How to Get Auto Warranty Quotes Online
Comparison Shop to Find the Best Deal.
One misconception most people have about buying an extended auto warranty is believing they must buy coverage from the dealership when they purchase a car.
This is not the case; I will show you how to find reputable online auto warranty companies and properly request free no-obligation extended auto warranty price quotes for any car, truck, or SUV.
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The Cheapest Warranty May Not be the Best Coverage
One of the biggest mistakes people make is buying an extended car warranty based on price alone. Just because a warranty is cheaper does not necessarily mean it’s the best warranty for you.
Purchasing a cheap policy from a fly-by-night company may save you a little bit of money now but may cost you plenty when you have to file a claim in the future.
Some of these companies may not still be in business when you need to file a claim.
How some warranty providers offer a lower price:
- Exclude specific vital coverage
- Make excuses not to pay a warranty claim
- Make you pay for the repair upfront before making a claim
- Include per repair item deductibles
When you call the customer service line to some of these “cheaper” companies, you get a rude customer service rep ready to give you the fight of your life if they answer the phone at all!
Some rogue warranty companies may call you on the phone, email you, send you a cheap postcard, or an official-looking letter in the mail offering cheap warranty coverage.
You must be careful with these types of companies and review them thoroughly. We advise avoiding them altogether.
Something has to happen when a warranty provider sells their extended service contracts too cheap, and the customer claims start to roll in. The first thing the warranty company does is make up excuses to deny or reject your repair claims over minor technical issues; this is the only way for the company to stay afloat.
Always research before buying coverage from a warranty provider. Check if there’s any information about the company with the Better Business Bureau, Web Assured, or the Vehicle Protection Association.
The companies AutoCheatSheet.com recommends have a long-standing history and are listed with one or more of the companies above. If there’s no information about the warranty company with these sites, their policies are most likely not worth the printed paper.
“Select the right coverage for your driving needs”
When selecting a warranty, make sure you get the coverage that meets your individual driving needs.
You will also want to select the coverage vital to you but don’t over-spend by choosing the coverage you will never need.
How Much do Dealers Markup Auto Warranties?
Car dealerships make large profits when selling extended warranties to car buyers.
A policy with an actual dealer cost of $800 can be marked up to a retail price of $2,500 or more; that’s a profit of $1,700 from selling just one extended warranty.
I’m not faulting the dealer for making money; they are a for-profit business. It’s up to you to decide if the markup is excessive.
I want to explain why you should explore all your alternatives when buying an extended warranty from a car dealership. It never hurts to shop around.
The Actual Cost of an Extended Auto Warranty
My advice is not to roll the warranty cost into your car loan. If you have the means to pay for your extended warranty separately, do it. We understand that some people are unable to pay for it separately.
If you cannot pay cash for it, you may want to use a low-interest credit card.
If you qualify for a subvented rate of 1.9%, you may want to roll it into your car loan. Just be sure you read everything. I recommend paying cash or putting that amount down in addition to what you’re currently putting down on the vehicle.
Your goal is not to over-pay for the car warranty. The total price you pay for your extended service contract will determine how much you will add to your car loan payment.
Below is an example of the amount of money added to your monthly payment if you roll your extended warranty into a 60-month car loan at a 5% annual interest rate (APR).
The real cost of an auto warranty
|How an extended warranty affects your payment|
|Warranty Cost||Interest Rate||Added to Payment||Total Warranty Price|
Rolling your extended warranty into a car loan at 5% interest or more will tack on even more interest charges over a 60-month term.
Online warranty companies such as Complete Car Warranty and Endurance Vehicle Protection have payment options as low as 0% interest. They can be spread out over time, so you don’t have to pay the high-interest rates dealers charge you.
When shopping for extended warranties, take your time, prepare yourself, and comparison shop to save yourself some money.
Recommended Auto Warranty Companies
Complete Car Warranty offers free, no-obligation quotes and a broad range of coverage. Get full protection for up to 60% off dealer prices when you go direct.
Endurance Vehicle Protection offers a 30-day money-back guarantee. They are the direct administrator and obligor, so you can rest assured that there’s no intermediary involved.
Olive Auto Warranty offers a quote in 60 seconds, manageable monthly payments, cancel anytime, and you can manage 100% online. No robocalls and no human interaction are required.
How Dealers Make Money Selling Warranties
Car dealerships make large profits when selling extended warranties to car buyers.
As I stated above, a policy that costs a dealer $800 can be marked up to a retail price of $2,500 or more; that’s a profit of $1,700 from selling just one extended warranty.
Suppose a dealership sells 300 cars monthly, and only half (150) of those people bought an extended warranty. Let’s be conservative and say each customer only paid $2,000 per warranty. 150 X $1,200 (profit) = $180,000 in just one month on warranty sales. Not a bad month for the dealer.
You can see why dealers hammer customers to buy an extended warranty when signing papers in the finance department.
Do I Have to Buy a Warranty From the Dealership?
Car dealers want you to believe you must buy an extended warranty from them when you deliver your vehicle. Some finance managers may tell you if you wish to purchase an auto warranty, you must buy it now.
This can’t be further from the truth; you can buy an extended car warranty anytime from anyone you’d like. They only want you to buy one now so they can receive a commission, and you will roll it into your car loan.
Never let a car dealer tell you that you must buy an extended warranty before you will be approved for a car loan.
Some unethical finance managers may tell you they can get you a better interest rate or not be able to get you approved for a car loan unless you purchase an extended warranty or other back-end products.
Finance managers are not supposed to do this; it is an illegal and common car-buying scam.
NOTE: Finance managers get compensated in various ways for selling extended warranties. For starters, they receive a percentage of the gross profit on each service contract they sell.
The other method is the total number of warranties sold during the month. This is known as “warranty penetration,” and it is valuable information to have when it comes time to negotiate.
Buy Auto Warranties Direct from the Source
Most online automotive extended warranties are cheaper and more affordable than you find at a dealership. Also, the warranties these companies offer are more comprehensive, provide a higher level of protection, and include more benefits than what a dealer has to offer.
I recommend using third-party extended warranty companies such as Complete Car Warranty or Endurance Vehicle Protection. These companies will provide you with an extended warranty, legally named extended service contract, and equal or better coverage at a lower price than what a dealer will charge you.
These companies also allow you to submit your vehicle’s information and receive free, no-obligation price quotes. No games, no gimmicks, just straight-up coverage options from top administrators within the industry so you can decide which coverage is best for you. You can use these free quotes to leverage yourself when negotiating a warranty with a dealership.
Why do we like these companies over the rest out there? Simple, they have longevity in the business, are backed by sizeable reputable insurance providers, and have some of the most significant benefits to our readers. Here are just a few of the benefits you will find:
- No risk 30-day money-back guarantee so you can take your time and look the plan over with your spouse or loved one.
- Provide you with free, no-obligation price quotes online.
- Accredited by the Better Business Bureau.
- Pay for repairs upfront instead of reimbursing you later.
- Allow you to choose your licensed repair facility instead of going to a dealer or selected repair facility.
- Commitment to providing the customer with outstanding customer service.
- Towing, emergency roadside assistance, rental car, and trip interruption benefits are available with some coverage.
How to Get Extended Auto Warranty Quotes Online
It’s easy to request new and used car extended warranty quotes from the companies we recommend. You can take advantage of these free, no-obligation quotes to comparison shop and use them as leverage when negotiating the price of an extended warranty while at a car dealership.
“Competition will always get you the best price”
I’ve provided a direct link to each extended warranty company we recommend below. Click on each company’s link, and it will take you to their trusted website.
You will be asked to complete a little information about yourself and the vehicle you’re requesting a warranty price quote on.
Ensure you provide your complete email address when submitting a quote (example. [email protected]). Submit your information, and you will have your free warranty quotes and coverage options on your computer immediately. If you don’t receive an email directly, you probably entered something wrong; give it a few minutes, check your “junk folder,” or try again.<
After receiving your quotes, review them and pick the best one that fits your driving needs. If you're having a hard time making a decision or need help selecting which coverage is right for you. Contact a customer service representative for each company and read our section on the extended warranty selection process.
Remember, it’s not necessarily the cheapest priced warranty coverage that’s right for you; you’ll want to find the best value for the money. Once you pick the right plan for you, print it out and keep it with you for when you visit the dealership.
You can use your quotes to negotiate an even better price when dealing with the dealership’s finance department. If the dealer doesn’t come down on the cost of their products, go with the one with the best protection that fits your driving needs.
Finance managers are typically paid a couple of different ways to sell extended warranties. One way they get paid is a percentage of the profit they make on each warranty sold.
The other way is the total number of warranties they sell for the month. This is called “warranty penetration” and is great information to know when it comes time for you to negotiate.