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We reviewed the Ally extended warranty to make sure you know what you’re getting into. We cover cost, customer service, and Ally warranty coverage in this review.
With your factory warranty coming to an end, you might be nervous about future repairs and their costs. An Ally extended warranty provides additional coverage to ensure peace of mind on the road.
An extended warranty, also called a vehicle service contract, is supplementary coverage you purchase to make sure your vehicle is always protected in case of a mechanical breakdown. With an extended warranty, you’re not only guaranteed service but also a buffer against often costly repairs. Vehicle service contracts are sourced either through a manufacturer or a third-party warranty company, like Ally.
In this article, we’ll be giving you an in-depth review of the Ally extended warranty as well as our thoughts on its cost-effectiveness. We’ve also reviewed the best extended warranty companies on the market. Get free, personalized quotes from our highest-rated providers below.
What Is Ally?
Established in 1919, Ally not only provides extended car warranties but also home and personal finance coverage. It specializes in everything from mortgages to personal loans to vehicle service contracts.
Regarding its automotive protection services, the Ally extended warranty includes three coverage options. Additionally – and a definite plus in our book – Ally offers a Flex plan to customers who want looser terms without any loss in coverage quality. Ally provides new car warranty as well as used car warranty options. However, to purchase any Ally extended warranty, you’ll need to contact a participating dealership and proceed from there.
Ally BBB
In terms of industry reputation, Ally Financial has an B rating from the Better Business Bureau (BBB), indicating a strong financial backing. However, Ally isn’t accredited by the BBB.
What Does the Ally Extended Warranty Cover?
Called Ally Premier Protection, the Ally extended warranty comes in three plan levels that protect your vehicle after mechanical breakdowns for up to 12 years or 150,000 miles. Ally’s three vehicle protection plans are Major Guard®, Value Guard, and Basic Guard.
| Ally Extended Warranty Coverage | Major Guard | Value Guard | Basic Guard |
|---|---|---|---|
| Total Parts Covered | 7,500+ | 2,900+ | 2,000+ |
| Engine | ✓ | ✓ | ✓ |
| Transmission | ✓ | ✓ | ✓ |
| Front and Rear-Wheel Drive | ✓ | ✓ | ✓ |
| Fuel Delivery | ✓ | ✓ | ✓ |
| Heating and Air Conditioning | ✓ | ✓ | ✓ |
| Suspension | ✓ | ✓ | |
| Electrical | ✓ | ✓ | |
| Steering | ✓ | ✓ | |
| High-Tech | ✓ | ✓ | |
| Braking | ✓ | ||
| Safety | ✓ | ||
| Engine Cooling | ✓ |
Major Guard acts as a bumper-to-bumper warranty for your car, while Basic Guard is akin to a powertrain warranty. Value Guard sits in the middle but doesn’t account for important features like braking systems and safety systems.
If you’re interested in additional coverage beyond a typical vehicle service contract, Ally has a Guaranteed Asset Protection (GAP) plan as well as a SmartLease Protect plan for car leasers. Other Ally protection plans include:
- Dent
- Key
- Theft
- Windshield
- Appearance
- Multi-Protect
- Tire & Wheel
Ally Extended Warranty Transfer Policy
Regarding transferability, all three Ally extended warranty plans can transfer to subsequent owners for a $50 fee. You’re also able to cancel your warranty within 60 days as long as no claims were filed during that time period.
Ally Extended Warranty Perks
With any Major Guard, Value Guard, or Basic Guard purchase, you’re given a few perks. They include roadside assistance, trip reimbursement, and rental car reimbursement. Ally’s 24/7 roadside assistance plan covers the following services:
- Flat tires
- Towing
- Lock-outs
- Battery jump-starts
- Emergency gas delivery
Ally will cover roadside assistance services up to $100. Trip reimbursement is available up to $150 per day for up to $750 per breakdown. This service, though, is only available if your car breaks down more than 100 miles from your destination. Similarly, your rental car cost is reimbursed up to $40 per day for up to $240 per breakdown. Rental car reimbursement can also count toward public transportation if you prefer.
What’s Not Included in the Ally Extended Warranty?
Like any extended car warranty, exclusions will be outlined in your contract. The Ally extended warranty limits a few vehicle issues, including:
- Theft
- Collisions
- Vandalism
- Pre-existing issues
- Misuse of the vehicle
- Environmental damages
- Issues caused by lack of maintenance
- Vehicles used for business purposes (Uber, Lyft, taxi services)
Thankfully, Ally provides sample contracts on its website for a full understanding of what exclusions you should expect. While the exclusions won’t be one-to-one, the sample contract can prepare you for what questions you should ask a representative.
We also want to mention that the Ally extended warranty, regardless of what plan you choose, will need to be purchased through a dealership. This includes getting a quote too.
You can also elect to finance your vehicle service contract through the dealer or purchase it separately. However, we don’t usually suggest financing an extended warranty. You’ll inevitably end up paying interest on your warranty purchase.
Ally Flex Coverage
A unique option for those interested in the Ally extended warranty, Flex Coverage allows car owners to purchase and renew their extended coverage with monthly payments. If you’re not interested in long contract terms, this is an option to consider, but also be aware that this coverage is only available for cars from 2015 or newer.
Ally Flex Coverage Cost
The Flex Coverage plan can cost as little as $32 a month and extend up to 10 years or until the car reaches 13 vehicle models old. After you agree to the Ally extended warranty contract, your coverage starts 30 days after your purchase date.
Flex Coverage also has three plans to choose from:
- Flex Coverage Ultra
- Flex Coverage Core
- Flex Coverage Tech
The most extensive option, Flex Coverage Ultra, covers the same parts as the Major Guard plan. It’s bumper-to-bumper coverage on a monthly basis. Flex Coverage Core, a step down from the Ultra plan, covers all powertrain components as well as your air conditioning, electrical systems, and braking system components. Finally, the Flex Coverage Tech plan solely protects high-tech components.
These Ally extended warranty plans exclude the same standard limitations we mentioned above as well as the individual exclusions that come with each coverage option. Plans can’t be transferred to subsequent vehicle owners. Flex Coverage also provides the same perks as its long-term contracts, including 24/7 roadside assistance, rental vehicle coverage, and trip interruption protection.
Regarding cost, Ally’s Flex Coverage offers $0 and $100 deductibles depending on which plan your elect to purchase. However, if you’re a high-mileage driver (more than 20,000 miles per year), your deductible will be $500 per repair visit.
Ally Extended Warranty Cost
Ally offers five different deductibles: $0, $50, $100, and $200. Additionally, Ally provides a $100 disappearing deductible option at certain dealerships. Deductible availability depends on your dealership, vehicle, and contract, so we recommend asking about the deductible for your Ally extended warranty plan should you decide to pursue a contract.
Like we mentioned before, you won’t be able to get a free quote online. Instead, you’ll need to call a local participating dealership to get more cost information.
Ally Extended Warranty Claims
The claims process with an Ally extended warranty is fairly straightforward. If your car has a mechanical breakdown, you’ll want to make sure the vehicle is protected from any additional damages to the best of your abilities. Then, you’ll need to contact Ally to gain authorization before any repair work is done on the car. If necessary, Ally will need to inspect the car. Finally, Ally will either reimburse you directly for vehicle repair costs or pay the repair shop for the covered repairs.
After calling Ally’s claims phone number ourselves, we went through three voice automations before we were able to speak to an Ally representative. Based on the directions we received over the phone, we recommend having your policy number on hand when you call.
Ally Reviews & Customer Service
After looking through reviews on both TrustPilot and the BBB, Ally does not have the best reputation with customers. The company has received more than 1,300 BBB complaints over the past three years. However, we do want to note that these complaints are filed against Ally Financial, which covers Ally’s extended warranty plans.
Broadly, the complaints reported issues with long wait times, issues contacting Ally, and issues with customers’ credit after using Ally’s services. There were a few average ratings given to Ally, but the majority of ratings in 2020 were 2.0 stars or less.
Ally Auto Extended Warranty: Conclusion
Ally is a longtime warranty provider trusted by industry experts, however customer reviews are mixed. Three Ally extended warranty plans provide comprehensive coverage with a few perks, and we especially like Ally’s Flex Coverage plan and the possibilities it provides drivers. Overall, Ally is a good choice for extended protection.
Top Recommendations for Extended Car Warranties
Regardless of whether you choose to purchase an Ally extended car warranty, it’s always best to get multiple quotes from more than one provider. The additional information lets you compare cost and coverage options across the board. To aid in your search, we’ve provided recommendations for two reputable providers below.
Endurance: Best Overall
Known for its strong coverage and many added benefits, Endurance is the provider that performed best in our industry-wide review. Your first year of coverage comes with a free Endurance Elite Membership, which includes roadside assistance, tire repairs and replacements, key fob replacements, and other perks. Endurance is highly rated by experts and customers alike.
For an in-depth look at this warranty company, check out our complete Endurance review.
CarShield: Most Affordable
CarShield provides customers with affordable warranty plans without skimping on quality coverage. The provider has six different levels of coverage for maximum flexibility, including a plan specifically for high-tech and electrical components.
Read our comprehensive CarShield review for a full understanding of coverage. For a head-to-head comparison between CarShield and Endurance, read our CarShield vs. Endurance review.
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.
- 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.
- 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.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, availability, and years in business when giving this score.
- 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.
