Disclosure: This content was produced by an independent editorial party for the purposes of educating our customers, and is not influenced by the other business operations of CARCHEX.
While companies like CARCHEX and Endurance are often referred to as “extended car warranty companies” by consumers, these businesses actually sell something called vehicle service contracts. Also called “protection plans,” vehicle service contracts serve the same function as extended warranties: providing new repair coverage for cars that suffer from mechanical breakdown—after the original manufacturer’s warranty has expired.
In this article, we’ll cover where to find the best vehicle service contract, what the difference is between a service contract and an extended auto warranty, and how to know when your car needs that extra protection.
Extended Warranties vs. Vehicle Service Contracts: What’s the Difference?
Extended warranties and vehicle service contracts are often thought of as the same thing, but there are notable differences, depending on what company is selling them. When your auto manufacturer offers a contract to repair your car after the factory warranty has expired, that contract is an extended warranty.
Legally, only the company that sells the product (your car) can offer what’s called a vehicle warranty. Extended warranties from auto manufacturers are still technically vehicle service contracts, but they’re called “extended warranties” because they continue (extend) repair protection for your vehicle after the original warranty expires.
With the exception of mechanical breakdown insurance, usually when any company outside of an auto manufacturer offers a contract to repair your car after mechanical breakdown, that contract is called a vehicle service contract (VSC). VSCs outside of auto manufacturers often cover cars for much longer than extended warranties and provide more varying levels of coverage that make these contracts easier to pay for.
Aside from the legal terms used for each of these types of products, extended warranties and VSCs serve the exact same function. For legal reasons, we’ll refer to the “best extended car warranty” as “protection plans” or “VSCs” for the duration of the article.
How to Find the Best Vehicle Protection Plan
If you’re looking for the best protection plan for your new or used vehicle, know that the top options nearly always provide a few critical elements. Any plan you purchase should at least offer the following:
IMPORTANT VEHICLE PROTECTION PLAN ELEMENTS
Affordable monthly payments |
Claims paid directly to a mechanic |
High Better Business Bureau (BBB) rating |
|---|---|---|
Your choice of repair facility |
Money-back guarantee |
Roadside assistance and other benefits |
CARCHEX offers all of these benefits and will gladly help you perform an industry-wide vehicle protection plan comparison. Representatives will also provide free, no-obligation vehicle service contract quotes customized to your vehicle’s make, model, and age if you call the CARCHEX team.
How Does CARCHEX Compare to Other Vehicle Service Contract Companies?
Although drivers can pick between manufacturer extended warranties and third-party vehicle protection options, we generally recommended choosing third-party for significantly lower prices and the freedom to select your own repair facilities and parts. Below, we compare the customer service, endorsements, and overall track record of four third-party providers:
CARCHEX |
autopom! |
Everything Breaks |
Endurance |
|
|---|---|---|---|---|
Years in Business |
25 |
15 |
10 |
18 |
Coverage Levels |
5 |
3 |
5 |
6 |
Instant Quote |
Yes |
Yes |
Yes |
Yes |
Better Business Bureau (BBB) Accreditation |
Yes |
Yes |
Yes |
No |
BBB Rating |
||||
BBB Complaints |
165+ |
4 |
170+ |
3,040+ |
Partnerships/Endorsements |
CARFAX, RepairPal, Edmunds.com, Autoblog, SiriusXM, Vehicle Protection Association, and Goss’ Garage. |
RepairPal, EFG companies, Olive.com |
N/A |
RepairPal, celebrity endorsements |
*Updated October 2024
Do You Need a Vehicle Service Contract?
Whether you need a vehicle service contract will largely depend on how close your manufacturer warranty is to expiring. If you have a new or recent-model car, it’s likely still under warranty, but factory warranties often expire quickly and are quite limiting in terms of coverage options and auto repairs.
Is Your Factory Warranty Almost Expired?
Most auto manufacturer factory warranties expire after three years, though some can go all the way to five years. You can check to see if your warranty is still in effect by accessing the owner’s portal on your manufacturer’s website or calling the nearest dealership and giving them your vehicle identification number.
For a quick look, here’s a car warranty comparison of offerings from some of the country’s most popular automakers:
| Manufacturer | New Vehicle Limited Warranty | Powertrain Limited Warranty |
|---|---|---|
| Buick | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Chevrolet | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Dodge | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Ford | 3 years or 36,000 miles | 5 years or 60,000 miles |
| GMC | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Honda | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Hyundai | 5 years or 60,000 miles | 10 years or 100,000 miles |
| Infiniti | 4 years or 60,000 miles | 6 years or 70,000 miles |
| Kia | 5 years or 60,000 miles | 10 years or 100,000 miles |
| Nissan | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Subaru | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Toyota | 3 years or 36,000 miles | 5 years or 60,000 miles |
| Volkswagen | 4 years or 50,000 miles | 4 years or 50,000 miles |
| Volvo | 4 years or 50,000 miles | 4 years or 50,000 miles |
In our car warranty comparison, we found that Hyundai and Kia easily have the best new vehicle limited warranties in the industry.
Are You Comfortable Paying for Sudden Repair Costs?
If you don’t have a vehicle service contract after your manufacturer warranty expires, then you’ll be paying for any sudden vehicular breakdowns completely out of pocket. The older a car gets, the more likely it is to develop some mechanical problem.
According to RepairPal, the average cost of vehicular repairs is $652 per year, but this varies by manufacturer. Repairs and part replacements can also be incredibly expensive. For example, replacing the exhaust manifold can range between $1,241 to $1,354. Vehicle service contracts may work better for drivers not willing to drop thousands of dollars suddenly on repair service.
Try a CARCHEX Vehicle Service Contract
CARCHEX offers a variety of vehicle service contracts that give your vehicle the best coverage possible. Take a look at our five basic levels of CARCHEX coverage, keeping in mind that multiple programs are available under each coverage level and that some stretch as long as 10 years.
- Titanium—The Titanium plan offers exclusionary coverage with only a short list of components that aren’t covered.
- Platinum—This stated-component coverage protects parts of every key vehicle system.
- Powertrain Plus—This is an expanded powertrain plan that also protects the air conditioning and various electrical components.
- Powertrain—This basic powertrain plan provides protection for key engine components, the transmission, drive axle, and transfer case (which are generally the most expensive parts to repair).
- Extra Care—The Extra Care plan covers vital components that aren’t part of the vehicle’s powertrain, including the electrical system, steering, suspension, and brakes.
From the highest Titanium plan all the way to our unique Extra Care offering, CARCHEX can fit your needs—and your budget—with ease.
CARCHEX Vehicle Protection Benefits
CARCHEX is committed to providing affordable, high-quality plans that suit your needs and driving habits. With a CARCHEX contract, you’ll enjoy:
- Low Monthly Payments—You should never have to choose between safety and finances when it comes to repairing your car. CARCHEX provides low monthly payment plans to give you some peace of mind when an unexpected repair comes up.
- Thousands of Repair Shops to Choose From—We work with more than 30,000 certified, licensed repair shops nationwide. So whether you prefer a dealer, a national chain, or the garage down the street, you’ll be able to find a shop you trust.
- Claims Paid Directly to a Repair Shop—CARCHEX doesn’t make you wait around to be reimbursed. We make it easy by paying the repair facility directly.
- A 30-Day Money-Back Guarantee—If you’re not satisfied with your CARCHEX plan, just let us know within 30 days, and we’ll issue a full refund.
- 24/7 Roadside Assistance—If you break down on the side of the road, our protection plans can help by offering towing, gas delivery, and trip interruption services.
- CARCHEX offers exceptional customer service, affordable pricing options, a variety of coverage plans, and top-tier business ratings. We are proud to have endorsements from industry leaders such as CARFAX, Edmunds, RepairPal, and TV host Pat Goss, as well as from our many satisfied customers.
Hear what Pat—co-host of acclaimed weekly television series MotorWeek—has to say about CARCHEX:
Get a Quote from CARCHEX Today
Speak with one of our representatives today to perform an industry-wide vehicle service contract comparison. We’d be glad to help you navigate the process of finding protection for your car.
Sources:
BBB:
https://www.bbb.org/council/overview-of-bbb-grade/
ThoroughlyReviewed:
https://thoroughlyreviewed.com/car-warranty/extended-car-warranty-company-reviews/
RepairPal:
https://repairpal.com/estimator/dodge/ram+1500/head-gasket-replacement-cost
Car Complaints:
https://www.carcomplaints.com/Honda/Accord/transmission/
Goss’ Garage:
http://www.motorweek.org/features/goss_garage/
CARCHEX Research Center:
https://www.carchex.com/research-center/auto-warranties/mechanical-breakdown-insurance-vs-extended-car-warranty/