Are Manufacturer Extended Warranties Worth It?
Wondering if manufacturer extended warranties are worth it? HasTrust gives them a trust score of 15/100, a high-risk rating, because they tend to deliver poor value relative to their cost. High profit margins and a history of pushy, deceptive sales tactics mean most buyers see little benefit, though a few transparent providers do exist.
Why this score?
Extended warranties are generally poor value for money, with high profit margins for retailers and providers often leaving consumers with little benefit. While some reputable, transparent providers exist for auto coverage, the industry is rife with predatory sales tactics, including deceptive advertising and illegal robocalls. Most consumers are better served by setting aside money for potential repairs or using free warranty extensions offered by credit cards, rather than purchasing these expensive service contracts.
Video reviews
Pros
- Can provide peace of mind for specific high-cost repairs on aging vehicles.
- Legitimate, transparent providers exist that offer clear coverage terms and direct payments to repair shops.
Cons
- Often poor value for money, with many plans paying out significantly less in claims than they collect in premiums.
- High risk of aggressive, deceptive sales tactics in the industry, including illegal robocalls.
- Many plans, particularly for electronics and appliances, are largely unnecessary as products are reliable and often covered by the original manufacturer's warranty.
- Claims processes can be complex and frustrating, especially with third-party brokers.
⚠ Red flags
- Unsolicited robocalls claiming your warranty is expiring.
- High-pressure, "act now" sales tactics.
- Refusal to provide a written sample contract before you pay.
- History of FTC enforcement actions regarding deceptive advertising.
- Requirement to pay large repair bills upfront and wait for reimbursement.
Safety signals
Third-party ratings
Facts
Better options
Why switch: These providers generally have better reputations for transparency, sample contract availability, and customer service compared to providers with histories of deceptive advertising.
Many credit cards offer free extended warranty protection on eligible purchases at no extra cost, making them a superior alternative to buying separate retail protection plans.
Based on 8 sources
CarShield Extended Car Warranty Review 2026Are Extended Auto Warranties a Scam? An Honest Answer for Worried Car Owners | Athena Auto ProtectionCarshield 2026 Review: Low-Cost Extended Car Warranty With Strings Attached - NerdWalletWhat to know about manufacturers’ extended warrantiesExtended Product Warranties Are Bad Deals - Twin Cities Consumers' CheckbookExtended warranties are a waste of money. Here’s what you can do instead.Endurance Extended Car Warranty Review in 2026 - NerdWalletCarChex Extended Car Warranty Review 2026🛡️ Site safety check
What you should do
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Frequently asked
Is Manufacturer Extended Warranties legit?⌄
High risk. HasTrust trust score: 15/100. Extended warranties are generally poor value for money, with high profit margins for retailers and providers often leaving consumers with little benefit. While some reputable, transparent providers exist for auto coverage, the industry is rife with predatory sales tactics, including deceptive advertising and illegal robocalls. Most consumers are better served by setting aside money for potential repairs or using free warranty extensions offered by credit cards, rather than purchasing these expensive service contracts.
Is Manufacturer Extended Warranties a scam?⌄
Possible concerns from our check: Unsolicited robocalls claiming your warranty is expiring.; High-pressure, "act now" sales tactics.; Refusal to provide a written sample contract before you pay.; History of FTC enforcement actions regarding deceptive advertising.; Requirement to pay large repair bills upfront and wait for reimbursement.
What is the Manufacturer Extended Warranties trust score?⌄
HasTrust rates Manufacturer Extended Warranties 15/100 (High risk). Skip
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