Inclusionary Vs. Exclusionary Warranty

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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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Endurance
4.6
Industry Standing: 4.4/5.0
Coverage: 4.9/5.0
Affordability: 4.5/5.0
Transparency: 5.0/5.0
Customer Service: 4.4/5.0
idée We recommend Endurance as the best warranty provider
  • Best Overall
  • Coverage Plans: 6 options plus maintenance plan
  • Odometer Limit: Unlimited mileage
  • Free Cancellation: 30-day money-back guarantee
  • Longest Term: 8 years of coverage
  • Discounts: $300 same-day signup discount, $250 shopping voucher, and others
Plan coverage includes Endurance Elite perks™
Factory-level bumper-to-bumper plan Free membership for first year
Multiple powertrain/mid-level choices $500 collision discount
Scheduled maintenance coverage Tire repair or replacement
24/7 emergency roadside assistance Total loss protection up to $1,000
Trip interruption reimbursement Key fob replacement and repair
Rental vehicle coverage Endurance mobile app
Towing allowance $250 credit with shopping or dining partners

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 PlanDsInclusionary or Exclusionary Warranty?Recommended ForDetails
SupremeExclusionary WarrantyHighest level of coverageBumper to bumper plan similar
to new car warranty
SuperiorInclusionary WarrantyComprehensive stated
component coverage
Covers numerous components
Secure PlusInclusionary WarrantyShort waiting periodCovers electrical, brakes and steering
in addition to powertrain.
SecureInclusionary WarrantyMost affordablePowertrain plus plan
Select PremierInclusionary WarrantyOlder and used carsBasic powertrain coverage
EnduranceAdvantage™Inclusionary WarrantyMaintenance 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 PlanInclusionary or Exclusionary Warranty?Recommended ForDetails
TitaniumExclusionary WarrantyThose looking
for the most coverage
Best coverage offered
by provider
PlatinumInclusionary WarrantyLong comprehensive stated component coverageCovers hundreds of components
GoldInclusionary WarrantyVehicles with more
than 60k miles
Flexible terms, comprehensive coverage
for most systems.
SilverInclusionary WarrantyUsed high mileage vehiclesBasic coverage for most essential systems
BronzeInclusionary WarrantyBasic ProtectionProtection 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 PlanInclusionary or Exclusionary Warranty?Recommended ForDetails
DiamondExclusionary WarrantyThose looking for factory-like coverageBumper-to bumper warranty similar
to manufacurer warranty
PlatinumInclusionary WarrantyVehicles with
high mileage
Comprehensive coverage at good price
GoldInclusionary WarrantyCoverage for both minor and major partsPowertrain plus plan
SilverInclusionary WarrantyA basic level of coverageBasic powertrain coverage for essential parts
AluminumInclusionary WarrantyThose with vehicles that have electronicsProtects the high tech components like navigation/GPS,
electrical system. starter, and alternator.
Motorcycle & ATVInclusionary WarrantyMotorcycles and
all-terrain vehicles 
Several coverage levels for specialty vehicles
Endurance
4.6
Industry Standing: 4.4/5.0
Coverage: 4.9/5.0
Affordability: 4.5/5.0
Transparency: 5.0/5.0
Customer Service: 4.4/5.0
idée We recommend Endurance as the best warranty provider
  • Best Overall
  • Coverage Plans: 6 options plus maintenance plan
  • Odometer Limit: Unlimited mileage
  • Free Cancellation: 30-day money-back guarantee
  • Longest Term: 8 years of coverage
  • Discounts: $300 same-day signup discount, $250 shopping voucher, and others
Plan coverage includes Endurance Elite perks™
Factory-level bumper-to-bumper plan Free membership for first year
Multiple powertrain/mid-level choices $500 collision discount
Scheduled maintenance coverage Tire repair or replacement
24/7 emergency roadside assistance Total loss protection up to $1,000
Trip interruption reimbursement Key fob replacement and repair
Rental vehicle coverage Endurance mobile app
Towing allowance $250 credit with shopping or dining partners

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.