Is an Extended Car Warranty Worth It? Pepperdine's Stephen Rapier Explains in WalletHub Feature

Pepperdine Graziadio Business School faculty member Stephen Rapier contributed expert insight to WalletHub's latest consumer report, Best Extended Car Warranties, which evaluated 11 major providers to help drivers make smarter vehicle protection decisions.

The analysis ranked CARCHEX and autopom! as the top extended car warranty companies, citing competitive pricing, broad coverage options, and strong ratings from industry watchdogs. Extended car warranties, also known as vehicle service contracts, help cover major mechanical repairs and often include added benefits such as towing, rental car coverage, and travel protection.

In WalletHub's Ask the Experts section, Rapier addressed when an extended warranty makes financial sense, noting that the decision largely depends on a vehicle’s reliability and expected repair costs. Highly reliable brands with lower maintenance expenses may not require additional coverage, he explained.

Conversely, Rapier noted that extended warranties can be a smart investment for vehicles with lower reliability ratings or higher repair costs, including certain luxury models. Factoring in both the likelihood and cost of repairs can help consumers decide whether the added protection is worthwhile.

WalletHub's rankings were based on factors including Better Business Bureau ratings, coverage options, added services, AM Best ratings, and cost relative to competitors, offering consumers a data-driven guide to choosing the right warranty.

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