Key Takeaways
- Independent extended car warranty companies typically offer more coverage options than automakers.
- Extended warranties can cost anywhere from $372 to over $2,000 per year, depending on your coverage level and vehicle, with an average annual price of $977, according to our research.
- The easiest way to get a good deal for an extended car warranty is to compare free quotes from multiple reputable third-party companies.
- Pay attention to each extended warranty company’s customer service, coverage options and cost as you shop.
In this article, we at the MarketWatch Guides team share tips for buying an extended warranty. We’ll focus on coverage options, cost estimates and the differences between third-party plans and manufacturer-backed policies. We’ll also delve into the pros, cons and average costs associated with purchasing an extended warranty. This report will both discuss what you should look for when considering coverage plans from the market’s best extended car warranties and include a ranking of the best extended car warranty companies to help make your decision even easier.
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.
Buying An Extended Car Warranty
Buying an extended car warranty should be simple for most drivers as long as they know what they want. If you’re purchasing a new or used car from the dealership, you’ll likely have the choice to buy extended factory coverage. If you’re on the lookout for similar protection at what could end up being a lower rate, turn to a third-party extended car warranty company.
What To Look For in an Extended Warranty Company
With many extended auto warranty providers on the market, it might feel overwhelming when deciding which one to choose. We recommend carefully considering the factors below before making final coverage decisions.
Industry Standing
Pay close attention to a company’s industry standing, as you don’t want to get involved with a company that scams consumers. Check for industry awards, customer reviews, and each provider’s rating from the Better Business Bureau (BBB). These are strong indicators of whether or not a provider is a legitimate extended car warranty company.
Coverage Plans
If you find a provider that offers a good variety of customizable coverage options for both new and high-mileage used vehicles, it’ll be easier for you to find what you need. Extended warranty companies often offer perks such as rental car reimbursem*nt or roadside assistance, so look out for these as well.
Average Costs
While our team found that the total cost of an extended warranty is usually around $977 per year, your price will depend on various factors. We recommend getting quotes from several reputable extended car warranty companies to compare costs and coverage.
Transparency
Consider how transparent a company is with its sample contracts, plan descriptions and money-back guarantees. You don’t want to purchase an extended car warranty from a company that surprises customers with hidden costs or fees. Read each contract’s fine print to make sure you choose a provider that’s upfront with all drivers.
Customer Service
If the time comes for you to file a claim with your extended warranty provider, you’ll want an easy and hassle-free experience. Find a company that has strong reviews concerning the claims process. This is a good indicator that you’ll have a similar experience.
Our Extended Car Warranty Survey
In October 2023, we surveyed 1,000 warranty owners to learn how they felt about their purchasing process. A majority of the respondents — 88% — said that coverage was the most significant factor in choosing a warranty provider, which makes sense, considering that 71% opted for a comprehensive, bumper-to-bumper plan.
When asked what they’d do differently if they could do the warranty-buying process over again, 35% said they’d get better or longer coverage, and 32% wished they’d compared more companies before purchasing.
How Much Should an Extended Warranty Cost?
Our team got quotes from 10 extended warranty providers for a variety of vehicle makes, models and years with different mileage. The average price for extended warranty coverage across all plans was $977 per year. Below is a breakdown for the average yearly cost by coverage level:
| Extended Car Warranty Type | Average Yearly Cost |
| Exclusionary | $1,005 |
| Mid-Level | $937 |
| Powertrain | $953 |
What Affects The Cost Of An Extended Car Warranty?
The price you pay depends on cost factors such as your car’s make and model, along with whether it has high mileage. Below are a few more criteria that help to set your extended car warranty cost:
- Coverage level: Third-party companies may offer up to six levels of extended warranty coverage, so prices vary considerably between these plans.
- Deductible amount: As with car insurance companies, the deductible you choose upfront for warranty coverage affects your monthly payments. The lower you set your deductible, the higher your regular payments will likely be, and vice versa.
- Warranty provider: When figuring out how to buy an extended warranty, you’ll realize that each company has its own pricing structure. Because of this, expect to pay different rates based on your chosen extended warranty provider.
- Your vehicle’s age: Your vehicle’s age and total mileage play a significant role in determining the total cost of an extended warranty. Vehicles with higher mileage are more likely to experience mechanical breakdowns and, therefore, often have higher total costs.
- Make and model: While make and model don’t mean everything when getting extended car warranty quotes, they will affect your monthly payments. Some vehicles are more expensive to repair than others.
How To Get The Best Car Extended Warranty Price
Our advice for getting the best deal on a vehicle protection plan is to compare quotes from reputable extended car warranty companies. While you’re at it, check out each company’s ratings and read customer reviews online.
We also suggest that you read the fine print for a company’s money-back guarantee before signing a contract. You need to know how to get a refund if you decide that the provider isn’t the right coverage choice for you.
When you buy a new vehicle or a certified pre-owned (CPO) vehicle from the dealership, you’ll have the option to buy an extended warranty and fold it into your auto loan. We don’t recommend this since you’ll end up paying interest on both the warranty and the car.
With an independent warranty company, you can purchase coverage at any time. That’s not true of a dealership warranty, which must be purchased before your factory coverage expires.
What Does an Extended Car Warranty Cover?
An extended car warranty, also known as a vehicle service contract or a vehicle protection plan, is meant to cover the cost of labor and parts after your car suffers a mechanical breakdown. Coverage from your plan will vary depending on your provider and chosen level of protection. Since these warranties only pay for covered repairs, they typically exclude wear and tear parts along with routine maintenance needs like oil changes and tire rotations.
Types of Extended Car Warranty Plans
You’ll usually find both exclusionary and inclusionary plans when shopping for an extended vehicle warranty. Exclusionary contracts list the parts that aren’t covered under your warranty, while inclusionary plans list all covered parts. Another less-common option is mechanical breakdown insurance, which is similar to an extended warranty but is offered by auto insurance providers.
If you’re looking for an extended warranty that provides bumper-to-bumper coverage, you might want to go with an exclusionary contract. These typically offer the most comprehensive coverage available through an extended warranty. Expect to receive protection for everything from your car’s air conditioning system and engine to its navigation system.
If you’d like a plan that covers specific components in your vehicle, consider an inclusionary plan, such as a powertrain warranty. Stated-component warranties are considered inclusionary, plans since they list out every covered part in the contract.
Bumper-to-Bumper vs. Powertrain Warranties
A bumper-to-bumper warranty covers everything in your car apart from a short list of exclusions. At the other end of the extended warranty spectrum, a powertrain warranty only covers expensive repairs to parts such as the engine, transmission, drive axles and transfer case. Stated-component coverage sits between bumper-to-bumper warranties and powertrain protection.
Bumper-to-bumper warranties are usually best for cars with less than 100,000 miles and are the priciest coverage option. Powertrain plans, on the other hand, are typically the least expensive extended warranties and are ideal for used vehicles with over 100,000 miles on them.
Dealership vs. Aftermarket Warranties
Another important choice you face when learning how to buy an extended warranty is deciding on a dealership or an aftermarket coverage plan. Below, we’ll outline some of the key differences between these two purchasing options:
- Choice of repair facility: Extended warranties sold at dealerships generally only allow auto repairs to be done at one of the brand’s own repair facilities. Aftermarket warranties allow work to be performed at any repair shop certified by the National Institute for Automotive Service Excellence (ASEⓇ).
- Coverage plan variety: You’ll almost always find a wider range of coverage and term options from independent warranty providers than from car manufacturers. This is especially important if you’ve got a used car with a high odometer reading.
- Purchase options: Most aftermarket warranty plans can be purchased online or over the phone. Manufacturer-backed warranties can only be bought at dealerships.
- Car parts used: Aftermarket warranties allow for generic parts while dealership plans require original equipment manufacturer (OEM) components.
When you buy a new vehicle or a certified pre-owned (CPO) vehicle from the dealership, you’ll have the option to buy an extended warranty and fold it into your auto loan. We don’t recommend this, since you’ll end up paying interest on both the warranty and the car.
With an independent warranty company, you can purchase coverage at any time. That’s not true of a dealership warranty, which must be purchased before your factory coverage expires.
Should You Buy an Extended Warranty for Your Car?
If you recently purchased a new car, expect to receive warranty coverage for a short period of time through manufacturer. Many car manufacturers offer 3-year/36,000-mile bumper-to-bumper coverage along with a 5-year/60,000-mile powertrain warranty.
You’ll have to pay for unexpected auto repair costs out of pocket once this factory warranty expires. That’s where extended warranty coverage kicks in if you choose to purchase a plan.
Extended car warranties help to pay for the cost of covered repairs caused by mechanical breakdowns. These long-term protection plans don’t cover routine maintenance services like oil changes or wear and tear components such as brake pads and windshield wiper blades. They do, however, provide drivers with savings and peace of mind.
Extended car warranties can be purchased from either your vehicle’s manufacturer or from an independent provider. Though coverage includes both parts and labor costs from repair shops, you’ll likely still have to pay a deductible on new auto claims.
Pros and Cons of Extended Car Warranties
There are plenty of reasons to consider shopping for an extended car warranty, but you’ll find a few downsides as well. Consider the pros and cons of extended warranty plans as a whole before evaluating providers based on cost, coverage and customer service. The table below has some pros and cons to think about:
Pros
You may be able to drive your car for longerSaves you from expensive repair billsCoverage can be customized to fit your needs
Cons
You could never end up using your warrantyContracts have exclusions and limitationsThere’s a waiting period before you can use it
Consider how long you plan to keep your vehicle as well as how much you’re willing to pay out of pocket for car repairs. This can help you to make an informed decision about whether an extended auto warranty is right for you.
How To Shop For An Extended Warranty: The Bottom Line
There are plenty of decisions to make as you figure out how to buy an extended warranty. Where and when you purchase your plan, the desired level of coverage and how much you’re comfortable paying are just a few things to consider. We recommend comparing free quotes from multiple companies to make sure you find the best coverage for your needs.
Recommended Extended Warranty Providers
We at the MarketWatch Guides team have spent over 500 hours researching extended car warranty providers to rate them on reputation, coverage, cost, transparency and customer service. Below, you can learn more about our top three third-party providers and why we recommend each.
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 |
#1 Endurance: Best Comprehensive Coverage
Endurance is our top-rated provider, earning a score of 9.3 out of 10 from our team. It offers six different coverage plans that can last up to eight years or unlimited miles. Additional perks such as trip interruption coverage and towing services come with each warranty, so we named Endurance as the Best Comprehensive Coverage option.
Endurance is unique because it sells and administers its own extended warranty plans with no middleman or third-party involvement. The company also offers a money-back guarantee and you can easily view its sample contracts online.
We also like that every warranty comes with one free year of Endurance Elite benefits. This includes perks like key fob replacement, tire repairs and up to $1,000 toward total loss replacement.
Our research shows that Endurance extended warranty plans cost between $920 and $1,400 per year of coverage.
Keep reading: Endurance Warranty Review
#2 Autopom!: Best Customer Service
Our team gave autopom! a 9.2 out of 10 in our 2024 auto warranty provider review. The company offers three warranty plans including exclusionary, mid-level and powertrain options. The longest warranty plans offered by autopom! are 7 years or 150,000 miles.
What makes autopom! stand out is its excellent customer review scores, which earned it our award for Best Customer Service. Customers give the company a 4.7 out of 5 on the BBB. On Trustpilot, autopom! scored 4.1 out of 5 from over 200 reviews.
Keep reading: Autopom! Extended Warranty Review
#3 Carchex: Best Industry Reputation
Carchex has been in business since 1999 offering plans for cars up to 250,000 miles. The company is highly regarded by the BBB, with an A+ score and accreditation since 2009. We named it the auto warranty provider for Best Industry Reputation in our 2024 review of the top available warranty providers.
Carchex offers five levels of coverage, as well as add-ons including roadside assistance, towing, rental car coverage and trip interruption coverage. With each of its plans, customers can choose between a $0, $50 or $100 deductible.
Keep reading: Carchex Warranty Reviews
How To Buy an Extended Warranty: FAQ
Here are some frequently asked questions on how to purchase an extended warranty:
To purchase an extended warranty, you can either ask your dealership about coverage options when you buy your new or used car, or you can compare quotes from third-party providers online.
The average cost of an extended warranty, across all coverage levels, was $977 per year, according to our research. Your rate will vary based on your chosen coverage level as well as your vehicle’s make, model, year and mileage.
Typically, dealerships require you to buy extended warranty coverage at the same time you purchase your car. You can only buy an extended warranty after purchasing your car if you go with a third-party provider.
There isn’t a single best place to buy an extended warranty since every person’s needs differ. You can get coverage from a dealership, from a financial institution or even through car insurance companies with mechanical breakdown insurance. We recommend comparing multiple car warranty quotes from third-party providers alongside choices from car dealerships.
An extended car warranty can be worth the money if you’re looking to drive a car for many years. It’ll likely offer you peace of mind, as you won’t have to worry about paying out of pocket when you head to a repair facility after your manufacturer’s warranty has expired.
Our research team found that the best extended car warranty comes from Endurance. The company offers six coverage plans to choose from, and it both sells and administers warranty contracts directly. In addition, you can easily find Endurance’s sample contracts online, allowing you to fully understand exactly what its coverage plans will and won’t cover.
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:
- Reputation: Our research team considers availability, ratings from industry experts and years in business when conferring this score.
- Coverage: Companies that offer a variety of choices for warranty coverage, long contract terms and added benefits are more likely to meet consumer needs.
- Cost: Auto warranty companies with affordable rates and multiple deductibles scored highest in this category.
- Transparency: This score is based on contract transparency and the availability of a money-back guarantee.
- Customer experience: 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
- 50 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.
