When it comes to protecting your vehicle, an extended auto warranty can provide peace of mind and financial protection in the event of unexpected repairs.
But with so many companies offering extended warranties, it can be not easy to know which one to choose.
In this comparison blog, we will be taking a closer look at American Dream Auto-Protect and Preferred Warranties Inc, two of the industry’s leading extended auto warranty providers.
We will compare their coverage options, and pricing to help you decide which company is the best fit for you.
So, keep reading to learn more, whether you are in the market for an extended warranty or just curious about what these companies have to offer.
How to Determine if an Extended Car Warranty is Worth It
It’s a common question many car owners ask themselves for a good reason. After all, an extended warranty can provide happiness, knowing that you’ll be covered if something goes wrong with your car.
But is it worth it?
Let’s dive in and explore the benefits and drawbacks of extended car warranties to help you determine if it’s worth it for your situation.
First, let’s talk about the benefits of extended car warranties.
Cost Protection
Nearly 1 in 4 cars experience a breakdown in the first three years of ownership.
This can be costly, and an extended warranty can help cover the cost. According to the same study, the average repair cost covered by an extended warranty is around $500 to $2000 per year.
Retain The Car Value
Another benefit of an extended warranty is that it can help retain the value of your car.
If you ever decide to sell your vehicle, having an extended warranty can be a selling point for potential buyers.
They will be more likely to purchase your car knowing it’s covered for any possible repairs.
Now, let’s talk about the drawbacks.
It May Be Expensive
One of the main drawbacks is the cost. Extended warranties can be expensive, and weighing the cost against the potential savings from repairs is crucial.
Additionally, many new cars already come with a warranty, so purchasing an extended warranty may be optional.
Little Coverage
Another drawback is that extended warranties may only cover some things.
It’s important to read the fine print and understand what is and isn’t covered under warranty.
Some warranties may also have a deductible, which means you will have to pay a certain amount before the warranty kicks in.
So, is an extended car warranty worth it?
The answer is it depends.
If you are planning on keeping your car for a long time and want peace of mind knowing that repairs will be covered, then an extended warranty may be worth it.
However, it may be better if you are planning on selling your car soon or if the cost of the warranty outweighs the potential savings from repairs.
Companies
American Dream Auto Protect
At American Dream Auto Protect, we understand the importance of protecting your vehicle and saving money.
That’s why we offer budget-friendly extended auto warranties to give you peace of mind.
With over a decade of experience in the industry, we have earned the trust of over 50,000 ASE-certified mechanics and thousands of satisfied customers.
Our extended auto warranties cover repairs and services, including engine, transmission, and electrical systems.
And with our 24/7 customer service and support, you can rest assured that we will be there for you whenever you need us. We offer free months of coverage for new customers, so you can try our services risk-free.
We are proud to say that our customers have saved an average of $1,200 on repairs and maintenance with our extended auto warranties.
And with our team of experienced technicians and mechanics, you can trust that your vehicle is in good hands.
At American Dream Auto-Protect, our mission is to provide reliable and budget-friendly extended auto warranties to help our customers keep their vehicles running smoothly for many years.
Let us help you protect your investment and save money today.
Preferred Warranties, INC
Preferred Warranties INC, or PWI, has been a leading provider of extended auto warranty coverage since the 1990s.
Founded by a used car dealership owner in Pottsville, Pennsylvania, the company has expanded its reach to all fifty states.
Unlike other providers, PWI is not a direct provider of coverage.
Instead, they act as a wholesale company, offering plans through various approved dealers across the country.
This allows them to provide a wide range of coverage options at competitive prices.
However, despite their reputation for providing high-quality coverage, some consumers have reported difficulty in communication when dealing with PWI for a claim.
In response, the company has significantly invested in improving customer service and communication processes.
Plans
American Dream Auto Protect Plans
Are you seeking satisfaction regarding your vehicle’s maintenance and repairs? Look no further than American Dream Auto Protect extended auto warranty plans.
Our Platinum, Gold, and Silver plans offer comprehensive coverage for all your car’s vital systems, ensuring you can confidently hit the road.
Platinum Plan
With our Platinum plan, you will receive coverage for your vehicle’s essential systems, including the engine, transmission, cooling, electrical, drive axle, brakes, fuel delivery, steering, navigation/GPS, air conditioning, seals and gaskets, and suspension.
This plan offers the highest level of protection, ensuring that your car is covered from head to toe. Plus, with a 96% customer satisfaction rate, you can trust that we will be there for you when you need us most.
Gold Plan
Our Gold plan offers similar coverage but excludes navigation/GPS and air conditioning. This plan is perfect for those who want comprehensive coverage but don’t need the added protection of these systems.
Silver Plan
Our Silver plan is our most budget-friendly option, offering coverage for your vehicle’s engine, transmission, cooling, electrical, drive axle, brakes, and fuel delivery.
This plan is perfect for those who do not want to put a burden on their pocket.
Remember!
Regardless of your plans, you can rest assured that American Dream Auto Protect has covered you. With our 24/7 roadside assistance and the option to select your repair shop, you will never be stranded on the side of the road.
Plus, our plans are transferable, so you can even increase the resale value of your vehicle.
Don’t let unexpected repairs ruin your day!
Choose American Dream Auto Protect for all your extended warranty needs.
Preferred Warranties INC Plans
Powertrain
The Powertrain plan is the most comprehensive option, covering the most vital components of your vehicle.
This includes your engine, transmission, differential, and drive system. Plus, we also offer coverage on seals and gaskets and the internally lubricated parts of major systems, as well as fluid and filter replacements.
This plan lets you rest easy, knowing your vehicle’s heart is protected.
Base
The Base plan is the perfect fit for you if you are looking for a plan that offers more coverage.
This plan includes all the components of the Powertrain plan, but they also add additional coverage for your electrical system, brakes, and air conditioning.
Plus, the company even provides you with a rental car for three days in case of a breakdown.
Plus Plan
For those who want even more protection, Plus plan expands on the Base and Powertrain plans, offering coverage for components that control your vehicle.
This includes the steering system, fuel system, and even high-tech components.
With this plan, you can feel confident that all your vehicle’s essential systems are covered.
Extra Mile
If you own a vehicle that has factory coverage, the Extra Mile plan can help you by covering any deductible you may have to pay if your factory warranty requires it.
This plan is perfect for those who want to add an extra layer of protection to their existing coverage.
Premier
For the most comprehensive coverage, check out the Premier plan.
This exclusionary warranty covers convertible soft tops, upholstery, and aftermarket parts. Plus, they now offer trip interruption coverage at this level, so you can enjoy it while on the road.
Basic
And for those on a budget, the Basic plan offers coverage for your engine, transmission, and differential, as well as electrical components like the alternator and coverage for fluids and filters.
This plan is perfect for those who want basic coverage without breaking the bank.
Frequently Asked Questions
Is a 3-year extended warranty worth it?
It depends on the cost of the extended warranty and the likelihood of needing repairs within the three-year period. It may be worth it for expensive or high-risk items, but not for cheaper or less likely to break items.
What are two reasons not to buy an extended warranty?
One reason may be that the cost of the extended warranty is too high compared to the likelihood of needing repairs. Another reason may be that the manufacturer’s warranty already covers enough time or repairs.
Can I buy an extended warranty later?
Yes, extended warranties can usually be purchased later, but they may be more expensive and may not cover as much as if they were bought at the time of purchase.
What is the difference between a warranty and an extended warranty?
A warranty is a guarantee of repair or replacement from the manufacturer, typically for a limited time period. An extended warranty is an additional guarantee of repair or replacement, usually for a longer time period and often purchased separately from the manufacturer.
Drive with Confidence: Protect Your Vehicle with American Dream Auto Protect
Are you worried about unexpected car repairs and the high costs that come with them?
Our extended auto warranty plans are tailored to fit your specific needs, and with the best customer satisfaction rate, you can trust that we will be there for you when you need us most.
Our plans have added benefits such as roadside assistance and rental car coverage.
Don’t gamble on unexpected car repairs.
Invest in an extended auto warranty with American Dream Auto Protect today.
Looking for more information on how we can protect your vehicle?
Visit our website or give us a call to speak with one of our representatives.
Have you ever had to pay for unexpected car repairs? How did it impact your budget?
