Extended auto warranties, or vehicle service contracts, can offer peace of mind against unexpected repair costs. However, not all providers deliver on their promises. Some have garnered reputations for poor customer service, hidden fees, and denied claims.
To help you navigate the landscape, we’ve compiled a list of the 10 worst extended auto warranty companies you should be wary of.
Why Some Extended Auto Warranty Companies Fail Customers?
Before we get into specific companies, it’s important to understand why some providers earn a bad reputation:
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Hidden fees and exclusions: Many plans sound comprehensive but exclude common repairs.
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Slow claim processing: Some companies drag out claims for weeks or months.
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Poor customer support: If you can’t get help when your car breaks down, your warranty is worthless.
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Aggressive upselling: Some companies pressure customers into buying more expensive plans that aren’t needed.
Knowing these red flags helps you spot bad providers early.
Top 10 Worst Extended Auto Warranty Companies
1. Direct Buy Auto Warranty
Direct Buy Auto Warranty faced legal action for misleading customers about coverage. In 2015, the company settled with the state of New Jersey for $810,000 over deceptive practices, ultimately leading to bankruptcy. Consumers should be aware because the company’s history shows significant risks regarding claims and transparency.
Learn more about Direct Buy’s issues
2. ASAP Warranty
ASAP Warranty has been criticized for aggressive sales tactics and unclear contract terms. Customers report confusion about what is covered and frequent claim denials. Prospective buyers should take caution due to inconsistent policy clarity and customer service challenges.
Read complaints about ASAP Warranty
3. US Fidelis
US Fidelis was shut down following a federal investigation into fraudulent activities, including selling unnecessary warranties and misusing customer funds. People should be aware because their history shows that policies may not be honored and funds could be mishandled.
Details on US Fidelis shutdown
4. CarShield
CarShield has faced numerous complaints about denied claims and poor customer service. Some customers report paying for coverage only to discover that essential repairs were excluded. Awareness is important to avoid unexpected out-of-pocket costs.
Customer reviews on CarShield
5. Warranty Direct
Operating primarily in the UK, Warranty Direct has been criticized for high premiums and limited coverage options. Customers report that common repairs are often not covered, which reduces the practical value of the warranty.
Read more about Warranty Direct
6. First Auto
First Auto is known for poor customer service, including long wait times and unhelpful responses when filing claims. Consumers should be cautious as this can cause delays and frustration when seeking coverage.
See user experiences with First Auto
7. Route 66
Route 66 has a complex claims process that is difficult to navigate. Customers report delays and denials, especially when using independent repair shops. Awareness is key to avoid complications when trying to use your warranty.
Read customer complaints about Route 66
8. Endurance
Endurance offers multiple coverage options, but some customers report claim denials and unclear contract terms. Prospective buyers should review policies carefully to ensure coverage aligns with expectations.
Learn more about Endurance
9. Toco Warranty
Toco Warranty has been criticized for aggressive marketing and opaque policies. Customers often have difficulty understanding what is covered, making it risky to purchase without careful review.
Customer feedback on Toco Warranty
10. Olive
Olive has a limited repair shop network and some users report challenges with claims and customer support. Consumers should be aware that accessibility and service consistency may be limited.
Read about Olive’s issues
Commonly Reported Problem Companies
While opinions vary, consumer complaints and reviews reveal patterns. Some companies consistently appear in negative reviews across forums, BBB complaints, and social media:
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Company A: Multiple customers report delayed reimbursements and confusing claim procedures.
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Company B: Hidden exclusions and high deductibles surprise policyholders after purchase.
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Company C: Poor communication and lack of transparency make it difficult to get repairs approved.
⚠️ Tip: Always read reviews, BBB ratings, and employee feedback before choosing a warranty provider.
How to Protect Yourself
Even if you want coverage, there are ways to avoid the worst extended warranty companies:
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Check online reviews: Look beyond the company website — forums, social media, and third-party review sites give honest feedback.
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Understand the fine print: Know what is and isn’t covered, the deductibles, and the claims process.
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Compare multiple providers: Don’t settle for the first company you find.
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Ask for references: Talk to current or past policyholders if possible.
Wiseworq Tip: Look for Transparent and Rated Companies
On platforms like Wiseworq.com, you can see:
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Company descriptions
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Pros and cons from real users
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5-star ratings
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Reviews from other customers
This makes it easier to compare warranty providers side by side, so you avoid the companies that consistently disappoint customers.
