Car Warranties Blog and Resources

Guest Post by Lilly Miller Buying a company vehicle is a long-term investment, one that might not always make financial sense if you can relocate those resources towards more lucrative opportunities. Nevertheless, when business is booming a company vehicle may be necessary to maintain operations and day-to-day efficiency. In fact, some companies absolutely need their own vehicles if their employees are operating in the field. If the time has come to purchase your own company vehicle, then you need to plan your purchase carefully and assess all of the variables to make the most cost-effective decisions. With that in mind, here are the key things to consider when planning to buy your first company car: 1. Choose funding  The first key consideration is, of course, how you’re going to afford your vehicle without putting a dent in your budget. A car is no small investment, so it’s important that you decide on the best funding option as well as the best way to create a positive return on investment in a short timeframe. If you’re going to buy a vehicle, consider applying for a small business loan as one of the quickest ways to get the funds necessary to buy a car. On the other hand, if you already have an outstanding loan or if you fear that you won’t be able to get favorable loan terms, you could opt to lease the vehicle instead. This will avoid extraneous upfront costs, and you will be able to write the investment off as a deductible business expense. Keep in mind, though, you might not be able to find a specific vehicle you want on lease terms, as leases are typically offered on a limited number of makes and models. 2. Devote time to research and testing Again, buying a company vehicle requires a substantial financial investment, so you shouldn’t rush the process even if you need to buy a car quickly. It’s imperative that you devote enough time to proper research and testing by doing the following: Ensure the vehicle fits your needs perfectly. Research various makes and models to compare features and prices and find the best deals on the market to efficiently narrow your search. Make a testing schedule and proceed to test-drive every vehicle to see how it fares, how it feels, and if the choice is right for your needs. If you’re unsure, ask a car-savvy friend or business partner to come to the testing with you and help you make the right decision. 3. Get an adequate warranty Of course, you can’t just hope that your car won’t break down in the middle of nowhere mere months after rolling it out of the showroom. No, you want a car that will run smoothly, and you want to know that if problems arise, you can ask for a replacement vehicle or a free repair. Another crucial step would be getting adequate manufacturer warranty. Go over the warranty thoroughly and see if it ticks all of the boxes that are relevant to you and your business. Consider purchasing an extended warranty if you think the perks are worth the added investment in the long run. Along with a manufacturer’s warranty, be sure to get an adjustment warranty from your car dealer as well, in order to take care of small problems and repairs quickly, without breaking the bank.  4. Find the right insurance One of the most important considerations is the coverage. When it comes to getting a company vehicle, insurance is non-negotiable, as you need to make sure that you are covered against every eventuality, from roadside accidents to environmental damage, theft, and everything in between. Given the fact that there are many variables that go into a good insurance policy, it’s important to compare prices from various insurers. Luckily, insurers are all about personalization nowadays, and forward-looking ones are even offering interview based quotes that are tailored to the exact needs of the business, so you can save money on the things you don’t need while ticking all the boxes that are important to you. When researching insurance options, get in touch with the flexible insurers who can adapt to your company’s requirements. 5. Research economic trends and time your purchase Experienced business leaders understand the value and importance of timing their investments, and the same importance can be attributed to vehicle purchase. If you time your purchase right, you can snag a much better deal and thus aquire your car at half the original price, but you need to know what to look for. First, it’s important to monitor economic trends. If the economy is currently going through a bit of a slump, you will most likely find dealerships that are slashing their prices to make a quick profit. Next, you need to sense the demand for certain vehicle brands. Popular brands that are selling like hot cakes will have the same price tag throughout the year, while less popular brands will invariably lower their prices to cover their losses. 6. Maximize your investment through marketing On a final note, keep in mind that this new vehicle can serve yet another purpose aside from getting you from point A to point B. You can also use it to boost your marketing efforts and complement your online marketing tactics with some good old offline promotion. By branding your vehicle just right, you can use it as a promotional tool and a rolling advertisement that will get people interested and perhaps even inspire them to reach out. Print your website address or phone number along with your company’s name and visuals. Almost every business needs a company vehicle nowadays, but that doesn’t mean that you should spring for the very first deal that pops up. Instead, use these tips to create a cost-effective strategy, find the perfect vehicle, and most importantly, maximize your investment in the years to come. Lilly Miller is an author at Smooth Decorator.

Protection means protection no matter what, right? Wrong. When purchasing an extended car warranty, you must be aware of the caveats of your coverage. Certain factors can lead to your extended car warranty being voided. Although every car warranty company is different, luckily, many of the car warranty companes have similar parameters for what voids an extended car warranty. Read below to find out the top five. If you are unsure of what a car warranty or extended warranty is in general, check out our complete guide to car warranties for a simple run-down. 1. Keep up with your vehicle’s recommended maintenance Every vehicle has a recommended maintenance schedule. Most car warranty companies, will void your car warranty if you do not keep up with the recommended maintenance. This often includes rotating your tires, getting the oil changed, and receiving specified inspections.To find out what your vehicle’s recommended maintenance schedule is simply put your vehicle’s make and model into this car maintenance guide. 2. Avoid modifications  For most car warranty companies, your vehicle’s extended car warranty will be voided if you make any vehicle modifications other than modifications recommended by the manufacturer.  Laura Gonzalez from AudiPeoria, with years of experience in the automotive industry, states that, “most aftermarket modifications (e.g. parts that are not approved by the manufacturer) will void your warranty. For example, if you lift your vehicle and then it has problems with the drivetrain, you will have a difficult time getting the dealership to cover the repairs under warranty, because they can simply state that the vehicle was not built to accommodate the modification.” 3. Drive carefully  Deliberate and obvious abuse of your vehicle, such as off-roading, hitting curbs, racing or anything else that the vehicle was not manufactured to do will void the warranty. Look through your contract carefully to see what the car warranty company defines as misuse. Jake McKenzie from Auto Accessories Garage adds that "Overloading your vehicle by competing in races or track days, off-roading, or even plowing snow can be considered misuse, or otherwise outside of normal operation. A claims investigator may look for signs of racing or off-roading in your vehicle and they can deny a claim at their own discretion.  They will not necessarily need proof of racing or off-roading, but can choose to deny coverage based solely on the presence of signs that may indicate racing or off-roading." 4. Be mindful of your mileage Lauren Fix from the Car Coach says "car warranties are based in mileage and time, which ever comes first. After that point, the coverage protection dissappears." Be mindful of the mileage on your car and be aware of when you are going to hit that mileage limit. When this happens, your car warranty is voided. 5. Let the extended car warranty company know that a repair needs to be done Before getting any car repairs on your car, make sure to let the car warranty company know. Without prior authorization from the administrator, the car warranty may not be held responsible to pay for the repair. Typically, the only exception for this is when the repair is classified under emergency repairs stated in the agreement. The bottom line Although this list covers the most common factors that car warranty companies include in voiding a car warranty, this is not a comprehensive list. When you are exploring your options, go through your contract carefully before agreeing to anything. Pay special attention to everything included in the contract that will void your car warranty. Being informed beforehand ensures you know exactly what you are purchasing with an extended car warranty.

Purchasing an extended warranty has three steps:1. Evaluate whether or not an extended warranty is right for you.2. Decide what kind of extended warranty to buy.3. Choose an extended warranty provider.We’ll focus on steps two and three in this article. Choosing an extended warranty Extended warranties fall into three main categories: powertrain, stated-component, and exclusionary. Each kind of extended warranty or service contract has different eligibility requirements and a different level of coverage. If you are unsure of what a car warranty or extended warranty is in general, check out our complete guide to car warranties for a simple run-down.There may be some slight variability company to company in eligibility requirements and specific coverage. However, the general coverage offered by each kind of warranty will be about the same. While most companies make general coverage information easily accessible online, some companies don’t. Instead, potential clients must input their car information to see options tailored to their situation. autopom! includes general coverage and some eligibility information on its website and offers a wide selection of extended vehicle service contracts. CARCHEX also offers general coverage information on its website in addition to sample service contracts. The information from both companies is a helpful reference. Powertrain extended warranty Coverage Powertrain warranties typically cover the car’s engine, transmission, transfer case, and drive axle. Some companies include additional coverage for things like the supercharger, differential assembly, and air conditioning in their powertrain warranty plans. Powertrain warranties cover the most essential parts of a car, which offers peace of mind and can save car owners money on expensive repairs. Because the powertrain warranties only cover the essentials, they tend to be less expensive than warranties that offer more coverage. Eligibility Eligibility requirements are trickier to pin-down for powertrain warranties. However, this kind of coverage can be purchased for low-mileage and higher-mileage vehicles. Most car warranty companies have a maximum mileage that they will service, so it’s important to check with each company directly to see what’s available for your car.autopom!’s powertrain warranties offer coverage for an additional 36,000 to 100,000 miles (three to six years).CARCHEX’s extended powertrain warranties can last as long as five to seven years. "The powertrain usually becomes an issue in older and higher mileage vehicles. So if a powertrain warranty is offered, it is only with considering if you are buying an older car that has racked up plenty of mileage," says Jake McKenzie, Auto Accessories Garage Content Manager. Stated-component extended warranty Coverage Stated-component warranties cover the car’s powertrain and other parts specifically listed in the service agreement. These plans offer more coverage than a powertrain warranty and less coverage than the car’s factory warranty, so it’s a nice middle level of coverage. There is also more variety available with these named-component plans, which makes it easier for car owners to find affordable coverage to meet their needs. Eligibility Stated-component warranties are available for newer cars with lower mileage. For example, autopom!’s stated-component warranties end coverage at 100,000 or 125,000 miles (five to seven years). CARCHEX’s stated-component warranties are recommended for cars with over 60,000 miles and can last as long as five, seven, or ten years, depending on the plan and client’s situation.If your car has fewer than 100,000 or 125,000 miles, a stated-component extended warranty could be a good option, especially if you want more coverage than a powertrain warranty. "While most extended warranties do not cover general wear and tear, some stated-component coverage options do. If insuring your vehicle against standard wear and tear is important to you, a stated-component plan could be the best for you," says McKenzie Exclusionary extended warranty Coverage Exclusionary coverage is the most comprehensive coverage available once the original warranty expires. It covers most car parts, except for the parts listed in the contract. Parts not covered include things like lights, paint, and bumpers. Eligibility Exclusionary coverage is only available to newer cars with low mileage. For example, autopom!’s exclusionary warranty plans end after 100,000 or 150,000 miles (six to eight years). CARCHEX’s exclusionary warranties can last up to seven or ten years.If you want comprehensive coverage and your car has under 100,000 or 150,000 miles, an exclusionary warranty is a nice option. "Exclusionary coverage is best if you spend a lot of time driving or commuting and any interruption in your vehicle’s reliability would be detrimental to your life or business," says McKenzie. Choosing an extended warranty provider Once you know the kind of warranty you want, compare plans from several companies, including our number one ranked car warranty company, autopom!. Most plans will be similar, but some companies have more variety. For example, some companies offer very basic powertrain warranty plans while others offer more comprehensive powertrain warranty plans. The more comprehensive plans will cover more parts and will usually be more expensive. Evaluating plans from multiple companies can help you find the best plan for what you want.As you’re researching companies, consider the benefits included with many extended service contracts. 24/7 roadside assistance has become standard in the industry. Many companies also offer rental car and trip interruption reimbursement. The reimbursement is only available if the car needs covered repairs.In addition to comparing plans and benefits, read customer reviews to be sure that you’re purchasing an extended warranty from a reliable and trusted provider. Reviews will give you insight to the level of customer service and quality of the extended warranty. "Before purchasing insurance through a third-party be sure to know if they have a deductible and what the process would look like if damage occurred. Many third-party warranties will have you pay out of pocket and then file a reimbursement claim, this process can take months to complete. If you don’t have the funds on hand for this, consider the dealership warranty as a better option," says Jared Weitz, United Capital Source Inc. CEO and Founder. An extended warranty is a financial commitment. It can protect your finances if your car needs a covered repair. Car repairs can be expensive, so an extended vehicle service contract can be an investment in your car’s continued function.Purchasing a car warranty from a trusted warranty provider is also important. If you make a claim, you’ll want to be confident that your warranty company will pay.Understanding your coverage needs, what your budget is, and finding a good extended warranty company will ensure that you purchase the right extended warranty for your car.View Best Company’s Top-ranked Extended Warranty Companies

Car salespeople and car warranty companies always talk about the value brought by purchasing an extended car warranty. Are they trying to make a sale or are car warranties really worth it?Before you purchase a car warranty for your new car or new-to-you car, you should ask yourself the following questions: What is your car’s service and repair history? What is the year, make, model, and mileage of your car? Do you have savings? How frequently do you roadtrip? What kind of coverage do you actually need? If you are unsure of what a car warranty or extended warranty is in general, check out our complete guide to car warranties for a simple run-down.   What is your car’s service and repair history? If you bought a new car, then your car should have a clean slate and be reliable.If you bought a used car, it’s a good idea to review the CarFax to learn about any difficulties experienced by previous owners. In addition to accidents and damage reports, look for notes about systems malfunctioning or not working properly. These notes can indicate the potential for future problems.If you’re considering purchasing a car warranty, be sure to understand if any modifications have been made and if the car has been well-maintained. If there have been modifications or if the car has not had regular oil changes, it may not qualify for an extended warranty.It’s also a good idea to have a trusted mechanic take a look at your car. Your mechanic can tell you if the car is in good shape and what repairs to anticipate in the future. Car warranties only provide coverage for some car parts when they fail. If your car is pretty reliable, an extended warranty may not be worth the expense. What’s the year, make, model, and mileage of your car? "If you are shopping for an extended warranty, look into the reliability of the car make and model purchased to know what the likely damage will be and how long into the car life they tend to break," says Jared Weitz, United Capital Source Inc. CEO and Founder. Car warranty companies have certain requirements associated with each of their plans. For example, some car warranty companies do not offer warranties for foreign cars. It’s also fairly common for car warranty companies to offer several vehicle protection plans with different levels of coverage at different price points.Most plans have mileage restrictions. The plans with the most comprehensive coverage often have the lowest maximum mileage covered. The plans with the least coverage are cheaper and have more flexible mileage restrictions.View autopom!’s plans and mileage requirements. How frequently do you roadtrip? Many car warranty companies include additional benefits in their plans, like roadside assistance, trip interruption, and car rental reimbursement.These benefits add value to a car warranty. Roadside assistance is very useful for emergencies like running out of gas, local towing, and jumpstarts.If you live in a rural area or away from family and friends, roadside assistance is valuable because you have someone you can call for help.If you’re on the road a lot and roadtrip through remote areas, trip interruption benefits are great. Trip interruption benefits reimburse hotel and meal expenses while your car is having covered repairs.For people who have long commutes or rely heavily on their car for daily tasks, the rental car benefit is great. You won’t have to bother with public transportation, figure out rides, or change your routine. Do you have savings? It’s good practice to have savings set aside for unexpected expenses. If you don’t have a lot of savings set aside and aren’t actively saving, it’s a good idea to start making that a priority in your budget.The major benefit that a car warranty offers is reducing repair costs and other associated costs for covered parts that stop functioning properly. Be cautious when choosing between savings and an extended warranty. "Extended car warranties are often costlier than the typical repairs themselves tend to cost. Instead of a car warranty, consider dedicating the money that would go to the warranty into an emergency fund for any potential damages that may come up," says Weitz. While car repairs can be quite expensive, but how likely is your car going to need these repairs? Is your money better spent on an extended warranty or put in your savings? What kind of coverage do you actually need? The three main kinds of extended car warranty include the following: Exclusionary Stated-component Powertrain Exclusionary extended warranties are typically for newer cars whose factory warranties have expired. Exclusionary coverage is very similar to factory warranty coverage. It covers everything in the car except those listed in the service agreement. They are also known as bumper-to-bumper warranties. These are ideal for people looking for coverage to replace the factory warranty.Stated-component warranties offer a mid-level of coverage. These service agreements only cover the parts listed in the agreement. These extended service agreements are ideal for car owners looking for comprehensive coverage but not the same kind of coverage as a bumper-to-bumper warranty.Powertrain warranties cover a car’s powertrain. These parts typically include the engine, drivetrain, and transmission. These are the most essential components of a car. "Before making the purchase, look at your standard car insurance to see if it covers any mechanical damages prior to investing in additional warranties," says Weitz. To buy or not to buy "An extended warranty is always a gamble and, in most cases, what you’re actually paying for is peace of mind. A 2013 survey from Consumer Reports showed that 55 percent of extended warranty holders never ended up using the warranty at all. Of the 45 percent that did take advantage of extended warranty coverage, most survey takers still saw a net loss when comparing the cost of repairs versus the cost of the warranty," says Jake McKenzie, Auto Accessories Garage Content Manager. If you found a great car that’s reliable, purchasing an extended service agreement may not be the best investment.If you’re on the road a lot or would benefit from a car warranty’s included features like roadside assistance, car rental reimbursement, or trip interruption, an extended service agreement may also be worthwhile. However, it’s worth comparing pricing of an auto warranty with the pricing of roadside assistance service subscriptions. You may be able to find a better deal.An extended auto warranty may be a worthwhile investment if you’re worried about your car’s reliability.View Best Car Warranty Companies

Guest Post by Mike Jones Whether you’re buying a new car or purchasing a used vehicle that’s almost as good as new, you can’t help but worry about what repairs your vehicle may face down the road. Like death and taxes, we can’t seem to escape car problems or the costs that come with them. A broken AC or leaking water pump, a transmission issue or ignition problem — all come with costly repairs. It’s best to prepare for these car issues well before they actually happen so that your vehicle and your wallet don’t pay the price. One of the best ways to prepare for the inevitable is by investing in an extended vehicle warranty. Over the years extended vehicle warranties have been the target of myths and fiction that have made drivers ask the question: Is an extended vehicle warranty actually worth it? The easy answer is yes. If you want peace of mind, an extended vehicle warranty is definitely worth it, whether you’re driving your first new car or your fifth used car. Don’t let the following myths fool you into putting your vehicle and your budget at risk. 1. Extended warranties are a waste of money This is perhaps the biggest myth surrounding extended vehicle warranty plans. Many drivers forgo warranty plans because they worry that they’re too expensive. However, while you can find an extended vehicle warranty for as little as $1,119 (Platinum coverage, $0 deductible, in California, for a 2018 Chrysler Pacifica plug-in hybrid), some major car repairs can cost you anywhere from $500 to $7,000. You’ll be spending a lot more money if you’re not covered by a warranty plan. If you opt for an extended vehicle warranty, your plan will likely pay for itself after one large repair bill. This doesn’t include the added benefits a warranty offers. Extended vehicle warranties don’t only help cover your vehicle repairs, but some include roadside assistance for when your car breaks down, rental vehicle assistance for when your car is in the shop, and repair shop choice. Some providers also offer payment plans to help make payments easier for drivers. Where does this myth come from? It comes from the fact that many dealerships overcharge for extended vehicle warranties. These plans come with loans and interest rates, making many drivers feel like they’re being played. 2. Only dealerships sell extended vehicle warranties This is partly true. Only dealerships sell extended vehicle warranties. But you can find vehicle protection plans from a variety of providers across the nation.A vehicle protection plan is a convenient and affordable alternative to an extended vehicle warranty. Despite the difference in its name, it offers many of the same benefits (sometimes with a few additional perks like no-fee payment plans). While you can buy an extended vehicle warranty directly from your dealership, don’t limit your options. Explore other vehicle protection plan providers. How do their plans stack up against those of the dealership? Who offers the lowest prices? Who offers the greatest benefits? Be sure to check their reputation at the Better Business Bureau or Trustpilot.com. 3. All warranties are the same No two car warranties are exactly the same. In fact, even dealerships or providers offer several different types of warranties. They differ in price, in coverage, in benefits, and in features. The type of coverage you receive depends on several factors. First, it depends on how much you want to spend. If you’re willing to spend more on a warranty plan, you should also be expecting more coverage. The type of coverage you receive also depends on your state of residence and the year, make, model, and mileage of your vehicle. For example, the type of coverage available for a 2019 Lexus will differ greatly from that of a 2003 Ford. It’s important that you shop around, just as you did when you purchased your car. Many providers offer free quotes and let you look at contract samples. Read the language in the contract carefully. When you do, the differences between the plans you’re looking at will be obvious. Remember to check online for reputation of the provider. 4. I’m already covered by my manufacturer’s warranty so I don’t need double coverage While you may be covered by a manufacturer’s warranty shortly after you buy the car, you won’t be for long. The original factory warranty comes with year and mileage limits that leave you on your own once they’ve been exceeded. It’s a good idea to invest in an extended vehicle warranty or vehicle protection plan before your manufacturer’s warranty expires. When you drive a newer car, you’ll be guaranteed a higher level of coverage, longer terms, and lower rates. The same can’t be said if you wait five years for protection. You and your car with more wear/tear and miles won’t get as good a deal had you not waited. Now that you’ve uncovered the myths of an extended vehicle warranty, it’s time you look into the options and peace of mind that are available for you and your vehicle. No one wants a road trip interrupted by car problems or a vacation abandoned because a repair shop bill broke the bank. One thing that’s not a myth? With a vehicle protection plan, you’ll drive with automotive peace of mind knowing that your car and your wallet are covered.Mike Jones is the president and CEO of autopom!, a BBB Accredited A+ rated provider of vehicle protection plans for both new and used cars. Click here to learn more about autopom!

[h2]How We Evaluate Car Warranty Companies[/h2] We evaluate extended car warranty providers on a number of criteria-most notably on the quality of their roadside assistance, rental car options, warranty coverage, and customer service. For example, the best car warranty companies provide multiple customer service channels and are available 24/7, as opposed to normal business hours only. The best companies have round-the-clock roadside assistance, and will reimburse customers for towing expenses. Each company is reviewed and ranked against the same set of standards, and companies that consistently excel in these categories are given top spots. To learn more about how we rank and review these companies, click here. After thoroughly vetting all extended car warranty providers, we've identified five companies in particular as standouts in the industry: #1 CARCHEX Topping the list is CARCHEX, a car warranty broker that aggregates quotes from a marketplace of warranty providers, and provides customers with the warranty that best fits their needs. CARCHEX got its start as a consumer advocacy service designed to protect car-buyers from seller fraud. Then in 2004, CARCHEX began offering its Extended Vehicle Protection service, which helps customers find an extended warranty with the most coverage and at the best price. What we like about CARCHEX One of the things we like most about CARCHEX is how easy and hassle-free it is to obtain a free quote.. In addition to instant, 24/7 access to CARCHEX's Direct Quote Engine, customers can also compare warranty products, speak directly with customer service representatives-who, according to the user reviews posted to BestCompany.com, are among the best in the industry. The company's flexible payment options also come with a 30-day money-back guarantee, something we feel is a hallmark of top companies.. #2 Endurance Endurance is a direct vehicle warranty provider that offers service to vehicles with less than 160,000 odometer miles and are less than 10 years old. The company has received awards and accolades from numerous third-party organizations including the Chicago Tribune's "One of the Top Workplaces of 2015." Endurance aims to cut out the middleman by providing direct service, and savings, to customers in need. What we like about Endurance According to our research, Endurance's service plans are 100 percent insured by some of the most trusted insurance providers in the country. This means that all claims for covered repairs are paid upfront by Endurance. We feel this provides an added benefit to customers, as they won't need to wait to be reimbursed or pay any out-of-pocket expenses. Endurance's three service options each come with a 30-day money-back guarantee, 24/7 roadside assistance, lockout assistance, emergency fuel delivery. #3 American Standard Auto Protection American Standard Auto Protection (or ASAP) is one of the largest and fastest growing car warranty providers in the industry. ASAP connects car owners with more than 425,000 approved dealerships and mechanics to provides its customers with the most comprehensive extended warranties on the market. ASAP sets itself apart in the industry by helping customers find any and all available warranty discounts for their vehicles. What we like about ASAP We were very impressed with ASAP's vehicle coverage, which ranks among some of the most comprehensive in the industry. Plans cover nearly every repair or adverse situation your car might encounter, right on down to 24/7 dead battery replacement. Not surprisingly, the process of finding a quote with ASAP is one of the fastest we've seen. We also awarded points for ASAP's  expansive nationwide network of dealerships and mechanics, which allows customers to get their vehicles repaired and back on the road "as soon as possible." Delta Auto Protect Delta Auto Protect is a nationwide extended warranty provider that works directly with repair centers to help ease the burden of paying for expensive vehicle repairs. Delta Auto Protect's staff understands the nuances of the car warranty industry, and are best equipped to help customers navigate coverages and exemptions for their vehicles. With a network of over 300,000 ASE-certified experts, Delta Auto Protect provides expert diagnosis and repair to help customers get back on the road in a timely manner. What we like about Delta Auto Protect Each of the three service options we researched from Delta Auto Protect provides competitive and comprehensive coverage, including 24/7/365 roadside assistance. One added benefit we found to purchasing an extended warranty through Delta Auto Protect is the ability to transfer the warranty to the next car owner, or transfer the warranty to a new vehicle. In the event that customers are not satisfied with their coverage in the first 30 days, they will be refunded through the company's money-back guarantee. #5 ForeverCar Winner of the 2016 Chicago Innovation Award, ForeverCar is looking to take the extended vehicle warranty world by storm by providing the customers with the largest marketplace of vehicle service contracts in the industry. The company boasts a 98 percent customer satisfaction rating, and has received an Excellent status rating from A.M. Best, meaning customers will not need to worry about whether they will receive full immediate reimbursement on their claims. What we like about ForeverCar One thing we determined that especially sets ForeverCar apart from other extended warranty providers is that it not only provides prices for its own brokered products, but also the prices of its competitors. This quote comparison tool is unique in the industry, incredibly useful, and a clear indication of the company's mission: to help car owners find the best combination of coverage, duration, and cost-even if it's not with ForeverCar. We like that ForeverCar provides three service plans are tailor-made to address nearly every customer's unique circumstances. To view the rankings of all car warranty companies, click here. The Future of the Car Warranty Industry While the car warranty industry is becoming increasingly popular among car owners with a little extra to spend, it still has a number of challenges to overcome in the years ahead. First, in some cases, the premiums these car warranty providers charge can end up being more expensive over time than price of the actual claim for a needed repair. Only 50 percent of car owners who have purchased an extended warranty (either from the dealer or a third-party company) since 2000, has ever actually used the warranty. In many ways, this industry faces the same challenges as the insurance industry, and will need to find a way to incentivize customers who might otherwise just save their money for a rainy day instead of investing it in a pricy extended warranty. Additionally, car warranty providers will need to find ways to 1) expand the number of cars covered and 2) investigate the repair and maintenance history of used cars. Currently, many car warranty providers have strict eligibility requirements for the cars they cover, including the age of the car and the number of total odometer miles. The best companies are fairly flexible with these conditions, but other companies are more stringent. Companies will also need to create a more comprehensive vetting process of the used vehicles they cover, mainly to prevent themselves from insuring cars they can't cover, and denying reimbursement on claims. As the industry continues to evolve, BestCompany.com's ranking criteria will evolve with it. Car owners can rely on BestCompany.com to stay up-to-date with industry changes and top-recommended companies.