What Is a Vehicle Protection Plan, and Do You Need One?
Auto manufacturers offer protection against mechanical breakdowns through extended car warranties. While similar coverage from third parties is available, this coverage is technically considered a vehicle service contract–not an extended warranty. However, we've used both terms interchangeably in this article for simplicity.
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For many drivers, a vehicle protection plan is the key to maximum peace of mind on the road. These contracts pay to repair or replace many car parts and systems in the event of a mechanical breakdown.
Vehicle protection plans are also called extended warranties or vehicle service contracts. They can be purchased from car dealerships, manufacturers, or third-party providers. In this article, we’ll dive into what a vehicle protection plan typically covers, average costs, and our recommendations for the best extended auto warranty providers.
If you’re interested in finding out what a vehicle protection plan would cost for your vehicle, you can get free, personalized quotes from top-rated providers above.
Table of contents
What Is a Vehicle Protection Plan?
Vehicle protection plans go by many different names, including extended car warranties, extended service plans, and vehicle service contracts. No matter what you call it, a vehicle protection plan can provide drivers with added peace of mind on the road knowing a sudden repair won’t be a huge financial burden.
It’s important to note that, while not legally required, an extended warranty may be required by your lessor if you finance your vehicle. Also, vehicle protection plans do not take the place of car insurance. If you get into an accident, you’ll need to file a claim through your insurance provider, as a warranty will only cover damage due to mechanical breakdowns.
Bumper-to-Bumper vs. Powertrain
The most common types of vehicle protection plans are bumper-to-bumper warranties and powertrain warranties. The former covers nearly all vehicle components, while the latter only covers the most important parts and systems, such as the engine, transmission, and drive axles.
Common Exclusions
Typically, vehicle protection plans do not cover:
- Wear-and-tear parts like brake pads, shoes, and rotors
- Cosmetic items such as interior upholstery and exterior trim
- Auto glass like windshields and light bulbs
- Aftermarket accessories and lift kits
- Damage due to weather, a collision, misuse, abuse, or neglect
- Catalytic converters
- Air bags
- Batteries
Who Has the Best Extended Car Warranty?
- More coverage flexibility: Warranty companies typically offer five or so plans to choose from, while most manufacturers only have one or two options.
- Lower costs: Plans sold through dealerships are often subject to high mark-ups that raise total costs. Plus, warranty companies often have more deductible options, so you can choose the amount that best fits your budget.
- More repair shop flexibility: With a manufacturer’s plan, you’ll need to take your car into a dealership each time you need repairs. With an independent company, you can go to any certified repair facility, including dealerships, mom-and-pop shops, and national repair chains.
Our review team has analyzed each major player in the extended warranty industry, evaluating companies in terms of plan options, prices, customer reviews, industry reputation, and more. Based on this research, we recommend customers interested in getting the best vehicle protection plans look into Endurance, CARCHEX, and Protect My Car.
Here’s how we rated each company:
#1 Endurance | #2 CARCHEX | |
|---|---|---|
Reputation | 4.3 | 5.0 |
Coverage | 4.9 | 4.6 |
Price | 4.5 | 4.3 |
Transparency | 5.0 | 5.0 |
Customer Service | 4.5 | 3.2 |
Overall Rating | 4.6 | 4.4 |
#1 Endurance: Best Coverage
Endurance is our highest-rated provider thanks to its comprehensive plans and outstanding customer service. The company holds a 3.34-star customer rating with the Better Business Bureau (BBB) and has received a 4.4-star rating on Trustpilot. Endurance is also the only top-rated provider to appear on the 2019 Inc. 5000 list of fastest-growing US companies.
Here’s an overview of Endurance’s vehicle protection plans:
Endurance Vehicle Protection Plans |
|
|---|---|
Number of Plans |
5 |
Maximum Contract Length |
8 years/200,000+ miles |
Deductible Options |
$0, $50, $100, $200 |
Availability |
All US states except California |
Added Benefits |
1 year free of Elite Benefits, which includes: 24/7 roadside assistance, total loss protection, collision discount, key fob replacement, tire repair/replacement, and the Endurance mobile app |
Read more about this provider in our comprehensive Endurance warranty review.
#2 CARCHEX: Best For Used Cars
CARCHEX has a strong reputation among experts in the extended warranty industry and partners with prominent companies such as CARFAX, Edmunds.com, and Kelley Blue Book. The provider is also a popular choice among drivers, earning an A+ rating from the BBB and 3.2-star customer rating on Trustpilot.
Here’s a snapshot of CARCHEX vehicle service plans:
CARCHEX Vehicle Protection Plans |
|
|---|---|
Number of Plans |
5 |
Maximum Contract Length |
10 years/250,000 miles |
Deductible Options |
$0, $50, $100, $200 |
Availability |
All US states |
Added Benefits |
24/7 roadside assistance, towing coverage, rental car reimbursement, trip interruption coverage |
You can learn more about this provider in our full CARCHEX review.
How Much Does a Vehicle Protection Plan Cost?
To give you a better idea of how much vehicle protection plans cost, we’ve listed the sample quotes we collected from each of our top-rated providers in the table below. These quotes are for a bumper-to-bumper warranty plan for a 2017 Ford Explorer with 45,000 miles on it.
#1 Endurance | #2 CARCHEX | |
|---|---|---|
Term Length | 3 years/80,000 miles | 5 years/100,000 miles |
Financing | $166.88 per month for 18 months | $202.89 per month for 18 months |
Deductible | $100 | $100 |
Down Payment | $178.10 | First month’s payment |
Total Cost | $3,181.94 | $3,652.02 |
Are Car Protection Plans Worth It?
To get insight into how dependable your vehicle may be and how much you should expect to pay for certain repairs, you can refer to sites like RepairPal, which uses driver-reported data to estimate repair costs and reliability scores for 32 car brands.
If you find that you drive a highly reliable vehicle and your manufacturer’s average annual repair costs can easily be factored into your budget, a vehicle protection plan may not be a necessary investment. On the other hand, vehicles that are more prone to breakdowns or that may incur higher costs to repair are prime candidates for extended warranties.
To aid in your decision making, take a look at common repairs for some of the most popular vehicles in the US and what they cost on average, according to RepairPal.
Vehicle |
Common Repair |
Repair Costs |
|---|---|---|
Chevrolet Equinox |
Head gasket replacement |
$1,075 to $1,355 |
Spark plug replacement |
$142 to $173 |
|
Honda CR-V |
Fuel pump replacement |
$552 to $828 |
Suspension or shock strut assembly replacement |
$221 to $447 |
|
Toyota RAV4 |
Fuel pump replacement |
$707 to $732 |
Suspension or shock strut assembly replacement |
$164 to $431 |
|
Toyota Camry |
Head gasket replacement |
$2,531 to $4,017 |
Spark plug replacement |
$168 to $280 |
*Common repairs and costs based on RepairPal data for 2020 model year vehicles.
If you could comfortably pay these costs out of pocket as they arise, you probably won’t benefit much from a vehicle protection plan. However, if you’re one of the thousands of drivers that would rather finance major repair costs over time, an extended warranty could be a great investment.
Final Thoughts on Vehicle Protection Plans
A vehicle protection plan acts as a valuable financial safety net for many drivers, but it may not be for everyone. To determine whether an extended warranty would be a sound investment for you, take a look at your budget and yearly estimated repair costs. Then, get quotes from multiple providers to see whether the cost of a warranty would outweigh the cost of repairs.
You can get started comparing free, personalized quotes from our top recommended providers below.
Methodology
- Price: Comparing providers can be difficult due to the many factors that influence cost. To determine this score, we employ a secret shopper analysis using different vehicles, mileages, warranty plans, and locations.
- Coverage: A wide variety of coverage is essential to support the differing needs of customers. We take into account the number of extended car warranty plans available, term limits, exclusions, and additional benefits.
- Customer Service: The level of customer service and care provided by an extended warranty company is an important consideration. Our review team sifts through customer reviews and complaints from reputable sources such as the Better Business Bureau (BBB) and Trustpilot. We also consider the responsiveness of each company’s customer service team based on our secret shopper analysis.
- Reputation: Good extended warranty providers consistently provide quality experiences. Our team takes into account BBB ratings and the company’s history of reliable service when giving this score.
- Transparency: Customers value a commitment to open and honest communication when it comes to vehicle service contracts. Our team of experts takes into account the availability of money-back guarantees and sample contracts.
Stephen Kenney is a writer and editor who focuses on car insurance, auto financing, and vehicle shipping services. He's a graduate of UNC-Chapel Hill and has experience covering categories ranging from travel to sports to environmental sustainability. In his free time, Stephen enjoys going on long-distance runs, trying out new recipes, and exploring his adopted hometown of Cincinnati.
More by Stephen Kenney
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