Key Takeaways
- Extended car warranties in California are highly regulated and considered as either vehicle service contracts or mechanical breakdown insurance.
- Only car dealerships can sell vehicle service contracts in California, so you can’t buy one online. However, you can purchase mechanical breakdown insurance online.
- Endurance, OIive, Carchex and autopom! offer vehicle protection plans and mechanical breakdown insurance with varying levels of coverage for California residents.
Many consumers across the U.S. purchase extended warranty plans to provide peace of mind once their vehicle’s manufacturer warranty expires. Vehicle repairs can be costly, and an extended warranty can keep you from paying out of pocket for repair bills. However, if you live in California, there are unique laws and regulations pertaining to extended car warranties that you’ll need to be aware of.
In this article, we at the MarketWatch Guides team will take a look at the extended car warranty laws in California and what they mean for you. We’ll also provide information on the best extended car warranties you can purchase in the Golden State.
View Plans For Our #1 Provider – Endurance
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Endurance
4.6
Reputation:8.8/10
Coverage:9.7/10
Cost:9.1/10
Transparency:9.5/10
Customer Experience:8.5/10
Quick Facts
- BestComprehensive Coverage
- Mileage Covered: Unlimited mileage
- Longest Warranty Term: Up to 8 years
- Money-Back Guarantee: Up to 30 days
- Coverage Options:6 different plans to choose from
- Discounts: $300 same-day signup discount, $250 shopping voucher and others
Plan Coverage and Perks
| Plan coverage includes | Endurance Elite perks™ |
|---|---|
| Exclusionary plan | One-year membership for free |
| Powertrain plan | Tire repair and replacement |
| Maintainance coverage with Endurance Advantage | Key fob replacement |
| Roadside assistance | Total loss protection |
| Towing | Collision discount |
| Rental car | $250 rewards voucher |
| Trip interruption coverage | Endurance Protect app |
Learn more about our methodology and editorial guidelines.
Extended Car Warranties in California
California has very specific and granular laws regarding extended car warranties. These state laws carefully regulate who can sell extended warranties, what these contracts can be called and what they can or can’t contain. Put into effect by the California Department of Insurance, these laws affect what protection you can buy and where you can buy it.
While extended car warranties can technically be sold within the state of California, they’re labeled as either vehicle service contracts (VSC) or mechanical breakdown insurance coverage. See more on key differences in the table below:
| Vehicle Service Contracts | Mechanical Breakdown Insurance |
|---|---|
| Considered a service contract | Considered an insurance policy |
| Prices aren’t regulated | Prices are regulated |
| Only car dealerships can sell them | Licensed insurance companies sell it and sometimes administer it through VSC companies, banks and credit unions |
What Is a Vehicle Service Contract?
Technically, “extended car warranty” is the proper term for a service contract from an auto manufacturer. In California and other places, companies that don’t create cars but help service vehicles following a mechanical failure sell what’s called vehicle service contracts. VSCs are often called “extended warranties” or “aftermarket warranties,” but these aren’t the proper terms.
VSCs are sold throughout the U.S., but in California, companies must have a special license and operate in accordance with certain regulations to sell them. If a company that isn’t a licensed car dealership attempts to sell VSCs to consumers, they could face felony charges. VSCs must be filed with the state, but there are no regulations on costs for these contracts.
What Are Vehicle Service Contract Providers?
Companies that hold special licenses allowing them to sell VSCs are referred to as vehicle service contract providers. They are legally responsible and obligated to pay the costs to repair your vehicle if it has a breakdown that’s covered by the terms in your contract.
These companies must also have a backup insurance company to pay for covered repairs if the original vehicle service contract provider goes out of business or decides to not honor a claim.
What Is Mechanical Breakdown Insurance?
Mechanical breakdown insurance (MBI) is similar to extended warranty coverage. It covers the costs of repairs from a mechanical breakdown caused by defects in parts or workmanship on a new vehicle or an older car. In California, this insurance is further regulated by the Department of Insurance Laws, and some laws that apply to this insurance don’t apply to vehicle service contracts.
For one, you can buy mechanical breakdown insurance from banks, credit unions, insurance agents and directly from car insurance companies. You can also purchase this coverage online from various warranty and auto insurance providers. However, if you choose to buy online, you’ll need to confirm that the company selling the MBI is licensed by the California Department of Insurance.
Best Extended Car Warranty Providers in California
Some extended vehicle warranty providers might be on the receiving end of cease-and-desist letters from the Department of Insurance in California. Other companies could be deterred by the stringent laws that California enforces. Either way, there are reputable providers that comply with the laws that offer vehicle service contracts and mechanical breakdown insurance policies that will suit your needs.
Following our comprehensive review, we suggest obtaining car warranty quotes for your new car or older vehicle from Endurance, Olive, Carchex and autopom!. Learn more about each of our top picks below.
Endurance: Best Comprehensive Coverage
Call Endurance at844-830-9923
Overview
Endurance earned the highest score in our industry-wide review, with an overall rating of 9.3 out of 10. We appreciate that Endurance is a direct provider to consumers — this is rare in the extended warranty industry and helps provide a more hassle-free claims process. Endurance’s direct-to-consumer model means that you’ll deal with Endurance from start to finish without the need to work with a third-party contract administrator.
You’ll find three coverage options for California residents in addition to optional add-ons with Endurance. Endurance currently holds an A- rating from the Better Business Bureau (BBB), along with an average customer review of 3.7 out of 5 stars.
Read more about what this provider has to offer in our Endurance warranty review.
We reached out to Endurance for comment on its subpar customer review BBB rating but didn’t receive a response.
Endurance Mechanical Breakdown Insurance Coverage
See below for details on Endurance’s mechanical breakdown coverage options:
| Endurance Mechanical Breakdown Insurance | What It Covers |
| Elite Plus | This is Endurance’s most comprehensive plan, similar to factory warranty coverage. It covers virtually every part of your vehicle minus a short list of exclusions. |
| Premium | Premium is a high-level, named-component coverage from Endurance. It covers everything included under the Standard plan in addition to enhanced electrical and luxury component coverage. |
| Standard | Protecting the most vital components of your vehicle, the Standard plan is great for those looking to keep their vehicle on the road at a great price. |
Endurance MBI Add-Ons
Endurance offers several add-on options with its MBI service plans, including the following:
- Covered part cause of loss coverage
- Emissions coverage
- Business use option
- Lift kit/oversized tires coverage
- Snowplow option
You’ll also find towing reimbursem*nt, rental car reimbursem*nt and trip interruption benefits with mechanical breakdown insurance coverage from Endurance. These benefits are usually the standard in the extended warranty industry.
Positive reviews praise the company’s professionalism and excellent service, while negative reviews discuss issues with the company’s marketing tactics.
Endurance: Best Comprehensive Coverage
9.3/10
Overview
Endurance earned the highest score in our industry-wide review, with an overall rating of 9.3 out of 10. We appreciate that Endurance is a direct provider to consumers — this is rare in the extended warranty industry and helps provide a more hassle-free claims process. Endurance’s direct-to-consumer model means that you’ll deal with Endurance from start to finish without the need to work with a third-party contract administrator.
You’ll find three coverage options for California residents in addition to optional add-ons with Endurance. Endurance currently holds an A- rating from the Better Business Bureau (BBB), along with an average customer review of 3.7 out of 5 stars.
Read more about what this provider has to offer in our Endurance warranty review.
We reached out to Endurance for comment on its subpar customer review BBB rating but didn’t receive a response.
Endurance Mechanical Breakdown Insurance Coverage
See below for details on Endurance’s mechanical breakdown coverage options:
| Endurance Mechanical Breakdown Insurance | What It Covers |
| Elite Plus | This is Endurance’s most comprehensive plan, similar to factory warranty coverage. It covers virtually every part of your vehicle minus a short list of exclusions. |
| Premium | Premium is a high-level, named-component coverage from Endurance. It covers everything included under the Standard plan in addition to enhanced electrical and luxury component coverage. |
| Standard | Protecting the most vital components of your vehicle, the Standard plan is great for those looking to keep their vehicle on the road at a great price. |
Endurance MBI Add-Ons
Endurance offers several add-on options with its MBI service plans, including the following:
- Covered part cause of loss coverage
- Emissions coverage
- Business use option
- Lift kit/oversized tires coverage
- Snowplow option
You’ll also find towing reimbursem*nt, rental car reimbursem*nt and trip interruption benefits with mechanical breakdown insurance coverage from Endurance. These benefits are usually the standard in the extended warranty industry.
Positive reviews praise the company’s professionalism and excellent service, while negative reviews discuss issues with the company’s marketing tactics.
Olive: Convenient Online Process
Overview
We awarded Olive.com® (Olive®) with a score of 8.2 out of 10 in our comprehensive review, taking into account its reputation, coverage options, cost, transparency and customer reviews. If you’d prefer to buy protection for your vehicle online, Olive may be your best bet. Just like Olive’s extended warranty offerings, you’ll find three mechanical breakdown insurance plans to choose from that provide varying levels of coverage.
Read more about this provider in our full Olive review.
Olive Mechanical Breakdown Insurance Coverage
See the table below for more information on Olive’s Complete Care, Powertrain Plus and Powertrain mechanical breakdown insurance coverage options:
| Olive Mechanical Breakdown Insurance | What It Covers |
| Complete Care | The most comprehensive plan offered by Olive is considered exclusionary coverage, as it covers just about everything on your vehicle except for a short list of excluded items such as tires, windshield wipers and brake pads. |
| Powertrain Plus | This covers more than just the major parts covered by Olive’s Powertrain plan. You’ll find additional coverage for power steering, front suspension, brakes and air conditioning components on your vehicle. |
| Powertrain | This plan provides basic powertrain coverage to protect your vehicle’s engine, transmission and other expensive parts — like your thermostat, turbocharger and water and oil pumps. |
Olive MBI Add-Ons
Olive offers coverage for cars up to 10 years old with up to 140,000 miles on them. In addition, mechanical breakdown insurance with Olive has no yearly mileage restrictions for up to 185,000 miles on your vehicle. It also doesn’t require a waiting period for coverage to take effect, unlike other providers that typically require a waiting period of 30 days and/or 1,000 miles.
Additional perks that come with Olive’s mechanical breakdown insurance plan include:
- Towing coverage
- Rental car coverage
- Trip interruption coverage
If you’re a California resident that’s worried about the legitimacy of buying online with Olive, you can purchase a contract with confidence. Far from being a scam, the company is backed by QBE Insurance Group Limited, which has an A (Excellent) rating with AM Best. This indicates a strong financial standing and an ability for Olive to pay out claims. Olive also has an A+ rating with the BBB.
Olive: Convenient Online Process
8.2/10
Overview
We awarded Olive.com® (Olive®) with a score of 8.2 out of 10 in our comprehensive review, taking into account its reputation, coverage options, cost, transparency and customer reviews. If you’d prefer to buy protection for your vehicle online, Olive may be your best bet. Just like Olive’s extended warranty offerings, you’ll find three mechanical breakdown insurance plans to choose from that provide varying levels of coverage.
Read more about this provider in our full Olive review.
Olive Mechanical Breakdown Insurance Coverage
See the table below for more information on Olive’s Complete Care, Powertrain Plus and Powertrain mechanical breakdown insurance coverage options:
| Olive Mechanical Breakdown Insurance | What It Covers |
| Complete Care | The most comprehensive plan offered by Olive is considered exclusionary coverage, as it covers just about everything on your vehicle except for a short list of excluded items such as tires, windshield wipers and brake pads. |
| Powertrain Plus | This covers more than just the major parts covered by Olive’s Powertrain plan. You’ll find additional coverage for power steering, front suspension, brakes and air conditioning components on your vehicle. |
| Powertrain | This plan provides basic powertrain coverage to protect your vehicle’s engine, transmission and other expensive parts — like your thermostat, turbocharger and water and oil pumps. |
Olive MBI Add-Ons
Olive offers coverage for cars up to 10 years old with up to 140,000 miles on them. In addition, mechanical breakdown insurance with Olive has no yearly mileage restrictions for up to 185,000 miles on your vehicle. It also doesn’t require a waiting period for coverage to take effect, unlike other providers that typically require a waiting period of 30 days and/or 1,000 miles.
Additional perks that come with Olive’s mechanical breakdown insurance plan include:
- Towing coverage
- Rental car coverage
- Trip interruption coverage
If you’re a California resident that’s worried about the legitimacy of buying online with Olive, you can purchase a contract with confidence. Far from being a scam, the company is backed by QBE Insurance Group Limited, which has an A (Excellent) rating with AM Best. This indicates a strong financial standing and an ability for Olive to pay out claims. Olive also has an A+ rating with the BBB.
Carchex: Best Industry Reputation
Overview
Carchex earned a 9.1 out of 10 in our review and recognition for being a provider with a Great Industry Reputation. Its website states that coverage is available in California, but doesn’t specifically mention if the coverage offered is considered mechanical breakdown insurance. As Carchex does work with dealers, it’s likely that the vehicle service contracts it offers are sold through dealerships in accordance with California law.
Carchex is partnered with industry giants like Edmunds, Carfax, RepairPal and Kelley Blue Book, solidifying it as a reputable provider. It also has an A+ rating with accreditation from the BBB.
Read more about this provider in our Carchex review.
Carchex Vehicle Service Contract Coverage
You’ll find five levels of coverage for your vehicle with Carchex. You can also find sample contracts on its website that will give you a further breakdown of coverage.
| Carchex Plan | What It Covers |
| Titanium | Similar to manufacturer warranty coverage, the Titanium plan offers coverage for every component of your vehicle minus a short list of excluded parts. |
| Platinum | The highest stated-component plan option available, this protects all major systems on your vehicle with hundreds of specific parts listed out in the contract. |
| Powertrain Plus | This plan is a step up over the basic Powertrain plan from Carchex because it provides essential coverage for your vehicle’s most important components. |
| Powertrain | This plan offers basic coverage for your vehicle’s powertrain components, like the engine and transmission. |
| Extra Care | Extra Care provides coverage for parts outside of your powertrain, such as electrical, steering, suspension and braking system components. |
Carchex Plan Perks
Carchex protection plans are available for high-mileage vehicles with up to 250,000 miles on them, making the company a great provider of used car warranties and extended warranties for cars over 100,000 miles. In addition, Carchex offers a 30-day money-back guarantee if you’re not satisfied with your purchase.
Some perks that Carchex provides with its vehicle service contracts include:
- Your choice of auto repair facility
- 24/7 roadside assistance
- Rental car reimbursem*nt
- Trip interruption reimbursem*nt
Carchex: Best Industry Reputation
9.1/10
Overview
Carchex earned a 9.1 out of 10 in our review and recognition for being a provider with a Great Industry Reputation. Its website states that coverage is available in California, but doesn’t specifically mention if the coverage offered is considered mechanical breakdown insurance. As Carchex does work with dealers, it’s likely that the vehicle service contracts it offers are sold through dealerships in accordance with California law.
Carchex is partnered with industry giants like Edmunds, Carfax, RepairPal and Kelley Blue Book, solidifying it as a reputable provider. It also has an A+ rating with accreditation from the BBB.
Read more about this provider in our Carchex review.
Carchex Vehicle Service Contract Coverage
You’ll find five levels of coverage for your vehicle with Carchex. You can also find sample contracts on its website that will give you a further breakdown of coverage.
| Carchex Plan | What It Covers |
| Titanium | Similar to manufacturer warranty coverage, the Titanium plan offers coverage for every component of your vehicle minus a short list of excluded parts. |
| Platinum | The highest stated-component plan option available, this protects all major systems on your vehicle with hundreds of specific parts listed out in the contract. |
| Powertrain Plus | This plan is a step up over the basic Powertrain plan from Carchex because it provides essential coverage for your vehicle’s most important components. |
| Powertrain | This plan offers basic coverage for your vehicle’s powertrain components, like the engine and transmission. |
| Extra Care | Extra Care provides coverage for parts outside of your powertrain, such as electrical, steering, suspension and braking system components. |
Carchex Plan Perks
Carchex protection plans are available for high-mileage vehicles with up to 250,000 miles on them, making the company a great provider of used car warranties and extended warranties for cars over 100,000 miles. In addition, Carchex offers a 30-day money-back guarantee if you’re not satisfied with your purchase.
Some perks that Carchex provides with its vehicle service contracts include:
- Your choice of auto repair facility
- 24/7 roadside assistance
- Rental car reimbursem*nt
- Trip interruption reimbursem*nt
autopom!: Best Customer Service
Overview
Autopom! earned 9.2 out of 10 in our review for its excellent customer service reputation. It partners with various brands such as Mercury Mechanical Protection and Omega Auto Care to provide extended auto warranties to consumers across America. It also has high customer ratings across platforms like the BBB and Trustpilot, with 93% of ratings through Trustpilot being either four or five stars.
Read more about this provider in our autopom! review.
autopom! Mechanical Breakdown Insurance
The mechanical breakdown insurance that autopom! offers to California residents is provided in partnership with Olive, another one of our top providers. However, it’s unclear if autopom!’s plans are exactly the same or different from what Olive offers consumers through its website.
See the table below for coverage plans through autopom! that are currently available:
| autopom! Plan | What It Covers |
| Exclusionary | Similar to a bumper-to-bumper warranty, this provides comprehensive coverage for every component in your vehicle minus a list of exclusions. |
| Mid-Level | The major systems of your vehicle are covered in addition to the components protected with the Powertrain Plus plan. This includes steering, electrical and braking system components. |
| Powertrain Plus | A true powertrain warranty that offers protection for the essential components of your car such as the engine, drive axles, transmission and air conditioning. Coverage for basic electrical components may be offered depending on which plans are available where you live. |
autopom! Plan Perks
Autopom!’s MBI is backed by autopom! Insurance Services, LLC. Autopom! mentions that your state of residence will impact your eligibility for the plans it offers to car owners, so your best bet is to get a free quote to see coverage options available in California.
Extra perks that autopom! provides with its vehicle protection plans include:
- Rental car assistance
- Nationwide breakdown coverage
- 24/7 roadside assistance
- Tire protection
- Trip interruption reimbursem*nt
- Repair shop of your choice for covered car repairs
autopom!: Best Customer Service
9.2/10
Overview
Autopom! earned 9.2 out of 10 in our review for its excellent customer service reputation. It partners with various brands such as Mercury Mechanical Protection and Omega Auto Care to provide extended auto warranties to consumers across America. It also has high customer ratings across platforms like the BBB and Trustpilot, with 93% of ratings through Trustpilot being either four or five stars.
Read more about this provider in our autopom! review.
autopom! Mechanical Breakdown Insurance
The mechanical breakdown insurance that autopom! offers to California residents is provided in partnership with Olive, another one of our top providers. However, it’s unclear if autopom!’s plans are exactly the same or different from what Olive offers consumers through its website.
See the table below for coverage plans through autopom! that are currently available:
| autopom! Plan | What It Covers |
| Exclusionary | Similar to a bumper-to-bumper warranty, this provides comprehensive coverage for every component in your vehicle minus a list of exclusions. |
| Mid-Level | The major systems of your vehicle are covered in addition to the components protected with the Powertrain Plus plan. This includes steering, electrical and braking system components. |
| Powertrain Plus | A true powertrain warranty that offers protection for the essential components of your car such as the engine, drive axles, transmission and air conditioning. Coverage for basic electrical components may be offered depending on which plans are available where you live. |
autopom! Plan Perks
Autopom!’s MBI is backed by autopom! Insurance Services, LLC. Autopom! mentions that your state of residence will impact your eligibility for the plans it offers to car owners, so your best bet is to get a free quote to see coverage options available in California.
Extra perks that autopom! provides with its vehicle protection plans include:
- Rental car assistance
- Nationwide breakdown coverage
- 24/7 roadside assistance
- Tire protection
- Trip interruption reimbursem*nt
- Repair shop of your choice for covered car repairs
What Do Extended Car Warranties in California Cost?
After spending over 500 hours researching extended warranty providers, our team found that the average extended car warranty costs $4,329 in total. This average was calculated using quotes gathered from some of the industry’s largest third-party providers.
Your costs may vary depending on if you choose to purchase a vehicle service contract or mechanical breakdown insurance. To make contracts more affordable, most customers choose a monthly payment plan rather than paying off the total cost all at once.
Here’s how a few other key factors help determine the cost of an extended warranty plan:
- Vehicle make and model: Luxury cars, classic cars and high-performance vehicles cost more to cover than traditional daily drivers.
- Vehicle age: Older vehicles are more likely to require expensive repairs, so it typically costs more to protect them with an extended warranty.
- Mileage: High-mileage vehicles are prone to mechanical breakdowns, so they’re more expensive to cover with a warranty.
- Coverage level: You’ll pay more for comprehensive coverage than for a basic powertrain plan.
- Deductible: If you select a higher deductible, you’ll have lower monthly payments but also pay more out of pocket for covered repairs. A lower deductible means you won’t pay as much out of pocket but will see higher monthly payments.
- Provider: Warranty costs vary by provider, which is why it’s always best to compare quotes from several reputable companies.
Best Extended Car Warranty in California: The Bottom Line
It can be difficult to find an extended car warranty in California. Well-known and reputable providers such as CarShield and American Dream Auto Protect have chosen not to sell their car warranty plans in the state.
Consider providers such as Endurance, Olive, autopom! and Carchex to help you with repair costs in the event of a breakdown through vehicle service contracts and mechanical breakdown insurance.
We encourage you to get free extended car warranty quotes from several reputable providers that offer plans in California. This way, you’ll find the best protection at a price that suits your needs.
Endurance
4.6
Reputation:8.8/10
Coverage:9.7/10
Cost:9.1/10
Transparency:9.5/10
Customer Experience:8.5/10
Quick Facts
- BestComprehensive Coverage
- Mileage Covered: Unlimited mileage
- Longest Warranty Term: Up to 8 years
- Money-Back Guarantee: Up to 30 days
- Coverage Options:6 different plans to choose from
- Discounts: $300 same-day signup discount, $250 shopping voucher and others
Plan Coverage and Perks
| Plan coverage includes | Endurance Elite perks™ |
|---|---|
| Exclusionary plan | One-year membership for free |
| Powertrain plan | Tire repair and replacement |
| Maintainance coverage with Endurance Advantage | Key fob replacement |
| Roadside assistance | Total loss protection |
| Towing | Collision discount |
| Rental car | $250 rewards voucher |
| Trip interruption coverage | Endurance Protect app |
Best Extended Car Warranty in California: FAQ
Here are some frequently asked questions about the best extended car warranty in California:
Endurance is our top pick for extended vehicle protection in California and the U.S. overall. The company combines extensive coverage options, affordable rates and an excellent industry reputation. Endurance is also a direct warranty provider, which means there’s no intermediary to deal with when you need to file a claim.
Doing extensive research on well-known providers can help you choose the right extended car warranty. Before settling on a provider, consider a company’s reputation, coverage options, cost, customer ratings and transparency with customers.
California laws on extended car warranties are much more strict than in other states. Companies have to stick to a set of regulations if they’d like to sell their vehicle service contracts or mechanical breakdown insurance policies there. Because of this, some companies such as CarShield have chosen not to operate in California.
The best warranty for your car will depend on your individual needs. Many warranty providers offer varying levels of coverage that allow you to find the exact level that your vehicle needs. Shopping around and getting quotes from various providers will help you find what’s best.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best extended car warranty companies. We collected data on dozens of auto warranty providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for warranty coverage, long contract terms and added benefits are more likely to meet consumer needs.
- Cost (30% of total score): Auto warranty companies with affordable rates and multiple deductibles score highest in this category.
- Transparency (20% of total score): This score is based on contract transparency and the availability of a money-back guarantee.
- Reputation (10% of total score): Our research team considers availability, ratings from industry experts and years in business when conferring this score.
- Customer Experience (10% of total score): Based on customer satisfaction ratings and our extensive shopper analysis, we consider the responsiveness, friendliness and helpfulness of each warranty company’s customer service team.
Our credentials:
- 500+ hours researched
- 40+ companies reviewed
- 2,000+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
