A used car warranty can help you avoid the risk of sudden financial disaster and offers drivers some peace of mind on the road. Not all providers offer the same prices, coverage, and quality of service, though. To help you sort through the options, we’ve compiled a comprehensive list of the industry’s best used car warranty options.
Keep reading for a side-by-side comparison of some of the best extended car warranty companies. You’ll also learn:
- The benefits of a used car warranty from CARCHEX
- What to consider when looking for a used car warranty company
- The difference between auto insurance, mechanical breakdown insurance, and an extended car warranty
- What a warranty for used cars actually covers
- How a used car warranty works
If you’re interested in finding out how CARCHEX Extended Vehicle Protection Plans can keep your vehicle safe on the road, call us at 866-261-3457. We’d be glad to walk you through the process of finding a used car warranty and will make sure to answer any questions you may have about extended warranty plans.
How to Shop For a Used Car Warranty
When you have a used car, it’s important to maintain it with an extended warranty. However, not all used car warranty plans are created equal. Here are some important factors to consider when researching used car warranty companies to make sure that you’re getting what’s right for your car, budget, and lifestyle:
Find out how much coverage you’ll get
This is one of the most important factors to look at when buying a used car warranty. Many extended auto warranty companies have different tiers of coverage, each offering different types of coverage and with different pricing structures.
Some provide benefits similar to bumper-to-bumper coverage or a factory warranty, while other plans include just major parts like the drivetrain and electrical components such as the alternator. Read the contract’s fine print to determine what is and isn’t covered by your warranty.
How Long Will Coverage Last?
You’ll want to get a warranty that goes beyond your original manufacturer’s warranty that comes with new vehicles. These usually only last for 3 years/36,000 miles. Just like with different tiers of coverage, companies often also let you choose how long you’ll have coverage for.
Learn the cost of the warranty
Carefully consider quotes before purchasing a used car warranty. Extended warranty quotes typically vary based on your vehicle’s make and model, as well as by its mileage and age. Make sure you understand the complete price of your warranty and determine whether there are any monthly costs you’ll need to pay.
Check the Better Business Bureau (BBB) rating
This rating is based on the BBB’s opinion of how a business interacts with its customers. You want a reputable extended car warranty company, so checking customer reviews and the BBB rating will help to ensure that your warranty provider is indeed reliable.
Consider the added benefits
Extra expenses such as car rentals add up quickly while your car sits in the repair shop. The best extended auto warranty plans include roadside assistance and related benefits such as towing, rental car reimbursement, and trip interruption services. That way, you’ll keep your out-of-pocket costs to a minimum.
Your Choices for Vehicle Protection
If you have a used car, you may be wondering whether mechanical breakdown insurance (MBI), auto insurance, or an extended warranty offers the most protection for your vehicle. Here’s an overview of all three options, including the similarities and differences between them.
Similarities: Mechanical Breakdown Insurance and Extended Warranties
Mechanical breakdown insurance and extended car warranty plans share the following features:
- Both pay for covered repairs not caused by normal wear and tear.
- Both can range from high-level exclusionary coverage to basic auto protection.
- Both require a monthly payment.
- Both usually require a deductible before repairs are covered.
Differences: Mechanical Breakdown Insurance and Extended Warranties
The main difference between mechanical breakdown insurance and an extended warranty is that only businesses with a property and casualty insurance license can offer MBI. Extended car warranty plans are generally provided by companies that specialize in vehicle protection. These vehicle maintenance plans often offer more comprehensive coverage and a wider variety of benefits for used cars.
Manufacturer Used Car Warranty
If you buy a certified pre-owned (CPO) vehicle, it may include a limited manufacturer’s warranty. However, a CPO warranty is only for specific cars and typically provides a single year of bumper-to-bumper warranty coverage.
Some manufacturers do offer their own extended service contracts. While these may offer great coverage at a competitive price, they also only cover work done at official dealerships. An aftermarket vehicle service contract offers far more flexibility, allowing you to have repairs done by any licensed mechanic.
How Does a Used Car Warranty Work?
Though it’s technically a service contract for your vehicle, an extended warranty works similarly to an insurance policy. You start out by covering a minimal upfront payment over the course of several months. Your warranty typically goes into effect after a 30-day waiting period and protects you from unexpected and costly future repairs.
Here’s how a used car warranty works when you have to file a claim:
- When your car needs a repair, gather your warranty documentation and get an estimate for the repair.
- Call the warranty company and let it confirm that your repair is covered. The company will also mention whether your warranty allows you to take your car to any mechanic. The best used car warranty companies let you choose from almost any repair shop.
- Take your car in for repairs. Your warranty company may directly pay your mechanic or it may reimburse you for the expenses.
Used car warranty plans should be simple enough to take the hassle out of vehicle repairs. To ensure that you get complete peace of mind from your extended warranty, be sure to pick a reputable provider like CARCHEX.
How Much Does a Used Car Warranty Cost?
The price of a used car warranty depends on your specific vehicle as well as on your level of coverage, length of protection, and deductible amount that you select. We conducted a car warranty survey in 2021 that polled 1,000 consumers and about half claimed to pay between $1,500 and $2,500 for their extended car warranty plan.
To find out exactly how much you can expect to pay for an extended warranty, call the team at CARCHEX. We’ll tailor each available Extended Vehicle Protection Plan to make sure that our options suit your specific needs and budget.
Should You Buy a Used Car Warranty?
It’s easy to believe that you’ll face no issues on the road, but 69 million drivers deal with a mechanical breakdown each year. That amounts to 1 in 3 motorists in the United States, and those with a used car may be even more vulnerable.
While some repairs may be easy to deal with, the costs often end up steep for those without a used car warranty. Below, we’ll look at replacement costs from RepairPal for some common issues faced with older vehicles.
The Industry’s Top Used Car Warranty Choice
CARCHEX leads the competition with its Extended Vehicle Protection Plans. There are several reasons why drivers consistently turn to us for high-quality service at an affordable price. A few have been listed below:
- Our A+ rating from the BBB places us among the best extended warranty companies for used cars. Our promise is “Customer Experience Above All,” whether you’re getting a free quote or filing a claim.
- We’ve been endorsed by top industry-leading companies such as Edmunds.com, Kelley Blue Book, RepairPal, and CARFAX.
- We offer affordable, flexible payment plans customized to your driving needs.
- If you’ve got high-mileage vehicles, used cars, or cars of older model years, you’re still eligible for our Extended Vehicle Protection Plans. In fact, we have several plans for older vehicles with high mileage limits.
Benefits of a CARCHEX Used Car Warranty
Here are some other perks of used car warranty plans from CARCHEX:
- We offer affordable payment plans for those who can cover low monthly payments but would be weighed down by an untimely $3,000 repair. Deductibles sit as low as $0.
- CARCHEX provides consultative customer service, so you don’t have to worry about haggling, limited choices, or significant markups. You’ll get quotes tailored to your budget, needs, and driving habits.
- We provide 24/7 roadside assistance that includes gas delivery, towing, and trip interruption services.
- You can choose your own repair facility and aren’t forced to take your car to the dealership. We partner with more than 30,000 certified facilities nationwide, so you’ll always be able to take your car to your most trusted mechanic.
- The CARCHEX No-Haggle, Low Price, Everyday Guarantee™ and 30-Day Money Back Guarantee ensure that you’re completely satisfied with your used car warranty.
- CARCHEX is available in every state and is one of the few extended warranty companies that offers coverage in California.
- You’ll enjoy the peace of mind that comes with having the best extended warranty for used cars and can relax knowing that your vehicle and budget are safe.
As one of the industry’s leading used car warranty companies, CARCHEX works hard to meet every customer’s needs from the time of purchase through the duration your contract.
CARCHEX: The Best Used Car Warranty
CARCHEX stands out as one of the best used car warranty companies, so we’d recommend considering one of our affordable but high-quality plans. Call us at 866-261-3457 if you’d like to learn more about how CARCHEX can keep your vehicle safe for years to come.
Our specialists will listen to your needs and help find the Extended Vehicle Protection Plan that’s right for your vehicle, driving habits, and budget. We’ll do so in a low-pressure environment, as we live by our brand promise: “Customer Experience Above All.”
Learn More About Car Warranties
If you’d like more information about car warranty plans before making a decision, we’ve listed some places to start: