Best Extended Car Warranty Plans For 2024 (2024)

Extended warranty companies often get a bad rap, but the industry as a whole is dragged down by a few bad actors. That said, there’s plenty to know about even the most upstanding extended auto warranty providers, as the market has exploded with choice over the last few years. The good news is that despite a few bad reviews here and there, warranty companies offer coverage for unexpected car repairs and maintenance.

Extended car warranties do cost money, however, and sometimes the costs are more than the payoff. It’s important to understand how each company works and to know for sure what is and isn’t covered with a new policy. The companies listed here are mostly well-reviewed, and they all scored highly for being transparent and offering easy-to-understand policy information.

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Best Extended Car Warranty Plans For 2024 (1)

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1

American Dream Auto Protect

Pricing

Variable

Roadside Assistance

24/7

Coverage

Variable

1

American Dream Auto Protect

855-683-1828

Get Free Quote

On American Dream's Website

2

Endurance Auto Warranty

Get Free Quote

Via Endurance's Website

3

AutoPom

Pricing

Starts at $89 / Month

Roadside Assistance

24/7

Coverage

Up to 145k miles

3

AutoPom

866-559-5428

Get Free Quote

On Autopom's Website

Here are the three best extended warranty plans for 2024:

1. Olive

Olive is a somewhat new company in the extended warranty game, but it’s already earned a spot at the top of many best-of lists. The company’s seamless online experience means there are no extended phone calls or uncomfortable sales pitches from pushy representatives. The company does not require new policyholders to submit to a waiting period, and the company is exceedingly transparent with its coverage options, exclusions and terms.

That said, Olive is clear about what is and isn’t covered, which includes pre-existing conditions, modifications and parts that fail due to abuse or neglect. The company’s coverage options include Powertrain, Powertrain Plus and Complete Care. Starting with the Powertrain plan, Olive covers the internally lubricated engine parts, oil system, timing, valves and water pump. The Powertrain Plus adds the serpentine belt and other components. Complete Care covers the largest number of components, including the thermostat, turbo or supercharger and advanced valve timing systems.

Olive

On Olive's Website

Pros & Cons

2. ForeverCar

ForeverCar is a partner to several major banks and insurance companies, which has helped it grow its business and build trust in the marketplace. Its prices are generally more reasonable than its rivals, and the company offers various coverage options. Customers can choose their deductible and waiting period, and the company offers several benefits and upgrades. Some plans offer deductibles as low as $0, and the waiting period can be cut to just a few hundred miles.

ForeverCar also offers 24/7 roadside assistance and benefits for trip interruption and rental cars. That said, the company is one of few that limits the repair shops that can be used under its coverage.

ForeverCar

On ForeverCar's Website

ForeverCar

On ForeverCar's Website

Pros & Cons

3. Carchex

Carchex is a significant player in the extended warranty game, offering several tiers of coverage and options for almost any vehicle. Customers also benefit from add-ons like rental car reimbursem*nt, roadside assistance and trip interruption coverage. Policyholders can choose their own repair shops, and Carchex offers a 30-day money-back guarantee on its coverage options.

Though it’s an easy company to deal with and its coverage options are transparent and easy to understand, Carchex is not as contemporary as some rivals when it comes to customer service. Prospective customers have to call the company and give up some personal information to get a quote, but Carchex phone reps are among the best in the business and make the process much easier than expected.

Carchex

On Carchex's Website

Carchex

On Carchex's Website

Pros & Cons

4. Concord Auto Protect

Concord handles its own claims and plans and is one of the few direct service providers in the industry. It offers three coverage options, and even the most basic plans include powertrain protection. Concord’s range-topping Premium plan covers the vehicle’s tech, fuel system, brakes, suspension and HVAC system. That’s a significant upgrade over most plans, which lack coverage for wear items and are generally limited to major vehicle systems. Prospective customers get a clear view of what is and isn’t covered up front, so there’s no confusion about where the vehicle owner stands.

At the same time, Concord is a bit more expensive than expected. The good news is that the company offers decent deductibles, and customers can spread payments out over time to help soften the blow. Additionally, Concord has garnered great customer reviews, and the extras it offers with its plans more than make up for the greater cost.

Concord Auto Protect

On Concord's Website

Concord Auto Protect

On Concord's Website

Pros & Cons

Frequently Asked Questions (FAQs)

Are Extended Warranties Worth the Cost?

Extended warranties are worth it for vehicles with less reliable track records and models with expensive repair costs. That said, they can also be worth the money for people who simply want peace of mind with their new or used vehicle purchase.

Should I Buy an Extended Warranty from my Car Dealer?

Many dealers offer warranty products with vehicle purchases, and for some people, it might be worth the added cost to wrap the coverage into a loan. Even so, there’s no requirement to buy a warranty with a vehicle, and shopping around can save big money without having to pay the dealer’s commissions and fees.

What Voids Extended Car Warranties?

There are several limitations and rules for most extended warranties, and some of the strictest relate to factors that play into a warranty being voided. Modified cars are a biggie, as many providers steer clear of non-factory parts and work. Warranty providers are not insurance companies, either, so they don’t typically cover damage caused by collisions, abuse or natural disasters.

Is it Better to Get Powertrain or More Comprehensive Coverage?

This depends on the vehicle. Some people stick with entry-level powertrain coverage and are totally fine, while others might want to look at broader coverage options. Even so, the most expensive repairs tend to be powertrain-related, so the most basic coverage is often the most appropriate.

Methodology

In evaluating extended warranty providers, we examined five critical areas of service and coverage. They included customer service (as experienced in our direct contact with the companies) and reviews from existing customers, ease of filing a claim and the turnaround time of claims and payments, the breadth and cost of plans offered, overall trustworthiness by company reputation and the pricing of their offerings. Forbes Wheels surveyed 12 providers in total.

Customer Service and Reviews: 25%

When we contacted extended warranty companies to inquire about pricing and details on specific coverage options, we observed how pushy or accommodating each representative was. How knowledgeable were they about their product lines? How clearly could they articulate their company’s policies on various covered items?

At the same time, we used public reviews of each company to observe recent customer interactions and to determine how many complaints companies responded to. Claims of slow service, denied claims and other issues were noted if they were common.

Claims and Payments: 25%

Extended warranty providers love to tout their strong claim approval rates and easy claims processing, but important questions about how claims are paid and the times around the process need to be answered. In addition to asking questions about the communication process and payment timelines, our research included a thorough review of customers’ opinions of filing a claim and having their vehicle repaired.

We also reviewed customers’ experiences with claims payments. If the provider pays the shop directly, how long did that take? Did the shop have trouble communicating with the warranty provider, or were there problems with payments? Did the provider pay for what they said they would?

Plans, Selection and Add-Ons: 25%

Variety is the spice of life, and it’s extremely helpful when buying a warranty for your car. We observed the number of plans available from each provider and how covered components were spread between them. Additionally, we asked each company how their policies’ availability and coverage change as cars age. For example, how much more expensive or restrictive is a warranty for a car with 150,000 miles as opposed to one with 50,000?

We also asked about and reviewed each company’s list of available add-ons, benefits and discounts. Points were awarded to companies that offer generous discounts and extensive add-on menus for services such as tire protection and rental car reimbursem*nt.

Overall Trustworthiness: 15%

Trustworthiness is subjective, but our rating in this area relates to how well a company’s website, public information, reviews and phone representatives inspire trust. We focused on representatives’ attitudes and openness to share information and how thoroughly the company’s online information is laid out. We observed the process of obtaining a quote and assessed how difficult or annoying it is to find a price. Finally, we observed how many sales or spam calls were received after contacting a company. Points were awarded to companies that did not start calling or texting after we asked them not to contact us.

Pricing and Value: 10%

Many warranty companies offer monthly payment plans and other flexible payment options. Companies earn points here by offering the broadest array of payment options, and for pricing their coverage options reasonably. It’s worth noting that almost everything is more expensive, especially car parts, so we factored price increases into our scoring in this category. Some warranty providers have responded to increases in their costs by bumping the costs of warranty coverage policies.

Best Extended Car Warranty Plans For 2024 (2024)
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