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Preferred Warranties Inc

Is Preferred Warranties Inc. Your Ideal Warranty Provider?

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Is Preferred Warranties Inc. Your Ideal Warranty Provider?

Updated: September 12th, 2023

Deciding where to buy an extended auto warranty can be tough. In this review, we'll check out Preferred Warranties Inc. We'll look at what they offer, their plans, and their reputation to help you choose wisely.

With years of experience in the auto warranty industry, Preferred Warranties Inc. (PWI) has established a good reputation for offering comprehensive coverage plans and services. PWI has gathered a team of dedicated professionals committed to providing auto warranty services and protection for vehicle owners nationwide.


Nationwide coverage
Offers powersport coverage
Online claim process


Can only be bought at the time of vehicle purchase
No online quote
Not all the plans include benefits
Limited information
Not a direct provider


Quick Stats

BBB Rating
Cancelation Option
Customer Experience
Maintenance Coverage
Maximum Mileage
Money-Back Guarantee
Number of Plans Available
Repair Shop Choice
Yes, any licensed repair shop in the US or Canada
Term Limits
Trustpilot Score
4.5 out of 5
Waiting Period
Operating Status
Business Started
Online Quote
Not Available

An Overview of Preferred Warranties Inc.

Preferred Warranties Inc., founded in 1992 in Pennsylvania, started as a car dealership before expanding into vehicle warranties. Having been in business for many years, they offer a full line of vehicle service contracts for pre-owned cars, motorcycles, and ATVs for customers across the United States. Their plans range from comprehensive to powertrain, with a few extra benefits such as 24/7 roadside assistance. They sell their plans through numerous accredited dealerships nationwide. ASE-certified claim adjusters manage the repairs rather than third-party administrators. 

They received the Better Business Bureau's (BBB) Torch Award for Marketplace Ethics in 1998 and BBB accreditation since 1995, with an A+ rating.

Preferred Warranties Inc. Pros & Cons

Before making your decision on this company, it’s important to research and compare various auto warranty companies, focusing on their benefits and drawbacks. We’ve included some of the advantages and disadvantages that we found about PWI to help you make an informed decision. 

The advantages of Preferred Warranties Inc.

  • Offers powersport coverage: PWI offers specialized powersport coverage for motorcycles, ATVs, scooters, and more
  • Online claim process: PWI has an easy-to-navigate online claim process. This makes filing a claim simple and convenient
  • Nationwide: With their vast network of repair shops across the United States, you’ll easily find one wherever you are

The disadvantages of Preferred Warranties Inc.

  • Can only be bought at the time of vehicle purchase: Their contracts can only be purchased when you buy a pre-owned vehicle from their own network of dealerships 
  • No online quote: They don’t offer an online quote engine for customers to get an estimate on their vehicles
  • Not all the plans include benefits: Benefits like roadside assistance, rental car reimbursement, and fluid delivery aren’t included on all the plans they offer
  • Limited information: They provide limited information on their plans, exclusions, and prices, and there is no sample contract to refer to for the terms and conditions before making a decision
  • Not a direct provider: You can only purchase their warranties from authorized dealers, which may lead to miscommunication and inconvenience 

Preferred Warranties Inc.’s Plans, Prices & More

They offer different plans to choose from that are tailored to fit your specific needs and budget. Their plans cover major repairs for components such as the engine and transmission and the essential parts of your vehicle, such as the powertrain. Remember that they only sell their contracts through their dealership network and on a pre-owned vehicle at the time of purchase. It’s important to know that the plans for Florida, Alaska, and Washington are different in what they cover and what they don't.   


The Preferred Warranties Inc. website lacks comprehensive information about their plans' inclusions and exclusions. However, we have gathered all of the necessary information to help you make an informed decision. They list six plans for cars and an additional plan for motorcycles and ATVs. Their coverage extends up to 200,000 miles:

  • Powertrain: This plan covers the vehicle's most important components, such as the engine, transmission, differential, alternator, seals and gaskets, and 4WD and AWD
  • Base: This plan protects the engine, drive axle, electrical system, air conditioning, brakes, cooling, steering, and suspension
  • Plus: This plan offers additional protection for items like turbo elements, ABS, fuel delivery systems, high-tech electrical components, and more  
  • Extra Mile: If your vehicle still has factory coverage, this plan will cover the deductible you may be required to pay for repairs
  • Premier: This is an all-inclusive, tech-packed, exclusionary plan, which means if the component isn’t listed, it's covered
  • Budget: This plan protects your wallet with coverage and terms for budget-conscious customers
  • Powersports: This plan is available for motorcycles, snowmobiles, ATVs, and personal watercraft

It’s important to note that their warranty plans might not cover certain components such as tires, batteries, oil changes, catalytic converters, and emission components. The limits of their contracts depend on the plan you select and the vehicle you own. When you receive a sample contract from your dealership, be sure to carefully read the terms and conditions and ask the sales representative all the necessary questions before making a decision.

Extra benefits 

They also provide a few other benefits that vary depending on the plan. These benefits are as follows:  

  • Roadside assistance: Except for the Budget and Powersports plans, all plans include 24/7 roadside assistance, which includes mechanical first aid, towing and battery service, fuel delivery service, tire service, and lockout assistance
  • Fluids and filters: The Powertrain and Base plans include filters or fluids required for a covered repair. The Powertrain covers diagnostic charges up to $75
  • Rental vehicle reimbursement: Their Plus plan covers up to five days of rental car reimbursement, while the Base plan covers up to three days
  • Check Engine Light: Their Plus and Premier plans cover repairs that you need when the check engine light comes on, such as O2 and oxygen sensor, electronic ignition control module, and much more  


Even though they don’t provide information on pricing or payment plan options, our research has shown some customers paying between $2,000 and $4,000. One customer paid $2450 for a three-year or 100,000-mile Premier plan on his BMW. Some customers selected a $0 deductible, while others chose a $100 deductible. PWI doesn’t appear to provide any payment plans that allow you to pay off the total cost in affordable installments. Keep in mind that the overall cost will vary depending on the type of coverage you choose as well as the make and model of your vehicle. You can request a quote on your vehicle by contacting them or your dealership.

Are They a Good Fit for Your Vehicle?

If you meet the following criteria, you might want to buy coverage from this company:

  • On a budget: If you’re on a budget and considering a used vehicle, they offer a variety of extended warranty plans for different makes and models
  • Own a motorcycle or an ATV: If you’re considering purchasing a motorcycle or ATV, this warranty might be a good option for you

Preferred Warranties Inc. Reviews

We’ve found that online reviews of Preferred Warranties Inc. are mixed, with customers both praising and criticizing the company. They have a 4.03 rating on the BBB, a 2.7 rating on Yelp, and a 4.5 rating on Trustpilot. 

Customers appreciate how fast the company pays claims and gets repairs done. Customers also praise the company for the knowledgeable and helpful customer service representatives who guide them through the entire process and answer all their questions. Other customers liked the various levels of coverage offered to them and the affordable prices. It’s important to note that while there are good reviews, many of them are from partner companies like dealerships and repair shops, not actual customers who bought their plans.

Some customers had trouble with their claims being denied multiple times, making the process confusing and delaying repairs and payments. Getting in touch with customer service was also difficult for some, and certain vehicle parts weren't well-covered. Some customers also didn't like the repair shops in PWI's network.

When conducting your research, we recommend reading through all the reviews on websites such as the BBB, Trustpilot, and Yelp to better understand what type of experience you might expect with this company. 

Customer Support

If you want to get in touch with PWI, you can call their Customer and Dealer Service at 800-548-1121 or email them at For roadside assistance, you can call 866-222-7869. If you live in Alaska, Florida, or Washington State, you can call them at 855-268-1249 or email them at These states have separate pages for online claims and FAQs.

Their working hours are Monday through Friday from 6 AM to 5 PM MST. For more information, visit their website

When you need to file a claim, call PWI or submit an online claim through their website. Once your repair shop receives authorization, work can begin. The repair shop could be paid directly, or you could pay out of pocket and be reimbursed later.

Final Words

Preferred Warranties Inc. is a company that sells extended auto warranties through trusted dealerships and works with claim adjusters to manage and provide repairs. These claim adjusters play a crucial role in evaluating the claims made by warranty holders and ensuring that the necessary repairs or maintenance are conducted according to the terms of the warranty.

While there are benefits to purchasing a PWI warranty, like the diverse range of options, it's crucial to weigh in on the potential downsides, like its availability only at the time of vehicle purchase. Conducting a comparison between PWI and its competitors can help you make a well-informed choice. Additionally, customer reviews offer valuable insights into both positive and negative experiences shared by others.

So, is PWI the right choice for you? Consider the longevity of your vehicle and how an extended auto warranty can benefit you. Evaluate the cost-effectiveness of PWI compared to potential repair costs. Whether or not this company is the best choice for your vehicle depends on your specific circumstances and preferences. 

If you’re still unsure about PWI and want to look into other options in the auto warranty industry, visit our blog, review, and comparison pages for more information.

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