Preferred Warranties was founded in 1992 solely as a car warranty company. Being in business for 24 years is a reputable length of time in comparison to other companies in the car warranty industry, some who were also founded in the 1990s. There are several car manufacturers (Chrysler, Lexus, etc.) who have been in business much longer; however, they did not offer warranties until after being in business for years.
The cost of Preferred Warranties Base Plan is a one-time payment of up to approximately $1,500. This fee is paid beforehand since customers online indicate this. On average, Preferred Warranties' repair deductible is $50-$100. PWI does not appear to offer a flexible payment plan where you can make payments over time, which may be more affordable for certain customers.
Unlike several basic warranties (e.g. bumper-to-bumper or new-vehicle warranties) offered by many car dealerships, Preferred Warranties offers plans for used vehicles only. If you want to get coverage for a used vehicle, Preferred Warranties offers a Base Plan. The Base Plan covers a full array of components including air conditioning, brakes, steering, electrical, engine and drive axle. Some basic warranties even include tire rotations and oil changes, but Preferred Warranties does not. Preferred Warranties also offers Premier Exclusionary Coverage, which is like new car coverage for your pre-owned vehicle. The Premier Plan covers practically all factory-installed mechanical and electrical operating parts. What it doesn't cover is scheduled services and normal wear and tear, such as engine tune-ups, batteries, filters, fluids, A/C refrigerant, hoses and belts, wiper blades, brake pads, tires, wheels and balancing, exhaust system, catalytic converter, and manual clutch components. Car owners also do not get covered for any structural issues like bumper damage, paint, or door panels. Repairs to meet emissions standards also will not be covered.
Preferred Warranties Base Plan offers unspecified length. At the high end, basic warranties last up to 10 years or 100,000 miles, whichever comes first. At the lower end, they can last only three years or 26,000 miles. The company's warranty length for the Basic Warranty depends on the dealer and the state you reside in. Going to the dealership and/or setting up a meeting to discuss plans is mandatory. We found that other companies in this industry were more lenient with sharing their plan length and pricing details.
Preferred Warranties' Powertrain coverage includes all engine internal lubricated parts and transmissions for both automatic and manual vehicles. The Powertrain Warranty lasts for a certain amount of time that is not specified. Buyers can select different features of their warranty, giving them many options to purchase only the coverage that they need. Because pricing is dependent on each individual's choices as well as their location, etc., we cannot give specific pricing options.
In addition to a basic warranty, powertrain warranty, and corrosion warranty, Preferred Warranties offers a total of seven plans: Base, Powertrain, Budget, PowerSports, Plus, Premier, and Extra Mile. Preferred Warranties offers 24/7 roadside assistance. Other than that, there is not much else customers can expect in terms of warranty features. Another thing to note is the limited funds available for towing. Preferred Warranties will only pay for $75 of a towing service you need. PWI also has less rental coverage than many competitors.
Preferred Warranties holds a solid premise for used-car owners looking to save money on inevitable repairs. Although the company offers several comprehensive plans for used vehicles with 24/7 roadside assistance, there exists a sizable number of unsatisfied customers who have not received the coverage as promised. This is especially an issue due to the large deposit ($1,500) paid upfront. Also, towing and car rentals have limited coverage, which is a minus. Corrosion is covered for transmissions but is limited only to internal parts. Therefore, we cannot recommend Preferred Warranties.
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