In the last few years, the vehicle service contracts industry in the U.S. has gained some notoriety due to several disreputable companies populating the industry. This has led the industry trade association, The Vehicle Protection Association, to develop stringent practices collectively called the VPA Standards of Conduct. All reputable companies working within the industry are expected to adhere to those standards.
This tells us more about the importance of choosing the right company or administrators like Red Shield Administration and others once you have decided to buy a vehicle protection plan for your car. The five most reputable vehicle protection companies are listed below to help readers choose the right vehicle protection plan.
In creating this list, several factors were taken into account, including the industry reputation of the company, customer reviews at major consumer reviews platforms, company history, transparent business practices, ease of use of a company’s offered auto protection plans, and the awards and honors the company has won for itself.
Carchex, Endurance, Autopom, Protect My Car, and Red Shield Administration is all compared based on the criteria above to help you make the best decision regarding your vehicle protection plan.
Top 5 Reputable Vehicle Protection Companies
Carchex enjoys excellent customer reviews and ratings at BBB and Trustpilot, one of the oldest vehicle protection companies in operation.
An A+ rating holder at BBB, Carchex has had to deal with very few customer complaints in the last three years, especially considering the company’s size and reach (Carchex has operations in all 50 U.S. states).
At Trustpilot, the company has an average rating of 3.1/5., based on close to 1,465 reviews. Although the rating does not look too impressive, we must point out that as many as 86% of reviewers gave the company a 4-star or higher rating.
As for its industry reputation, we can get a fair view of that from the fact that the provider is backed by some of the industry leaders in the auto insurance and finance sector (RepairPal, CARFAX, Edmunds.com, and Kelly Blue Book).
In addition, the company works with insured administrators like Royal Administration Services and American Auto Shield to offer convenient and financially sound vehicle protection plans to its customers.
Awards & Honors:
- Carchex has featured as many as eight times in the INC. 5000 list of fastest-growing companies. It also boasts multiple features on the Top Consumer Review and Top Work Places lists.
- In the 2017 Golden Bridge Awards, Carchex was the Silver Award Winner in the Customer Service Department of the Year category.
Unlike the other companies in this list, Endurance is a direct vehicle service contract provider, meaning that it handles all sales of the contracts and claims processing on its own, without mediation from separate administrators or vendors.
This is something that customers value highly about the company since it means that they get to work with the same customer rep team when filing a claim as they did when they signed their contract policy.
All Endurance plans are backed by A+-rated insurers, which means that customers risk finding their policies going null and void under no circumstances.
As for customer reviews, the company currently has a review score of 4.2 at Trustpilot and 3.4 at BBB. Most Endurance reviewers mention their positive experiences working with the company’s knowledgeable and friendly customer rep team.
We must mention here that the relatively low score at BBB (coupled with its current C+ rating at the site) is due in most part to the recent mailers that the company had sent out to its existing customers and prospects and which have reportedly created some degree of confusion among the recipients.
Awards & Honors:
- In 2020, Endurance featured in the Inc. 5000 list as one of the country’s fastest-growing privately held companies.
- The company was also the Bronze awardee at the 2019 Stevie Awards for Great Employers, which reflects the excellent work culture within the company.
The company’s title comes from the phrasing ‘automotive peace of mind,’ and we can safely say that the provider has done justice to its name.
Much like Endurance, Autopom believes in directly working with its customers. However, the company is partnered with several administrators; the in-house customer service team deals with all potential and existing customers regarding navigating the service contracts and filing a claim.
The company boasts an impressive customer review score of 4.6/5 at BBB and holds an A+ rating. More importantly, at BBB, only one customer complaint has been lodged against the company in the past three years!
At Trustpilot, Autopom has a similarly impressive consumer review rating of 4.5/5, although this is based on only about 100 reviews.
4. Protect My Car
Protect My Car is the only company on this list whose employees are certified by the Association of Certified Vehicle Protection Professionals. This certification focuses on consumer protections, ethical business practices, and most importantly perhaps, on the Magnuson-Moss Warranty Act supervised by the Federal Trade Commission.
As for Protect My Car reviews, the provider holds an A+ rating at BBB in addition to enjoying an impressive review score of 4.2/5, while Trustpilot appoints a 4.5-star rating to the company, based on 3,080 posted reviews.
Most reviewers on both platforms comment on the company’s straightforward claims processing and quality customer support.
5. Red Shield Administration
How an organization treats one of its most valued assets, namely its employees, is a good reflection of the overall culture of the organization as well as its relationship with its customers.
And this is where Red Shield Administration differentiates itself from its competition. Although all other companies on this list seem to have a happy and healthy work environment (as is evident from some of their awards and certifications), none can beat Red Shield on this front, and the glowing reviews posted at Indeed by the company’s current and former employees are a clear testimony to that.
Most of these reviews mention that the company is equally meticulous about keeping its employees and customers happy and satisfied.
As for employees, it is about providing an outstanding work-life balance, while with customers, it is all about being transparent, honest, accessible, and responsive, not to mention offering state-of-the-art products and innovative solutions. Team members can hardly have a good time unless the company gives them great products to sell.
And Red Shield Administration’s commitment to providing novel solutions and excellent products to its customers is amply illustrated by the fact that the company offers, in addition to the normal range of exclusionary and stated-component coverage plans.
There are two separate protection plans for RV and mobile homeowners (RED Shield Rec) and owners of ATVs, scooters, motorcycles, personal watercraft and snowmobiles (RED Shield Motorsport).