If you are thinking of investing in an extended car warranty service you should navigate the paperwork very carefully. Calling them extended car warranties not quite accurate. They are not a form of insurance, but in fact a service so are not regulated the same as insurance providers are.
In partnership with AutoWarrantyConnect
Car Warranties. The following companies are our partners in Car Warranties: Endurance, Carchex, Warranty Direct, autopom!, Protectmycar.com, Concord Auto Protect, Complete Car Warranty, and Auto Warranty Value. We sometimes offer premium or additional placements on our website and in our marketing materials to our advertising partners. The Best Extended Car Warranties The best extended car warranty will provide excellent customer service and a straightforward claims and repair process in the case of a breakdown. To find our top pick, we consulted two auto industry experts and compared 40 providers to see which had the strongest history of financial stability and customer satisfaction.
Get a custom quote. Find the perfect auto warranty for your needs.
Like breakdown insurance, which is regulated, extended car warranties protect against mechanical breakdowns to your vehicle that aren’t caused in an accident or due to a fault of your own. The unregulated area of business means that this area is open to more shady practices than other industries, but this doesn’t mean there aren’t reputable firms offering this service. We highlight these in our list of the best extended car warranties. As with any type of policy, you need to read and understand the fine print to know what is covered, and what is not covered, as well as, how you are protected and what your end of the bargain is.
Extended car warranty can be sold through a dealership, or a third-party. Dealerships are usually more reputable than any third-party seller who you should vet very carefully. In both instances we advise you to check your existing auto insurance, as some form of mechanical breakdown insurance might be included in your policy – meaning this is may be an unnecessary expense. Even if you are not covered, you still have to judge the odds of a breakdown occurring against the cost of extra car warranty payments.
For this review of the best extended car warranties, we spent more than 40 hours researching vehicle service contracts. We dug into what each car warranty covered and excluded, examining over 130 pages of contracts sold by each service and read the fine print. We also got quotes for three different vehicles from each car warranty service to compare prices and the ease of use of the quoting process.
Best for high-mileage vehicles
CARCHEX
Covers any vehicle with less than 250,000 miles that's younger than 27 years old
Reasons to Buy
Reasons to Avoid
CARCHEX is the best extended auto warranty for drivers with high-mileage vehicles, because it covers any vehicle with less than 250,000 miles that's younger than 27 years old. Extended car warranties have the most value for drivers with high-mileage vehicles, because this is when the risk for breakdowns and costly repairs is at its highest.
So, if you rely on your 245,000-mile truck for work, an extended car warranty from CARCHEX may be your only option for an extended car warranty, as most services won’t accept a car with so many miles. For many companies, the second highest mileage restriction is 225,000 miles, and the average mileage limit among the services we reviewed was about 172,000 miles, though many extended car warranty services limit mileage to under 75,000 miles.
With 18 contracts to choose from, CARCHEX provides a lot of coverage options. In addition, we gave its quote process an above-average score, and its average cost per mile covered is among the most affordable. The vehicles we got quotes for were high-mileage cars with over 140,000 miles, and the average cost CARCHEX quoted us was 2 cents per mile covered. Only Autopom was cheaper.
Best direct provider
Endurance
This service administers the contracts it sells, so when you file a claim for a blown transmission, you deal directly with Endurance
Reasons to Buy
Reasons to Avoid
Most extended car warranty services are brokers of vehicle service contracts – they sell the contracts but aren’t responsible for approving and administering the claims. Endurance is one of the few direct providers in the industry, and it is our pick for best direct provider. This service administers the contracts it sells, so when you file a claim for a blown transmission, you deal directly with Endurance and get the same customer service you got when you bought the contract. With most other services, you deal with an administrator you’ve likely never interacted with before.
Many people consider direct providers a far greater value because they aren't jostled between companies when they file a claim, which provides peace of mind. However, it also puts direct providers like Endurance at a higher financial risk than brokers, so they have stricter limitations on what cars are eligible for coverage and have fewer contracts to choose from. As such, on average, Endurance is more expensive than most services we reviewed.
Endurance only has four contract options. Each varies in what it covers, from the basics to covering nearly everything. The length of the contracts are shorter than average and the contract readability is below average with small fonts and blocky formatting. In addition, the reimbursement policies for rental cars is very low at just $30 per day.
Most coverage options
CarShield
Has 37 vehicle service contracts and a 300,000-mile upper limit
Reasons to Buy
Reasons to Avoid
With 37 vehicle service contracts and a 300,000-mile upper limit, CarShield earned our pick for the best coverage options. The service has five exclusionary plans, providing multiple options for bumper-to-bumper coverage. There are also five powertrain coverage options for high-mileage vehicles, so its coverage options for full to minimum, and everything in between, are unmatched. Further, it's the only service we reviewed that sold motorcycle coverage.
However, while CarShield has the most options and covers the most vehicles, the quotes we received on the three vehicles we assessed weren’t affordable compared to other services’ quotes. In addition, the quote process is aggressive, earning an F grade in my evaluation. Unlike most services, which will happily provide quotes in an email, CarShield requires you to talk to a salesperson before you receive a quote. This approach doesn’t facilitate comparison shopping, as it puts pressure on you to make a decision without carefully reading the contracts. You can read the contracts before you decide to purchase a contract, which you should definitely take the time to do. CarShield’s contracts are also short and easy to read.
Best quoting process
Autopom!
Autopom is the best extended car warranty for getting quotes on various coverages and price ranges
Reasons to Buy
Reasons to Avoid
After comparing quoting processes, available plans and contract stipulations, Autopom emerged as the best extended car warranty for getting quotes on various coverages and price ranges. With each service, we got quotes on three vehicles with varying mileages, and Autopom was both the most affordable, quoting at an average of $0.01 per mile, and the process was fast. We got the quotes in an email within minutes and the quotes included all the information we needed - the coverage, cost and contract. There was even a link to purchase the contract. There was access to customer support as well.
As a broker service selling 21 vehicle service contracts for cars with up to 200,000 miles, you're more likely to find a service plan to fit your car's age and mileage with Autopom than with most other providers. That said, because it’s a broker instead of an administrator, the company you have to deal with when your car breaks down is different from Autopom, so it might take some consideration of what administrators are on the contracts to decide which is the best fit for you.
Despite selling so many contracts from a variety of administrators, the contracts received excellent grades for length and readability. On average, each contract was about 16 pages, which is longer than most, but with only about 330 words per page. The words are not tiny and are formatted to fill all the white space. However, the reimbursement policies are below average, with only a $35 per day reimbursement for rental cars and just $225 for trip interruption for when your car breaks down on road trip and you need to book a hotel room and food while your car is being repaired.
Best down payment
AA Auto Protection
AA Auto Protection extended car warranty service offers the best down payment
Reasons to Buy
Reasons to Avoid
With an average down payment of 2 percent of the total cost, AA Auto Protection earned my pick as the extended car warranty service with the best down payment. The company's quoting process is good, though not great, and its quotes are more expensive than most. However, the low down payment makes the service a more affordable option to start with.
AA Auto Protection is a broker of 17 contracts. This provides you with a lot of options for coverage, but it also means that when your car breaks down, you have to deal with a different company to process the claim. In addition, despite selling many contracts, AA Auto Protection has the lowest mileage restriction among the services we reviewed, as only cars with less than 100,000 are eligible for coverage. As such, it’s not ideal for the kind of cars most likely to need expensive repairs, which is disappointing.
In addition, the contracts aren't easy to read and are among the longest we read. The average contract is 20 pages long with an average of 1,500 words per page. And the formatting didn’t help with the readability. Overall, this makes it difficult to carefully read and consider the contracts you’re signing. And that’s always a concern, especially when you’re committing to spend several thousand dollars.
Best of the rest: other services we reviewed
Infinite auto protection
While there is nothing particularly impressive about Infinite Auto Protection, this service offers above-average contracts at above-average pricing. The biggest downside is you may have to pay for the entire contract up front rather than in monthly installments like other services.
Delta auto protect
Delta Auto Protect sells affordable vehicle service contracts for vehicles under 140,000 miles and each contract has some of the best reimbursement policies available, but the coverage options are quite limited and the contracts aren't easy to read. In addition, the quote process was among the more aggressive in my evaluation.
Protect my car
Protect My Car offers some attractive coverage options you don’t find with other brokers of vehicle service contracts, making it an excellent option primarily for old, high-mileage vehicles. Unfortunately, the quote process is poor and the customer support was lacking.
Extended car warranty or vehicle service contract: what am you buying?
Despite this article's “Best Extended Car Warranty Services” title and the various iterations of “auto warranty” used, none of the services we reviewed sell warranties. In fact, the only reason we use these terms is they are what people often search for when looking for additional coverage for their vehicle. In addition, the services use these terms frequently for the same reason. But it’s not accurate.
What is a car warranty?
A car warranty can only be offered and administered by the manufacturer for new cars, and it is included in the price of the vehicle.
What is an extended car warranty?
An extended car warranty is only offered by new-car dealerships to make the manufacturer’s warranty more comprehensive or to extend the terms of the manufacturer’s warranty, often to sweeten the deal. However, even these are not warranties. Rather, they are service contracts administered by a third-party service partnered with the dealership, not the manufacturer.
What is a vehicle service contract?
A vehicle service contract has a similar purpose to a manufacturer’s warranty but is sold independently by a third-party administrator or broker. The advantage of a vehicle service contract is you can buy one at any time for any vehicle, new or used.
So why the confusion?
Unfortunately, some services in the vehicle protection industry prey on this confusion. We explain these issues in greater detail later in this article, but some services contact consumers under the pretense of representing manufacturers or dealerships. These predatory services scare consumers by saying their car’s warranty has expired or is about to expire. As a result, many people are tricked into buying vehicle service contracts from third-party administrators they’ve never heard of. And this has become such a big problem, the FCC and BBB have web-pages devoted to making complaints.
To be clear though, while some of the services we reviewed can be very aggressive in their sales approach once you’ve submitted a quote, none of them have been involved in those deceptive marketing tactics, as far as I’m aware. For more information on how vehicle service contract companies should conduct themselves, visit the Vehicle Protection Association – a non-profit watchdog association.
Why trust us on extended auto warranty?
We've been reviewing insurance polices and finance products for a number of years. Our team of researchers are well versed in litigative terminology and can pick apart the clauses of an auto-warranty, no matter how microscopic the print gets. We spent hours pouring over contracts, to see what is really covered under the warranty, and the conditions attached to this cover.
Our goal with this review is not to sell you on an extended warranty but to find the best auto warranty services available to ensure you're dealing with a reputable company. There are a huge amount of auto warranty services who are misselling the product aggressively.
We also want to make sure you understand the risks before buying a plan. Extended car warranties aren't without significant risk and certainly aren't for everyone- despite what the pushy telesales person tell you.
You could easily pay upwards of $4,000 for a plan, adding a $200 monthly payment to your budget, and still have expensive repairs denied because you failed to pay close attention to the contract. Conversely, if you follow the strict maintenance guidelines and your car never needs repairs, you've spent $4,000 on peace of mind. Such complaints are common in this industry.
How we evaluated auto car warranty
To find the best car warranty, we evaluated the three most important parts critical to the purchasing decision – the quoting process, the coverage options and the contracts. We used multiple vehicles of varying age, mileage and model to gauge each part of this process.
Quoting process
Every service customizes the price and coverage terms of their plans according to the vehicle's specific history. This means they don't have a standard cost for each plan. The same plan costs significantly different for a sedan with 140,000 miles and a minivan with 50,000 miles.
To find out what coverage your vehicle is approved for and how much it costs, you enter the year, make, model, mileage and your personal information into the service's quote form. What happens next varies greatly. In most cases, your information is given to a salesperson. Either way, getting the information necessary to make a purchasing decision is not as easy as it seems like it should be. The sales people are aggressive and most refuse to provide a quote without having a conversation first. In a few cases, the sales contact put an expiration date on the quote. With two services, it took nearly a week to get the quotes we needed. Some services have very aggressive salespeople who called me repeatedly every day, even after providing a quote.
It's difficult to compare pricing because the quotes varied significantly, in terms of miles covered and cost. Some plans covered just 12,000 miles but were very affordable. Other plans for the same vehicle covered 100,000 miles but were very expensive. To find an appropriate comparison, we calculated the price per mile covered for each quote we received. For example, if a car received a quote for a 100,000-mile plan at $4,000, the cost per mile is about $0.04. We did this with multiple vehicles to find an average cost per mile covered for each service.
Coverage options
Just getting approved for coverage is a challenge. Every service has restrictions for how old and how many miles a vehicle can have to be eligible. However, you have the best chance of finding the coverage you need with services with many plans available and a good mileage restriction. For example, Autopom sells 21 service contracts and covers any vehicle with under 225,000 miles, so you have a better chance of finding a plan to fit your needs.
Contracts
You should carefully read any contract you sign, but this goes double for vehicle service contracts, as it makes all the difference in determining whether your repairs are covered or denied. The contracts stipulate what your responsibilities are, what records you need to keep and what type of maintenance is required to receive coverage. There is also a lot of language allowing them to deny coverage for a wide variety of issues. You need to understand the risks before you sign.
We read contracts from each service – 130 pages of legalese in total. In this process, we evaluated the average words per page, the font size, formatting and overall clarity. Legalese is not easy to read in the best of circumstances, but the best contracts aren't too long, don't fit more than 600 words on each page and make clear delineations between sections. The worst contracts averaged 1,200 words or more per page with excessive bold text and a lack of logical formatting. These contracts were difficult to follow.
Vehicle service contracts: what you need to know
Just because you spent $3,000 on an extended warranty doesn't mean you're going to get your repairs paid for when a breakdown occurs. Similar to insurance companies, these services have to approve or deny the repairs before the mechanic can get you back on the road. And if you don't pay close attention to the contract, you're putting yourself at risk. In an article published by Real Simple, an investigator for the Better Business Bureau said, 'Sellers often cite loopholes in the contract (ones you would never be able to discern) to avoid paying up.'
Here are some tips for what you should look for in the contracts and other considerations before buying an extended warranty.
Is a vehicle service contract worth it?
Clark Howard, a consumer expert who specializes in financial advice and tips, says studies have shown most people who have purchased an extended warranty never use it and the ones who do typically pay more for the warranty than the repairs would cost. He doesn't think it's worth it. Instead, he recommends putting the money you would have paid each month on a vehicle service contract into a savings account. So, if a plan costs $3,000 over two years, then you'd put $125 into a savings account each month. This way, you have money set aside for repairs and if your car doesn't need repairs, you have money set aside for the down payment on a new car. This method ensures your money doesn't go to waste. That said, it won't cover expensive repairs early on, before you've saved much.
These plans do come with additional services, and this adds value to the contract. Every contract has 24-hour roadside assistance and reimbursement for vehicle rentals while your car is in the shop. You can get reimbursed for towing, rental vehicles and hotel rooms. If your car breaks down 100 miles from your destination, you can get reimbursed for hotel rooms.
Understanding BBB grades
Extended car warranty services often emphasize their A+ grade with the Better Business Bureau. Not only are the grades shown prominently throughout their websites, but the representatives we contacted often pointed to their A+ BBB grade as a reason why they’re the best choice. And it makes sense - who doesn’t love to brag about an A+ grade?
However, it’s important to understand what a BBB grade is and what it isn’t, especially in an industry so notorious for low customer satisfaction, the BBB has a page devoted to filing auto warranty complaints.
What the BBB grade isn’t
Consumers often confuse the BBB as being a government agency, which is only compounded with how the Yellow Pages often lists local BBB offices under government agencies. This leads many to conflate an A+ grade from the BBB as the equivalent to an A+ certification from the health department.
As Brad Tuttle points out in “Why the Better Business Bureau Should Give Itself a Bad Grade,” the BBB has 113 independently operated affiliate offices across North America. Their customers are the businesses, not consumers or taxpayers. And Tuttle argues, “there’s a natural incentive to paint its paying clients in the best possible light.” The BBB’s spokesperson even states the grades are not an evaluation of the companies' quality of service or quality of product.
What the BBB grade is
In Tuttle’s article, the BBB’s grades are nothing more than a company’s “good faith effort to resolve complaints.” This is all. The grade represents the company’s response to complaints lodged against it. And even though the BBB rating elements suggest otherwise, it doesn’t matter how many complaints a company receives, if they follow the BBB’s rules for responding to the complaints, it still receives a high grade. So, a company with thousands of complaints can receive a higher grade than a company with few complaints, as shown in Tuttle’s article.
So, all an A+ grade from the BBB reflects is how well the extended warranty service is at responding to complaints according to the BBB guidelines.
Does AAA offer extended auto warranties?
AAA offers many benefits to drivers, but it doesn’t sell extended auto warranties. However, AAA provides benefits similar to what is included in an extended car warranty. For many, membership could be the better option.
With 58 million members, AAA is the most widely used roadside service in North America, and for good reason - membership covers you with emergency road services everywhere you go, at all times of the day, regardless of the vehicle you’re driving. You could be in your friend’s car when the tire blows, and your AAA membership will cover the towing or flat tire repair. It also includes locksmith service for when you lock your keys in your car, emergency fuel delivery and battery service.
Similar roadside assistance is included in the contracts of all the extended car warranty services we reviewed, but the stipulations of the emergency assistance applies only to the vehicle the extended warranty covers, and the contracts often only stipulate what is reimbursed. This means you have to pay for the service and go through a reimbursement process.
AAA also helps lower repair costs, though not to the same degree as a vehicle service contract. AAA members who take their vehicles to a AAA-approved shop get a 10-percent discount on repairs, and the repairs are backed with a 24-month and 24,000-mile guarantee. With vehicle service contracts, you typically either pay nothing on repairs or only have a $100 co-pay. However, vehicle service contracts can easily deny your repair claims because of how some contracts are structured in favor of the services, but AAA’s discount doesn’t have the same risk. Your repair discount can’t be denied, for example, because you failed to keep receipts from every oil change.
Your responsibilities: is this for you?
The biggest pitfall to getting repairs approved is failing to pay close attention to the driver responsibility section of the contract. Every contract has a 'driver responsibility' section outlining what you need to do to receive coverage. The most important of these clauses is following your vehicle's owner manual's instructions for proper operation and maintenance schedule. You must have the vehicle maintained in accordance to the mileage specifications and you must keep receipts and other records of the maintenance. Some contracts even specify what type of receipts are unacceptable and not admissible as proof of maintenance, such as handwritten receipts.
If you're not the type of driver to pay close attention to your tire pressure, oil and fluid levels, mileage and scheduled maintenance, then a vehicle service contract is not for you. You must know the details of your owner's manual and records. Otherwise, your contract is meaningless.
Tricky clauses in your extended car warranty
Every contract is loaded with clauses you need to read carefully before you sign. However, some clauses are common in all the contracts we read, and they either leave too much interpretation to the service or require special attention from you, as the driver. Here are some clauses to consider:
Taxi service and other commercial uses
Contracts won't approve repairs if you use your vehicle for commercial purposes. In most of the stipulations, such as using your vehicle as an emergency transport vehicle, it's a reasonable exclusion. However, this includes taxi service – you can't drive for Uber, Lyft or other drive-sharing taxi apps, even if your car breaks down when you're not driving to supplement your income. If you do, you risk voiding the contract.
Mechanical breakdowns caused by common elements
Parts break, in large part, because of the elements they are exposed to – heat, moisture, salt, vibrations and more. By including these causes in the exclusionary section of a contract, a service can deny nearly any repair. It doesn’t matter if you maintained the strict maintenance schedule and kept all your reports; if a part failed because an unseen bolt rusted out, your repair is denied.
Breakdown caused by a failure in nuts, bolts or fasteners
Speaking of bolts, your repairs are denied if the cause of the failure is deemed to be the result of a bad nut, bolt or fastener. These seemingly minor components do wear out regularly and can cause components to break down or wear out faster than usual, even if you adhere to a strict maintenance schedule and proper driving techniques.
Failure to observe warnings
The service can deny repairs if they believe you failed to properly observe early warning signs. This is a significant loophole because every mechanical failure could be argued to have some early warning signs. While some warning signs are obvious, such as an engine warning light or gauges, most warning signs are not obvious to most drivers. You may not realize your vehicle is leaking fluids unless you're looking for it. You may not know how to identify bad sounds in an engine or the ominous vibrations from bad wheel bearings. These are all listed in the clauses, and yet the contracts often state something along the lines of: 'Lack of mechanical knowledge is not an excuse.'
Failure to have your vehicle towed
This is a reasonable exclusion, as you should stop driving a vehicle if it breaks down to avoid further damage. However, it's far too easy to assume you can continue driving to a mechanic. For example if you have an alternator go out on your car. The car is still operating, but barely able to reach 15 mph. You rolled into the city and find a mechanic. If you have a vehicle service contract, the repair would likely have been denied. The moment you know something is wrong, you need to stop driving and call a tow truck. Fortunately, these contracts all reimburse towing costs, usually up to $50.
The potential red flag in this exclusionary clause is the point at which you decided to stop driving to call a tow truck. If they determine you should have stopped sooner, they can deny your repair.
Pre-existing issues and wait period
Every contract has a wait period before the coverage takes effect. Typically, this period is 1,000 miles or 30 days. This period makes sure you're not buying coverage because you know something is wrong. However, if a component breaks down at any time after this period, they still have the right to determine if the issue started before coverage. For example, if the wheel bearings go out on day 31, they are likely to deny coverage because wheel bearings typically start showing symptoms of wearing out weeks to months prior to seeing a mechanic. And remember, ignorance of mechanic issues is not an excuse.
How to find your vehicle’s recommended maintenance specifications?
If you’re going to purchase a vehicle service contract, you need to become familiar with your vehicle’s owner's manual. Since every extended car warranty service can deny repairs if you fail to prove you’ve followed the vehicle’s specific maintenance requirements, found in the owner’s manual, it’s critical to know what is expected for your vehicle. Every car is different, so you can’t rely on following common maintenance recommendations and expect your vehicle service contract administrators to approve your repairs.
Now, if you’re wondering where your owner’s manual is, you’re not alone. Most used cars aren’t going to have the manual in the glove-box. And even many new cars don’t include owner’s manuals. As such, you need to find the manual online, download the file and become intimately familiar with the maintenance schedule.
Fortunately, automobile manufacturers provide owner’s manuals on their websites. You simply have to enter the car’s year, make and model. In a few cases you may have to create a log-in to download the manual and you may have to provide the VIN of your vehicle, the vehicle identification number typically found on the dash near the windshield on the driver’s side.
However, most auto manufacturers don’t include a full library of owner’s manuals, choosing only to list the most recent vehicles. For example, Infiniti only provides access to manuals for vehicles made after 2009. If you can’t find your vehicle’s manual, there are some archive websites worth checking out to see if it’s available:
Are you using the right gasoline?
All gasoline comes from the same refined crude oil, but each oil company fine-tunes its recipes with various additives, though each has to meet the EPA minimum for detergent requirements to maintain a cleaner burning engine. This is because gasoline leaves behind deposits that can cause engine problems to develop over time, increase pollution, and lead to a less efficient, rougher-driving vehicle. Most oil companies have three tiers of gasoline, with the higher tiers having more additives and detergents.
According to Carfax, many view these premium gasoline options as marketing fodder with no real benefit. But this isn’t true. Many manufacturers design engines engineered specifically to use premium gasoline with a higher mixture of detergents. In other words, these engines aren’t designed to handle the deposits left behind by standard gasoline. In addition, multiple studies have suggested the premium gasoline make a difference, regardless of what vehicle uses them. Premium-tier gasoline result in 19 times fewer intake-valve deposits than non-premium gas and a 2- to 4-percent boost in fuel efficiency.
With concern to vehicle service contracts, using the wrong kind of gasoline could result in a rejected repair. Since every contract specifies you must follow your owner’s manual maintenance and usage guidelines, if your car's manual recommends premium gas, you need to be pay extra each time you fill up or risk having an expensive repair rejected. In case you can’t find the owner’s manual, the gasoline recommendation is often printed on or near the gas cap.
Reasons your claim is denied
One of the biggest complaints people have about their vehicle service contracts is how easily repair claims can be denied by the administrator. Just imagine how deflating it feels to learn your transmission is blown and the extended warranty you purchased for $2,500 won’t pay for it. This is why it’s imperative to read the contract carefully before committing to the service.
So, here are some tips to ensure your repair claim isn't denied, according to Endurance:
Keep track of your records
You have to keep a detailed record of everything related to your car – the repairs, maintenance, oil changes, filter changes, etc. Keep the receipts. These are proof that you adhered to the car’s required maintenance.
Don’t skip required maintenance
Every car has a maintenance schedule defined in the owner's manual by the manufacturer. And every vehicle service contract has clauses requiring you to follow that maintenance schedule. If you file a claim and the service asks to see the records and you missed one of the recommended maintenance points, your repair will be denied. The administrators of these vehicle service contracts view missed maintenance as neglect and a possible reason for a breakdown.
Don’t modify your car
Every vehicle service contract prohibits vehicle modifications. Endurance suggests that some small interior and exterior modifications can be approved by the administrator if they’re cosmetic, but you should make sure you get them approved first. However, any modifications meant to help your car run faster, better or more efficiently, even if required by law, are not permitted.
How do you know if your mechanic is ripping you off?
Most mechanics aren’t out to fleece you. Their goal is to gain your trust so you’ll return to their shop for your car needs. However, this doesn’t mean that there aren’t some dishonest mechanics out there. It also doesn’t make it less stressful when your mechanic approaches you with the need to replace the wheel bearings to the tune of $1,200 per wheel.
The easiest way to avoid being scammed is to ask the mechanic to explain why you need the repair and to show you the issue. This often exposes their intent, especially if they refuse to take you into the shop to show you why your car needs the repair.
According to Aaron Miller from the Thrillist, you should also be suspicious if the mechanic:
Urges you to replace the the brake rotors
If the rotors have never been serviced, ask them to “turn the rotors” on a lathe instead. It’s a lot cheaper.
Says the spark plugs need replacing
Automobiles with under 100,000 miles likely don’t need spark plugs replaced. Ask for an explanation.
Uses fear
If the mechanic says things like, “it would be against the law to let you drive away,” you should leave immediately and get a second opinion.
Pushes additives
Additives are usually not harmful to an engine, but they’re not miracle cures either. Mostly, they’re just a way to add $20 to your bill.
Advertises free services
The purpose of any free service is to get your car into the shop so the mechanics can recommend repairs and servicing you probably don’t need.
Charges full price for re-manufactured parts
Compare the price of the re-manufactured part with the cost of the new part (via an online auto store).
Perpetually chases down your problem
Any time your mechanic’s suggested repair doesn’t work, don’t let them continue with their trial and error method of repair.
Charges labor separately for parts replaced at the same time
If you’re replacing multiple parts in the same vicinity, make sure the mechanic doesn’t charge labor separately for each part.
How to avoid an extended car warranty robocalling scam?
According to the NYTimes, robocalling has surged to an estimated 3.4 billion calls per month. And unfortunately, the auto warranty robocalling scam is one of the most common.
The call starts with a warning about how your car’s warranty has expired or is about to expire. The scam is effective because the scripts are worded subtly to make it seem like the call is coming from a car dealership or manufacturer. If it catches your attention, you’re forwarded to an aggressive telemarketer from an extended car warranty service that has no relationship with your dealership or car manufacturer.
The vehicle service contracts the telemarketers sell are real. The scam isn’t typically about getting financial or personal information – it is more about the deceptive tactics used to get you to talk to an extended car warranty salesperson. And it’s these tactics that have resulted in many lawsuits. The FTC even refunded $4 million to consumers in 2011 because of one service’s deceptively aggressive telemarketing. In addition, the FCC has a website devoted to helping consumers identify whether they’ve been scammed and allowing them to file a complaint.
While the services we reviewed have not been involved in deceptive telemarketing, some can be very aggressive. The best way to avoid one of these scams is to never purchase an extended car warranty over the phone. Submitting a quote gives these services permission to use automated dialing systems to contact you, and many include clauses allowing them to share your information. If you receive a call, simply request the quote be sent to you in an email and make sure you can purchase the contract through a secure online connection. An email allows you to carefully review your purchase, who is selling it, who is administering it, and exactly what the contract does and does not cover.
Tips for spring car maintenance: de-winterizing
Routine seasonal maintenance is necessary if you want the best performance from your car. Each maintenance session should have the same items on the checklist - checking the fluids in the engine and checking the tires for correct air pressure and sufficient tread. However, as we near spring, there are specific items to add to your checklist to de-winterize your car and prepare it for spring and summer.
According to Fix Auto USA and Autotrader, here are some specific maintenance tasks you should perform in the spring and specific components you should check:
Wash and wax
Clean off salt residue and road grime to protect the paint and metal body, since buildup causes rust.
Windshield wipers
Winters can be rough on your wipers. With the combination of ice, snow and road salt, the rubber can start to crack. You need to be prepared for spring showers.
Inspect air filter
Changing the air filter can be especially important if you live in an area famous for its winter inversions and air pollution.
Tire maintenance
If you use winter tires or studded tires, you need to make plans to swap the tires out for all-season or summer tires.
Clean interior
You track road grime and salt into your car, and this can cause salt erosion to occur from the inside.
Check under the hood
In areas of deep cold, you want to check the engine to make sure any hoses, belts and rubber components are in good condition.
Roadtripping: what you should check before you leave
Whether visiting family with a van full of young kids or going on a weekend romp with friends, road trips are a big part of American culture. The open road, singalongs, gas station pit stops, roadside diners, silly games and empty promises “to turn this car around if you don’t stop bickering with your sister” are all staples of the road trip. However, another less-talked-about staple is the breakdown. Nothing turns road trip fun into a nightmare like getting stranded in the desert.
So, with this mind, here is a safety and maintenance checklist to complete before you leave:
Check alignment and suspension
Winter driving is rough on cars. Roads are more likely to have potholes or rocks left under snow. Making sure to have your alignment and suspension checked ensures optimal performance during the spring.
Tire tread and air pressure
It’s critical to check your tires’ air pressure and tread before you hit the road, as nothing ends road trips quicker than blown tires. You can check your tires by sticking a penny or quarter into the tread. If the president’s head is fully visible, the tread is too worn down and likely won’t last. If you see any metal mesh sticking from the tread, your tire needs to be replaced immediately.
Alignment
A simple alignment test is to brake hard at 20-30 mph. If you feel the front of the car shake or rumble from the braking, your alignment is off. A correctly aligned car should brake smoothly. Poor alignment damages tires and can cause other components to wear out.
Fluids
Above all, make sure the oil is topped off and changed if possible. You should also top off your engine coolant, wiper fluid, transmission fluid, brake fluid and power steering fluid.
Brakes
Check your brakes to make sure you’re able to slow down quickly and with control. If you’re not sure, take the car to a mechanic.
Lights and wipers
Inspect the headlights and taillights and make sure your turn signals are working (especially on trailers). Not only does this ensure you can drive safely at night, it keeps you from getting pulled over and ticketed on your road trip.
Be prepared
Pack an emergency kit and make sure any expired items, such as flares, food items and batteries, are replaced.
Glossary of auto warranty terms
Administrator
This is the company who approves, denies, processes and pays for the repairs to your vehicle. In most cases, the administrator is not the same company as the service that sold you the contract. You can find the administrator of your extended vehicle warranty on the contract.
Broker
A broker is a company consisting mostly of salespeople who market and sell vehicle service contracts. A broker doesn’t have any role in approving, denying, paying or processing repairs.
Bumper-to-Bumper Coverage
Also referred to as exclusionary coverage, a bumper-to-bumper contract covers most parts of your car. In most cases, manufacturers only provide powertrain warranties to new vehicles, so this is ideal for new vehicles.
Deductible
This is the amount you are required to pay before the administrator pays the rest of the bill. Almost every vehicle service contract requires a $100 deductible or a percentage deductible where you pay a percentage of the repair bill.
Exclusionary Coverage
Also referred to as bumper-to-bumper coverage, an exclusionary contract is so comprehensive it’s easier to list what is excluded from coverage than what is covered. These contracts are made specifically for new vehicles with low mileage. In most cases, manufacturer warranties only provide powertrain warranties, covering the most expensive and critical parts of the vehicle. An exclusionary coverage contract is designed to expand the coverage for newer vehicles, which is why these contracts are not typically eligible for used cars or high-mileage cars.
Extended Warranty
We’ve referenced this several times throughout this article, but an extended warranty is another term for vehicle service contract. In fact, it’s a misnomer often used in marketing for vehicle service contracts. A warranty can only be offered by the manufacturer, by definition. And manufacturers don’t extend warranties past the original date. Rather, a vehicle service contract is meant to serve a similar purpose by providing protection against breakdowns.
Gray Market Vehicle
This is a vehicle not manufactured for sale in the U.S. It often means they don’t meet U.S. regulations. As such, gray market vehicles are not eligible for vehicle service contracts.
Powertrain Coverage
This is the minimum amount of coverage you can get for a car. The coverage can vary a bit, but it typically covers the most expensive parts to repair – engine, transmission, drive shafts, differentials.
Trip Interruption Benefits
This is part of a vehicle service contract defining the reimbursements for breakdowns when you are more than 100 miles from your destination. Typically, it covers one to three nights in a hotel at a specific rate per day. Some contracts also cover meals.
Vehicle Identification Number
This is a number specific to your vehicle. Many vehicle service contract providers require the VIN to provide an accurate quote because this tells them the history of the vehicle. You can typically find your vehicle’s VIN on the dashboard near the windshield on the driver’s side.
Vehicle Service Contract
This is correct term for an extended car warranty. It’s a contract between you and an administrator to pay or help pay for repairs to your vehicle. The manufacturer of your vehicle has no part in this contract.
Warranty
This is a promise of performance provided by the manufacturer of a vehicle. While the vehicle is under the warranty, specifics parts covered in the warranty are repaired by the manufacturer at no cost.
Wear and Tear
This one of the most common phrases in a vehicle service contract, particularly when describing repairs not covered under the contract. It refers to issues resulting from everyday use of the car. If a repair facility determines your transmission’s breakdown was the result of wear and tear, the administrator won’t cover the repair.
Do you have to buy a vehicle service contract?
According to the FTC, deceptive auto dealers are claiming you need a vehicle service contract to be approved for an auto loan. However, in most cases, banks and financial institutions don’t require this. It’s certainly not required by law.
The deception usually works by adding the sale of the contract into the purchase contract, often as a box you check, agreeing to the contract. For example, let’s say you want to buy a car for $10,000, but you need financing. As you fill out the paperwork in the salesman’s office, he’ll casually mention how you’ll need to add a vehicle service contract for the bank to approve the loan. He usually doesn’t disclose how much the vehicle service contract costs and only vaguely describes what it is.
Once the salesman returns with the good news of the approved loan, he tells you the monthly payment and the interest rate, but not that the vehicle service contract added several thousand dollars to the overall loan amount. So, rather than applying for a $10,000 loan, he got you approved for a $14,000 loan. And as long as you don’t shudder at the monthly payment, he won’t disclose the loan amount until the very end when you’re ready to sign the contract, take the keys and go for a ride in your new car. He knows you’re eager to leave in your new car, which is why he waits until the very end to breakdown the overall contract - $10,000 for the car, $1,000 for taxes and $3,000 for the vehicle service contract.
If an auto dealer tries to slip a vehicle service contract past you, make sure you contact the bank issuing the loan to confirm whether it’s required. In most cases, only full-coverage insurance is required. Many auto dealerships have partnerships with vehicle service contract administrators, and the salesperson gets a commission from each contract sold, so it’s not in their interest to be transparent, but they can remove it from the contract. Always make sure you’re confident with the conditions of the loan approval before you commit to it.