Coverage for high-mileage vehicles
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.
Any plans offered by CARCHEX are not extended warranties, but are often referred to by consumers as such. CARCHEX vehicle service contracts (also called “protection plans”) operate similarly to extended warranties and provide repair coverage for mechanical breakdowns after factory warranties expire.
If you’re looking for repair and replacement coverage after your factory warranty has expired, aftermarket vehicle coverage through manufacturer extended warranties or third-party vehicle service contracts are what you’re looking for. These plans offer similar types of coverage and can help provide peace of mind that expensive repair needs are covered.
Is an Aftermarket Warranty the Same as a Vehicle Service Contract?
There are different types of vehicle protection plans, including factory warranties, vehicle service contracts, and extended auto warranties. While all of these provide repair coverage in the case of a mechanical breakdown, the source of that coverage differs.
A factory warranty is the only true warranty, whereas the other types of “warranties” are actually vehicle service contracts. This includes extended auto warranties from the manufacturer (which are generally still called warranties since they’re an extension of the factory warranty provided by your automaker) and third-party protection plans.
- An auto warranty (i.e., a factory warranty or manufacturer’s warranty) covers the cost of repairs and replacements for free as an implied part of the cost of the new vehicle. It covers defects in materials or workmanship.
- A vehicle service contract (VSC) covers the cost of repairs and replacements once the factory warranty has expired. A VSC is optional and purchased at an additional cost.
How Does Coverage Compare to the Factory Warranty?
Factory warranties typically have two parts: a shorter, limited bumper-to-bumper warranty that covers all manufacturer parts, and a longer powertrain warranty that covers the vehicle’s engine, transmission, and drive axle components. Terms are typically three years or 36,000 miles and five years or 60,000 miles, respectively.
Extended coverage, which can be purchased from a dealership or a third-party provider, can offer several levels of coverage with various terms, often adding another five years or up to 120,000 miles. Third-party providers (companies that aren’t auto manufacturers that sell aftermarket protection plans) sometimes offer mileage limits up to 250,000 miles. These terms only apply after the factory warranty expires.
In addition to repair coverage, a quality aftermarket vehicle service contract will also include roadside assistance benefits, such as towing, rental coverage, trip interruption, and even battery–jump services.
Benefits of an Aftermarket Warranty
Vehicle service contracts can save you hundreds—even thousands—of dollars on major repairs.
For example, a Nissan factory warranty covers a new Nissan vehicle from bumper-to-bumper for up to three years or 36,000 miles. Once this warranty expires, a major repair, such as a power steering pump replacement, can cost over $1,000 out of pocket, according to RepairPal. However, with an extended car warranty or vehicle service contract, you pay only for the contract and deductible, which could be half the price.
There are many benefits of an aftermarket warranty for cars:
- New and Used Coverage—Unlike factory warranties, which only cover new cars, an extended protection plan may cover new cars once the factory warranty expires, or pre-owned vehicles with higher mileage.
- Transferable Coverage—Contracts from reputable sources allow you to transfer your vehicle protection to a new owner. Not only does this give the new owner peace of mind, but it also increases the resale value of the vehicle.
- Coverage No Matter the Price—The cost of parts and labor can change from year to year and location to location, but a vehicle service contract covers the full price of the repair even if the price has changed since last year or five years ago.
- Competitive Market Price—When you choose a third-party provider like CARCHEX, you can shop for competing protection plans, which results in better prices.
- Communication with Repair Facilities—When it’s time for repairs, you won’t have to negotiate with mechanics on price or guess the fair price of a repair. The contract’s obliger will communicate with the repair facility on your behalf regarding approval, price, and payment.
Who Offers the Best Extended Vehicle Service Contract?
There is a lot of competition in the auto protection market, which can be both a good and bad thing. On one hand, competition drives down prices, especially among third-party providers. On the other hand, the more extended auto warranty providers in the market, the higher the chance that potential customers fall prey to bad practices and highly limiting contracts.
Just a few of the industry names you’ll see while researching vehicle service contracts include:
- CARCHEX
- Endurance
- Concord Auto Protect
- AA Auto Protection
- Delta Auto Protect
- AAA, autopom!
- CarShield
How do these companies compare across industry experience, Better Business Bureau (BBB) ratings, insurance, coverage options, and deductibles?
*Data updated September 2024
Though many competitors offer similar coverage levels (powertrain, powertrain plus, exclusionary, bronze, silver, gold, etc.), the devil is in the details. For example, in the chart above, you’ll notice some plans are uninsured. Even if a competitor has positive reviews, you’ll still want reliable, insured coverage that you know will be paid no matter what. Some states do not regulate vehicle service contract providers under the Department of Insurance, but it is important to hold your provider to a high standard with regard to risk.
CARCHEX offers the highest BBB rating and transparency among its competitors, as well as insured plans that won’t leave you with the bill.
CARCHEX Superior Service
As a CARCHEX customer, you have the ability to choose from five coverage levels. Each tier increases the number of covered components, leading up to Titanium coverage, which is an exclusionary contract. Titanium plans cover all vehicle systems unless specified otherwise.
- Titanium—This is similar to a factory warranty, covering almost everything with only a short list of exclusions.
- Platinum—The Platinum plan is a high level of stated-component coverage that includes components of all major vehicle systems.
- Powertrain Plus—This is a traditional powertrain plan, covering the engine, transmission, and drive axle. It also protects the air conditioning and various electrical components.
- Powertrain—This basic powertrain plan offers protection for key engine components, the transmission, drive axle, and transfer case. These are the most expensive car parts to fix, typically.
- 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.
In addition to the covered components, CARCHEX service plans provide 24/7 roadside assistance, key lockout service, battery–jump services, towing/wrecking and rental services, and trip interruption reimbursements.
What Makes CARCHEX Stand Out?
CARCHEX service goes beyond coverage. The customer experience is equally important.
WHAT YOU CAN EXPECT WITH CARCHEX:
Easy claims process |
No-Haggle, Low-Price Everyday Guarantee™ |
Endorsements from CARFAX, Edmunds.com, Kelley Blue Book, and more |
|---|---|---|
Repairs paid directly to repair facility by obliger |
30-Day Money-Back Guarantee |
Affordable monthly payment plans |
Generous roadside assistance coverage and reimbursements |
Ability to choose from 30,000 repair facilities |
What Should You Ask Your CARCHEX Representative?
The number of extended auto protection plans can be intimidating. Companies can market more than 15 contracts, with some companies offering more than 30. To help you find the best plan for your specific vehicle and lifestyle, ask your CARCHEX representative the following questions:
- Is there fine print that I should be aware of? What exclusions might I overlook, such as parts that are only covered in conjunction with other defective parts?
- What will my monthly payments be with a payment plan? Can I lower my contract price with a higher deductible? Or, is a $0 deductible available?
- Who do I contact to make a claim?
- Is my favorite or local mechanic approved by CARCHEX?
- Does the plan cover cars with more than 100,000 miles?
- Does the plan cover certified pre-owned (CPO) vehicles?