Ally knows the auto industry, but does it offer the best extended warranty?

 
 

Ally was established in 1919 as a division of General Motors to help dealers finance new car inventories. Today, the company is one of the largest auto finance operations in the United States and offers both Ally extended warranty plans and flexible coverage. The extended warranty program is called Ally Premier Protection. 

Below, we give an in-depth analysis of Ally warranties – including coverage options, quotes, the claims process, customer reviews, and ratings – as well as compare Ally with some of the industry's best extended car warranty companies.

 

In this article:

 

 


 

Ally Overview

Ally has a full suite of digital financial services, including banking, home, real estate, auto, and trading.

The provider offers three extended warranty plans and standard roadside assistance benefits and reimbursements. We like how Ally has a Flex plan and several other protection plans in addition to traditional extended warranties. One big limitation is convenience though. Quotes and customer service assistance can be more difficult to get compared to other providers because you may have to go through the dealership.

 


 

Ally Extended Warranty Plans

Ally vehicle service contracts are available for new and eligible used vehicles up to 12 years/150,000 miles with a cap coverage of 200,000 miles. If you have an Ally extended warranty for your car, the company will reimburse you for the repair/replacement of any covered part. The parts used for the repairs may be new, used, or remanufactured. 

The Ally Premier Protection program offers three levels of extended warranties or vehicle protection plans: Major Guard®, Value Guard, and Basic Guard. 

  • Major Guard covers over 7,500 components across major vehicle systems such as the engine, transmission/transaxle/transfer case, front/rear-wheel drive, fuel delivery, heating and air conditioning, suspension, electrical, steering, braking system, high-tech, safety, and engine cooling. 
  • Value Guard protects over 2,900 components across major systems at the best value price. Covered systems include the engine, transmission/transaxle/transfer case, front/rear-wheel drive, fuel delivery, heating and air conditioning, suspension, electrical, steering, and braking system.
  • Basic Guard provides the most essential coverage for over 2,000 critical powertrain components like the engine, transmission/transaxle/transfer case, front/rear-wheel drive, and fuel delivery. 

Depending on the plan, the vehicle, and the dealer from whom you buy the plan, your deductible could be $0, $50, $100, or $200 (options may vary by sales channel). Also, all plans are transferable to a new owner (within 30 days of the transfer of ownership) for a $50 fee. 

If you cancel the contract within 60 days of purchase, you will be eligible for a full refund as long as you have not made a claim. If you cancel after 60 days or have filed a claim, you will be refunded a prorated amount minus a $50 cancellation fee. 

 


 

Additional Benefits

All three Ally extended warranty plans come with the following additional benefits:

  • Roadside assistance: This includes flat tire change, towing, battery jump, lock-out services, fuel delivery throughout the U.S. and Canada.
  • Trip interruption: If a covered breakdown occurs 100 miles away from home and your vehicle has to be kept overnight for repairs, Ally will reimburse you to at least partially cover travel and lodging expenses. This benefit is not available in Kansas. 

The Major Guard and Value Guard plans also offer rental car reimbursement benefits. 

If the vehicle is under a factory warranty or powertrain warranty, all of the above benefits will apply only for the amount not covered by the warranty.

 


 

What Is Not Covered By Ally’s Extended Warranty?

None of Ally’s protection plans offer coverage for rust damage or parts like bumpers, catalytic converters, wheels, lenses, lamp assemblies, charging units for electric/hybrid vehicles, and wear-and-tear items like brake pads. 

Damage due to misuse, abuse, negligence, natural calamities, improper maintenance, or accidents is also not covered.

As always, make sure you fully understand all of the terms and conditions of the contract.

 


 

Ally Flex Coverage

Ally offers Flex Coverage plans for customers who want month-to-month coverage for repairs without a long-term contract. If you have an Ally Flex extended warranty, you or Ally will have the freedom to renew the contract every month. The coverage will start one month from the date of purchase of the contract and will end one month after you stop your monthly payments, when the vehicle is more than 13 model years old, or after 10 years of continuous coverage. 

However, Ally Flex plans are available only for 2014 model year vehicles or newer with less than 75,000 miles on them. The plan cost will vary depending on the year, make, model, and mileage of the vehicle but could start at $32 per month. 

There are three types of Flex Coverage plans: Ultra, Core, and Tech. Ultra is comprehensive coverage, Core is similar to a “powertrain plus” plan, and Tech only covers high-tech components.

All three Flex plans come with additional benefits like roadside assistance, trip interruption, and rental car benefits similar to the Premier Protection plans. A big limitation is that you can only transfer the coverage to a new buyer if you live in Florida or North Carolina.

Ally’s Flex extended warranty deductible is calculated a little differently from other Ally extended warranties. 

  • If your car has run less than 10,000 miles after you purchased the contract, your deductible will be the amount you chose at the time of the purchase ($0 or $100). 
  • If you have driven more than 10,000 miles and your average annualized mileage is greater than 20,000 miles per year at the time of the claim, you will have to pay a high-mileage deductible of $500 instead of the original deductible you selected. Depending on the average annualized mileage at that time, the deductible may be different for each claim. 

 


 

How Much Does An Ally Extended Warranty Cost?

Extended warranty prices are customized to your car and plan selection, so getting a personalized quote is the best way to figure out how much your protection plan would cost. Our industry research shows that the average cost of an extended car warranty is about $2,862.

Unlike most third-party providers, Ally works in partnership with dealerships and doesn’t provide free online quotes. If you want to get a quote for an Ally extended warranty, you can contact Ally directly at 800-631-5590 or visit a participating dealership. The cost of the plan can be included in your auto loan, but don’t forget that this way, you will likely end up paying interest on it. 

 


 

Ally Extended Warranty Claims Process

According to our research, Ally’s extended warranty claims process works similarly to most other auto warranty providers. The Ally website clearly states that you can take your vehicle for covered repairs to any licensed repair facility or mobile mechanic in the U.S. or Canada. 

As with all extended warranty plans, Ally requires that you obtain prior authorization before performing any repair to be eligible for coverage.

Per the sample contract on the Ally website, the company may request to inspect the vehicle or ask you to provide more information, including maintenance records, before the repairs are done.

 


 

Ally Reviews And Ratings

The Ally website has sample contracts and detailed descriptions of the coverage offered under each plan. However, if you are a potential customer looking into buying an Ally extended warranty or researching your third-party options, help is not easily available. Since Ally works through participating dealers, Ally advises customers to reach out to their selling dealership with questions and to initiate claims, but customers can also contact Ally directly at 800-631-5590.

While Ally Financial enjoys an A+ rating from the Better Business Bureau (BBB), the company is not accredited with the BBB. 

 


 

Our Take On Ally: 4.0 Stars

Pros Cons

Three coverage options

High deductible for high-mileage vehicles in the Flex plans

Long history of working in the auto sector

Limited customer service options for potential customers

Month-to-month Flex coverage plans without long-term contracts

Often have to go through the dealer for quotes and customer service issues

 

When we compared Ally extended warranties with our Best Overall car warranty provider, Endurance, we found that buying a plan from Ally to be less convenient because you have to either contact the dealer for more information or contact Ally directly by phone.

In comparison, Endurance provides free, customized online quotes tailored to your vehicle, driving habits, and needs. We also like how Endurance and similar third-party providers focus on what they do best: extended car warranties. This service is just one of many Ally provides, so you might not be able to get the expertise you’d expect from a provider. 

Ultimately, we recommend that you shop around for the best coverage options for your car from top auto warranty providers like our recommended providers below. 

When shopping for extended warranties, the best thing to do is call around and get quotes customized to your specific vehicle. That way, you can compare each company’s prices and get a feel for customer service. Get a free quote from our top three providers below:

 
 

Read our guides to other warranty providers: