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Choosing an extended car warranty company shouldn’t be a daunting task, but it can be, especially when you’re trying to find an extended car warranty company that has policies that fit your needs.

We created a simple guide to help you choose a car warranty company without too many hassles.

10 Tips for Choosing an Extended Car Warranty Company

1.    Determine Your Coverage Needs

First, you need to determine your coverage needs. Extended auto warranties can pay for the expenses when your car malfunctions due to normal wear and tear. However, your auto warranty will only apply to specific components, so decide which parts you want to cover and find warranties with a company that meets your needs.

We’ll give you an example. A drivetrain warranty covers essential components, such as your car’s transmission, drive axle, drive shaft, and differential and transfer case. On the other hand, a powertrain warranty covers all the parts of your car’s engine. There are also bumper-to-bumper or exclusionary warranties that cover everything except specific components that are listed in the contract. The more coverage you want, the more you’ll have to pay. We’ll discuss the different types of auto warranties later on.

2.    Make Sure the Warranty Company Suits Your Needs

The following important factor you must consider is whether the company providing the extended warranty is a good fit. You need to find out if the auto warranty company works with mechanics in your area and covers vehicles that match your car’s mileage, make, and age. You’ll also want to pay attention to the maintenance requirements, such as getting oil changes, and if these requirements fit your overall budget.

3.    Customer Satisfaction Ratings

Reading reviews is essential because they let you know what to expect from the extended car warranty company. Yes, you will run across negative reviews, but you can use this information to your advantage. Use the reviews to learn what customers like and dislike about the company.

You should also be on the lookout for reviews detailing the company’s customer service, payment options, and claims process. If you’re lucky, you may also run across reviews from previous customers in your state or who have the same vehicle as you do.

4.    Take Your Time and Shop Around

Shopping around for an extended auto warranty quote is one of the best ways to get the most for your money. Get multiple quotes from different warranty companies in your area and compare the offers. In general, extended auto warranties cost approximately $2,500 in total, but payment plans are available. This may be disheartening news, but these warranties can be less expensive than paying out-of-pocket for costly repairs.

5.    Reading the Fine Print

While it may seem like an unnecessary step, you must read the fine print. You need to know everything your warranty includes and doesn’t include, and you need to be aware of what you’re agreeing to. You need to make sure your contract contains the terms you want. You also need to know how the company handles making claims, waiting periods, or canceling coverage.

6.    Coverage Options

Most extended auto warranty companies offer a variety of coverage options, so make sure you check through each type of policy the company provides and determine which coverage options apply to your situation. Keep in mind that you aren’t obligated to obtain all the coverage options the company provides.

7.    Learn About the Perks the Company Offers

Perks are the best! These extras are often included when you signed up for an extended warranty through a company, like member benefits. Warranty company perks often include 24/7 roadside assistance, fuel delivery, and more.

8.    Company Reputation

Do a little research on the company you plan on using. You can read reviews about the company using resources, such as Yelp, Google, and the company’s social media sites. You can also check if the company is verified by a third party by clicking the “V” symbol on the company’s website.

9.    Company’s Financial Stability

Determining an extended car warranty company’s financial stability can be tricky, but not impossible. One of the best ways to check a company’s financial stability is to look for growing revenue. To confirm the warranty company is growing revenue, see if you notice an increase in customers. More customers could mean the business is doing well. One thing you’ll want to watch out for is a frequent increase in price. For instance, if your auto warranty coverage started at a specific amount, and has been increased consistently over 6 months, this could be a sign that the company is running into financial problems.

10.Consider Your Driving Habits

Your driving habits greatly affect the type of extended auto warranty you get. If you frequently take long trips, you’ll want a warranty company that covers more than normal wear and tear. However, if you only drive short distances, a standard auto warranty should work just fine for you. You can also determine your annual mileage by checking your vehicle’s registration documents under the “miles driven” section.

Our Top Picks

Extended auto warranties are also referred to as vehicle service contracts. Auto warranties help you avoid expensive out-of-pocket costs when your car breaks down. Here are our top company picks for an auto warranty.


Chaiz takes a modern approach to purchasing an extended auto warranty. They provide you with an auto warranty quote in as little as 30 seconds. You are not required to provide your email and phone number. They offer basic, basic plus coverage, and the most comprehensive coverage. These coverage options include electric and hybrid vehicles, and different parts of a vehicle, such as the engine, suspension, and transmission.


Carchex is one of the largest providers of extended vehicle warranty coverage. They offer vehicle protection plans on your terms with a variety of coverage tiers, including:

  • Bronze
  • Silver
  • Gold
  • Platinum
  • Titanium

You can browse their website for specific information about each of their coverage tiers. There are also coverage benefits that include 24/7 roadside assistance, fuel delivery, and more. You can also choose your repair facility.


Carshield has a variety of extended car warranty coverage plans that may fit your needs and budget, including specialty and comprehensive coverage, and coverage for motorcycles and ATVs. You can browse their website and compare each warranty plan they offer to find one that may work for you.


Endurance is a well-known extended car warranty company that offers quick and easy claims and a 30-day money-back guarantee. You also have access to perks, such as total loss protection, key fob replacement, and complete tire coverage, to name a few. You can obtain a free quote by visiting their website and choosing the coverage options you need. An Endurance representative will contact you and discuss your auto warranty plan based on your coverage requirements.

Choosing an extended car warranty company can provide many benefits for you and your car. You’ll need to research companies more in-depth to determine if the company and its policies are a good fit for what you need. Use the tips we provided and our top pick auto warranty companies to help you find a car warranty company that you will get the most from.