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What is extended auto warranty? Who is the best company and what do they offer?

Mitch Avatar By: Mitch | Last updated July 12, 2021

Auto warranty agreement


Whenever driving on the road, it is a common worry that a mechanical breakdown may happen any time. This is especially true if your original car manufacturer is over and you would need to pay for any repairs. This is why extended auto warranties are recommended for everyone. This ensures that you would be given a reimbursement in case this happens which is partnered with different features to make it more worthwhile. This service, compared to the original warranty, allows variations in terms of coverage, benefits, and pricing which makes it friendly for different budgets and vehicle models.

What should you look for?

There are a lot of companies which offer extended auto warranty services? Because of this, you have to choose one based on your exact needs. Users should take note of the following to ensure that they can choose the best company for your vehicle:

Pricing – Users should ensure that the different contracts offered by the company can accommodate those on a tight budget and those who are willing to spend a lot. Users should also ensure that there is a perfect balance between the coverage and benefits to the price of the contract.

Coverage – The best companies offer both a Powertrain option which only gives coverage for the most important parts of the car along with an Exclusionary plan that gives coverage to almost all parts of the vehicle. A mid-tier option would also be excellent.

Reimbursement process – The best way to measure this is through customer reviews. Here, you can see how fast the company reimburses you for any mechanical breakdowns, how they give their features, and more. This is important to ensure that you would receive the best service for your money.

Our first choice – Autopom!

Autopom is our top choice mainly because of its perfect mix of abundance of contracts, good customer service, and good pricing plans. The name is short for Automotive Peace of Mind. The service is based in California.

In terms of good customer service, this can be seen with its high score of A+ in Better Business Bureau which shows that they are willing to answer user inquiries and complaints quickly. With them, users can expect quick reimbursements and reliable services. They are one of the most popular companies because of good word of mouth.

Next, the company offers up to 20 contracts for users to choose from which range from Powertrain Plus up to the Exclusionary levels. These are in coordination with third-party companies such as Royal, EFG, and more. These are all priced nicely which is why many users are in favor with the company.

Upon inquiring with their representatives, you can quickly get a free quote. With them, the process is fast and seamless. They accept cars that are as old as 15 years old and which have travelled 200,000.

Our second choice – Toco Warranty

Toco Warranty is our second choice because of its solid contract options, its highly reliable customer service, and the convenience with signing up with them. They are also based in California but do not give coverage to Alaska, Washington, and Missouri.

The company also has a very high rating of A+ in Better Business Bureau and is mostly complimented because of the responsiveness of their agents, their affordable plans, and their quick reimbursement process.

With them, users can choose between four contracts. Even though it is few, it is complete and can accommodate most users. This includes the Orange, Yellow, Green, and Blue Plan. These plans range from the Exclusionary up to the Powertrain options. With them, there is a $100 deductible per visit to the repair shop which is quite average.

Their standout features include the Technology and High-Tech Package which gives coverage for expensive parts of the vehicle. This is a unique coverage which ensures that the most important parts are covered by the reimbursement.

They also include a lot of features to make their contracts worthwhile. First, they have 24/7 available roadside assistance in case you run out of gas, experience a flat tire, and other emergencies on the road. They also give trip interruption reimbursements, rental car reimbursements, and more. Overall they got a great initial review in our list of best extended auto warranty programs as well as our updated revision this month.

Our third choice – AA Auto Warranty

AA Auto Warranty ended up lower on our list because of its lower score in the Better Business Bureau. Even with this, it is still higher than others because of its large contract list which includes 20 options for users to choose from which allows a lot of budget and coverage needs to be covered. The company offers the Premium Powertrain Coverage for their most affordable plan and the American Auto Shield Diamond for its premier coverage. Aside from this, their other plans offer good mid-tier value that many users would find compatible with them. With them, vehicles’ protection can be extended for up to six years or 100,000 miles.

The company has a fast sign-up process, allowing users to have protection immediately after signing up. The company allows you to have rental car reimbursement while your vehicle is in the repair shop and provides $30 per day for up to days. They have a standard deductible rate of $100.


In the end, the best companies are those that are able to find the perfect balance between abundance of options, pricing, and good customer service. So far, Autopom checks all the boxes for us mainly because of its high Better Business Bureau Ratings, its abundance of plans, and its good pricing plans. This is closely followed by Toco Warranty which offers a few but very comprehensive plans that even contains unique features like the High Tech and Technology Package. Last in our list is the AA Auto Warranty which offers abundant contract options.