The United Services Automobile Association (USAA) is a group of companies offering investing, banking, and insurance to people and families who served or serve in the U.S. Armed Forces.
A Fortune 500 company based in San Antonio, Texas, USAA was founded in 1922 and has more than 12.4 million active members. USAA memberships are open to active, retired, and separated veterans with a discharge type of “Honorable” from the U.S. military and their eligible family members.
In this guide to USAA, our review team explores whether a USAA extended warranty is an option for vehicle coverage and outlines our recommended extended warranty providers.
What Is An Extended Warranty?
Extended warranties are designed to cover expensive repairs that a vehicle owner is responsible for after their factory warranty expires. Extended vehicle warranties are also sometimes purchased to cover components of your vehicle that a factory or manufacturer warranty does not cover.
Car repairs can be very expensive. A common catalytic converter replacement can cost more than $2,000. Major repairs, such as a head gasket or transmission replacement, cost much more than $2,000.
According to IBISWorld, almost 18 billion dollars last year in the U.S. was spent on extended car warranties. These vehicle protection plans provide many car owners with peace of mind in case their vehicle undergoes mechanical failure.
Does USAA Offer An Extended Warranty?
In January 2018, USAA discontinued new enrollments in its extended warranty. The company does uphold the terms of its existing extended warranty contracts.
USAA’s Former Extended Warranty Plan
USAA’s extended warranty plan included two coverage plans: Manufacturer Wrap Protection and Comprehensive Protection. USAA only offered its plans to vehicles with 50,000 or less miles.
The USAA extended warranty was administered by Assurant Solutions, a third-party insurance company. Working with third-party administrators is a common practice among companies offering extended warranties, but we recommend that prospective warranty customers read reviews of these third-party administrators before purchasing their warranty.
If you are a prospective warranty customer who prefers a direct provider that manages the process themselves, we recommend that you consider Endurance as one of your potential providers.
A USAA extended warranty plan included these benefits:
- Deployment coverage extension: USAA members were allowed to suspend their extended warranty expiration date for up to 15 months during deployment. In addition, the company provided members with $45 for an oil change upon their return.
- Rental car coverage: USAA offered up to $50 per day for an unlimited amount of days. Most extended warranty companies only provide rental car reimbursement for a week or two, so this was an outstanding benefit.
Will There Be A New USAA Extended Warranty Plan?
Unfortunately, it seems unlikely that a USAA extended warranty will return anytime soon. In March 2019, a USAA representative posted a statement on its forum reiterating that USAA had ceased offering extended warranties until further notice. The statement also mentioned that there is no timeline for any potential replacement.
It is unfortunate that USAA’s extended warranty will not return in the near future since its deployment coverage extension and rental car coverage were excellent and well-earned benefits for those with ties to the U.S. Armed Forces.
Our Recommended Providers
Fortunately for those with ties to the military, there are strong alternatives to USAA’s extended warranty.
Below are the top providers we recommend to active and former military service personnel and their families.
#1 Best Provider: Endurance
Endurance offers a direct service business model to customers, which means that they don’t work with third party administrators.
The company was named “Best Provider” by our review team for the following reasons:
- Excellent reputation: Endurance appeared on the 2019 Inc. 5000, a list of the fastest growing companies in the U.S. It also received a 2019 Stevie Award as a “Great Employer” for its outstanding employee benefits.
- Prestigious partnership: Endurance holds a partnership with Andretti Motorsports, a highly successful auto racing team.
- Free quote and sample contract online: Endurance offers a free quote and sample contract online, giving prospective customers full transparency to its plan’s costs and specific details.
#2 Best for High-Mileage Vehicles: CARCHEX
CARCHEX has been in the car warranty industry for more than 20 years. The company’s motto is “customer experience above all,” and it boasts a high customer satisfaction rating on the Better Business Bureau (BBB) and other review sites.
CARCHEX was named “Best for High-Mileage Vehicles” by our review team for the following reasons:
- Notable industry partnerships: CARCHEX partners with many major players in the industry, including Kelley Blue Book, CARFAX, and Edmunds.com.
- A+ rating and accreditation from the BBB: CARCHEX’s strong rating and accreditation demonstrates leadership in the extended warranty industry. Many other providers do not hold BBB accreditation or an A+ rating.
- National media recognition: CARCHEX has been featured by national media outlets such as ABC, Fox News, CBS, NBC and PBS as an industry expert in consumer automotive protection.
#3 Military Discount Available: Protect My Car
Protect My Car appeared in our list of the six best extended car warranty options.
A St. Petersburg, Florida-based provider, Protect My Car is the only top extended warranty company that offers a military discount.
The company is also notable for the following reasons:
- Outstanding customer reviews: Protect My Car’s average customer review rating on its BBB webpage is currently four and a half stars. This is significantly higher than many other extended warranty providers.
- Lengthy payment options: Protect My Car offers monthly payments ranging from 36 to 60 months, which can dramatically reduce the cost of your monthly payment.
- Great coverage Plans: Protect My Car offers three coverage plans with a high level of coverage, and it is likely that one of their plans will meet your individual needs.
Deciding Between Our Recommended Providers
If you are not sure which provider to work with, we recommend that you request a quote from each of these providers and compare their costs and coverage.
You can also read our guide to the six best extended car warranty options for more information on each of these providers.
Methodology
The Detroit Bureau collects data from every major car warranty provider to formulate rankings of the best warranty companies. Our in-depth rating system takes into account coverage, pricing, transparency, customer satisfaction and ratings from industry experts. Each provider is given a weighted score in five categories, as well as an overall score out of 10.0.
We recommend auto warranty companies based on these rankings, but we also encourage you to perform your own research and compare quotes to find the best coverage.
