Best Extended Car Warranty

The sections below will detail the best provider and plan for bumper-to-bumper warranties, stated component coverage and powertrain warranties.

Endurance Supreme: Best Bumper-to-Bumper Warranty

In our 2023 extended car warranty study, the Endurance Supreme plan received our highest score because of its comprehensive coverage, plan benefits and the fact that the company is a direct warranty provider. This plan provides bumper-to-bumper coverage for your vehicle, covering most parts minus a short list of exclusions. Endurance plans can last up to eight years or over 200,000 miles.

In addition to its strong coverage, Endurance also offers a free year of Endurance Elite with the Supreme plan. This package includes benefits like key fob replacement, a tire allowance, collision discounts and up to $1,000 in total loss replacement. Other standard benefits that come with the plan include roadside assistance, towing services and rental car reimbursement.

CarShield Platinum: Best Stated-Component Extended Warranty

In our research, we found that the CarShield Platinum plan is one of the most comprehensive stated-component extended warranties in the industry. It covers 15 major systems of a vehicle, including air conditioning, power steering and cooling parts.

In addition, while there are some exclusions to the CarShield Platinum plan, the warranty covers most of a vehicle’s electrical system, including its power windows, GPS units and infotainment systems.

Protect My Car Essential Plan: Best Powertrain Warranty

When it comes to powertrain coverage, Protect My Car offered one of the cheapest plans in our 2023 study. The coverage, despite its price point, is rather robust and covers many basic drivetrain components as well as a car’s air conditioning system, alternator and front suspension.

*Our cost scoring is determined by our editorial team and takes into account which companies offer the most affordable rates and deductible options.

Overall, we gave Olive the highest cost rating because of its low monthly plan costs compared with other companies like Endurance and Carchex. Olive’s Complete Plan, which is similar to a powertrain warranty, can be purchased for as little as $32 per month, according to quotes we received from the company. The company offers deductible options of $100, $250 and $500.

Comparably, Carshield also offers some of the cheapest car warranty rates we’ve seen in the industry. Despite its slightly higher rates, CarShield stands out for having monthly payment plans, which give drivers the flexibility to end their coverage when they want. The company also offers six plans, ranging from powertrain to full bumper-to-bumper coverage, with costs for the Diamond plan averaging around $110 per month.

Rounding out the top three for the cheapest extended car warranty companies is Concord Auto Protect. The company offers three different warranty plans that range in price from $32 to $53 per month, according to our research. Each Concord Auto Protect comes with a $100 deductible.?

1. Audi: Best Overall Manufacturer Extended Warranty

Audi stands out from other vehicle manufacturers because it offers protection up to 10 years or 150,000 miles. The manufacturer offers three warranty plans — Platinum, Gold and Powertrain — that range from comprehensive bumper-to-bumper protection to basic powertrain coverage.

Most of the extended warranties offered by Audi come with a $100 deductible and benefits like roadside assistance, towing, rental car reimbursement and trip interruption coverage.

2. Ford: Most Coverage Levels

Ford offers four different coverage levels for drivers who want to purchase an extended warranty from the manufacturer. Plans can last up to eight years or 150,000 miles, with most plans coming with a $100 deductible. The highest-tiered plan, PremiumCARE, protects over 1,000 vehicle components, while the most basic plan, PowertrainCARE, covers 29 components including the engine and transmission.?

3. Honda: Robust Vehicle Protection

Honda’s Honda Care extended warranty is a single plan that can offer protection up to eight years or 120,000 miles. This plan is different from the others on this list because it can only be purchased when you buy your new Honda vehicle. Despite this, Honda Care offers robust protection for your vehicle, covering the powertrain, electronic systems, air conditioning, heating, suspension, brake and steering systems.

The Honda Care service contract also includes benefits like roadside assistance, rental car reimbursement and trip interruption coverage.

Extended Car Warranty Coverage

Extended warranties cover major mechanical repairs and replacements for parts that break down over time as the result of normal use. Some aftermarket contracts include prepaid maintenance or tire protection as well, but these are less common.

Types of Extended Auto Warranty Plans

The specific parts and repairs covered in your extended warranty depends on what coverage level you choose. The three main types of extended warranty coverage plans are bumper-to-bumper, stated-component and powertrain.

The components covered in each warranty type are explained below:

• Bumper-to-bumper warranty: These plans are also referred to as comprehensive or exclusionary contracts. They protect almost all mechanical and electrical components between your bumpers, aside from a list of exclusions. These exclusions will vary from company to company but typically include brakes and tires. Bumper-to-bumper warranties are most similar to your original manufacturer’s warranty.
• Stated-component warranty: These plans may also be called named-component warranties and are considered inclusionary coverage. This means contracts will list each covered component, whereas an exclusionary contract only lists the parts that aren’t covered.
• Powertrain warranty: These warranties cover only your vehicle’s major systems, including the engine, transmission and drive axles.

What an Extended Car Warranty Doesn’t Cover

All extended warranty contracts have some exclusions, most of which are common across the industry. Unlike some auto insurance policies, warranties don’t cover collisions, environmental damage, theft or vandalism.

Extended warranties also don’t cover some specific parts, such as cosmetic items or emissions components. They also generally don’t cover routine maintenance services, like oil changes, or normal wear-and-tear parts, like brake pads.

Extended Car Warranty Repair Shops

If you experience a mechanical breakdown, like an air conditioning failure or transmission malfunction, you’ll need to take your vehicle to an in-network repair facility. Most warranty providers offer roadside assistance benefits, so if your vehicle is inoperable, it can be towed to the nearest authorized repair shop at no charge.

Extended Car Warranty Claims

You’re required to follow your provider’s claims process in order to receive coverage. Before the repair shop can work on your vehicle, you’ll need to get approval from your contract administrator for a covered repair. In some cases, a vehicle inspection or teardown may be required.

After the repair is performed, you’ll pay a deductible to the facility. Based on your provider, either the rest of the repair bill will be paid directly to the shop or you’ll pay the balance and be sent a reimbursement check.

The average cost of an extended warranty is about $128 per month, based on quotes we received from the industry’s leading providers. Extended warranty costs also include deductibles, which you only have to pay when you need a covered repair.

Depending on which plan you choose, extended car warranty deductibles range from $0 to $200. When different coverage levels, deductibles and other factors are taken into consideration, this means that the total cost of an extended warranty can range from $1,500 to $4,000.

Extended Auto Warranty Cost Factors

To ensure you get the best coverage at a price you can afford, it helps to understand how providers determine extended warranty pricing. Factors that are important in determining what you will pay for coverage include:

• Deductible: A low deductible usually leads to a higher contract cost, and vice versa.
• Coverage length: Longer-lasting contracts typically cost more.
• Coverage type: Exclusionary, bumper-to-bumper warranties often cost more than basic powertrain protection.
• Vehicle type: Older cars and higher-mileage used cars tend to break down more frequently, making coverage costs higher.
• Existing coverage: If your vehicle is still covered by the factory warranty when you reach out for a quote, you’ll likely pay less for added coverage.
• Provider: Increased competition between third-party providers drives contract costs down.

Extended Car Warranty Monthly Payments

Depending on the provider, drivers can pay for their extended warranty plans up front, through a monthly payment plan or roll it into their vehicle’s financing plan. In general, you can expect to pay less overall if you choose a payment structure that includes a larger upfront payment, higher deductible and isn’t included in your vehicle’s financing.

While lower payments and deductibles may sound easier in the short term, these options usually lead to higher extended warranty costs in the long run.

Can You Cancel an Extended Warranty On a Car?

For drivers who aren’t happy with their coverage, most providers offer 30-day money-back guarantees. After 30 days, prorated refunds are usually available. To cancel an extended warranty, you need to contact the contract administrator and submit a written cancellation request. You may also need to provide a notarized odometer statement.

After considering your expected repair costs, you may determine that an extended warranty is worth it because you cannot afford unexpected out-of-pocket repair costs. On the other hand, you may decide that purchasing an extended warranty isn’t worth it.

Should I Buy an Extended Car Warranty?

If you own a highly reliable vehicle with inexpensive repair costs or plan to sell your car before the factory warranty expires, a vehicle protection plan may not be worth the cost. This is also true for drivers with savings set aside for auto repairs.

In addition to those who own vehicles that are unreliable and expensive to maintain, an extended warranty may be well worth the cost for some drivers because of the peace of mind that vehicle service contracts offer.

Those who are likely to see the most benefits from extended warranty coverage include:

• Drivers who want peace of mind: Vehicle repairs can be costly to pay for out of pocket. Once your manufacturer’s warranty expires, you’re financially responsible for any mechanical or electrical breakdowns. Extended warranties foot the bill for covered repairs, easing anxiety over future issues.
• Drivers who want a predictable auto budget: By paying for a vehicle service contract up front, through a monthly payment plan or as part of your vehicle’s financing, you’re protected against paying for a surprise repair bill after an unexpected mechanical breakdown. Instead, just pay your monthly amount and your deductible in case of an accident.
• Drivers who plan on owning their vehicle for a long time: According to research from IHS Markit, the average age of operable light vehicles in the U.S. was 12.1 years as of 2021. Since most manufacturers’ bumper-to-bumper warranties expire within 4 years/50,000 miles, you could be driving an unprotected vehicle for over half its life span.

Read more: Should You Get An Extended Warranty?