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Preferred Warranties Inc.

Preferred Warranties Inc.
Overall Satisfaction Rating 1.69/5
  • 5 stars
    3
  • 4 stars
    3
  • 3 stars
    3
  • 2 stars
    4
  • 1 stars
    32
Based on 45 ratings
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    Preferred Warranties Inc. offers extended auto warranties for used vehicles, including power sport vehicles. Its six plans range from powertrain to exclusionary coverage. Plans with greater coverage also come with better benefits, like longer rental car reimbursement. The company guarantees that all claims are paid within five days.

    BOTTOM LINE

    Preferred Warranties Inc. offers six car warranty plans, but the company requires a large upfront payment. The benefits aren't always as good as its competitors, but some reviews praise the customer service and coverage.

    PROS

    • Powersport vehicle plan
    • Roadside assistance
    • Coverage for used vehicles

    CONS

    • Weak benefits
    • Large upfront payment required

    Top Preferred Warranties Inc. Reviews

    Rated with 5 stars
    Verified Reviewer

    2006 F-150 Had an issue that at first seemed like an easy fix, but turned out it wasn't covered in the plan I purchased. PWI still decided to pay for partial part of just because they wanted to help me out as best they could. Thank you PWI so much, you covered something didn't even have to cover.

    Read full review
    Rated with 5 stars
    Verified Reviewer

    I've had actual Honda warranties refuse to pay for anything. Usually have to fight tooth and nail. Not with PWI. If you are considering purchasing an aftermarket warranty I highly suggest Preferred Warranties Inc.

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      What is Preferred Warranties Inc.?

      Preferred Warranties Inc. is a company that sells extended warranties for used vehicles. The company's warranties range from three years/26,000 miles of coverage to 10 years/100,000 miles. Preferred Warranty Inc.’s plans require a large upfront payment, and the benefits don't necessarily compare well with what's offered by some of the company's competitors.

      Preferred Warranties Inc. cost

      Preferred Warranties Inc.’s Base plan costs about $1,500, but customers must pay the full cost upfront. This is rare in the industry — one benefit of buying a car warranty is the option to divide the cost into small monthly payments and manage your budget to avoid significant expenses. Preferred Warranties Inc.'s plans have deductibles that typically range from $50 to $100.

      Preferred Warranties Inc. plans

      Preferred Warranties has five plans for used cars and one plan for motorcycles, ATVs, boats and snowmobiles.

      Powertrain plan
      The Powertrain plan is Preferred Warranties Inc.’s most basic plan. It covers:
      • Engine
      • Transmission
      • Four-wheel drive and all-wheel drive
      • Differential
      • Seals and gaskets
      Base plan
      The Base plan covers everything in the Powertrain plan plus:
      • Additional engine coverage
      • Electrical
      • Drive axle
      • Steering
      • Brakes
      Plus plan
      The Plus plan has coverage for everything in the Base plan plus:
      • Even more engine coverage
      • Turbocharger
      • Additional transmission coverage
      • Additional drive axle coverage
      • Additional steering coverage
      • Electrical/high-tech systems
      • Fuel delivery system
      • Air conditioning
      Extra Mile plan
      The Extra Mile plan covers everything in the Plus plan as well as the anti-lock braking system (ABS).
      Premier plan
      The Premier plan from Preferred Warranties Inc. offers exclusionary coverage, meaning it is easier to list what it doesn’t cover rather than what it does. The Premier Plan does not cover:
      • Regular maintenance services
      • Door panels and handles
      • Structural framework
      • Bumpers
      • Sheet metal and flexible body parts
      • Paint
      • Convertible tops
      • Upholstery, trim, moldings, windows and headlamps
      • Anything not installed by the manufacturer
      • Hybrid vehicle battery
      • Repairs made to meet emission standards
      Powersports plan
      Preferred Warranties offers a Powersports plan for motorcycles, ATVs, boats and snowmobiles. The Powersports plan covers the following parts and systems:
      • Engine
      • Transmission
      • Primary drive
      • Final driveshaft
      • Steering
      • Brakes
      • Gauges
      • Suspension
      • Electrical
      • Fuel systems
      • Four-wheel drive mechanics

      Preferred Warranties Inc.’s benefits

      Preferred Warranties Inc.'s benefits include 24/7 roadside assistance with every plan. Rental reimbursement varies depending on the plan’s level.

      PlanRental car reimbursement
      PowertrainNone
      Base3 days
      Plus5 days
      Extra Mile5 days
      Premier6 days
      PowersportNone

      Preferred Warranties Inc. FAQ

      Can I use any repair shop when I have a Preferred Warranties Inc. warranty?
      Yes. Preferred Warranties Inc. works with your regular repair shop to resolve your claim. If you don’t have a preferred shop, it can recommend one.
      How do I file a claim with Preferred Warranties Inc.?
      If you have a claim to file, simply call or open a claim online.
      Can I set up a payment plan with Preferred Warranties Inc.?
      No. Preferred Warranties requires full upfront payment for its auto warranties.
      Where can I buy a Preferred Warranties Inc. car warranty?
      You can purchase a Preferred Warranties Inc. car warranty from participating dealerships.

      Is Preferred Warranties Inc. worth it?

      Although an extended auto warranty is helpful to cover unexpected repairs, Preferred Warranties Inc. doesn't always stack up well with its competition. We don’t like that the company requires a large upfront payment. A key benefit of buying an extended auto warranty is the option to make a small monthly payment. Many reviews also state the benefits are not as good as those offered by other companies. If you want to purchase an extended auto warranty, we recommend you continue researching other companies before making a decision.

      Preferred Warranties Inc. Reviews

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      Page 1 Reviews 1 - 10
      Rated with 1 star
      Verified Reviewer
      Original review: March 18, 2020

      This is my second claim with them and I am in another fight for my life. The first claim I wound up agreeing to paying 1/2 the cost. Now my mechanic is telling me that there is an issue with my oil pump and timing chain (a known problem with my car that I did NOT know about) yet PWI is INSISTING on a tear down at my cost to determine the cause. My mechanic has said that won’t show the cause, because this is a known defect. I know that PWI is trying to find a reason to NOT pay this claim too, and in the meantime I don’t have use of my vehicle because the engine may blow up due to the malfunction of the oil pump and chain.

      My mechanic also said that the engine WILL go at some point, so it would actually save PWI money to just replace the whole assembly now...but I can’t even get them to pay for the diagnostic they are insisting on! I cannot emphasize this enough....DO NOT BUY ANY PRODUCT FROM THIS COMPANY!! They will find any reason NOT to pay a claim. I will NEVER buy another warranty from them ever. Big waste of money.

      Read full review
      Preferred Warranties Inc. response
      Hi Lisa,
      We apologize for your frustrations. Please allow us to look into your claim. One of our team members will be reaching out to you to discuss your concerns.

      Thank you.

      Be the first one to find this review helpful
      Rated with 1 star
      Verified Reviewer
      Original review: Feb. 27, 2020

      I will only state facts in this review. Read the Preferred Warranties' contract in its entirety before purchasing this warranty and it will change your mind. The way the warranty is setup, the buyer will lose money. They indicate that they will replace with used/recycled parts and consumer is responsible for paying the difference if new parts are used. They indicate that they will pay a certain amount of the diagnosis fee, but they also indicate that the repair company must show where the failure exists. Note, this this is difficult for intermittent issues such as mine. My car has codes that are being shown through diagnosis, but Preferred Warranty is requiring me to ask the Infiniti dealer where the shop is to go further with their diagnosis by dropping the transmission pan at my expense, which is additional money out of my pocket that will not be covered by Preferred Warranty's miniscule $115 diagnosis reimbursement.

      Not to mention, I could spend the money for the additional diagnosis and Preferred Warranties can still deny the claim. I am now fully convinced that Preferred Warranty extended warranties are money grabs. Including the cost of the warranty, there's the potential that I could spend more money on this valve body replacement than Preferred Warranties. Overall, it would have been cheaper for me to not buy the warranty and instead pay the cost out-of-pocket. I guess that's a good business model for them, but a horrible one for the consumer. Ultimately, I, the consumer will lose. Don't buy products from this company.

      Read full review
      Preferred Warranties Inc. response

      Hi Wilmani,

      PWI is eager to discuss your concerns. One of our claims representatives has been trying to connect with you. Please call our Claims Department at 800-334-4841 so that we can chat with you. Thank you.

      Be the first one to find this review helpful

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        Customer increased Rating by 1 stars!
        Verified Reviewer
        Resolution response: March 20, 2020

        I still had to pay out of pocket some but at least Michael was able to get it to $90 hours for labor charges. I’m just glad after 4 different shops my car is fixed.

        Original review: Jan. 26, 2020

        My husband and I have been having a check engine light on our car since Dec. We took it to our trusted mechanic. After seeing metal flakes (which he was able to show us) in my oil. He said our car needs a new engine. We have been going through Hell ever since. He suggested that we don’t drive it but tow it to the Chevy dealership across the street because he doesn’t repair engines. When the dealership called our warranty company (PWI) they played phone tag for almost a week. We also called and was told they were waiting for us to call in order for them to speak to the dealership. When the dealership finally got through to PWI, the customer service told them we hadn’t called yet so we both had to start all over. No one at the customer service was noting the account correctly.

        Finally yesterday the dealership called at 6am. The dealership told them their labor charge was $150, but willing to go down to $125, and got a message that they will not negotiate labor charge it’s $90 and needed to speak with me again. My husband and I spoke to Rob at around 7:15a who was VERY RUDE to us inform me that the dealership hasn’t called and they need them to say what’s wrong with the vehicle and the average labor charge in Vegas is $90. (Mind you I spoke to someone yesterday who told me the the average cost was $85 but he knew a show that’s in my area that $95 and they will pay him. We went by the shop when we hung up. The shop mechanic spoke Russian and do foreign engine in a hole in the wall location.)

        So back to my story, my husband and I got up and drove to the shop. After pulling up to the dealership the manager Wayne showed proof that he called. I picked up my phone and called back at that very moment. I was now speaking to Chris. He again informed me at 7:58a that there weren’t any notes of the dealership calling. Chris said there were only 4 agents working today. So I told him I have at dealership so finally what did they want to know. On speaker Wayne and Chris talked about the car and Chris said PWI needed proof of the problems and an estimate of charges. So Wayne said, "Are you giving me permission to break the engine down." Chris said, "No we just want proof." Wayne said, "It doesn’t make sense unless we look at what’s wrong."

        Chris said, "Ok we will hear from you on Monday latest Tuesday." I was then informed that IF PWI decide NOT to pay then I the customer will have to pay $600 (cost of the breakdown) JUST to find out what’s wrong with my car and I have metal flakes. I called right back spoke to Sky (who didn’t know ANYTHING) quickly got me back to Chris when I mentioned his name. I asked him about the $600 fee if they decide not to pay. He insured me that if there is flakes it’s most likely an engine change but they need proof. I wanted to see if they can negotiate the labor rate $125 or at least $100. As nice as Chris was I fear I will have to start all over next week. All I want is the labor charge to be negotiated and for my PWI not to have me going in circles.

        I don’t understand why PWI would want their clients to go to a hole in the wall shop just to save money and one I, as a client, wouldn’t feel comfortable with. We’re a military family and I expect to feel safe when I go drop off my car if my husband is not around. Also getting the run around like I’m a criminal or a bill collector is NOT PROFESSIONAL AT ALL!!!

        Read full review
        Preferred Warranties Inc. response

        Hello Samantha,

        I understand Michael was able to reach you and address your concerns. Please let us know if we can be of any help in the future.

        Kim K

        Be the first one to find this review helpful
        Rated with 1 star
        Verified Reviewer
        Original review: Jan. 16, 2020

        Bought a used Truck and the PWI Warranty ($1100) and 9 months later the Power steering pump needs replaced. The warranty company told the dealership service department that the steering pump is not covered. Please READ every single line of your warranty contract before buying because if you don’t you will most likely be wasting your money. Do not make the same mistake that I made spending your money on a piece of paper that is useless.

        Preferred Warranties Inc. response
        Hello Stephanie,
        I’m very sorry to hear about your negative experience with PWI.
        Customer satisfaction is of the greatest importance to PWI. I’d like to learn more about your experience with PWI and see if there’s a way we can help.

        Please let me know the best number and day/time to reach you so we can talk further about your experience.

        Sincerely,

        Kimberly K

        Be the first one to find this review helpful
        Customer increased Rating by 3 stars!
        Verified Reviewer
        Resolution response: Jan. 10, 2020

        I had a few follow up calls with representatives from Preferred Warranties and had a satisfactory resolution. With a minimal amount of hassle we were able to come to a settlement amount that covered a reasonable portion of the valve cover repair. While I kind of wish that was my experience off the bat, I am at least glad that the reps managing the web presence of PWI are much more rational than the folks who were manning the phones when I first called. I upgraded my review to 4 stars instead of 3 stars only because PWI had been responsive on my previous two repair claims. This particular incident and resolution was really a 3 star experience but I averaged my other two 4 to 5 star experiences in with this one to come up with the overall 4 star rating.

        Original review: Dec. 20, 2019

        I purchased Premier coverage for a used BMW 535i. Back in March I needed a valve cover repair which should have been covered by the policy. When the repair shop contacted Preferred Warranties they had a very specific conversation about internal gaskets and valve cover not being covered. When I recently went through the policy, it clearly stated that valve covers were a covered item. I called Preferred Warranties to inquire why the repair which had already been completed was not covered even though it should have been.

        They stated that it should have been covered but since the repair had already been done, they would not honor a claim. They then went on to state that they never talked to the repair shop even though the service owner had relayed to me very specific details about the conversation he had with them. Rather than acknowledge that the car was under warranty for a repair that should have been covered and make good on the claim - the PW reps pointed to the fine print in the contract that since they didn't have a claim approved in advance, that there was nothing they could do.

        The experience got worse when the call was redirected to a supervisor. The first rep accurately stated that the call should be between the service center and Preferred Warranties. The supervisor instead stated that I should have called PW about the claim that they did not enter. Not sure how I would know that they did not record the conversation and not enter the claim. While to me this looks like it should be an easy to fix administrative oversight by one of the parties, PW uses it as a rationale to deny rightful claims. This has been a very disappointing experience and I definitely will not be shelling out thousands of dollars for a warranty that Preferred Warranties Inc. has little interest in honoring.

        Read full review
        Preferred Warranties Inc. response
        Hello Mark - Thank you for your email. I’m very sorry to hear about your negative experience with PWI.
        Customer satisfaction is of the greatest importance to PWI. We'd like to learn more about your experience with PWI and see if there’s a way we can help.

        One of our claims supervisors will be in contact with you to further discuss your concerns.

        Sincerely,

        Kim K

        3 people found this review helpful
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        Rated with 1 star
        Verified Reviewer
        Original review: Dec. 5, 2019

        Updated on 12/13/2019: I have been in contact with Preferred Warranty staff in regard to my Bmw repair of the timing chain. The approval of $75 an hour was raised to $100 an hour. shortly after that I was informed that the car needed a different repair due to cam damage. A few days later an assessment was made like before a the cams were damaged due to the timing chain issues. A repair that was covered. Preferred Warranties then requested oil change documentation for the four changes needed between the warranty covered oil changes and my current mileage @86k miles. The Bmw has an oil sensor that notifies the driver when an oil change is necessary. That was used for the first couple of changes. An oil change service center did not reset the timer on a visit so at the point the oil was changed @ 8-10k intervals. All of the oil changes were full synthetic.

        Non digital records are problematic. Oly one service center has a digital online records available. 2 weeks in the car is still sitting. Preferred warranties is also requesting current registration. I received an extension from the DMV due to the vehicle not passing emissions... The problem they sent me to the first car repair center where the car still failed emissions at a $3K repair bill.

        Original Review: I purchased a warranty from Preferred Warranties when I purchased a 2012 528ix from a local luxury car chain on 9/28/15 for $3200. On 11/20/19 I take the car to the local BMW dealer and they have to call and authorize the repairs. The car has to be torn apart to see the failure of the part at $2500 fee if the repairs were not authorized. The failure was a covered repair and I received the estimate from the dealer for $8549.92 billing labor at 180 per hour at 24 hours and parts at $3681.50 plus tax.

        This is how my contract reads: "The labor required to repair all parts covered under this agreement will be paid at the industry accepted flat rate as indicated in a current edition of Mitchell or ALLData labor guides, multiplied by the fair market hourly labor rate." None of these labor guides have been made available for comparison or editions used. PWI authorized $4.582.69 not including $390 rental that was covered. In conversation with Me and my service consultant $100 per hour labor was to be covered if the repair was covered. The labor was approved at $85.00 per hour. There is a $3967.26 difference to be paid by Me. So... prior to the car being inspected PWI suggested I take the car to non dealer for repairs.

        I had taken the car to a neighborhood BMW service center and they were not equipped to expose the failed part for inspection from PWI. At a waste of $1900 for other repairs that were "needed" the check engine light was still on. The non BMW service center turned out to be a waste. The BMW dealership is looking to work with some of the costs ..as of yet no correspondence from PWI Warranties on the charges or explanation of them.

        Read full review
        Preferred Warranties Inc. response
        Bertram,

        Thank you for providing feedback about the frustrations you’ve experienced. We set a high standard for ourselves and are truly sorry to hear that standard was not met in your interaction with our team. One of our claims team members will be reaching out to you to discuss this issue in more detail.

        Be the first one to find this review helpful
        Customer increased Rating by 3 stars!
        Verified Reviewer
        Resolution response: Dec. 18, 2019

        After posting my prior review, PWI reached out and was able to take care of my concerns. Everyone I worked with was very nice, and my concerns were taken care of quite quickly; 15 days to full resolution and receiving the reimbursement check for the claim.
        I was a little curt with the initial claims representative (when I was told there wasn't anything they could do to reimburse my claim because I didn't get prior authorization) which I felt horrible about because she was super nice as well. The only reason I didn't give 5 stars is because I had to leave a negative review for my claim to get taken care of. Now understanding the claim process, I wouldn't have any issues recommending PWI to a family or friend.

        Original review: Dec. 3, 2019

        I purchased one of their warranties when buying my used diesel Jeep; because it was diesel, I had to pay even more but thought that it'd be a good idea for those "just in case" moments where a single repair could potentially cost close to the price paid. I was given a brochure that listed everything covered and it all sounded great. Fast forward 1.5yrs and 40,000mi later, I had dropped the Jeep off at service for what I thought was a simple alignment (was pulling to the left). I was called the next day by the dealership while I was at work and was told it was a tie rod. I told them to go ahead and get it fixed, and I figured I'd get the information for the warranty when I got home and would get a claim submitted as the tie rod was covered under the warranty.

        I go to submit a claim and was told that since I didn't involve them in the process BEFORE the repair was done, that they weren't going to cover it, even though the repair would've been covered, and they would've approved it. During the call I also found out that the dealer I purchased the vehicle and warranty through, used the warranty to fix a sensor that was supposed to be covered under NYS Lemon Law. This didn't negatively affect me, however if they had followed up with me, the customer, to ensure that I had requested the repair/that it was legitimate, I would've told them it wasn't and they could've saved money there.

        Overall their process seems broken and it really is a shame. I don't think I'd be so upset if the warranty card they mailed with the policy information was clear that if they weren't contacted prior the claim would be denied, but it wasn't worded as such. With less than 3,000 miles left on my warranty, I fear I've just thrown away thousands of dollars.

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        Preferred Warranties Inc. response

        Justin,

        Thank you for the recommendation.

        We are happy to hear our claims department was able to help you and explain coverages and the claim process.

        Sincerely,

        Kim K.

        Be the first one to find this review helpful
        Rated with 1 star
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        Verified Reviewer Verified Buyer
        Original review: Nov. 27, 2019

        PWI... well in my situation I bought a used car and in the first week of owning it the transmission went out. I took it the shop and had the shop start a claim before any inspection was done. PWI sent out a third-party inspector and then told me that the issue was preexisting. How convenient for them. They gambled on the warranty and now that they have to pay they have an excuse that it was preexisting. The dealership I bought the car from is telling it was not preexisting. I would not trust this warranty company. They are clearly in breach of contract, unjust enrichment, intentional misrepresentation and in in breach of the duty of implied good faith, needless to say I will be contacting a lawyer and seeking damages, and loss of time. Do not buy this warranty!!!!

        Preferred Warranties Inc. response
        Mr. Gates, it is my understanding that PWI has contacted the selling dealer where you purchased your vehicle and they are going to work on a resolution to your situation.

        Please let us know if PWI could be of assistance with helping connect you with the selling dealer.

        Sincerely,

        Kimberly K

        Be the first one to find this review helpful
        Rated with 1 star
        Verified Reviewer
        Original review: Sept. 16, 2019

        I paid over $1200 for an extended warranty and when I need to use the warranty they gave me a transmission that was bad. Now they will not fix the problem after they gave me the bad transmission. NEVER BUY AN EXTENDED WARRANTY FROM PREFERRED WARRANTIES. I am going to expose them on every social media outlet. The power of the internet!!!!

        Preferred Warranties Inc. response
        Hello Wendy,
        I’m very sorry to hear about your negative experience with PWI.
        Customer satisfaction is of the greatest importance to PWI. I’d like to learn more about your experience with PWI and see if there’s a way we can help.
        Please let me know the best number and day/time to reach you so we can talk further about your experience.
        Sincerely,

        Kimberly Krammes

        Be the first one to find this review helpful
        Rated with 1 star
        Verified Reviewer
        Original review: Aug. 27, 2019

        I purchased used vehicle from local dealership and opted for powertrain warranty. I was driving to work yesterday when check engine light came on and vehicle began shaking and hesitating. I was about a quarter mile from reputable service station. They identified that one of the cylinders/pistons went and needed to be replaced. I keep a photo of warranty card in phone and submitted a claim today. I was contacted this evening, about 8 hours after submitting claim. They initially tried to tell me that the cylinder and pistons were not part of powertrain followed by the customer service rep telling the repairs were conducted too quickly for a piston. I didn't know PWI has mechanics conducting customer service. The rep proceeded to tell me that it wouldn't be covered because I didn't call for prior approval as listed in my contract.

        I never received any contract, just a laminated card with contact info and policy number which I didn't see to call first because I have the photo in my phone of the front of card. When I purchased vehicle, I was advised to submit a claim after repairs as the warranty covers all service stations nationwide. Although I believe that there was a communication error with the dealership, this is still unacceptable practices. I asked to speak to a supervisor and was advised I can call back during normal business hours. It appears that this company will do anything to avoid covering repairs based on my experience and other reviews. I will call to speak with supervisor tomorrow but I will be sure to let the world know that PWI engages in deceptive practices to fleece hardworking people out of their money.

        Read full review
        Preferred Warranties Inc. response
        Daniel,

        I’m very sorry to hear about your negative experience with PWI. Customer satisfaction is of the greatest importance to PWI and we will do whatever we can to help ensure your satisfaction. A member of our leadership team will be in contact within the next 24 hours to discuss your concerns.

        2 people found this review helpful

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          Preferred Warranties Inc. Company Information

          Company Name:
          Preferred Warranties, Inc.
          Year Founded:
          1992
          Formerly Named:
          Preferred Warranties, Inc.
          Address:
          200 PINEBROOK PL.
          City:
          Orwigsburg
          State/Province:
          PA
          Postal Code:
          17961
          Country:
          United States
          Phone:
          5703666523
          Website:
          www.warrantys.com