CARCHEX was originally founded in 1999 helping consumers purchasing used vehicles have more peace of mind by providing reports and inspections. The company grew to offer extended service contracts and automobile insurance. Rather than underwrite and administer these products itself, CARCHEX became a broker, partnering with other companies to offer customers more options.

The Good

  • Warranty cost
  • Basic warranty length
  • Powertrain warranty
  • Other features

Warranty Cost

Quotes are easily obtained from CARCHEX, but as the quote is highly variable upon coverage, payment options, mileage, make, and model of the vehicle, there is too much variability for BestCompany.com to provide a pricing estimate. The company offers its customers the option to finance their contract for up to 24 months and accepts all major credit cards. Plans normally come with a deductible, with many reports of the deductible being $200 per repair for at least some plans, which is higher than most competitors, which usually have a $100 deductible per repair.

Basic Warranty Length

Unlike most of its competitors, CARCHEX is transparent about the length of coverage which is available for its service plans. Most of the plans sold through CARCHEX can be purchased for a maximum of seven years. There are shorter terms of coverage available from which customers can select. It is important to note that not all of the plans are renewable, so customers are usually counseled to purchase the term with the longest term length by CARCHEX representatives.

Powertrain Warranty

Coverage for the engine, transmission, drive axles and other parts of a vehicle’s powertrain is included for all of the plans sold through CARCHEX. The extent of coverage for these components varies by plan and company.

Other Features

As CARCHEX is a broker for auto warranty providers, each plan is slightly different. All of the available extended service plans which are highlighted by CARCHEX on its site includes 24/7 roadside assistance. Limits to the individual plan’s coverage varies based upon the administrator, but each of the plans includes towing, emergency fuel delivery, flat tire changes, and emergency lockout service. Some of the added coverages that are available in most plans are keyfob replacement, windshield replacement, seals and gaskets rider, trip interruption assistance, and tire and road hazard protection.

Most of the plans offer comparable coverage to other companies with respect to roadside assistance. The options to protect keyfobs, windshields, and tires are unique in the industry, with most companies not offering coverage for these parts.

Interested in getting coverage? Check Here

The Bad

  • Basic warranty features
  • Lack of transparency
  • What customers are saying

Basic Warranty Features

As CARCHEX is a broker for Assurant Solutions, American Auto Shield, and Royal Administration Services, the features in the extended service plans from these companies varies greatly, and it is not within the scope of this review to compare all of these plans offered through CARCHEX.

Lack of Transparency

In spite of offering 16 plans divided into five levels of coverage, CARCHEX, when compared to other extended service plan brokers is significantly less transparent than other brokers and does not offer much for comparison shoppers as far as covered and excluded coverage. The plans which are offered through CARCHEX are divided into categories of coverage which represent the level of coverage, Titanium, Platinum, Gold, Silver, and Bronze.

What Customers Are Saying

Before paying an expensive claim, the administrator often requires that evidence for all maintenance which was performed on the vehicle be provided, which includes oil changes, tuneups, etc. If this information is not available, the claim will be denied, as the terms of the service plan require that the vehicle be properly maintained with all records kept. It is important to note that there are several anecdotal reports of claims being denied due to check engine codes associated with the vehicle even before the current purchaser even owned the vehicle. These claims cannot be confirmed or refuted, but are themes which are frequently mentioned on reputable consumer reporting sites.

CARCHEX either has extremely positive or extremely negative reviews. There are very few that rate the company anywhere in between these two extremes. Those who have had a bad experience with the company are very vocal, to the point of alleging that CARCHEX is a scam. One should note that CARCHEX generally receives positive reviews for its customer service during the shopping and sales experience and the administrating company receives poor ratings for its denial of claims. As most people consider that they have purchased from CARCHEX, they are not always aware that another company is actually administering their service contracts.

The Bottom Line

CARCHEX, like a few other companies reviewed by BestCompany.com, is a broker for extended vehicle service plans. Simply put, the company partners with companies that provide extended service contracts for vehicles. Consumers receive quotes for coverage through CARCHEX, but it is important for them to know that CARCHEX is not the company that will be paying claims on their plans. This creates several confusing scenarios for customers who were not fully aware of this relationship when they received quotes.

As is the case with all of the extended warranty products which have been reviewed by BestCompany.com, it is critical for customers to fully understand their requirements under the contract, since they may unknowingly void the contract and not even know about it until a claim is needed, even if they have been diligent in their payments. There are several ways that this can happen, but the most common ones are skipping recommended maintenance visits or failure to keep all records of maintenance visits.

Interested in getting coverage? Check Here

Frequently Asked Questions

Does the warranty include towing? What are the limitations on towing expenses?

All plans include towing assistance. Limits on the coverage varies by plan.

Can a warranty be transferred if the car is sold?

All plans can be transferred to another individual if the vehicle is sold.

Are there any fees involved in the transfer of the warranty to a new owner?

Most plans require an administrative fee between $50 and $100 to transfer a service plan to a new owner.

Where can the repairs be done under warranty?

Repairs can be completed at any ASE licensed facility, dealerships, or chain repair shop.

What hours/days can a repair be reported?

Administering companies vary on their hours in which claims can be reported.

Does the warranty cover a car rental while the repair is being made?

All of the plans brokered by CARCHEX offer some assistance with a replacement rental vehicle during covered repairs.

How many days/hours does car rental cover?

Maximum coverage for a replacement rental car varies by plan.

How long does it typically take to file and process a claim?

Filing and processing times vary, as claims are managed by the administrator, not CARCHEX. There are anecdotal reports of claims taking a week or more to process, but nothing which identifies which administrators was managing the claim of the three that CARCHEX has contracts with.

Does the warranty cover defects which are discovered or which occur in a different state than the state of purchase?

Provided the plan selected by the customer through CARCHEX covers the affected component, repairs are covered. If the defect is deemed to be from a defect which occurred before the plan was purchased and went into effect (usually 30 days and 1,000 miles after the initial purchase), the administrating company will not pay for expenses for the repair. Plans are valid in the United States, but not always in Canada or Mexico.

Are there any inaccuracies in this review? We take our accuracy very seriously and would love your feedback. Give feedback here.

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42 CARCHEX Reviews

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  1. User Score

    10

    March 28th, 2017

    So far so good. Anthony was on point in sales. So hopefully i did the right thing. I love my vehicle. So i went with the best. Carchex. Please dont let me down if ever i need you. Thank you, Anthony.

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  2. User Score

    10

    March 23rd, 2017

    Fast and accurate. . Easy to read. Received an email right after the order and was able to view the report instantly

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  3. User Score

    10

    March 16th, 2017 Tampa, FL

    Christopher B, your sales agent, was very helpful in explaining all the details of the warranty packages he’s offered. I was pleased to purchase one of both, value and piece of mind and would recommend Carchex and Christopher to others.
    Thank you.

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  4. User Score

    10

    March 14th, 2017 The Dalles, OR

    you were very good and helpfull thank you … mike

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  5. User Score

    10

    March 10th, 2017 Brandywine, MD

    Telephone sales were excellent; thank you for comprehensive coverage and assistance with my vehicle.

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  6. User Score

    0

    March 3rd, 2017

    I paid Carchex to inspect someone else’s vehicle! After completing a form online we waited four days for the inspection report to be made available. During those 4 days we were unable to get anyone to respond to our requests for updates or other critical information and the vehicle was sold to someone else. We paid over $200 for Carchex to inspect someone else’s vehicle.

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  7. User Score

    8

    March 3rd, 2017 Jamaica, NY

    It was ok for starters. rep was informative and respectful

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  8. User Score

    9

    February 28th, 2017 Washington, DC

    customer service was great, the sales associate knew exactly what package I was looking for.

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  9. User Score

    10

    February 27th, 2017 Richmond Hill, NY

    my experience thus far was wonderful the sales person mr cary was very informative of all the questions i had to ask and knowledgeable to finite degree which made my selection process the best.
    i hope the rest of my experience if i should ever have to use the warranty will be as great.

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  10. User Score

    10

    February 24th, 2017 Weatherford, TX

    I just signed up New Policyholder Sales Rep. Ryan was very
    Helpful Thanks!

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  11. User Score

    10

    February 15th, 2017 Washington, DC

    The “Customer Service” rep provided a professional and detail presentation of the product and services I would be receiving upon signing up for a vehicle warranty.

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  12. User Score

    10

    February 13th, 2017

    Was very knowledgeable very good customer service

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  13. User Score

    10

    February 8th, 2017 Tucson, AZ

    He did a great job in telling me all that I needed to know

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  14. User Score

    9

    February 8th, 2017 Mobile, AL

    All information was given to in clear and well delivered. I was very happy the way it went.

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  15. User Score

    10

    January 30th, 2017 Clifton, AZ

    Our agent was very knowledgeable and very courteous. He answered all my questions and I felt very comfortable dealing with him.

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  16. User Score

    10

    January 30th, 2017 Hyattsville, MD

    Called to cancel warranty on one car and purchased new warranty from Carly
    will definitely recommend to my friends

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  17. User Score

    10

    January 19th, 2017 Washington, DC

    Shanita answered all my questions and was very patient, Excellent customer service!

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  18. User Score

    10

    January 13th, 2017 Atlanta, GA

    Customer Service agent was very helpful in my selection of the right plan for my needs

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  19. User Score

    10

    January 12th, 2017 Selkirk, NY

    Everything was awesome. Very helpful and very easy to use. The sales associate was very responsive and answered all of my questions.

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  20. User Score

    10

    January 12th, 2017

    William was very professional knowledgeable and courteous. He was patient with me and my many questions as well as multiple vehicle inquiries.

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