Extended Car Warranty Costs: Is It Worth It? (2024) (2024)

An extended car warranty is a vehicle protection plan that pays for certain repairs after a mechanical breakdown. Car repairs are typically covered for an agreed-upon time period and mileage.

Extended car warranties are offered by manufacturers and third-party providers, with coverage taking effect after your factory warranty expires. Manufacturers include automakers like Honda and Toyota, while third-party providers include independent companies like Endurance, Carchex and CarShield.

Manufacturers and third-party providers don’t have set rates for extended warranty costs. Instead, companies use your vehicle’s make, model and mileage and your choice of deductible and coverage to determine pricing.

Our team recently conducted a survey polling 1,000 people. The median extended warranty cost in the survey was $2,500, with half of the respondents saying they paid between $1,700 and $3,200 for their protection plans.

Below, we provide estimates for bumper-to-bumper coverage and powertrain warranty coverage. You should only use these quotes as a starting point of what you might pay, as the cost of an extended car warranty depends on your situation.

Bumper-to-Bumper Extended Car Warranty Costs

If you’re looking for an extended warranty that provides comprehensive coverage, consider a bumper-to-bumper or exclusionary warranty. These types of plans cover most components from the front to rear bumper of your vehicle, including the engine, transmission, drive axle, braking, steering, suspension and navigation systems.

We reached out to reputable extended car warranty companies for free quotes for a 2021 Toyota Corolla with 30,000 miles. Here’s the information we received:

With the quotes we received, Endurance, autopom! and Concord Auto Protect offered over four years of protection. While these vehicle service contracts can be expensive, they do provide comprehensive coverage for your vehicle. If you’re looking for a more flexible option, CarShield and Carchex offer month-to-month terms.

Powertrain Extended Car Warranty Costs

Powertrain warranties can be good options for used car owners. This type of car warranty covers only the main drivetrain components of vehicles, including those in the engine, transmission and drive axle.

We reached out to the same providers above for quotes on a 2017 Chevrolet Equinox with 90,000 miles. Many plans come with a $100 deductible, though some may have deductibles of $200 or higher. However, plans with higher deductibles often have lower monthly rates:

Extended car warranties can be worth it for drivers who want to protect themselves from unexpected repair costs. Before you make a decision, consider the pros and cons of purchasing an extended car warranty.

Pros of Purchasing an Extended Car Warranty

One of the most significant upsides to purchasing an extended car warranty is that most vehicle components are covered in the case of a mechanical breakdown. If your auto repairs are covered under warranty, you’ll only have to pay your deductible, and your plan provider will pay for the repair bill.

Another advantage of purchasing an extended auto warranty is the additional perks you receive from the manufacturer or third-party company. Most plan providers offer 24/7 roadside assistance, trip interruption coverage, rental car reimbursem*nt and towing coverage.

Cons of Purchasing an Extended Car Warranty

You should also weigh the disadvantages before paying extended car warranty costs. Here are some things you should consider:

• Your vehicle’s dependability: If your vehicle has been reliable and had no issues, an extended warranty may not be worth the cost. Routine maintenance and minor repairs will typically cost less than a vehicle service contract.

• Service requirements: Manufacturers and third-party providers each have stipulations when it comes to covered repairs. Manufacturers will generally require you to bring your vehicle to a dealership for covered repairs.

• Manufacturers’ warranty overlap: Most manufacturers only allow you a certain number of years or miles for coverage between a manufacturer’s factory and extended warranties. If you purchase a protection plan when you buy your new car, you could be paying extra money for coverage you’d already get for free.
• Exclusions: Even bumper-to-bumper warranties aren’t catch-all coverage. Most won’t cover regular upkeep like oil changes or tire rotations. You’ll also be responsible for any damages caused by aftermarket parts, theft, vandalism, weather and accidents.

You should always shop around and get quotes for extended car warranties before committing to any provider. We recommend reaching out to Endurance and Carchex, both of which ranked highly in our recent review of the best extended car warranty companies.

Endurance: Best Comprehensive Coverage

9.3/10

Endurance is a respected warranty provider established in 2006. The company works directly with customers, handling claims without any other company being involved. Endurance offers six levels of coverage plans for drivers, including an exclusionary plan covering all components except those listed as excluded in the contract. There are also several stated-component and powertrain plans available.

The company now advertises unlimited mileage limits. Endurance holds a 3.6-star rating out of 5 from reviewers on the Better Business Bureau (BBB) website and a 3.7-star rating out of 5 on Trustpilot.

Keep reading: Endurance warranty review

Carchex: Best Industry Reputation

9.1/10

Carchex has been a leader in the auto warranty industry since it was founded in 1999. Unlike most third-party warranty companies, it provides warranty services to all 50 states. Drivers can choose from six coverage options, ranging from exclusionary coverage to powertrain coverage.Carchex holds accreditation and an A+ rating from the BBB and a 2.3-star rating on Trustpilot.

Keep reading: Carchex warranty review

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