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Ally Extended Warranty Reviews

Our review team gave Ally’s extended warranty 4.0 out of 5.0 stars. It offers excellent coverage at a great cost. See if any plans are right for you.

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04/26/2024 12:00 AM

The Gist:

  • Extended warranty customers we surveyed paid between $1,615 and $3,208 for vehicle coverage.
  • Ally offers four plans for extended warranty coverage: Major Guard®, Major Guard EV®, Essential Guard®, and Feature Guard®.
  • Ally receives mixed reviews for customer service and its protection plans are sold through participating car dealerships.

Ally Financial offers a range of products, including an extended warranty for vehicles, called Ally Premier Protection. But how does an Ally extended warranty compare to options from other top warranty providers? We’ll examine what the vehicle protection plans cover and highlight what customers are saying about Ally coverage.

Our experts have reviewed a number of the best extended car warranty companies to help drivers make sense of the market. There are many options, so it’s important to compare free quotes from providers to find the best rate.

Reputation: 4.5/5.0
Coverage: 5.0/5.0
Price: 4.5/5.0
Customer Experience: 4.5/5.0
idée Endurance is our first choice for extended warranties
  • Best Plan Offerings
  • Mileage Covered: 200,000 miles on the odometer
  • Free Cancellation: Full refund within 30 days
  • Plan Options: 6 different plans to choose from
  • Longest Plan Term: Up to 8 years
  • Discounts: $300 same-day signup discount, $250 shopping voucher, and others
Plan coverage includes Endurance Elite perks™
Exclusionary plan One-year membership for free
Powertrain plan Tire repair and replacement
Maintenance coverage with Endurance Advantage Key fob replacement
Roadside assistance Total loss protection
Towing Collision discount
Rental car $250 rewards voucher
Trip interruption coverage Endurance Protect app

Ally Extended Warranty Reviews

Ally has extensive coverage options and standard prices for protection plans that cover your vehicle after its factory warranty expires. Since Ally is an established financial institution, we don’t doubt the company can handle claims obligations easily. However, the company doesn’t have a great customer service reputation. Here’s an overview of our rating for Ally, which sells extended warranty plans through participating car dealerships.

Customer Experience3.0
Overall Rating4.0

Ally Bank BBB

Ally has an A rating from the Better Business Bureau (BBB), however, it’s not accredited by the organization. Customer reviews on the website are low, at 1.05 out of 5.0 stars, although this could be from customers who use Ally as a bank, not as a warranty provider. Below we have compiled some positive and negative reviews from the BBB, including one customer’s experience with Universal Warranty Corporation, an Ally subsidiary that administers warranty contracts.

Positive Ally Extended Warranty Reviews

“Customer service reps have been helpful anytime we’ve called with questions.”
– Margo F., BBB

Negative Ally Extended Warranty Reviews

“Terrible customer service. I called three times and went through the same ordeal; I asked a very simple question and the representative asks me multiple personal questions to verify my identity just to tell me, ‘I cannot tell you anything over the phone, its policy.’”
– I., BBB

“Their upper management is very rude, arrogant, very unprofessional, and unwilling to help a long-time customer with multiple accounts.”
– Josefina, BBB

Universal Warranty Company, which handles claims, isn’t rated by the BBB, but it does have one customer review with a rating of five stars:

“First class organization. I had trouble with our car and the dealer did not contact them like they should have before making repairs. They still paid the claim in full.”
– Dave R., BBB

Pros Valid at any licensed repair facility in the U.S. or Canada Wide range of coverage plans plus extras Covers up to 200,000 miles Month-to-month contracts available
Cons Only available from dealerships Doesn’t always pay repair shop directly Low ratings on the BBB and Trustpilot

About Ally Premier Protection

Ally began as the General Motors Acceptance Corporation (GMAC) in the 1920s, offering financial services in the auto industry. In 2008, the company added general banking products and services and changed its name to Ally Financial in 2010.

Today, the company partners with over 18,000 dealers to provide financing and vehicle protection products in addition to other services like banking and home loans. The company has a 1.2 out of 5.0-star rating on Trustpilot.

Ally Premier Protection

Ally Premier Protection is a vehicle service contract, with four coverage tiers available from participating dealers in most states. Coverage is administered by Universal Warranty Corporation, which is a subsidiary of Ally. The plans are insured by MIC Property and Casualty Insurance Corporation.

Ally Extended Warranty Cost

What you pay for an extended warranty depends on your car. Some makes and models prone to higher repair costs will cost more to add coverage, and if your vehicle has higher mileage, you could pay more as repairs will be more likely. For example, an Ally Essential Guard plan would cost more for a BMW with 100,000 miles than a Toyota with 30,000 miles.

While prices for an Ally extended warranty vary, our 2022 survey–which polled 1,000 respondents–found that about half paid between $1,615 and $3,208 in total for an extended car warranty.

Ally extended warranty plans come with deductible options of $0, $100, and $200. The company allows drivers to finance the cost of a plan along with a vehicle purchase, which means you can pay for coverage and your car loan in one monthly payment.

Factors That Affect Extended Warranty Costs

Along with your car’s make, model, and mileage, here are some of the key factors that determine the cost of an extended warranty:

  • Coverage level: Exclusionary plans that offer comprehensive coverage cost more than powertrain warranty plans that protect the basics.
  • Deductible: As with auto insurance, choosing a higher deductible for warranty coverage leads to higher monthly payments and vice versa.
  • Provider: Extended warranty cost varies from one provider to another, which is why it’s important to compare free quotes.

What Does Ally Extended Warranty Cover?

The Ally extended warranty gives drivers a choice of four main protection plans: Major Guard®, Major Guard EV®, Essential Guard®, and Feature Guard®. All Ally Premier Protection plans can cover vehicles up to 20 years old, but mileage limits aren’t specified. Here’s an overview of the four plans:

Ally PlanPlan Details
Major GuardThis is an exclusionary policy and it covers over 7,500 components on the vehicle. Comparable to a bumper-to-bumper plan, it covers all major systems including the powertrain, electrical, high-tech components, suspension, and air conditioning.
Major Guard EVThis option is for electric vehicle owners who want extensive car coverage. Major Guard EV is similar to bumper-to-bumper coverage, which protects all components and systems unless specifically excluded in your contract.
Essential GuardThis plan covers the powertrain (engine, transmission, and drive axle) plus the fuel delivery system.
Feature GuardThis plan covers your vehicle’s tech and safety features, like GPS, airbags, and lane departure warnings.

Ally also offers other protection plans that include prepaid maintenance, guaranteed asset protection coverage, and coverage of cosmetic vehicle damage.

Additional Benefits

Ally Premier Protection plans come with the following perks:

  • Roadside assistance: Covers towing, jump-starts, spare tire installation, fuel delivery, and locksmith services (locksmiths not covered in Kansas)
  • Rental car reimbursement: Up to $40 per day ($240 maximum) in rental car costs while your vehicle is in the shop for a covered repair
  • Trip interruption: Reimburses up to $150 per day ($750 maximum) if you experience a breakdown more than 100 miles from home

Ally Extended Warranty Exclusions

Ally Premier Protection covers mechanical breakdowns and failures due to part defects or factory workmanship problems. It doesn’t cover normal wear and tear, and it doesn’t pay for items that are expected to need replacements like brake pads. Like other extended warranty options, Ally coverage does not include scheduled maintenance.

Here are some additional extended warranty exclusions:

  • Damage from misuse or lack of maintenance
  • Unauthorized repairs or vehicle modifications
  • Damage from the environment or from car accidents

How Ally Premier Protection Works

There are two ways you can get a quote for an Ally Premier Protection plan. You can call the company directly, or you can visit a participating dealership. The website has a dealer locator tool, but not every state has a participating dealership.

If you have a breakdown, follow these steps:

  1. Call roadside assistance to get a tow and protect the vehicle from additional damage
  2. Have your car sent to your choice of licensed vehicle repair shop in the U.S. or Canada
  3. Call the contract administrator at 800-631-5590 to authorize a repair

Ally will either reimburse you after you pay for the repair or it will pay the shop directly. According to one Major Guard brochure, Ally approves 99.7 percent of all claims.

You can transfer an Ally extended warranty for $50. In some situations, secondary buyers appreciate an existing extended warranty, which can add value to your car.

Ally Extended Warranty Cancellation

If you decide to discontinue your vehicle’s extended warranty coverage, you can cancel within 60 days for a full refund. After that, you’ll get a prorated refund.

Ally Extended Warranty: Our Take

In our research, Ally scored 4.0 out of 5.0 stars for its extended vehicle protection plans. The company offers quality auto warranty coverage at reasonable prices but it may be hard to purchase a plan if you don’t have a participating dealer nearby. If Ally isn’t right for you, check out some of the provider’s extended vehicle warranty competitors below.

Ally Extended Warranty: Top Competitors

To find the coverage you need at prices that work for your budget, we recommend getting quotes from several reputable extended car warranty companies. In many cases, you can obtain estimates quickly and easily with online free quote tools.

Endurance: Best Plan Offerings

Endurance has specialized in extended warranties for cars since its founding in 2006. It’s a direct warranty provider, so you don’t have to work with a third party for claims. In our research, Endurance earned a high overall score of 4.5 out of 5.0 stars and we gave the company our award for Best Plan Offerings.

Endurance offers six plans, giving you a wide range of coverage options. Additionally, the company offers one year free of Elite Benefits. Elite Benefits include roadside assistance, total loss protection, collision discount, key fob replacements, tire repair/replacement, and the Endurance mobile app.

Read our Endurance warranty review to find out more about the provider.

Carchex: High Mileage Limits

Carchex has been covering vehicles under extended warranty plans since 2004. Today, the company can provide warranty coverage for cars with up to 250,000 miles, which is longer than most providers in the industry.

Carchex is also known for its excellent customer service. Industry leaders like Kelley Blue Book,, and Carfax endorse the company. Our review team gave Carchex a solid 4.4 out of 5.0-star rating and named it best for older vehicles or used cars thanks to its High Mileage Limits.

Learn more about coverage by reading our Carchex review.

Ally Auto Extended Warranty: FAQ

Below are some frequently asked questions about Ally extended warranty:

How do Ally extended warranties work?

If you have a mechanical breakdown, Ally will pay for any vehicle repairs or replacements to parts covered under your extended warranty plan. If something is not covered under warranty, you will be required to pay for repairs out of pocket.

Can you transfer an Ally warranty?

Yes, you can transfer your Ally extended warranty for $50. In some situations, selling your vehicle with an extended warranty can boost the value of your car.

Can I get a refund on my extended car warranty?

Yes, most extended warranty companies offer refunds in the form of 30-day money-back guarantees. Ally provides full refunds within 60 days. After that, you can still get a prorated refund on your extended car warranty, but some value will be subtracted to account for time, mileage, and any paid repairs.

Is it worth extending my car warranty?

If you found value in having a factory warranty, it can be worth it to extend your car warranty. The key is to get one from the right provider. An extended warranty can give you peace of mind that a range of car repairs are covered.

What should an extended warranty cost?

We’ve compared extended warranty quotes from a number of the top providers. In our research, we found an extended warranty to cost anywhere from $200 to $1,500 per year of coverage. So, a three-year plan could cost between $1,800 and $4,500.

How We Rate Warranty Providers

Our review process aims to deliver consistent and unbiased assessments of extended auto warranty providers. While there are multiple qualities that make a warranty company successful, our review team focuses on those we believe are the most important for consumers:

  • Reputation: It’s important that an extended car warranty company is able to meet its claims obligations. Companies with a strong rating from the Better Business Bureau (BBB) and a long history of reliable service score well in this category. We also evaluate the availability and transparency of each company’s contracts, as well as whether each provider offers a money-back guarantee.
  • Coverage: Our team of experts looks at the number of extended warranty plans available, as well as term limits, exclusions, and added benefits like roadside assistance. Ratings also take into account the availability of maintenance coverage.
  • Cost: Cost can be difficult to compare between providers because so many factors impact vehicle service contract pricing. To determine our cost score, we perform a secret shopper analysis for a variety of vehicles and plans and consider available deductibles.
  • Customer Experience: We listen to real customer sales calls and comb through reviews on sites like the BBB to learn about customer experiences. Warranty companies with a low volume of complaints score well in this area. We also consider the availability of mobile apps and chat features.

*Data accurate at time of publication

View Pricing from our #1 Provider – Endurance