Best Car Warranty Companies (Jun 2023 Reviews)

We at the MarketWatch Guides team have compared dozens of providers to find the five best car warranty companies available. In this article, we’ll discuss each top provider in detail, focusing on business practices and industry reputation. We’ll also touch on what factors are most important to think about when considering a car warranty company.

The MarketWatch Guides Team is committed to providing reliable information to help you make the best possible decision about a warranty for your vehicle. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best extended car warranty companies. We collected data on dozens of auto warranty providers to grade the companies on a wide range of ranking factors. After 500 hours of research, the end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Learn more about our methodology.

We researched auto warranty companies throughout the industry. In addition to cost and coverage options, the factors used to determine the best warranty companies on the market heavily focused on industry reputation and customer experience.

Based on our extensive research, our team found that the best car warranty companies are Endurance, ForeverCar, Olive.com®, CarShield and Carchex.

Extended Warranty Provider

Our Award

Overall Rating

#1 Endurance

Most Comprehensive Coverage

9.2

#2 ForeverCar

Most Affordable

9.1

#3 Olive.com

Convenient Online Process

9.0

#4 CarShield

Affordable Monthly Payments

8.9

#5 Carchex

Great Industry Reputation

8.9

Year established: 2006Company headquarters: Northbrook, Ill.Availability: 49 states (every state except California)

Endurance is our top pick for the best car warranty companies. As a direct provider, Endurance handles claims without a separate administrator. This means you’ll work with the same service representatives when filing a claim as you did when getting a quote, which can lead to a hassle-free repairs process.

In 2020, Inc. 5000 named Endurance one of the fastest-growing privately held companies in the U.S. The provider was also a Bronze Stevie Award winner at the 2019 Stevie Awards for Great Employers, which emphasizes the company's efforts toward employee well-being.

However, Endurance currently has no rating from the Better Business Bureau (BBB) and isn't accredited with the platform. Our team reached out to Endurance for a comment on its lack of accreditation and ratings from the BBB but did not receive a response. The company's status with the BBB is partially due to mailers being sent out by the company, which sparked confusion among consumers.

While Endurance's BBB status may seem like a red flag, low BBB ratings are not uncommon among warranty providers, and the company has an average customer rating of 3.6 out of 5.0 stars on the BBB's website. Endurance also sports an overall rating of 3.9 stars out of 5.0 on Trustpilot. The company currently holds over 6,000 customer reviews on the ratings site, nearly 80% of which are highly positive.

This indicates that unhappy customers make up only a small portion of the provider's contract holders. Many reviews mention knowledgeable Endurance service representatives and a quick claims approval process.

According to the quotes we received, Endurance warranty plans cost between $90 and $172 per month. Total costs for a variety of plan options range from $2,500 to $3,900. Endurance auto protection costs vary depending on the vehicle and coverage.

Endurance offers coverage levels ranging from powertrain protection to exclusionary plans:

Endurance customers also get one free year of Endurance Elite Benefits, which includes perks like key fob replacements, total loss protection, and tire repairs or replacements. All plans are backed by highly rated insurers, so the company should be able to pay out customer claims regardless of the cost.

Our first choice for comprehensive warranty coverage.

Year established: 2011Company headquarters: ChicagoAvailability: 48 states (Washington and California excluded)

ForeverCar made our No. 2 spot for sporting unique coverage opportunities at great prices. According to our research, ForeverCar is one of the most affordable third-party warranty providers in the market today, winning our Most Affordable award.

On top of its excellent rates, ForeverCar offers unlimited mileage plans that many drivers can take advantage of, especially car owners with vehicles past 200,000 miles. The company's accessibility is one reason why it's so popular across many ratings sites.

ForeverCar earned an A+ rating from the BBB and a solid 4.8-star rating from Trustpilot. This is the highest Trustpilot rating among our top five most reputable extended warranty companies. Additionally, 90% of the 4,900+ ForeverCar customers on Trustpilot give the company a full 5.0 stars for its excellent service.

ForeverCar has also received accolades from various organizations over the years. In 2016, the company won the Chicago Innovation Award. In 2018, ForeverCar was dubbed the Best Insurance Solution and received a SIIA CODiE Award. It was also branded as the Best New Product and a Stevie Bronze Winner by the American Business Awards that same year.

As mentioned, ForeverCar boasts some of the best rates in the warranty business, with an average range for total warranty costs between $1,200 and $4,000.

In fact, a bumper-to-bumper warranty from ForeverCar for a 2017 Honda CR-V with 45,000 miles is 45% cheaper in total cost than the exact same coverage level for the exact same vehicle by Endurance.

ForeverCar offers four main levels of coverage, labeled in the table from the highest and most expensive level to the lowest and cheapest coverage:

Year established: 2000Company headquarters: ChicagoAvailability: All 50 states

Olive.com offers a few special benefits that you don't often find with other warranty companies, such as a hassle-free 100% online claims process and no waiting period before its vehicle service contracts go into effect. Like ForeverCar, Olive offers protection plans with no yearly mileage limits, making it an ideal choice for owners of higher-mileage vehicles.

Olive.com has relatively high rankings from warranty industry evaluators. The company is owned and operated by Repair Ventures, LLC — which has an accredited A+ rating on the BBB. Olive was also the top ranked for car warranties by Consumer Advocate in 2022.

Olive is similar to ForeverCar in that it offers lower-than-average rates for its warranties. The total price range for an Olive extended warranty is between $1,150 to $1,620, depending on the level of coverage.

Olive offers three main levels of coverage:

Olive Plan

What It Covers

Complete Care

This is Olive's official bumper-to-bumper warranty — most similar to a factory warranty.

Powertrain Plus

This covers everything that Olive's Powertrain protection plan covers, adding on your car's serpentine belt tensioner.

Powertrain

This takes care of the major components of your vehicle, such as the:• Engine• Turbocharger• Manifolds• Water pump• Oil pumps• Diesel injector pump• Seals and gaskets• Flywheel• Cylinder heads, and more

Year established: 2005Company headquarters: St. Peters, Mo.Availability: 49 states (every state except California)

Since its founding in 2005, CarShield has covered over 1 million vehicles, making it one of the largest providers in the industry. CarShield contracts are administered by American Auto Shield, which is backed by insurers that have received financial strength ratings of A from AM Best. An A rating is awarded to companies that have an "excellent" ability to pay out customer claims.

Although CarShield holds a 4.0-star rating from customers on Trustpilot, its F rating from the BBB is low compared to other extended warranty companies. In general, CarShield's low BBB score reflects past customers’ difficulties with canceling policies and having claims denied. Claims denials are a common complaint in the warranty industry, so read each contract in full to make sure you understand the coverage before committing to a warranty from any provider.

As of publication, CarShield has closed over 3,000 complaints with the BBB in the last three years. This may raise red flags initially, but it's important to consider the number of drivers CarShield covers versus the number of complaints against the company.

Our Guides Auto team reached out to CarShield on April 3, 2023, for a comment on its negative BBB scores and received the following response: "[The] number of complaints on the BBB's website represents an astronomically small percentage of CarShield's customers. … CarShield responds to every complaint and has zero unresolved complaints. … [Recently,] Newsweek published its ‘2023 Most Trusted Brands in America for Consumer Products and Services,’ … as Newsweek explained, ‘The winners were selected based on a survey of 14,000 U.S. shoppers who shared their thoughts on which brands they trust the most and why.’"

Regarding the Newsweek survey, CarShield was the winner in the "Extended Auto Warranty (non-manufacturer)" category. Clearly, many CarShield contract holders have positive experiences with customer service representatives and high satisfaction with the overall value of their contracts.

On average, we found that CarShield is not expensive in terms of monthly payments. Based on quotes we’ve received from warranty companies, CarShield consistently offers some of the most affordable contracts, with prices ranging from about $89 to $130 per month.

CarShield's six warranty plans include:

CarShield Plan

What It Covers

Diamond

This exclusionary coverage is for almost all mechanical and electrical components.

Platinum

Best suited for cars over 100,000 miles, Platinum provides protection for the:

• Engine• Transmission• Air conditioning• Electrical system• Starter• Water pump• Fuel pump and more

Gold

Gold protects your car's:• Engine• Transmission• Water pump• Alternator• Starter• Air conditioning• Power windows

Silver

Silver is the most affordable contract, covering the engine, transmission and water pump.

Aluminum

Aluminum protects electrical and high-tech components, including the engine control module, starter, alternator and navigation system.

Motorcycle & ATV

This offers multiple coverage tiers for motorcycles and other non-standard vehicles.

Because of its low prices, CarShield can be a suitable option for those seeking month-to-month payment plans for coverage at a low cost. But if you want to ensure a good customer experience, another extended warranty company may be better suited for you.

A reputable extended warranty provider with industry-low rates.

Year established: 1999Company headquarters: Hunt Valley, Md.Availability: 50 states

With over 20 years of experience in the industry, Carchex is one of the longest-standing car warranty companies. The provider is backed by industry leaders including Kelley Blue Book, Edmunds.com, RepairPal and Carfax. Carchex has also received several recognitions and awards. These include being:

Carchex holds an A+ rating from the BBB with relatively few customer complaints in the past three years, especially for a company of its size. However, Carchex currently has a 2.8-star score on Trustpilot. But out of nearly 1,500 reviews, the majority of customers (85%) give the provider a 4.0-star rating or higher. Customer reviews frequently mention the company's smooth claims process, helpful service representatives and ability to resolve issues quickly.

The company offers five customizable warranty plans that generally cost between $120 and $170 per month, according to our research.

Carchex offers five coverage options for vehicles with up to 250,000 miles, making it an excellent choice for drivers with older, higher-mileage vehicles. Here's a quick look at Carchex's customizable levels of coverage:

Carchex Plan

What It Covers

Titanium

This exclusionary coverage applies to most vehicle components.

Platinum

As the highest level of stated-component coverage, Platinum covers hundreds of parts.

Gold

Gold protects all major systems and is the best coverage for high-mileage vehicles or older cars.

Silver

Silver covers powertrain components and a few other key systems.

Bronze

As the official powertrain warranty, Bronze protects the engine and transmission.

To offer financially sound contracts to drivers, Carchex works with insured administrators like American Auto Shield and Royal Administration Services. You can learn more about this provider in our Carchex review.

Coverage for vehicles up to 250,000 miles and excellent customer service.

Along with affordable rates and strong coverage, it's best to look for reputable extended car warranty companies when shopping for vehicle protection. In the following sections, we’ll touch on how the best car warranty companies are determined, according to consumers.

While any company that provides extended car warranties could be considered a car warranty company, the term "car warranty company" usually refers to a third-party provider that specializes in brokering or administering aftermarket vehicle service contracts.

Drivers have two main options for getting extended coverage: through their vehicle manufacturer or through an independent provider. There are pros and cons to buying coverage from each provider type, which we’ll discuss further in the following sections.

While automaker brands aren't generally known as car warranty companies, drivers can buy coverage from their vehicle manufacturers. Since these contracts are usually backed by the automakers themselves, they can reduce buyer anxiety about reputability. Their costs are also typically rolled into the overall cost of the vehicle itself.

Another benefit of buying extended coverage from an automaker is the guaranteed use of genuine parts for auto repairs and factory-trained technicians for repair work. However, these warranties typically come with the following drawbacks:

With plans from a third-party warranty company, a provider besides your car's manufacturer covers certain repairs. While these companies may not always cover original-manufacturer replacement parts, there are some primary advantages of aftermarket car warranty companies:

Along with a small monthly payment, you may be required to pay a portion of the repair costs if you choose a third-party warranty company. Though some providers may require you to pay for repairs up front and submit receipts for reimbursement, the best car warranty companies pay the repair shop directly. All you have to pay is a small deductible.

Our team polled 1,000 consumers who had experience with car warranty companies, either through buying coverage or shopping for coverage. Of this sample, about 75% had purchased a dealership extended warranty, while 45% had purchased a third-party extended warranty.

Survey respondents said pricing was the most important factor when considering a car warranty company, followed by the length of the warranty and available coverage levels. Overall, 64% of the respondents were satisfied with their extended auto warranty, and 13% said they were neither satisfied nor dissatisfied.

Based on these criteria, here's how the top five car warranty companies in this review stacked up:

As we’ve learned, cost is the most important factor customers consider when choosing a car warranty company. According to our consumer survey, about 67% of respondents paid between $1,500 and $2,500 for an extended warranty. On average, an extended car warranty costs between $1,500 and $3,500.

To find the cheapest car warranty company that fits your needs, it's best to compare quotes. Here are a few extended warranty costs we received from Endurance, ForeverCar, Olive, Carchex and CarShield:

While cost was the most important factor customers considered when choosing a car warranty company, claim denial was the primary reason customers were unhappy.

Of the 13% of customers who said they were dissatisfied with their car warranty company, some said the vehicle warranty didn't cover expected repairs, while others said they thought the company tried to get out of paying for repairs they were contractually obligated to cover.

Before making a purchase, you should look at sample contracts to know what is covered and ready customer reviews and industry ratings to find a car warranty company that is reliable and trustworthy. You don't want to work with a company with poor business practices or a spotty customer service record.

When considering a car warranty company, a reputable provider should tick off the following boxes:

We turn to the BBB and AM Best when considering a company's industry standing. The BBB grades companies on their ability to respond to and settle customer issues. If a provider holds a high BBB rating, there's a good chance it effectively communicates with contract holders in a timely manner.

Some providers work with vehicle service contract underwriters to guarantee claims payouts. To check these underwriters’ financial strength ratings, we look to AM Best, which rates a business's financial ability to pay claims and manage risk.

Some extended warranty providers like Carchex are also endorsed by industry-leading companies. Prominent partnerships are a sign of a reputable provider.

The BBB, Google and Trustpilot all provide customer review ratings for extended warranty companies. We recommend using multiple review sites when deciding on a provider. It's not uncommon to see low customer review scores on the BBB, as customers looking to resolve complaints are more likely to post reviews on this platform.

Positive customer reviews are an important way to gauge how you’ll be treated by an extended warranty company. Look for companies with reviews that mention a quick claims process and helpful service representatives. Also, beware of companies that customers say practice poor habits, like scam calls and misleading advertisements.

Many reputable extended car warranty companies offer sample contracts online so customers can read coverage details before signing on the dotted line. This is to help a prospective customer get a clearer understanding of what to expect. This is especially important to third-party warranty companies because the most common complaint warranty providers get in bad reviews is about a claims denial.

By choosing a provider that readily offers information about its contracts, you’ll be better equipped to understand what is and isn't covered. However, you should always read the fine print regardless of the provider you choose.

In our research, we’ve found that the best, most reputable providers have been in business for more than a few years. The warranty industry is highly competitive, making it easy for companies to come and go, especially if they have negative customer reviews and shady business practices.

It's also important to find a service plan that is easy to use. To know if a company will be simple to work with, consider these questions when picking out a provider:

All of our recommendations offer these benefits. Sometimes, a company doesn't pay for what should have been a covered repair. But in many situations, the contract clearly excludes the repair in question. Read all the fine print, and don't count on a salesperson to read every exclusion to you.

In this article, we reviewed the best car warranty companies in the industry and found that based on industry reputation, customer experience, cost, and coverage, Endurance is the top provider. In addition to discussing the top five providers, we touched on what determines the best car warranty companies, based on customer perferences.

Below are some common frequently asked questions about car warranty companies:

After comparing leading providers, we chose Endurance as one of the best extended car warranty providers available. The company works with customers directly and offers six coverage plans — more than most competitors. Endurance contracts extend up to eight years or over 200,000 miles.

Extended warranties can be worth it for the peace of mind they provide. After your factory new-car warranty expires, you’ll have to pay out of pocket for all car repairs. With a vehicle service contract, you’re only responsible for a deductible and the cost of the contract. Warranties are also worth it for drivers who want a predictable auto budget.

AAA may or may not offer extended car warranties, depending on where you live. For example, AAA Carolinas offers four coverage options that can extend up to seven years/230,000 miles. On the other hand, AAA Mid-Atlantic offers three extended warranty plans for new and used cars.

No, CarShield is not a rip-off. Generally speaking, we found it to be the most affordable provider overall. The company also offers benefits like towing and rental car reimbursement with its plans.

In the world of extended warranties, a manufacturer's warranty is usually the most expensive option considering the time and mileage limits you receive. However, it also pays for dealership service and OEM parts. Compare terms from your dealer with free quotes from third-party providers to find out if it's worth it for you.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best extended car warranty companies. We collected data on dozens of auto warranty providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

Our credentials:

*Data accurate at time of publication.