American Auto Shield was established in 2002, and based out of Colorado. American Auto displays their commitment to their customers by providing 24/7 customer service options through phone, and live chat. American Auto also shows their devotion to their community by raising awareness and supporting charities such as Every Child's Hope, Make-A-Wish, Adopt-A-Family, and other great philanthropic efforts. American Auto has also made excellent partners in the industry so that their customers are fully covered in more locations.
CarShield has had the privilege of protecting over 500,000 vehicles since its founding in 2005. Their goal is to “provide exceptional experience by providing every owner of a vehicle with a dependable, reliable, and affordable solution to unexpected and costly repairs.” CarShield offers a wide range of vehicle service plans, and they’re set up to be very flexible. They are determined to make it easy for you to customize a plan that fits your needs perfectly.
Royal Shield was established in 2000, and based out of Massachusetts. Royal Shield works with several partners to ensure that their customers receive great quality service. They offer plans for new and used cars. Royal designed their plans to meet customer needs. They did this by studying the information gathered from customer claims so that each plan would be tailored to meet customer expectations.
Car warranties, traditionally, required car owners to pay up front or make a large down payment for years of coverage. This format resulted in car owners have to spend hundreds or even thousands of extra dollars when they made a car purchase. Toco decided to create an auto repair protection service that functions the same way as a utility bill. With Toco, customers pay a small amount each month to ensure that their vehicle is protected.
We buy warranties for our phones, laptops, and even our smartwatches. Shouldn’t we prioritize a warranty for our most expensive gadget — our car? A car warranty provides peace of mind and unique protection beyond what car insurance can offer. Although they may seem similar, car warranties can cover mechanical breakdown and labor costs associated with those repairs. Think of a car warranty as an extra life for your vehicle.
A manufacturer’s warranty is issued by a vehicle’s manufacturer and it covers certain parts of your car, but only for a limited time. Most manufacturers’ warranties are good for around three years or 36,000 miles. These warranties typically give cars either a basic or a powertrain warranty. The basic warranty covers everything that is not considered normal wear and tear on the vehicle, including the following:
While the basic plan covers these smaller issues, a powertrain warranty covers everything that makes the car move, including the following:
An extended warranty is a contract stating that if certain parts of a vehicle break down, the warranty company will pay for the repairs. It is an added warranty beyond the normal manufacturer's warranty. There are several auto coverage options covered with extended vehicle warranties, including travel interruption, roadside service, wear and tear coverage, rental car reimbursement, seal and gasket coverage, and electronic equipment coverage. When purchasing an extended warranty for your vehicle, find a plan that covers all options listed above in addition to everything the manufacturer’s warranty covers.
The main difference between car warranty and car insurance is the kind of protection each offers. A warranty typically covers certain types of mechanical breakdowns, including parts and labor costs. It should not matter whether these repairs are due to manufacturing defects or due to issues with certain car parts. Car insurance, on the other hand, helps cover repairs for your vehicle if it's damaged in a collision, theft, fire, or a natural disaster.
Bumper-to-bumper warranties are the most comprehensive coverage plans for a vehicle, and car dealers usually provide this coverage for three years. It tends to include electronics and other systems that a powertrain warranty doesn’t. Don’t be fooled by the name, though; there are exclusions. Repairs not defect-related and outside the control of the automaker are not covered in bumper-to-bumper warranties. For example, some bumper-to-bumper warranties do not cover tires, while others do not cover seat belts or headlights. Keep in mind that bumper-to-bumper warranties vary quite a bit depending on the dealership and warranty agreement, so look into your paperwork before agreeing to pay for a bumper-to-bumper plan.
Powertrain warranties cover only the parts that make the vehicle go and are least likely to break: the engine, transmission, and driveshaft. These warranties tend to last much longer, from five to ten years or around 60,000 miles.
Mileage is sometimes a little tricky so make sure to understand your policy. Some plans use actual mileage while other plans use additional mileage. Actual mileage is the reading on your odometer. For example, if your coverage is for five years and 100,000 miles but you already have 50,000 miles on the car, your plan will only cover 50,000 more miles. Additional miles moves from the initial odometer reading on. So if your plan covers five years or an additional 100,000 miles and you already have 50,000 miles on the vehicle, your coverage will expire in five years or once you reach 150,000 miles. When purchasing a vehicle warranty, make sure to note the way the mileage warranty is worded.
Check out the best car warranty companies in your area.