An extended auto warranty is a protection plan you can buy from an automaker or dealership to cover mechanical breakdowns. Third-party providers offer similar coverage in the form of vehicle service contracts. We use these terms interchangeably in this article for simplicity.
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If you’re considering purchasing an extended warranty for your vehicle, you’ll likely see the words “inclusionary” and “exclusionary” when looking through sample contracts. In this article, we’ll explain the differences between inclusionary and exclusionary warranties along with the pros and cons of each. The best extended warranty companies typically offer both types of coverage, so it’s a matter of determining which is best for your needs.
What Is an Inclusionary Warranty?
Inclusionary warranties list the items that are covered in an extended car warranty. While they are more straightforward, inclusionary auto warranties are less comprehensive and expensive in terms of coverage. Often, you’ll see warranties with inclusionary coverage also referred to as “listed item”, “listed component”, or “stated component” coverage. The three levels of coverage that are most commonly inclusionary warranties are powertrain, powertrain-plus, and comprehensive stated component coverage.
What Is an Exclusionary Warranty?
The opposite type of warranty coverage is an exclusionary warranty. Instead of listing all of the parts that are covered, exclusionary warranties only list the parts that aren’t covered. Exclusionary warranties almost always provide a higher level of coverage than their inclusionary counterparts due to how the contract is structured. Because they tend to be more comprehensive and extensive than their inclusionary counterparts, exclusionary warranties are also typically more costly.
What’s the Difference Between Exclusionary and Inclusionary Warranties?
Both types of coverage protect against unexpected vehicle breakdowns and give warranty holders peace of mind. People seeking a higher level of coverage who want a warranty that mimics a new car warranty should choose an exclusionary warranty. Inclusionary warranties are best for those seeking more basic coverage for a used vehicle.
Which Is Better?
There’s not necessarily one type of warranty that’s better than the other – the one that’s best for you will depend on the needs of you and your vehicle. If you’re looking for more coverage or have a newer vehicle, exclusionary coverage is likely going to be the better fit. Inclusionary coverage may be a good choice for those with older or high-mileage vehicles, especially for those looking for basic coverage on their vehicle’s most essential systems.
Inclusionary and Exclusionary Warranties We Recommend
Most warranty providers offer both inclusionary and exclusionary extended car warranty coverage. In our extensive reviews of all of the best extended car warranties, below are our tops picks:
Endurance
A direct provider for vehicle protection, Endurance is an extended car warranty company with nearly 20 years of experience that’s backed by an AM Best A-rated insurance company.
Endurance has six plans, five of which provide inclusionary coverage and one that provides exclusionary coverage:
| Warranty Plan | Inclusionary or Exclusionary? | Recommended For | Details |
|---|---|---|---|
| Supreme | Exclusionary | Highest level of coverage | Bumper to bumper plan similar to new car warranty |
| Superior | Inclusionary | Comprehensive stated component coverage | Covers numerous components |
| Secure Plus | Inclusionary | Short waiting period | Covers electrical, brakes, and steering in addition to powertrain |
| Secure | Inclusionary | Most affordable | Powertrain plus plan |
| Select Premier | Inclusionary | Older and used cars | Basic powertrain coverage |
| EnduranceAdvantage™ | Inclusionary | Maintenance coverage and aftermarket warranty | Combines maintenance plan with extended car warranty |
The listings on this site may be from companies that compensate us, which could influence their placement and order. Not every company, product, or offer has been reviewed.
CARCHEX
CARCHEX has won numerous industry awards, has an A+ rating from the Better Business Bureau and accreditation, and is endorsed by many industry leaders. On top of all that, this reputable provider has been in business for over 20 years.
Below are the inclusionary and exclusionary plans offered by the company:
| Warranty Plan | Inclusionary or Exclusionary Warranty? | Recommended For | Details |
|---|---|---|---|
| Titanium | Exclusionary Warranty | Those looking for the most coverage | Best coverage offered by provider |
| Platinum | Inclusionary Warranty | Long comprehensive stated component coverage | Covers hundreds of components |
| Gold | Inclusionary Warranty | Vehicles with more than 60k miles | Flexible terms, comprehensive coverage for most systems. |
| Silver | Inclusionary Warranty | Used high mileage vehicles | Basic coverage for most essential systems |
| Bronze | Inclusionary Warranty | Basic Protection | Protection for common and expensive repairs |
Inclusionary vs. Exclusionary Warranty: Conclusion
In this guide, we provided definitions for both inclusionary and exclusionary warranty coverage, explained the differences between both warranty types, and gave our recommendations for which type of coverage is best for various types of customers. Additionally, we provided our recommendations for the best inclusionary and exclusionary extended warranties.
Exclusionary and Inclusionary Warranties: FAQ
What does exclusionary warranty mean?
Exclusionary warranties only list what is not covered in the warranty. Because of this, they typically provide a very comprehensive level of coverage, usually consisting of most parts on a vehicle.
What is an inclusionary warranty?
Inclusionary warranties list the parts that are covered. Usually, inclusionary warranties are easier to understand than exclusionary warranties, with varying levels of coverage ranging from basic powertrain plans to comprehensive stated component coverage.
Exclusionary or inclusionary warranty?
We recommend exclusionary warranties for those who want the most comprehensive level of coverage. Exclusionary warranties are considered a superior type of extended warranty.
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best extended auto warranty providers.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, availability, and years in business when giving this score.
- Coverage: Because each consumer has unique needs, it’s essential that a car warranty company offers an array of coverage options. We take into account the number of plans offered by each provider, term limits, exclusions, and additional benefits.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team performs ongoing secret shopper analyses for different vehicles, mileages, warranty plans, and locations to give this rating.
- Customer Service: Reputable extended car warranty companies operate with a certain degree of care for consumers. We take into account customer reviews, BBB complaints, and the responsiveness of the customer service team.
*Data accurate at time of publication.
