This post is a Carchex Review. For those actively searching for Extended Warranty Programs for their Uber Vehicle(s), there is a new program by Carchex for Uber drivers called the “Protect My Uber” plan. Just so you know, Carchex has been in business since 1999 and has exclusive agreements with companies like Edmunds and Carfax.com. So, from all indications Carchex is a reputable business. They also have an A+ rating by the better business bureau (see here).
I spoke with Joe Campanella (the EVP of Business Development) about Carchex, and got some interesting information. I was also able to dig up some information about Carchex that can prove helpful in reviewing the business.
For those who don’t understand the difference between Insurance and Car Warranties – One statement that stuck out to me when I spoke with Joe was this “Insurance covers accident repair costs, but extended warranties cover unexpected auto repairs”. Read more below to see what I was able to find out about the Carchex plan for Uber drivers –
Availability of the “Protect My Uber” Plan
The “Protect My Uber” plan is currently available in 34 states in the U.S (AK, AK, CO, DE, D.C., FL, HI, ID, IN, KS, KY, ME, MA, MI, MN, MO, MT, NH, NJ, NM, NY, NC, ND, OH, PA, RI, SC, SD, TN, TX, VT, VA, WV, WY), but should be available nationwide soon. They currently have no plans to rollout internationally, but that might change. Their plan is also only available to Uber Partners with cars no older than 15 years and with less than 150,000 miles.
Benefits of the “Protect My Uber” Plan
- Compared to Standard Extended Warranty Plans – Standard Vehicle Protection Plans have an exclusion for livery, taxi and shuttle services which voids the Vehicle Protection Plan. This is not the case with the Carchex “Protect My Uber” Plan
- Tax Deductions – Expenses put towards your monthly extended warranty costs can be taken as tax deductions. (For more on Uber and Taxes, see our post here).
- Unexpected Car Repair Costs – The plan created by Carchex for Uber drivers protects drivers from unexpected repairs and mechanical breakdowns, which insurance doesn’t cover. Insurance covers accident repair costs, but extended warranties cover repairs which are sometimes routine for a car/vehicle. As an uber driver or Uber business owner, predicting your costs is the smart thing to do if you want to be profitable.
- Pre-Paid Maintenance – The Carchex Pre-Paid maintenance program allows an Uber driver to receive the following maintenance services every 6,000 miles during the term of their Vehicle Protection Plan – Oil change and filter; tire rotation; lubricate front suspension, steering linkage and ball joints; multipoint inspection including hoses, belts, tires, etc. Note, the Tire and wheel protection costs $15 a month, and the Pre-paid maintenance (Oil & Filter etc.) cost $9 a month.
- Free Trial –Per Joe Campanella (their EVP of Business Development)-“If for any reason you need to cancel before 30 days, you get a full refund”.
- Month-To-Month –Payment for the plan is month to month with 0% financing options available through Carchex.
- Cancelling your Plan – Carchex offers plan cancellations, and pro-rated refunds. By pro-rated refunds, it means if for example you decide to cancel after 3 months, of a 12 month program, you get the equivalent of 9 months back refunded to you.
- Signup Process – Go here to signup. Note -You only need your car’s VIN, exact miles and your street address to activate your protection plan with Carchex.
- Claims Process –If you need to file a claim, follow the steps below
- Step 1 – Take the vehicle to any licensed repair facility
- Step 2 – Have your car diagnosed and repair the vehicle
- Step 3 – Carchex will then pay for the parts, labor, taxes and the diagnostics directly to the repair facility.
Cost of the “Protect My Uber” Plan
The “Protect My Uber” currently costs between $100 to $150 per month, depending on the add-ons to the plan a driver selects.
Cons of the Program
Some of the things I don’t particularly like about the program are the following –
- Deductibles – You have to pay a deductible when you take your car in. (Granted, the deductibles range from $100 to $500 – depending on your plan). I don’t like deductibles. Per Joe, “the average deductible is around $100”.
- Maintenance Items not Included – Some maintenance items are not included in this plan – for example windshield wipers.
Our Carchex Review: for a brand new car, you probably don’t need an extended vehicle protection plan, (most cars generally don’t start having issues until they have about 60,000 miles or greater on them). For cars that have between 60,000 miles to 150,000 miles on them, getting the “protect my uber plan” might not be a bad idea (if your numbers make sense –download our financial calculator to determine if your numbers make sense).
Ultimately, making money is about increasing revenue (getting as many drivers and/or rides per car as possible within a set time) and managing or predicting your costs effectively. Your car maintenance/repair cost is a big part of your costs as an uber partner (driver and/or owner), and effectively managing this cost is important if you plan to make any real profit with your Uber Business.
The way i see it, if you have older vehicle(s) (60,000 miles or more), register for the “Protect Your Uber Plan” and if before 30 days you see it doesn’t make sense you cancel and lose nothing.
To Sign up for the Carchex “protect my uber plan” go here.
Other Interesting Uber Related Posts
For our blog posts on some of Uber’s Services, see the links below:
- An Introduction to Different Uber Services
- Uber Car Requirements: 420 Uber Black Cars Analyzed.
- Uber Car Requirements: 90 Uber SUV Vehicles Analyzed.
- Uber Car Requirements: 580 UberX Cars Analyzed.
- Uber Car Requirements: 115 UberXL Cars Analyzed.
For other popular posts you might be interested
in, check the links below:
- How Much Do Uber Drivers Make?
- Top Car Leasing Programs for an Uber Driver
- How to Find the Highest UberX Fares
- How to Become an Uber Driver
- Uber Customer Service
- Equipment Uber Drivers Need