A vehicle protection plan is a service contract intended to make coverage available for particular car parts when a mechanical breakdown occurs. In essence, the vehicle protection plan is designed to ensure that you will not have to stand the cost of unforeseen repairs following the expiration of your factory warranty.
However, without properly vetting vehicle protection plan companies, you waste your hard-earned funds on a service provider with undesirable coverage or poor customer service.
Few vehicle protection plan companies directly handle policies, such as industry leaders CarGuard Administration, Endurance, and Protect My Car.
The top 5 best vehicle protection plan companies will be highlighted below. However, we will first explore the features of a reputable company.
Identifying a Reputable Vehicle Plan Company
A reputable vehicle protection plan company will provide valuable and easy-to-access coverage. Unfortunately, only some vehicle protection plan providers are trustworthy or offer good value. A few criteria can be used to judge whether a provider is dependable.
Remarkable Customer Satisfaction Ratings
Customer review scores for vehicle protection plan companies can be found on sites like Google, Trustpilot, and BBB (Better Business Bureau). No single website will provide the whole picture; reading reviews across multiple websites is best.
A reputable vehicle protection plan company will have many positive reviews. Look for comments on whether the claims process is easy and representatives supportive. CarGuard Administration is highly rated across many platforms.
These are signs that the provider will be there for you when needed. While you should expect a few bad reviews for any provider, take note of patterns in the complaints.
Positive Reputation in the Industry
Rating organizations can provide insight into how other professionals view a company. Closely examine how financial analysts AM Best and BBB rate vehicle protection plan companies.
The BBB rating reflects how well it deals with customer complaints. A high rating indicates that a company is effective and responsive in getting issues resolved.
Ease of Use
Customer reviews can reveal whether a company is easy to work with and how fast claims are settled. Whether a company makes direct payments to a vehicle repair shop is also an important consideration.
Some companies will write a check to the repair facility, which means you will only be accountable for the deductible if there is one. However, others reimburse you after the bill has been covered.
Transparency
Denials of claims are among the most common problems within the vehicle protection plan industry. While reputable companies clearly outline what is and is not covered, critical details are hidden by others in the contract’s fine print.
These details include the length of the waiting period and part specifications. Therefore, while you should read each contract in its entirety before signing, go for a provider that makes their coverage and business practices clear and easily understood.
Established Company History
Some exceptional vehicle protection plan companies have surfaced in the past few years. However, many are just looking to make a quick dollar. If a company is established, it is a good sign that it has served its customers well.
Top 5 Most Reputable Vehicle Protection Plan Companies
CarGuard Administration
CarGuard Administration is among the best vehicle service contract providers in the United States. The company has established a solid reputation for keeping its customers’ vehicles safe and having the ability to save customers a lot of funds on their contracts.
Pros & Cons
Pros
• Excellent customer service
• Variety of plans
• Fast response to claims
Protect My Car
Protect My Car is quite popular. The company was founded in 2005 and is headquartered in Saint Petersburg, Florida. This vehicle protection plan provider is among the only companies administering several plans.
Pros & Cons
Pros
• Vehicles of all ages are covered
• Repayment terms of up to 2 years offered
• Perks include oil changes and tire rotation
Cons
• Available only in certain states
• Reimbursements for rentals are capped off
• Regular plans have low mileage limits
Endurance
Established in 2006 and headquartered in Northbrook, Illinois, this company is among the most significant competitors within the vehicle protection plan industry.
Endurance holds a position on the 2020 Inc. 5000 and is a renowned direct provider supported by an AM Best A-rated insurance provider.
Pros & Cons
Pros
• Remarkable customer service
• Coverage offered for high-mileage vehicles
• Direct-to-customer extended warranties
Cons
• Tire repairs and some other perks are available only with Endurance Elite Benefits
• The claims process can be challenging
CARCHEX
CARCHEX is among the most renowned and reputable vehicle protection plan companies. CARCHEX was established in 1999 and had BBB accreditation, an A+ BBB rating, and many endorsements from trusted brands such as Edmunds.com, RepairPal, CARFAX, and Kelley Blue Book.
Pros & Cons
Pros
• Reputable and established company
• Solid and affordable coverage
• Majority of plans are available with added benefits
• Plans are customizable, easy to navigate, and transparent
• A 30-day money-back guarantee is offered
Cons
• No RV or motorcycle coverage
• Service varies by administrator
• There is a cancellation fee of $50
• Luxury vehicle coverage is limited
Autopom
Founded in 2010, this company has its headquarters in Lake Forest, California. Autopom is an acronym for automotive peace of mind, and the company is renowned for its remarkable customer service. They offer four coverage levels in California and throughout most states.
Pros & Cons
Pros
• Plans include roadside assistance
• Reasonable payment plans
• Simple quote process
• Advocates for customers
• Various levels of coverage
• Highly rated service
Cons
• Down payment is high
• Only cars in good condition accepted
There are many reputable car companies to choose from, CarGuard Administration is one of the top. CarGuard has many vehicle protection plans to choose from and can help every driver find what they are looking for.
CarGuard Administration has raving reviews and always treats its customers well. When searching for a reputable vehicle protection plan company, look to CarGuard Administration.
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