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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In this article, we’ll look at the differences between inclusionary and exclusionary warranties. We’ll also analyze the pros and cons of each and which is better.
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 which 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. While more comprehensive and extensive than their inclusionary counterparts, exclusionary warranties are also typically more costly. While the coverage terms for exclusionary contracts are more confusing, an easier way to think about them are that it’s easier to list what isn’t covered versus listing only what’s covered.
What is 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.
Exclusionary Warranties Are Better
Of the two types of extended warranties (inclusionary and exclusionary), we recommend exclusionary contracts. Because exclusionary warranties only mention what they don’t cover, they are usually more comprehensive than inclusionary warranties, which only cover the items mentioned.
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 over 10 years of experience that is backed by an AM Best A-rated insurance company.
Endurance has 6 plans, 5 of which provide inclusionary coverage and 1 of which provides exclusionary coverage:
Warranty Plan | Ds | Inclusionary or Exclusionary Warranty? | Recommended For | Details |
---|---|---|---|---|
Supreme | Exclusionary Warranty | Highest level of coverage | Bumper to bumper plan similar to new car warranty | |
Superior | Inclusionary Warranty | Comprehensive stated component coverage | Covers numerous components | |
Secure Plus | Inclusionary Warranty | Short waiting period | Covers electrical, brakes and steering in addition to powertrain. | |
Secure | Inclusionary Warranty | Most affordable | Powertrain plus plan | |
Select Premier | Inclusionary Warranty | Older and used cars | Basic powertrain coverage | |
EnduranceAdvantage™ | Inclusionary Warranty | Maintenance coverage and aftermarket warranty | Combines maintenance plan with extended car warranty. |
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 |
CarShield
CarShield was founded in 2005 and is one of the most affordable providers in the market. The company is also one of the most popular provider in the market and has covered over one million vehicles.
Below are descriptions of the providers inclusionary and exclusionary warranties:
Warranty Plan | Inclusionary or Exclusionary Warranty? | Recommended For | Details |
---|---|---|---|
Diamond | Exclusionary Warranty | Those looking for factory-like coverage | Bumper-to bumper warranty similar to manufacurer warranty |
Platinum | Inclusionary Warranty | Vehicles with high mileage | Comprehensive coverage at good price |
Gold | Inclusionary Warranty | Coverage for both minor and major parts | Powertrain plus plan |
Silver | Inclusionary Warranty | A basic level of coverage | Basic powertrain coverage for essential parts |
Aluminum | Inclusionary Warranty | Those with vehicles that have electronics | Protects the high tech components like navigation/GPS, electrical system. starter, and alternator. |
Motorcycle & ATV | Inclusionary Warranty | Motorcycles and all-terrain vehicles | Several coverage levels for specialty vehicles |
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 Warranty Vs. Inclusionary Warranty: 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 Methodology
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.