Key Points:
- Vehicle protection plans come in a variety of coverage options from factory-level protection to basic powertrain coverage.
- Vehicle protection plans are commonly called extended warranties, though the manufacturer is the only entity that can technically extend a warranty.
- You can find vehicle protection plans from auto manufacturers like Ford and third-party companies like Endurance.
Vehicle protection plans cover specific repairs outlined in a contract. You can get them from the manufacturer or from independent, third-party providers. There are only about 30 auto manufacturers in the United States, but there are dozens and dozens of vehicle protection plan companies.
We’ve ranked the best extended car warranty providers on characteristics like customer service and plan options. Compare quotes between the best extended warranty providers to see which one can save you the most money if a breakdown occurs.
Vehicle Protection Plan Overview
A vehicle protection plan (VPP) agreement is a service contract that covers the mechanical breakdown of specific parts in your car once your factory warranty has run out.
Vehicle protection plans range from bumper-to-bumper coverage, which covers almost everything that a factory warranty covers, to a powertrain warranty that just covers the bare essentials.
Vehicle Protection Plan Coverage
While there are many plans out there, exclusionary coverage is the highest level. This type of contract covers any mechanical breakdown except for a list of exclusions, hence the name. It’s also called comprehensive, factory-level, or bumper-to-bumper coverage.
All other contracts are stated component plans. These only cover the exact parts written on the contract. There’s a huge range within this type and some companies offer two, three, or four stated component plans.
GM Vehicle Protection Plan Example
As an example, below are the three protection plans that GM offers for its brands: GMC, Chevrolet, Buick, and Cadillac. The Platinum plan is an exclusionary policy, while the other two are different levels of stated component coverage.
Vehicle Protection Plan Exclusions
Even the highest exclusionary plan doesn’t cover everything. No warranty or extended warranty does. Below are a few examples of common exclusions from vehicle service contracts:
- Aftermarket modifications
- Cosmetic damage and parts such as trim and upholstery
- Damage from accidents or the environment
- Damage from misuse or lack of maintenance
- Normal wear and tear
- Scheduled maintenance services
- Wearable parts such as brake pads and filters
Vehicle Protection Plan Terms And Conditions
Besides exclusions, vehicle protection plans also come with terms that outline the following:
- How long the waiting period is
- How to cancel the contract
- How to dispute a claim decision if you think it was wrongfully denied
- How to keep maintenance records
- How to submit a claim
- How to transfer the warranty
- Where to take the car for repairs
This is an important area to look at when shopping for a VSC. Not all companies give 30-day money-back guarantees, but most reputable companies do. Also, companies have different waiting periods.
Usually, you have to wait 30 days and 1,000 miles after you purchase the plan to submit a claim. Some companies have shorter waiting periods and some have longer. The waiting period ensures that companies don’t pay for pre-existing issues right after a customer buys a plan.
Vehicle Protection Plan Perks
Most reputable companies offer the following three perks with vehicle service contracts:
- Roadside assistance: This covers battery jump start, lockout assistance, fuel delivery, spare tire installation, and towing.
- Rental car coverage: This covers a rental car, up to a limit, while your car is in the shop for a covered repair.
- Trip interruption: This reimburses you for food and lodging costs, up to a limit, if you have a breakdown over 100 to 200 miles from home (varies by company).
Some companies also go above and beyond. For example, Endurance provides one free year of Endurance Elite benefits, which includes perks such as key fob replacement and collision discounts. Similarly, Omega Auto Care provides free maintenance on all plans for one year and road hazard tire repair for the life of the contract.
Be sure to take a look at a company’s extra benefits for the value they can add to the equation.
Vehicle Protection Plan Mileage Comparison
VSCs differ in term length, as well, which is the maximum time and mileage a plan will cover. Looking at maximum mileage limits, here are a few factory extended warranties compared to third-party vehicle protection plans:
You can see that independent warranty providers offer longer coverage windows than these factory extended warranties. (Ford has the longest manufacturer extended warranty in the industry.)
How Much Does A Vehicle Protection Plan Cost?
We’ve researched quotes from dozens of providers and many different vehicle types. On average, extended warranty plans cost $977 per year of coverage. Total costs range from $1,000 to $4,000 and monthly payments range from about $30 to $200. Plans also have deductibles that usually range from $0 to $250 per repair.
What you pay for a plan is directly tied to the car you drive, its mileage, and the type of coverage you want. Do you just want to cover the engine, transmission, and drivetrain? Or do you want to cover the entire vehicle?You will, however, pay more for luxury cars and cars with high-tech options.
The deductible you choose will also change the cost of your plan. If you go with a $0 deductible, you’ll pay more and if you pick a $200 deductible the opposite would be true. In the end, the only way to know exactly what you’ll pay is to get a quote.
Is A Vehicle Protection Plan Worth It?
The main thing you have to ask yourself is if the cost of a vehicle protection plan is worth it to you. Some auto brands are known for their reliability, while others aren’t. There’s always the chance that you wouldn’t use the plan to the full value, but at the same time, there’s the chance that it could pay for itself many times over.
It’s also hard to put a dollar value on the peace of mind that an auto protection plan can bring. It feels good just knowing that certain systems in your car are covered for a known amount of time. You don’t have to worry about those systems failing.
So, with a protection plan, you’re paying for two main things: future repairs on your car, and the security that certain repairs on your car are covered. We’re not saying that having a protection plan means you don’t have to have any savings set aside for vehicle repairs. No plan covers 100 percent of your car, and all protection plans have certain requirements for repairs to be covered. But having a plan can definitely ease some of the financial stress of sudden repairs.
How To Get The Most Out Of A Protection Plan
The best thing you can do when you have a vehicle protection plan is to follow your car’s recommended maintenance schedule. In fact, this is a condition that many extended coverage plans require.
Having a vehicle protection plan isn’t an excuse to sit back and let your car deteriorate. If you don’t take good care of your car, there’s a higher chance that things can go wrong and fail. If a coverage provider finds out that you didn’t follow standard maintenance procedures, they can deny your repair claim.
Standard maintenance includes regular oil changes, tire rotations, fluid checks, and larger services at intervals like 60,000 and 90,000 miles. Most vehicle protection plans won’t cover wear items like filters and hoses, either.
Third-Party Vs. Manufacturer VSCs
Third-party plans can offer plenty of coverage for repairs while providing more freedom than a manufacturer’s warranty. For example, many manufacturers don’t offer VSCs after your factory warranty has expired. In contrast, you can get third-party plans long after the factory warranty is over.
Vehicle protection plans from third-party providers are also valid at more repair shops than dealer warranties. Manufacturers usually require you to visit a dealership for repairs, while third-party companies work with any licensed repair shop.
Here are a few more benefits:
- You get coverage for many more miles than the factory warranty.
- You get roadside assistance, rental car, and trip interruption coverage.
- You only pay your deductible for covered repairs.
Companies like Endurance, Carchex, and CarShield offer plans that are fully transferable to secondary buyers. This can help you secure a better price for your vehicle.
Best Vehicle Protection Plans
Three reputable companies that offer VPPs include Endurance, Carchex, and CarShield, though you might find that only one of these works for your unique situation.
All of these options offer roadside assistance and towing, affordable payment plans, and rental car reimbursement coverage. They also let you choose your own repair facility within large networks of certified shops, plus they can pay repair shops directly–not all third-party providers do that.
Endurance: Best Overall
We named Endurance Best Overall for an extended car warranty. It’s a direct provider, meaning you work with Endurance when you shop for plans and submit claims for repairs. Endurance also has a 3.6-star rating on Trustpilot with over 7,400 reviews.
Here are the plans that Endurance offers:
One nice thing about Endurance is that all plans come with one year of Endurance Elite for free. That includes collision assistance, total loss protection, tire replacement, roadside assistance, and more. Learn more in our review of Endurance.
Carchex: Best Industry Reputation
Carchex has been in business for a quarter century and has an A+ rating from the Better Business Bureau (BBB) with accreditation. Carchex has an outstanding reputation due to its customer care. The customer service agents at the company take pride in helping people find the best plan, and they take time in explaining all the points of each contract. Learn more in our full Carchex review.
Here are the plans you can get with Carchex:
Olive: Best Online Process
Olive is a newer warranty company in the industry and it shows in a good way. The company’s website is fresh and easy to navigate. You can compare sample contracts online in just a few clicks and dive into the fine print if you want to.
Olive offers three plans in three-year increments, however it does not provide roadside assistance. Even so, according to our research, it has some of the cheapest rates around.
While there are definitely some extended auto warranty companies you want to avoid, we think any of these three would make a great choice. Plus, they all offer free quotes.
Vehicle Protection Plan: Conclusion
Summing it all up, you can find vehicle protection plans from manufacturers and third-party companies with the latter offering more flexible options, on average. If you’re looking into getting a vehicle protection plan, consider multiple providers for the best price. Before signing anything, look for sample contracts and read the fine print so you know exactly what is and isn’t covered.
Vehicle Protection Plans: FAQ
Below are a few frequently asked questions about vehicle protection plans:
How We Rate Warranty Providers
Our review process aims to deliver consistent and unbiased assessments of extended auto warranty providers. While there are multiple qualities that make a warranty company successful, our review team focuses on those we believe are the most important for consumers:
- Reputation: It’s important that an extended car warranty company is able to meet its claims obligations. Companies with a strong rating from the Better Business Bureau (BBB) and a long history of reliable service score well in this category. We also evaluate the availability and transparency of each company’s contracts, as well as whether each provider offers a money-back guarantee.
- Coverage: Our team of experts looks at the number of extended warranty plans available, as well as term limits, exclusions, and added benefits like roadside assistance. Ratings also take into account the availability of maintenance coverage.
- Cost: Cost can be difficult to compare between providers because so many factors impact vehicle service contract pricing. To determine our cost score, we perform a secret shopper analysis for a variety of vehicles and plans and consider available deductibles.
- Customer Experience: We listen to real customer sales calls and comb through reviews on sites like the BBB to learn about customer experiences. Warranty companies with a low volume of complaints score well in this area. We also consider the availability of mobile apps and chat features.
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