Preferred Warranties Review
Preferred Warranties is a pretty good extended warranty company, based on coverage options, customer reviews, and ratings from the Better Business Bureau (BBB). The company has an A+ rating and an accreditation from the BBB, as well as a high rating from TrustPilot. Additionally, Preferred Warranties has an average user rating of 4.0 out of 5 on WalletHub. Preferred Warranties only sells through approved dealerships, so interested customers cannot get a quote online.
Preferred Warranties offers vehicle service contracts, also known as extended warranties. These plans are meant to cover expensive car repairs arising from mechanical problems. Preferred Warranties does not disclose the average price of its plans, though.
Preferred Warranties Reviews & Ratings
- Reviews on WalletHub: 4.0 out of 5
- BBB: A+. accredited
- TrustPilot rating: 4.4 out of 5
Preferred Warranties Plans
Preferred Warranties offers seven plans, with various coverage levels and eligibility requirements. The company’s most affordable plan is called the Powertrain plan. This plan offers about the same coverage as the average competitor, since it covers the car’s engine and transmission.
The Powertrain Plan Covers:
- Engine
- Transmission/automatic
- Transmission/manual
- 4x4/AWD
Plan | Coverage |
Powertrain | Engine, transmission/automatic, transmission/manual, and 4WD & AWD |
Base | Engine, electrical, steering, suspension, cooling, fluids & filters/diagnostics, brakes, drive axle, and rental cars |
Plus | Engine, turbo, transmission, ABS, and drive axle, steering, electrical/high tech, fuel delivery system, and rental cars |
Extra Mile | Engine, turbo, transmission, ABS, and drive axle, steering, electrical/high tech, fuel delivery system, rentals cars, plus any deductible for repairs covered by the factory warranty |
Premier | Everything except exclusions |
Budget | Undisclosed |
Powersports | For motorcycles, snowmobiles, ATVs and personal watercraft |
Keep in mind that individual plans may vary depending on the vehicle and state. Additionally, Preferred Warranties does not disclose exact eligibility requirements, since eligibility is vehicle-dependent.
Bottom Line: Is Preferred Warranties a Good Company?
Preferred Warranties is a pretty good company, since it has a record of reliable customer service and offers seven different plan options. However, it’s worth noting that Preferred Warranties only sells plans through approved dealerships, and the company’s plans are not available in every state. Plus, vehicle service plans in general often cost more in the long run than they cover in repairs.
If you are concerned about your vehicle’s reliability and want the additional peace of mind, the expense of a vehicle service contract from Preferred Warranties could be worth it, but it depends on your individual circumstances. On the other hand, one alternative to purchasing a vehicle service contract is buying mechanical breakdown insurance from a car insurance company.
