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Which Home Warranty Plan is the Cheapest?

Which Home Warranty Plan is the Cheapest?

As soon as we become homeowners, we want to protect our houses, and unlike home insurance, a home warranty covers unexpected malfunctions for home systems and appliances and saves our wallets from high repair costs. As we start selecting the plan that is best for our home, many questions arise.

If we just look at the price and buy the plan that costs less, will it give us the best value for our money? If plans in two different companies cost the same, will they provide the same coverage? Let’s take a look at the cheapest plans available on the home warranty/home appliance insurance market and try to find the answers to these questions.

Editor's Choice
97.0

Limited Time: New Customers Get $50 Off
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Best Overall
97.5

Limited Offer: $50 Off + 1 month free
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Most Affordable
96.5

Limited Time: $150 Off + 2 Free Months + roof coverage
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Cheapest home warranty plans

Choose your State:
Company
Plan
Premium (Year)
Deductible
Limit
Coverage
Get free quote
Company
Plan
Rating
Basic Plan
Level:
Silver
Type:
Combo
$517
$85
$500 - $3,000
57%
Details
Basic Plan
Rating: 97.50
Level:
Silver
Type:
Combo
Deductible
$85
Limit
$500 - $3,000
Premium(Year)
$517
Coverage
57%
Details
ShieldSilver Plan
Level:
Silver
Type:
Systems
$420
$125
$1,000 - $3,000
59%
Details
ShieldSilver Plan
Rating: 97.00
Level:
Silver
Type:
Systems
Deductible
$125
Limit
$1,000 - $3,000
Premium(Year)
$420
Coverage
59%
Details
Gold Care plan
Level:
Silver
Type:
Systems
$580
$60
$500 - $2,000
27%
Details
Gold Care plan
Rating: 96.50
Level:
Silver
Type:
Systems
Deductible
$60
Limit
$500 - $2,000
Premium(Year)
$580
Coverage
27%
Details
Appliance Guard plan
Level:
Gold
Type:
Appliance
$650
$75
$1,600
43%
Details
Appliance Guard plan
Rating: 96.10
Level:
Gold
Type:
Appliance
Deductible
$75
Limit
$1,600
Premium(Year)
$650
Coverage
43%
Details
Gold Plan
Level:
Silver
Type:
Combo
$571
$75
$400 - $500
50%
Details
Gold Plan
Rating: 95.50
Level:
Silver
Type:
Combo
Deductible
$75
Limit
$400 - $500
Premium(Year)
$571
Coverage
50%
Details

Top 3 Cheapest Home Warranty Companies

We’ve done the research for you on the best home warranty companies across the country so you don’t have to. Here are our top three picks, and why.

Company NameChoice Home WarrantyAmerican Home ShieldSelect Home Warranty
Number of Plan Options2 Plans3 Plans2 Plans
Monthly Plan Cost$45 – $55$35 – $65$36 – $45
BBB RatingBBB
ReviewsRead Choice Home Warranty ReviewsRead American Home Shield Reviews

Choice Home Warranty (Best Overall)

Choice Home Warranty is our top pick for exceptional value for your money. Not only do they have two inexpensive options for coverage in their Basic Plan and Total Plan, they offer the best coverage limits and outstanding service to customers. At $53 for the Total Plan, covering the essential appliances and systems that keep your home running, is the least expensive in our top three. 

Coverage limits – that is going to save you money when things go wrong – you are much less likely to have out-of-pocket expenses with the generous coverage limits Choice offers. With up to $3,000 available per year on many covered appliances and systems, you won’t be likely to spend your own money on repairs or replacement beyond what Choice will cover. American Home Shield has similar limits on some items, but Select has limits that go up to just $2,000. Not bad, but not quite at the level offered by Choice. 

Another factor to consider: claim denial. You can get cheap coverage, but if the company denies your claim, the repair is on you. Choice has a great reputation when it comes to claim acceptance. Our investigation into customer reviews shows that Choice is just half as likely to get complaints about claim denial compared with the industry average. Both AHS and Select have slightly higher claim denial rates. 

Right now, Choice is offering new customers a great deal: $50 off plus a free month of coverage. This will make that $53 premium even less for that first year of home warranty mobile home protection. Go online for a free quote, or call them at 929-400-6169 before this offer goes away.

American Home Shield (Most Customizable)

American Home Shield is the best option for comprehensive coverage for the money. There are cheaper plans out there, but it would be hard to find a cheaper plan that covers as much as an AHS Platinum Plan. 

It starts with the coverage, where 23 of your most important appliances and systems are covered. Choice and Select each cover about 18 items with their Platinum Plans. You can also save in other ways with American Home Shield. For instance, they allow you to “choose your own service fee” to get savings on your monthly premiums. So a comprehensive plan at $75 a month is a lot more expensive than the competition from Choice and Select. But if you opt for a $125 service fee, you can get that same comprehensive coverage for just $60 a month – $2 more than the Choice Total Plan. And if you choose the AHS Systems Plan at the higher service fee rate, you’ll pay just $35 per month. They also offer a pared-down Combo Plan for just $45 a month. That’s a lot of options for inexpensive coverage!

They also have a long list of optional add-ons that range in price from about $4 to about $21 per month, similar to both Choice and Select. But again, AHS offers more options, including things like home electronics coverage, and coverage for a guest house on your property.

With coverage limits between $1,000 and $3,000, AHS is similar to Choice in keeping more money for repairs on covered items in your pocket. It’s great to know that comprehensive coverage extends to the annual dollar limits as well as the number of items covered!

American Home Shield is also offering an incentive for new customers. You can get $50 off the plan of your choosing for some of the most comprehensive mobile home coverage you can get. To learn more, get a free quote online or request information about coverage from AHS at 866-464-7521.

Select Home Warranty (Most Affordable)

Select Home Warranty is a close runner-up to Choice in the value for the money department. You can get coverage for appliances or systems for as little as $52 per month, and you might as well go for their Platinum Combo Plan at $58 a month. System, Appliance, or Combo Plan, whichever you choose includes not just the major appliances and systems in your home, but roof leak coverage at no extra cost. That’s a nice bonus for an inexpensive plan. 

The other savings you will gain with Select is with the deductible, or service call fee. What can you expect to be charged when you contact Select with a claim and a service technician comes to your home? Where Choice charges $85 for a service call, and AHS charges as much as $125, Select has a flat $60 service fee. 

With inexpensive coverage, you might be concerned about the level of service you will receive. Select takes a spot in our top three exactly for this reason. Our research shows they get high marks when it comes to things like contractor professionalism and communication. Whatever you are shelling out for a home warranty plan, you want the company to communicate well and you want the people coming out to work on your home systems and appliances to be skilled and courteous. That’s what you get with Select. Cheap plans don’t have to mean skimping on essentials like customer service.

But we haven’t gotten to the best part of the value of Select for bargain hunters like you. Right now, they are offering $150 off plus two months free for new customers. That’s a tremendous savings. To learn more and take advantage of this deal, go online for a free quote or you can call a home warranty specialist directly at 866-464-7521.

Who Needs a Home Warranty?

Whether you are a homeowner, a buyer, a seller, a landlord, or a property manager, a home warranty is important to protect you from excessive repair and replacement costs for appliances and systems.

Homeowners

Homeowners stand to benefit greatly from buying a home warranty, especially if they have aged appliances. Since appliances don’t always last forever, they’ll need constant repair and servicing as they grow older. Having to pay for the repair of several appliances in a year is not exactly pocket-friendly, and this is where your $300- $600 becomes a lifesaver.

Homebuyers

Are you buying a house? Imagine after you’ve completed all the transactions and are starting to settle in the new home, the appliances start failing. Having spent all the money and time, the situation is stressful, annoying, and disorienting.

Well, a home warranty for buyers will give you great peace of mind, so you don’t have to worry about repairing appliances when you haven’t even used them or learned how to use some of them.

Landlords

Managing tenants is stressful in itself, but imagine if they keep calling for home repairs. Suppose you have a whole block of rental apartments. In that case, it becomes extensively costly and time-consuming to move from one unit to another, checking what needs to be repaired and following up with the various technicians.

However, with a home warranty for landlords in place, you just need to make a call to your home warranty provider and leave the rest to them. Companies like American Home Shield have a large network of technicians they contract and deploy to your home.

Home sellers

Did you know that a home warranty could help you sell faster? Well, try to picture a first-time buyer who has spent almost all of their savings on buying their dream home. Amid all the excitement, there’s a certain amount of fear and doubt, and knowing that their home is covered will give them a sense of security.

Other than acting as a deal sweetener, the home warranty also gives you higher bargaining power. This means that you can use this as an opportunity to sell it at the highest amount possible.

The home warranty for sellers works like a charm for real estate agents, sellers, and property managers when the home is up for sale.

Prices for the Cheapest Home Warranty Companies

Our team at ReviewHomeWarranties.com has reviewed analyzed over 68 different home warranty plans and want to tell you the best coverage options for your wallet. In thirteen companies, the prices of the cheapest home warranty insurance were less than $200 per year. Six companies priced their cheapest warranty plans from $200 to $250, another forty-two companies had a price range between $250 and $500, and in six companies, the prices ranged between $500 and $625.

If you’re looking for a trusted, industry-leading home warranty company, we recommend Choice Home Warranty. They’re a top-rated brand and right now you can take advantage of their current promotions that get you $50 off, plus one free month and free 30-Day cancellation. Get a free online quote or contact a specialist at 929-400-6169 before these deals end. Another great option is American Home Shield which offers $50 off. Get a free quote online or you can call a home warranty specialist directly at 866-464-7521.

Cheapest plan cost distribution

Such huge differences in the costs of the cheapest home warranty insurance are explained by the coverage offered by each plan. For example, the $43 plan in HomeServe USA is called the Appliances Plan. It only covers eight major home appliances. Alternatively, the Home-SAFE Warranty/ABC Home Services plan that is available for $625 for condominiums provides coverage for a wide range of home systems and appliances.

The Cheapest Home Warranty Plans

As of 9/17/2021 we at ReviewHomeWarranties have compared and rated 66 companies and their 243 plans for the 57 covered items. Come and see our findings and recommendations of the best value-for-money plans available right now:

How much money can you save if you choose the cheapest warranty cover for a year, which is how long home warranty plans usually last? To answer this question, we compared the prices for the cheapest and the most expensive plan within one company. The difference ranged from 18.3% to 82.6%. In the graph below, we show how much you can save if you buy the cheapest warranty plan in the company instead of the most expensive plan.

Savings distribution when selecting the cheapest plan

The data was collected from 67 home warranty companies. In four companies, there was no difference, all plans cost the same. In sixteen companies you could save between 10% and 29% if you purchased a cheaper plan. In the other twenty-six companies, the difference was between 30% and 49%. In the last group, the cheapest plan cost ranged from 52% to 89% percent less than the most expensive one. In Select Home Warranty, for example, you would pay 24% less for the cheapest plan, while in HelloSuper the difference would be 74%.

Coverage of the Cheapest Home Warranty Plans

What about similar-priced home warranty plans in different companies? How different is their coverage? To answer these questions, we selected five well-known home warranty companies: American Home ShieldTotal Home ProtectionChoice Home Warranty, Select Home Warranty, and First American Home Warranty to compare their cheapest plans. In all five companies, the cheapest plan costs around $35 per month. Now let’s see what every plan covers. 

In American Home Shield, there are two cheaper plans: The Systems Plan and the Appliance Plan. As we can infer from the name, the Systems Plan covers home systems: air conditioning, electrical, heating and plumbing, ceiling fans, alarm, doorbell, central vacuum, and water heater. The Appliance Plan, on the contrary, covers home appliances only. These include dishwasher, garage door opener, food center, microwave, oven, refrigerator, trash compactor, washer and dryer, and garage door. The service call fee for both plans is $125. 

In Total Home Protection, the cheapest plan is the Silver Combo Plan. It includes the plumbing and electrical system and the following appliances: dishwasher, garbage disposal, microwave, oven, trash compactor, and water heater. Additionally, this plan includes coverage for a swimming pool and a whirlpool bathtub. The service call fee, or deductible, in Total Home Protection is $60. 

The cheapest home warranty plan that Choice Home Warranty offers is the Silver Combo Plan for $34 a month. It includes coverage for heating and electrical systems, some kitchen appliances such as an oven, built-in microwave, dishwasher, garbage disposal, and fan. Also, this plan covers ductwork, water heater, and garage door. The deductible, or service call fee, is $60. As we can see, the cheapest plans in different companies may cost the same, but the coverage may vary significantly.

Select Home Warranty offers the most affordable yet comprehensive coverage for homeowners. This service provider has three plans; 

  • Bronze Care Plan
  • Gold Care Plan
  • Platinum Care Plan

The Bronze Care plan caters to home systems such as plumbing and HVAC systems and goes for $35.88 per month. The Gold care plan will protect