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How to check: Look at a company’s BBB page, which lists customer reviews and complaints. The worst extended car warranty companies have slow claims processes and regularly look for excuses to deny claims. Why it’s important: Any extended warranty is only as good as the service it provides when it comes time to file a claim. If you have difficulty finding contract details or even receiving a quote from a provider, this should be a red flag. How to check: Companies that have a good BBB standing and post sample contracts demonstrate a high level of transparency. Providers should be upfront about contract information – it’s a bad sign when a provider tries to hide important coverage details from its customers. Why it’s important: Any provider that makes coverage details difficult to find should raise eyebrows. Most providers also offer payment plans, though some may require upfront payment in full. In some cases, you may have to call to request pricing.

How to check: Most extended warranty providers offer easy-to-use quote tools online. Why it’s important: If you want your extended warranty to help you save on repair costs, you need to find the best coverage plan at the lowest possible cost.

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Carefully read the full list of coverage and exclusions of any extended car warranty before you purchase it. These contracts list exactly what is or isn’t covered by the warranty. How to check: Any reputable extended car warranty provider will allow potential customers to review sample service contracts to verify what the warranties cover. Why it’s important: If you are going to spend upwards of $1,000 on an extended warranty, it’s important that your most essential vehicle parts and components are covered. We also recommend looking into how long a warranty provider has been in business and how many states it serves. The BBB rates a provider based on how it resolves customer complaints, the transparency of its business practices, and any known licensing or advertising issues. How to check: One place to start is the Better Business Bureau ( BBB ). Our team recommends looking for extended warranty companies that have partnered with other trusted companies and that regularly win industry awards. Why it’s important: Industry standing is an excellent way to check whether a company is a fraud or legitimate. We typically consider the following five categories when evaluating the best extended car warranty providers. If you know what to look for in a service contract, you have plenty of excellent options for coverage. While reputable extended car warranty companies can offer decent coverage at good rates, some extended car warranties are little better than warranty scams, taking customers’ money and failing to provide adequate service. If you’d like aftermarket car warranty coverage, shopping for quality options and determining the best warranty provider for your needs can be difficult.

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