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Auto insurance is one of the most important things for car owners. Your car, after all, is a huge investment, and an extended warranty to cover mechanical issues and protect you from having to pay large out-of-pocket expenses in the event of an accident or breakdown can give you a lot of peace of mind.
Of course, we know that going through slabs of online text to be able to tell the best warranty companies from the scammy ones can be annoyingly cumbersome. This is pretty much why many people only realize they've made a bad decision once they've already handed over their money.
Hopefully, our in-depth look at Ally’s extended warranty plans below can help you avoid making the wrong decision. Check it out, they just might have the perfect warranty plan for you.
Ally Extended Warranty Overview
Ally was established in 1919 as a branch of General Motors to assist automobile dealers in their financing of new inventory. It's been in the finance operation industry for a long time now, and is currently among the largest finance operations in the US, providing a range of services from bank loans to home loans, They also offer auto loan financing for both new and used vehicles, as well as a wide range of vehicle service contracts for cars up to 150,000 miles (or 12 years).
- Major Guard: This is the most comprehensive plan Ally offers, and it covers more than just the essentials — over 7,500 components in your vehicle — including the engine, transmission system, fuel delivery, suspension, all electrical components, and a lot more.
- Value Guard: One step below Major Guard, this plan covers 2,900 components, including (but not limited to) the engine, fuel delivery, electrical, and braking system. It is the plan that will most fit into the average vehicle owner's budget.
- Basic Guard: This is the most affordable plan among the three and is for those with a tight budget. It provides coverage for 2,000 essential components in your vehicle.
Ally Protection Plans are pretty clear cut, and they offer a good number of perks such as 24/7 roadside assistance, towing coverage, and rental coverage. If you're from the USA or Canada, you can also avail of other perks such as lock-out services, towing services, and fuel delivery, which can feel heaven-sent after an unfortunate vehicular mishap.
In the event you get stranded after a breakdown or accident, Ally also offers trip interruption protection as one of its perks to reimburse you for whatever expenses you might incur, from food expenses to lodging, to even the cost of getting you back home. Some limitations do apply, however, and trip interruption isn't offered to vehicle owners who've bought their contract from Kansas.
On top of Ally's extended warranty plans, they also have what they call Flex Coverage, where customers can get month-to-month coverage without having to commit to a long-term plan. With Flex Coverage, you can renew your plan every month or discontinue it entirely. One thing to note, however, is that Ally only offers these plans for vehicle models 2014 above and with less than 75,000 miles on them. Ally's Flex plans will depend on the type of vehicle, mileage, make, and model, but will start at around $32/month. All Flex plans come with perks such as roadside assistance, trip interruption, and more.
Ally Extended Warranty Costs
Warranty costs are different for each plan and will depend on your dealer and vehicle. Deductible costs will range from $50-$200, and the plans at $50 are fully transferable on the condition it's transferred within a month (30 days) of the transfer of ownership.
In the event you change your mind, Ally will give you a full refund if you cancel your plan within 60 days of purchase without having made a claim. If you cancel your plan beyond the 60 days, you'll get a prorated amount and be charged a $50 cancellation fee.
Ally's Flex plans are renewable every month at a starting price of $32 per month, depending on the make and mileage of your car. If you're interested in a Flex plan, we suggest you contact Ally to get a more precise breakdown of the cost as this will depend on the overall condition of your car.
Things We Like About Ally’s Extended Warranty
Ally's three coverage plans that we discussed above are definitely worth taking a look at if you're on the market for an extended warranty plan for your car, especially since they are highly customizable to fit any budget. Another thing that gives us confidence in this company is that it has a good reputation in the industry, having been in the business for so long.
For the more budget-conscious who don't want to commit to a long-term plan, Ally's Flex coverage provides a welcome alternative. The Flex plans are renewable every month and allow customers to discontinue on short notice.
We also like Ally's Guaranteed Asset Protection (GAP), which covers the expenses that your primary insurer’s settlement won't cover in the event your vehicle is totaled or stolen.
Things We Don't Like About Ally’s Extended Warranty
Ally's coverage plans are impressive, but while they might appear too good to be true at first glance, prospective buyers need to know they come with limitations.
One example of this is the conditions a Flex plan has for vehicles to qualify; the vehicle can't be older than 2014 and can’t have more than 75,000 miles on it. Another thing about the Flex plan we found odd is that they are only transferable for residents of North Carolina and Florida.
Unfortunately, key details about Ally's plans are also missing from their website, and one who needs a precise breakdown of the costs and limitations will need to contact either a dealer or a broker to get the information.
Lastly, our biggest complaint is that Ally's plans don't provide coverage for wear-and-tear items like some extended warranty providers do. If you have an Ally plan and your vehicle gets damaged from negligence, misuse, or a calamity, then you're out of luck — don't bother filing a claim because these are among the things for which they oddly won't provide coverage.
If you already own Ally’s Extended Warranty and you are looking for an alternative, then we are suggesting that you take a look at one of CarShield's Warranty plans, which are offering extensive coverage at a competitive price.
Q. What is NOT covered by the Ally extended warranty?
All of Ally's extended warranty plans omit coverage for damage caused by negligence, misuse, and improper maintenance. Each plan will have different limitations, and it's best to check the fine print, or contact your provider to know what your plan excludes from coverage.
Q. Where is an Ally extended warranty accepted?
Not all dealerships accept the warranty, so it's best to check with your dealer or your agent to see which repair facilities are licensed by Ally.
Q. How can I contact Ally?
You can contact the company by calling their customer support number (1-888-925-2559). Based on our research, it can be challenging to get a representative on the line to handle your concerns because of their limited availability.
Ally Customer Reviews
Aside from the information above, it will also be good to check out what Ally customers have to say about their experience with the company. Hopefully, this will help you decide whether Ally is the right provider for you. below are a few reviews from real customers.
“Very customer-oriented. Excellent services. Quality product; operationally superior... Best on-line Bank ever. Easy of use stands out... Great menus.. Easy to find what you seek... Good access to prior statements online.” - Russell via ConsumerAffairs
“Up until this my experience with Ally was good. I paid my loan off early and have waited 13 calendar days and/or 10 business days to get the lien release document and still no document. The customer service lady Ice has been trying to help but nothing and I double-checked on the website and it says '10 days,' not 10 business days. Beware anyone that thinks this is a quick turnaround. Very frustrated because I have a buyer for the car who is growing impatient for the completely unnecessary delay. Ridiculous and very disappointing.” - M. Lisa via ConsumerAffairs
“Have been a customer using their banking products for 7 years. I never overdraft or pay silly fees. Had to use them for a wire transfer to pay off a loan. They called me to confirm my form details and made some corrections to ensure it would be accepted by my lender. It went through without an issue. Simple customer service interactions like this are always quick and completed by well-trained, polite folks. They used to have more competitive rates for savings, but it's been beaten by others like Citi as of late. That's the only reason for 4 stars instead of the full 5.” - Jacob via ConsumerAffairs
Is a Warranty from Ally Worth It?
Overall, we think Ally's extended warranty coverage plans are worth the money. The prices are competitive and the warranty packages cater to a range of budgets. Not only that, but they are also customizable to fit different needs and include a wide variety of perks such as roadside assistance, trip interruption, and more. We like that Ally can provide coverage for all kinds of vehicles too, whether new, used, or rental vehicles.
One enduring complaint people have of Ally is that their customer service needs improvement. Don't expect to be able to get a representative to assist you at a moment's notice. If quick service is something you feel you need, you're better off looking elsewhere.
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