Where is the best place to get a car warranty plan in Canada? Buying a car can sometimes feel like gambling. You're always wondering how long it will be until something goes wrong and the car needs a major repair. While you can't necessarily predict future events, many car buyers choose to purchase an additional extended car warranty to cover such expenses for a specified number of kilometres or model years.
Poor
US-based CarShield has protected over 2,000,000 cars throughout Canada and the United States since their formation in 2005. Claiming to have coverage plans for every budget, they work with customers to create service plans to fit each person's needs.
Not much information on their plans
Warranty plans at CarShield are flexible and customizable to fit your specific needs. However, that's almost all you will find on their website. The two plans are New Car Diamond for "total new car coverage" and Gold Select for "best for high mileage." A checklist of what is covered may be viewed if you scroll past the sample policies featured at the top of the page.
Not focused on Canadians
While the company has a.ca website, CarShield does not say much at all to indicate servicing Canadian drivers. It's impossible to find out which territories and provinces are included and where covered drivers can get work completed in Canada. Their Shield Repair Network of 12,000 approved facilities mentions a partnership with American Auto Shield, but you have to search by your location to see if there is a repair centre near you (we found some in Calgary, Vancouver, Toronto, Montreal, Ottawa, Edmonton, Winnipeg, and Niagara Falls, but none in Québec or Halifax). We wish they would just clearly state which areas of Canada they are able to service so you don't waste your time.
Claims to help all drivers
Contending that CarShield has a service plan for every type of driver, they provide a shield from the high cost of automobile repairs for new car owners, high mileage vehicles, expired manufacturers' warranty drivers, commuters, families, and educated consumers. While we appreciate their candor - "If you've been gouged by a $120 per hour mechanic (and who hasn't been?)" - we would like to see more details about their policies prior to providing our personal information and receiving a sales call. Unlike other companies, no prices are available, just a couple of sample policies you can review before you get a quote from the company, to see what they may or may not cover, as well as a glossary of terms to help you translate what you're looking at. As for which vehicles are covered, the website only states that they "protect almost every make and model."
How the warranty works
According to their website, CarShield will be standing by "at all hours of the day and night" to get you back in your car after a breakdown. To start the claim process, clients complete an online form and search for a licensed repair centre - or contact their Concierge Service to assist you through the process of finding one. According to their FAQs, you can visit any ASE-certified repair shop that accepts their warranty. When your vehicle is at the repair shop with a diagnosis, they must contact the CarShield claims department prior to completing work. Then they'll determine if you have rental car benefits and covered claims will be paid directly to the facility, leaving you to take care of the deductible and any uncovered or not approved costs. Be aware there is a waiting period before you can file a claim (though that could not be found on the website).
Claims paid page
One interesting part of the CarShield website is focused on displaying "real claims paid for real CarShield customers." They boast that they have the highest-rated and most reliable contract administrators who pay claims on time. A listing of the amount saved with vehicle and claim details listed is meant to demonstrate the amount that someone can save by getting a warranty with CarShield. While twenty-five samplings of customer savings are listed, when you click to see more, the page is broken. Many of the claims themselves are vague, not listing the dates reported or paid (though the page has a place for both).
Quotes may take time
You can request a free quote by completing the form on the CarShield website with your vehicle's year, make, model, and odometer reading, as well as your contact information. However, you won't get a quote until they review your vehicle's details and contact you. Their vehicle protection specialists will work with you to create a custom plan for you. We find it frustrating that there is no option to get a price range online first prior to this step. One reviewer mentioned paying $130 a month for her policy that only covers the powertrain, which can give you some idea of how much a payment can be here.
Benefits of their warranties
Encouraging shoppers to look for policies with a cancellation option, monthly payment plan, towing and rental benefits, and a money-back guarantee, CarShield boasts that their plans include all of those features. Roadside assistance is also offered. Most of CarShield's warranty contracts are transferable to another owner, should you sell your vehicle, and they offer multi-car discounts. The 30-day guarantee is mentioned but no details are offered on the website. However, we noticed that they do offer coverage for salvaged or branded title vehicles, commercial vehicles, rideshare autos and delivery cars, unlike many other companies we viewed.
An alarming number of complaints to the BBB
Endorsed by actor and musician Ice-T (whose photo is featured throughout the CarShield website along with a quote of why he uses the company), CarShield is accredited by the BBB with an excellent "A+" rating. However, through the BBB, the company has received more than 2,700 complaints in the past three years. Clients complain that their claims are not covered, and they receive unwanted solicitations and experience rude customer service. Reviewers have given below average marks for CarShield, with nearly 3,400 people's ratings averaging 2.95 stars out of 5 on the BBB website. "The coverage I was promised and the coverage I actually got were two completely different things," lamented one recent reviewer.
Better with online reviews
Across online review platforms, they have better ratings, which includes all of their vehicles in the United States. With ratings of 4.2 to 4.3 out of 5 stars on Trustpilot and Google from over 67,000 reviews, the company fares much better there, though we are wary of some of the wording on the positive reviews. Negative reviewers complain that no one accepts CarShield and that they "keep looking for reasons not to pay claim." We suggest proceeding with caution if you decide to go with this company.
Much better options than this
While CarShield has unique warranty offerings, the sheer volume of complaints is cause for concern. We recommend checking out the other companies on our list and skipping this company altogether.
Continued from above...
Buying a car can sometimes feel like gambling. You're always wondering how long it will be until something goes wrong and the car needs a major repair. While you can't necessarily predict future events, many car buyers choose to purchase an additional extended car warranty to cover such expenses for a specified number of kilometres or model years.
When purchasing at a dealership, an extended warranty plan is often presented as something to consider. Did you know that you may qualify to get one even if you get your car from a private sale? Getting a car warranty could be a shrewd financial decision, depending on a number of factors, as purchasing a policy can help cushion you from major repair costs. The real question every driver needs to consider though is whether or not these policies are worth the financial investment. Many can be extremely pricey and list pages of exclusions. However, if you purchase from a reputable company, these extended warranties are absolutely worth the investment you'll make.
Did you know that you don't have to buy your extended car warranty from the dealership? Convenience aside, dealers can mark up their plans and often provide less coverage for more money. Savvy shopper that you are, you're going to check out independent companies that sell these plans so you can get one on your own.
Canada is home to several reputable auto warranty companies which provide complete coverage at great rates. Some companies are based in Canada while others simply service the country but are based elsewhere. One warranty company asserts that Canadians should consider consumer protection laws and be certain they are covered by a Canadian company in case of a dispute, though the choice is completely up to you.
Keep in mind that these plans can vary widely so you'll have to compare apples to apples when you look at prices. What repairs do you want to cover? Some people choose just the powertrain while others seek bumper-to-bumper protection. Electronic components will be included in many plans, but you're not going to get new brakes or other normal wear-and-tear items covered by a car warranty.
One thing you'll need to keep in mind with many car warranty plans is that you must maintain your car according to the manufacturer's schedule and be able to show a record of service from licensed repair facilities - meaning you can't change your own oil or brake pads if you want to qualify for coverage. In fact, some policies are voided if you work on your own car.
Also note that pre-existing conditions are not covered by most car warranty plans, even if you didn't know there was something wrong with your automobile. Some companies will require an inspection before they'll cover your car, while others suggest you have one done yourself.
There are many factors to consider when comparing extended auto warranty companies. Here are the top ones we keep at the forefront of our search:
At Top Consumer Reviews, we want to help you to be protected from costly repairs and unpleasant surprises. We've identified the most popular Canadian car warranty companies to review their services and rank them so you can choose the best option for your situation. It's our hope that this information allows you to keep driving smoothly once you encounter the inevitable breakdowns covered by your extended warranty.
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The Basics of Auto Warranties
Cars are expensive investments, whether you like to purchase new or pre-owned. In protecting that investment and to avoid future repair expenses on your car, you may want to consider purchasing an auto warranty.
Most new and some used cars are covered by some sort of warranty when purchased. For example, new cars are usually covered by a manufacturer's warranty. These warranties vary greatly and are limited in duration. They may cover a variety of repairs until either a time limit or mileage limit such as three years or 36,000 miles. Once you reach that time or mileage limit, the warranty will either totally expire or much of what it covers will be void.
Some manufacturers also offer various program warranties on specific used or pre-owned cars, usually called "certified used" or something similar, that extend the original manufacturer's warranty or parts of the warranty.
If you plan on keeping the car past the life of the manufacturer's warranty, you may want to consider purchasing an extended warranty. Extended warranties are insurance policies against expensive, unforeseen repairs. In essence, extended warranties are actually service contracts. They cover expenses incurred that your warranty doesn't cover.
Unlike manufacturer's warranties, extended warranties are purchased separately from your car. They can be purchased either through the original manufacturer or through a third-party, independent warranty company. In some cases, you'll receive offers to purchase extended warranties in the mail or over the phone from the manufacturer just as the original manufacturer's warrantee is expiring.
Extended warranties are all different. They each differ on what repairs are covered, how much is covered, duration of the coverage and cost of the warranty. Before purchasing any extended warranty, determine what is still covered on the warranty you possess, determine how long past the life of the warranty you'll keep the car, what you want covered and for how long.
When researching the details of the warranty you want to purchase, look for information on the policy's deductible, whether the policy is transferable if you sell the car and whether repairs can be done anywhere or only with specific shops. Also, look for specifics on what is covered and what is not. For instance, does the warranty cover breakdown of parts as well as wear and tear? A warranty that only covers breakdown requires the part to break before the warranty will pay to replace it. A wear and tear policy will cover parts that need to be replaced because they are too worn to work efficiently.
Purchasing an extended warranty can be a smart investment. Don't forget to research the warranty specification and the companies offering them online before making the purchase.
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