About Warranty Direct
Based out of Atlanta, GA, Warranty Direct claims to have been helping their customers purchase vehicle service contract coverage for nearly 30 years. When compared to other vehicle warranty companies, Warranty Direct claims that they sell and administer their own plans, and that they have help more than 2 million customers extend the life of their vehicles and achieve peace of mind.
But regardless of the type or age of your vehicle, are Warranty Direct extended warranties worth the extra expense? Read on to find out.
How Warranty Direct Works
At its most basic, Warranty Direct sells vehicle service contracts (also known as extended vehicle warranty plans), which work similar to a manufacturer’s warranty in that they cover the costs of repair, parts, labor, and/or sales tax for certain repairs or replacement parts. As such, Warranty Direct claims to offer 6 different extended vehicle plans, all of which are administered directly by the company:
- LuxuryCare – Covers virtually any breakdown or problem related to wear and tear, except for paint, upholstery, tires, and regular maintenance items such as engine oil and spark plugs. Vehicle must be less than 4 years old and have less than 50,000 miles in order to qualify.
- SecureCare – Similar to your original factory warranty, this option covers expensive major repairs, as well as inconvenient small repairs. Includes many of the same exclusions you’d find with your manufacturer’s warranty, including batteries, safety restraint systems, exhaust systems, and more.
- XtraCare – This is the most comprehensive option available if your vehicle is older than 4 years or has more than 50,000 miles. Offers comprehensive coverage for almost every vehicle system component.
- MajorCare – Covers older vehicles or those that are no longer covered by manufacturer’s warranties, and includes coverage for systems and components that are the most costly to repair, such as engine, transmission, air conditioning, electrical, and more.
- PowerShield Enhanced – Provides coverage for high-cost repair items including major components related to your vehicle’s powertrain and transmission.
- PowerShield – Provides low-cost, major component coverage for your vehicle.
Regardless of the plan you choose, all Warranty Direct plans include an unlimited number of claims, free roadside assistance, car rental reimbursement for up to 8 days, and the ability to obtain service at the repair facility of your choice. On top of this, Warranty Direct claims to be licensed and registered to do business in all 50 states, which means that they can provide nationwide coverage.
However, not all Warranty Direct plans are created equal, so it’s important that you read through all the available coverage options before settling on a plan. Most of this can be accomplished by reading through the coverage comparisons on their website, as well as their sample contracts.
Warranty Direct Pricing & Refund Policy
Warranty Direct coverage plans vary in price depending on a number of factors, including your vehicle’s year, make, and model, deductibles, as well as the number of miles it has. As such, you’ll need to contact the company in order to obtain a quote for your specific vehicle, which can be paid in full or via monthly installments.
However, all Warranty Direct plans come with a 30 or 60-day cancellation option, which mans that you’ll be eligible for a full refund, while pro-rated refunds are available thereafter. In addition, some warranties are transferrable to the new owner of your vehicle should you decide to sell it.
With all of this in mind, you’ll need to contact Warranty Direct’s customer service at 800-632-4222 in order to obtain a concrete quote.
What Do Other Consumers Have to Say About Warranty Direct?
Overall, it appears that Warranty Direct has a somewhat negative online customer reputation, although it’s important to note that customers are much more apt to leave a company review when they’ve had a negative experience than when they’ve had a positive one.
With this said, although Warranty Direct holds an A rating with the Better Business Bureau, they have more than 300 closed complaints over the past 3 years, most of which appear to revolve around denied claims. Outside of the BBB, most customer reviews seem to reference this same concern as well. In fact, many customers stated that even once a claim was initially approved by Warranty Direct, their mechanic had difficulty getting specific approval for work during the repair process.
Outside of claims-related complaints, the most common customer complaints appear to reference rude customer service personnel and long hold times.
Can Warranty Direct Really Help Extend the Life of Your Vehicle and Give You Peace of Mind?
Whether your manufacturer’s extended auto warranty doesn’t cover something you need, or your used vehicle doesn’t have a warranty at all, should you consider a Warranty Direct warranty? Perhaps, although it’s important to keep the following in mind:
Selling Their Own Product
Warranty Direct acts as an “administrator” for your vehicle’s warranty coverage. In other words, based on the plan you choose, they agree to pay for the costs associated with covered repairs or additional benefits for your vehicle for a set fee or monthly premium.
This could be considered a positive, since they are selling their own product, and not acting as an intermediary for a third-party company. In theory, this means that your claim could be paid more quickly and could entail a smoother overall process.
Warranty Direct Coverage
Compared to many other types of insurance policies and warranty coverage, Warranty Direct coverage is “exclusionary,” which essentially means that unless something is specifically excluded by your policy, it should be covered.
However, it appears that many consumers have experienced instances in which something should have been covered, but ultimately wasn’t, leaving them to foot the bill. As such, it’s extremely important that you fully understand what your plan does/does not cover before signing on the dotted line.
Keep in mind that if you use your vehicle for commercial purposes, own a rebuilt/salvaged vehicle, own a vehicle that has modifications outside of the factory recommendations (e.g. oversized tires, lift kits, etc.), or own a high performance/limited production vehicle, you will not be eligible for Warranty Direct coverage.
While Warranty Direct warranties may help give you a little extra peace of mind, due to the nature of the company’s products it’s very important that you fully understand the coverage provided by your plan. Otherwise, you could find yourself spending money on something that may not provide much (or any) coverage when the time comes.
4 out 4 people found this review helpful
Scammed by Warranty Direct
I researched many different warranty companies and finally decided to go with Warranty Direct for two particular reasons: (1) they warranty the vehicle for repairs up to $12,000 rather than simply the value of the vehicle. In other words, if the vehicle is only worth $2,000 they will still pay up to $12,000 in repairs; and (2) they were considered by their competitors as a recognizable company.
I decided to sign up, and I understood that there was a 30 day/1000 mile waiting period, which seemed reasonable to me. At the end of that waiting period, I took my car into the Nissan dealership for a diagnostic. The dealership discovered that I had a transmission problem that needed to be addressed immediately. They recommended a replacement to the tune of nearly $4100.
They contacted Warranty Direct to authorize the repair, and to my surprise, Warranty Direct rejected and denied the claim. When I called them to find out why they did so, they first told me that I had fallen behind on my payments. When I disputed this, they finally figured out my account was up to date.
Next, they told me that my claim could not be paid because I had a pre-existing condition. I explained to them that I completed the waiting period and then I took my car in for a diagnostic. I refuted and explained that Warranty Direct should pay for the claim because I did my part as a paying client; furthermore, there is no proof that my car had a pre-existing condition. They told me the claim decision was irreversible and then the customer service agent hung up on me mid-sentence as I was trying to explain to her how unfair this was.
I now have a lawyer who has sent a formal letter directly to the company. It is frustrating to me that I not only have to pay for the warranty, but now I have to also pay for a lawyer, and apparently for my transmission as well. This is a direct breach of the warranty contract I signed. I highly recommend that anyone considering going with Warranty Direct run the other direction. You'll likely be scammed like me!
Bottom Line: No, I would not recommend this to a friend