Ratings Methodology for Extended Car Warranties

Our comprehensive rating system evaluates providers across 50+ data points to help you find the best extended warranty for your vehicle.

9+ providers reviewed

50+ categories assessed

450+ data points analyzed

Methodology, broken down by category

We assess five weighted categories and 50 subcategories for all providers. We give rating factors a weight toward the overall score based on which features are most important to consumers and impact the consumer experience the most. Here’s how we weight these categories.

5.0

Overall score

We compare what vehicle components the companies cover for similar coverage types. This includes how well details are explained to customers in the plan agreements. We also consider repair facility choice, liability limits and what replacement parts are allowed.

Price and perks (25%)

We collect quotes from each provider for three vehicle types to create a cost comparison. The vehicles are: a newer low-mileage sedan, a newer low-mileage luxury sedan, and an older higher-mileage sedan. We use quoted prices for mileage and monthly term to break down the actual cost. This cost is per mile and per month for a vehicle traveling 1,200 miles monthly. We also consider the value of extras like roadside help or rental car reimbursement.

Transparency and customer experience (25%)

We consider factors such as how easy it is to get a quote and sample contract or agreement. Companies that provided all of this online received the highest scores. We look at coverage details in the agreements and how easy it is to make a claim, such as through an app or online portal.

Company reputation (15%)

For this rating, we review each provider’s Better Business Bureau (BBB) accreditation. Some providers we reviewed are not BBB accredited. We also note the percentage of closed complaints and the provider's rating. Years in business and number of plan options are factored in. And we look to see whether the administrator and obligor information is available.

Consumer-friendly terms (10%)

This category included how long customers have to wait for coverage and how long they have to report an emergency. We also look at transferability, money-back guarantees, cancellation terms, and car owner maintenance obligations. Our team did not find major differentiating factors in this category, so it is weighted less.

Discretionary (not weighted) (not weighted)

This added category is unweighted and discretionary. A provider’s rating may move up or down based on the following: It has faced major legal action in the past three years for harmful consumer practices. It offers "special features" that benefit customers. These features aren't offered by other warranty companies. There's an uncommon aspect of the company, coverage or claims that could cause a negative impact to consumers.

Data collection and review process

We reviewed companies that offer extended car warranties to U.S. customers. These are third-party companies, not car manufacturers. We collect data from auto warranty provider websites. We also contact companies directly as needed. We also have car warranty specialists conduct hands-on shopping research to score each provider’s performance. This produces star ratings from poor (1 star) to excellent (5 stars). We round ratings to the nearest half-star.

Data accuracy

Our writers and editors review providers every year. Throughout the year, we may keep in contact with providers and update any changes to their offerings.

The review team

The review team includes writers and editors who cover a wide range of auto industry topics. Our team has more than 30 years of experience in finance. Each writer and editor follows NerdWallet’s strict guidelines for editorial integrity. The combined expertise of our team is infused into our review process. We do this to ensure thoughtful evaluation of products from the customer's perspective.