Many people buy extended auto warranties for peace of mind. These plans promise to cover repair costs. However, not all companies are honest. Some make big promises but fail to deliver. In 2025, many drivers have reported problems. It’s important to know which firms to avoid. This guide lists the worst extended auto warranty companies in 2025. These companies have bad reviews, poor service, and many complaints. We’ll help you spot red flags and protect your money.

Why Do People Buy Extended Auto Warranties?

Car repairs are expensive. A broken engine or transmission can cost thousands. Extended warranties help cover these costs. They offer coverage after the factory warranty ends. However, not all warranty companies are trustworthy. Some are scams. Others delay or deny claims. Before you sign a contract, you must research the company well.

What Makes a Warranty Company “Bad”?

Here are signs of the worst extended auto warranty companies:

• Denied Claims: They deny coverage without reason.
• Hidden Fees: You end up paying more than expected.
• Bad Customer Service: They ignore calls or give rude responses.
• False Promises: They promise full coverage but offer little help.
• Difficult Cancellation: Some companies make it hard to cancel your plan.
• Fake Reviews: They use paid reviews to hide the truth.

Let’s look at the companies that fall into these traps in 2025.

1. CarShield

CarShield has millions of customers. However, it also has thousands of complaints. Many users say CarShield denies claims often. Some say the sales reps were pushy. Others report long wait times and rude agents. CarShield may also charge cancellation fees. The Better Business Bureau (BBB) gives it a low rating. For many, CarShield is one of the worst extended auto warranty companies.

2. Endurance Auto Warranty

Endurance is well-known, but not always for good reasons. Many customers complain about claim denials. Some say it takes weeks to get a response. Their website lists full coverage. But customers often find many “exceptions” in the fine print. Some users also report extra charges. Endurance faces legal action in some states. This raises questions about its trustworthiness in 2025.

3. Protect My Car

At first, this company looks reliable. However, many customers share bad experiences. Most complaints are about slow claims and denied repairs. Some say the company cancels plans without notice. Others report that repairs were not covered even after approval. Customer support is another issue. Emails go unanswered, and hold times are long. Many drivers no longer trust this company.

4. AutoAssure

AutoAssure is not as famous as others. Still, it has a bad name in many states. Customers say it’s hard to reach a real agent. Many claims are denied for vague reasons. Some people never received their refund after canceling. In 2025, AutoAssure still ranks among the worst extended auto warranty companies due to its lack of honesty.

5. AA Auto Protection

This company has a history of complaints. Many say their website is misleading. Some plans cover almost nothing. The customer service is also very poor. People report being charged without approval. When they try to cancel, they get no reply. AA Auto Protection is no longer trusted by many auto experts. Some believe it should be shut down.

6. National Auto Care

National Auto Care promises “worry-free protection.” But many drivers worry more after joining. Many complaints mention hidden fees and unclear rules. Some say the plan only works at specific repair shops. Others say the repairs were delayed for weeks. This company has a poor reputation in 2025. It fails to meet basic customer expectations.

7. Delta Auto Protect

Delta Auto Protect shut down for a while but came back. The return hasn’t been smooth. Many customers feel cheated. They say Delta promised one thing but delivered another. Some never got their contracts after payment. Even in 2025, Delta remains one of the worst extended auto warranty companies on many forums.

8. Toco Warranty

Toco is known for simple plans. But its real problem lies in the claim process. Customers say the company often refuses coverage. They find reasons not to pay. Some also mention the company’s refusal to speak with mechanics. This makes the repair process hard and stressful. Many regret buying Toco’s plans.

How to Avoid Bad Warranty Companies

Before choosing a company, do your research. Here are tips to avoid scams:

• Check BBB Rating: A low BBB score is a red flag.
• Read Reviews: Use trusted sites like Trustpilot or ConsumerAffairs.
• Ask Questions: Don’t sign anything without understanding the plan.
• Avoid Pressure: Don’t trust reps who force quick decisions.
• Check the Fine Print: Look for limits, fees, and exclusions.
• Verify Repair Options: Make sure you can use your preferred mechanic.

What to Do If You Get Scammed

If you’ve had a bad experience, take action:

• File a Complaint: Report to the Better Business Bureau.
• Contact State Agencies: Many states have consumer protection offices.
• Leave a Review: Warn others on public platforms.
• Cancel the Plan: Ask for your money back if allowed.
• Consult a Lawyer: If large sums are lost, legal help may be needed.

Better Alternatives in 2025

Some companies still offer good service. Look for well-reviewed names like:

• Olive
• Carchex
• Ally Extended Warranty
• Zurich
• Toyota Extra Care (for Toyota owners)

These companies have better ratings and honest practices. Still, always check the details before buying.

Final Thoughts

An extended auto warranty can offer peace of mind. But only if the company is honest. In 2025, many drivers learned the hard way. This list of the worst extended auto warranty companies should help you stay safe. Avoid companies with many complaints and bad customer service. Always research before signing a deal. Protect your car—and your wallet.