09/23/2026
We occasionally have people ask us if they should purchase an aftermarket warranty for their car. The idea of it does sound appealing, these companies advertise "bumper to bumper" coverage to make it sound like no matter what happens, you wont get stuck with a crazy expensive repair bill. But we DO NOT recommend these warranties, and I have four warranty stories that explain why.
Customer #1: needed exhaust manifold gaskets and a wheel bearing. Claim was denied because they didn't have proof of oil changes every six months....for work that is entirely unrelated to internal engine components.
Customer #2: had a failed steering rack. Steering racks do not come with new outer tie rods; reusing old tie rods on a brand new rack is utterly nonsensical, but because they weren't technically bad, they weren't covered. The warranty company also refused to pay the full cost of the parts that were covered, which still left the customer with a $600 share on a $1500 bill.
Customer #3: had one broken, rear coil spring. Proper repair procedure dictates that coil springs should always be replaced in pairs, to keep the vehicle sitting level as they wear and sag over time. Warranty company denied the other spring because it wasn't broken yet.
Customer #4: had a blown head gasket from a leaking water pump. Warranty company went back and forth with us for over a week, wasted our time and our customer's time, made us remove the cylinder head so an adjuster could come out and inspect the gasket. Oftentimes when a head gasket fails, especially in such a minimal manner as this particular one did, there will be no visible signs of failure on the gasket itself. So yep! You guessed it; claim for the head gasket was denied. A customer who paid for this warranty for three years and had never once made a claim until this one, got stuck with a $3000 repair bill.
These companies are professional scam artists most of the time. They look for any reason to deny a claim, they waste your time, and they are a huge pain to deal with. When they do approve a claim, they will only cover the bare minimum; not what it costs to fix your vehicle the RIGHT way. Half the time they make up their own pricing for parts and labor and refuse to pay the shop's price. Sometimes they won't even cover the shop's cost on parts, which then forwards that cost onto you because most shops refuse (rightfully so) to make less money on a job simply because your warranty company sucks.
So if you're thinking about spending however much money per month on an aftermarket warranty, just stash that money into a savings account for car repairs instead. 👍
