Reviews of Online Warranty Providers
We have done extensive research into all of the extended warranty providers that we review here. We have looked into their financials to determine if they are able to meet their claim obligations and we have interviewed company executives. We stand by our recommendations and if our visitors have any issues we will work with the companies to resolve them.
Review of CARCHEX
CARCHEX (Call them direct at 866-538-5986) assists you in the process of buying an extended warranty by working with multiple top tier warranty administrators. Their comprehensive coverage menu system ensures that you get the highest level of coverage at the lowest possible price.
After you have submitted your request for a quote online, you will be contacted by one of CARCHEX's Vehicle Protection Specialists by phone. You'll be pleasantly surprised that you aren't subjected to a high pressure sales pitch. They believe in providing a high level of customer service and using a sales approach that is more like a consultation. They were recipients of the Better Business Bureau's Torch Award in 2012.
The CARCHEX Vehicle Protection Specialist will walk you through the process of selecting the right coverage for you. They will then show you how to access their CARCHEX Direct system so that you can see the actual coverage contracts and plan benefits that they are offering prior to purchase. Everything is upfront and out in the open with no hidden surprises. Once you have found a plan which has the coverage and pricing that meets your needs, you will be able to complete the purchase securely online or over the phone.
The CARCHEX "Compete" Model
I've always recommended shopping around for the best price and coverage. CARCHEX makes it easier to shop around by presenting you with competing warranty quotes and coverage options from top administrators and helps you choose the one that's right for you. CARCHEX also has their own exclusive line of products available on most vehicles with unique coverage options and terms. They have taken their 14 years of industry experience to Assurant, Inc. to partner to create these products. Assurant, Inc. is a Fortune 500, publicly traded insurer and one of the largest and most respected insurance providers in the industry.
What I really like about the CARCHEX compete model is that they will provide you with the best quote for the highest level of coverage even if it's from another administrator. You can of course request to purchase the CARCHEX/Assurant branded product if you prefer. It is their goal is to get you the highest level of coverage at the lowest possible price.
The process is simple. You either fill out the online quote form or call them toll free. Your advisor will present you with your personalized coverage options. The CARCHEX Direct system lets you see the actual contract for each option while they are talking to you. You can even compare plans side by side. You will know exactly what is covered on your car by each plan they present to you. CARCHEX also has a proprietary product comparison tool that allows you to view CARCHEX coverage compared to a competitor's coverage. Be sure to take advantage of this tool.
Limited Time Offer: CARCHEX is offering $100 off all policies for CarBuyingTips.com visitors until March 31. Click here for pricing information.
CARCHEX will give you a menu of options from several different administrators to choose from. You will be able to select a plan that meets your needs from basic "Major Systems" coverage all the way to complete "Bumper to Bumper" protection.
Why We Recommend CARCHEX
- Focus on Customer Service and Customer Satisfaction
- No High Pressure Sales Tactics
- They will show you the contract and give you details about the administrator before you buy
- A+ Rating from the Better Business Bureau (BBB)
- Highly Rated Administrators and Insurance Carriers with over 50 years of industry experience
- Exclusive product line backed by Assurant, Inc.
CARCHEX is even recommended by Pat Goss, America's most trusted master mechanic, of "Goss's Garage" fame, on the TV show Motorweek on Speedvision and PBS. He's one of the most knowledgeable people on warranties and repair work that we trust, because he actually works in the trenches in his own repair shop and sees the issues consumers face. Knowing that Pat approves of CARCHEX made it easy for us at CarBuyingTips.com to recommend them.
Review of WarrantyDirect
WarrantyDirect (Call them direct at 877-867-3580) has the most coverage options of any warranty we have researched, and 28 years of experience, through several full warranty claims paying cycles. They are one of the largest brick-and-mortar warranty companies, as well as an internet warranty company. In 2004, they sold more warranties than Toyota. They supply car warranties to over 2,200 car dealers, banks and credit unions as well as direct to consumers. Over 21,000 car dealers and auto repair facilities accept them. Most of their auto warranty plans cover wear-and-tear failures, overheating, unlimited number of claims and include free sign and drive roadside assistance. They offer more coverage than most auto warranties. They have an outstanding record with the Better Business Bureau and WebAssured.com. Licensed to sell warranties in California and Florida, the most stringent states when it comes to regulatory issues. They process over 7,000 warranty claims every month.
WarrantyDirect also has a plan for older higher mileage vehicles with up to 175,000 miles on their odometers called PowerShield (not available in CA or GA, and excludes some high performance vehicles). PowerShield covers mechanical breakdowns for items such as the Engine, Transmission, Drive Axle, Timing Belt, Water Pump, Fuel Pump and more. No other companies offer wear and tear on vehicles with high mileage. If you can't get high mileage coverage for your car, then I suggest you put $2,000 into your savings account to fund your own future repairs.
WarrantyDirect offers a variety of coverage options ranging from the basic "PowerShield" all the way to the top of the line "LuxuryCare+"
Why We Recommend Warranty Direct
- Financially stable, over $350 million in assets, paid out over $600,000,000 in claims, solid insurance backing
- A Forbes magazine Top 200 Company - three times
- Actuarially sound - we saw the actuary firm audit letters ourselves
- Dun & Bradstreet verified
- Best Better Business Bureau (BBB) report in the industry
Pros: No one beats their coverage, cheaper than dealers, flexible deductibles, less restrictive contract than others, free towing, transferable.
Another thing I like about WarrantyDirect is that their coverage begins the day you buy the auto warranty, not the purchase date of the new car (with the exception of Wrap programs), like most others. Warranty Direct has the least amount of coverage restrictions. If you buy a 5 year/100,000 mile plan for your vehicle, it will expire 5 years from today or when the odometer hits 100,000 miles. It could expire later than a competitor's 7/100 if the competing coverage starts from the original purchase date of the vehicle. Buy your warranty soon after buying your car to lock in today's prices. The cost of the extended warranty will go up as the car gets older and the manufacturers warranty winds down.
Companies We Don't Recommend
I get emails asking about many car warranty companies on the Internet from people anxious to get a warranty on their new or used car. Based on our research, here is why we DO NOT recommend the following companies, but you should investigate yourself and decide:
- The Auto Club.com (Now Paragon Motorclub) - A former key employee from Warranty Gold is still selling extended warranties online. Warranty Gold, using a Cayman Islands insurance company, folded in 2004 leaving tens of thousands holding worthless auto warranties. A WHOIS on TheAutoClub.com showed the technical contact to be Warranty Gold's former GM. Dun & Bradstreet lists his name on a Warranty Gold Business Report. He was a spokesperson for Warranty Gold as they asked courts to invalidate their obligations and extended warranties. They practice what we consider less than ethical selling practices. Requests for price quotes don't quote all rates and ask you to provide an email address or call. Emails they send omitted prices on all but lowest warranties. We reviewed their contract and found it to be restrictive and limiting, no wear and tear coverage most states, only mechanical breakdown. I got a quote last year, they spam me every week.
- Continental Warranty - A warranty broker, not a direct administrator, no online quotes or rates, 269 Better Business Bureau complaints in a 3 years period. They do not offer any bumper-to-bumper coverage, no wear-and-tear failures or damage due to overheating. WARNING -Will not allow you to read contract unless you put down a deposit.
- Aaautowarranty - Broker of coverage, not direct administrator, coverage from several small administrators. Displays seals on their web site that probably shouldn't be there. They display an AM Best seal showing "A" for Excellent. Tricks you into thinking you are getting "A" rated insurance backing. But most of their warranties are only backed with "B" or "NR3" ratings, not "A" ratings. Looks like their plans exclude wear-and-tear failures.