for you and, in addition to this, there’s a 30-day money-back guarantee with every vehicle protection plan so, if you’re unsatisfied, you don’t have to worry about wasting money.
Endurance works differently from other auto warranty providers on this list. While other companies focus on providing specific types of coverage to drivers, Endurance offers a wider variety of coverage types and, even better, covers cars up to 200,000 miles. What’s more, Endurance offers 24/7 roadside coverage with all of its vehicle protection plans, giving you an added layer of security when things go wrong.Â
All of the above, as well as the fact that Endurance offers complete tire coverage, key replacement, collision discounts, and total loss protection, make it one of the most comprehensive providers in the US. Its mobile app can even get live help when you need it most. Remember though your car needs to be 20 years old or less to get coverage.
How Much Does Endurance Cost?
Like the providers you’ve already read about on this page, Endurance doesn’t offer a transparent pricing structure and, instead, offers plans to suit your budget and your needs. To get a better understanding of how much Endurance coverage will cost, get a quote from them directly.
Basing its quote on your vehicle’s make, model, mileage, and age, it creates a custom plan designed for you. And, to boost your peace of mind, there’s also a money-back guarantee if you’re not happy with the service you receive.
Olive offers three levels of protection, starting with a basic powertrain plan and ending with its Complete Care package, which covers a huge range of things from basic engine failures to malfunctioning electric windows and ignition systems; the kind of cover only really rivaled by Endurance. As well as this, Olive offers affordable plans to suit every budget, fixed rates for the whole term, and no waiting period to get covered.Â
You also don’t have to meet any yearly mileage limits, with Olive offering coverage regardless of how often you drive your vehicle. The fact the whole process of applying can be done quickly and easily, with no requirement for a vehicle inspection or even an over-the-phone consultation adds to Olive’s appeal for drivers who just want to get coverage fast. One thing to remember, however, is that Olive stops covering your vehicle once it surpasses 185,000 miles.Â
How Much Does Olive Cost?
Some plans offer more extensive coverage than others. The Powertrain Plan focuses on basic powertrain systems, while the Powertrain Plus takes the Powertrain Plan to the next level with coverage for your brakes and power steering. The Complete Care Plan, meanwhile offers protection against everything apart from wear and tear (damage to wipers and tires).
While pricing details aren’t openly disclosed, more comprehensive coverage will obviously come at a higher cost. For an accurate estimate, you’ll need to contact the company directly for a personalized quote.
Toco
Bases its coverage solely on your vehicle’s mileage, so it's great for older cars with lower milage.
Toco offers a service primarily aimed at drivers on a budget. With no requirement for a down payment, a pay-as-you-go contract, and the freedom to cancel at any time, it provides a simple, easy, and relatively cheap way to cover your vehicle.Â
In terms of the coverage it provides, Toco (like the rest of the warranty providers on this list) offers different coverage packages but, unlike others explored here, it bases the coverage package you’re offered solely on your vehicle’s mileage. In total, there are four levels of coverage you could fall under, with the most comprehensive one covering cars that have between 200,000 and 250,000 miles on their clock. Your level of coverage becomes more comprehensive as your car progresses through the categories but, as a minimum, your vehicle is covered against electronic failures as well as engine and transmission failures.Â
How Much Does Toco Cost?
The cost of Toco depends on four primary factors; your vehicle’s make, model, age, and mileage. While your basic coverage package will be mainly based on your car’s mileage, other factors also play a role in determining the quote you ultimately get. Unfortunately, and similar to the other auto warranty providers on this list, you will have to provide all this information, plus the answers to a few questions, to Toco directly before you can get a quote.
Verdict
The best auto warranty provider for you depends on what kind of coverage you need. If you’re looking for coverage that’s easy to leave, relatively cheap, and comes with an increased likelihood of getting covered, you’re probably best choosing a provider like Toco or Olive. If however, you want the most comprehensive coverage possible and you don’t mind signing up for longer-term contracts, a provider like Endurance or American Dream would be a good choice.Â
Whichever provider you choose, there will always be pros and cons (a lot of which are explored above), so it’s important to weigh up what you want from your warranty against each of the providers you look at. Think about the level of service, what’s covered, whether you will be denied coverage, and how much it will cost. This way, you’re well-placed to make the right decision for you.Â
FAQs
Which is the best auto warranty provider?
The best auto warranty provider for you will depend on your specific coverage needs. Do you want affordable, flexible coverage? Or do you want the most comprehensive coverage possible? The answers to these questions are a good place to start and, whatever your answers are, Consumer Experts can set you up with a provider that suits your needs.Â
If this is something you’re interested in, simply click the button to the left of this page, answer a few questions, and start comparing a selection of tailored quotes. What are you waiting for?
