Extended Car Warranty Cost
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Extended car warranties are a great way to give drivers peace of mind on the road by knowing they’re prepared for the financial repercussions of a breakdown. But how much does an extended car warranty cost, and how do you know whether you’re getting the best price?
In this extended car warranty cost guide, we’ll answer these questions and give you recommendations on where to get the best extended auto warranty for your budget. To start comparing free, personalized quotes from our highest-rated providers, use the buttons above.
Table of contents
Average Cost of Extended Car Warranty
The cost of an extended warranty for auto repairs depends on many factors, including:
- The make and model of your vehicle: The more expensive your vehicle is, the more expensive it will be to cover parts.
- The age and mileage of your vehicle: The older a car is, the more likely it is to encounter major breakdowns, which also makes it more expensive to cover.
- Your location: You may be offered lower or higher rates depending on where you live.
- Where you purchase an extended warranty: Coverage from dealerships tends to be more expensive than coverage purchased from third-party extended warranty companies.
- The plan you choose: An exclusionary plan that covers almost all vehicle components will generally be more expensive than a basic powertrain plan, which will only cover your engine, transmission, and drivetrain. Carefully consider the levels of coverage available to you.
- Your contract term limits: Plans that cover your vehicle for just one or two years will be cheaper than plans that cover your vehicle for five years or more.
- The deductible you choose: The lower your deductible, the higher your premium will be—and vice versa. Your deductible is the amount you’ll pay out of pocket for each repair.
To give you more insight into extended warranty costs, we collected bumper-to-bumper warranty quotes from top providers for a 2017 Ford Explorer with 45,000 miles. These are the most comprehensive car repair plans offered by each extended warranty provider, which cover the majority of your car’s parts and systems. All of the bumper-to-bumper coverage plans we were offered came with a $100 deductible.
Warranty Company | Plan | Coverage Term | Extended Car Warranty Cost | Down Payment |
|---|---|---|---|---|
Endurance | Supreme | 3 years/80,000 miles | $166.88 per month for 18 months | $178.10 |
CARCHEX | Titanium | 5 years/100,000 miles | $202.89 per month for 18 months | First month’s payment |
CarShield | Diamond | Unlimited | $129.99 monthly | First month’s payment |
Powertrain warranty coverage is a basic level of coverage that protects only your car’s most vital parts, like the engine, transmission, and drivetrain. It can be a smart choice for used cars. Each quote below is for a 2012 Honda Civic with 88,000 miles, and all plans came with a $100 deductible.
Warranty Company | Plan | Coverage Term | Extended Car Warranty Cost | Down Payment |
|---|---|---|---|---|
Endurance | Secure | 5 years/50,000 miles | $119.00 for 36 months | $246.00 |
CARCHEX | Silver | 5 years/150,000 miles | $190.00 for 18 months | First month’s payment |
CarShield | Gold | Unlimited | $129.99 monthly | First month’s payment |
Pros and Cons of Extended Car Warranties
An extended warranty is typically most beneficial after the factory warranty that comes with all new cars expires. When you are in the market for an extended car warranty, consider your warranty options. You may have the option to buy from a third-party provider or from your car’s manufacturer. Manufacturer warranties tend to be more expensive than third-party alternatives, but there are pros and cons to each extended car warranty.
Here are some advantages and disadvantages of purchasing an extended car warranty from the manufacturer:
Manufacturer Extended Warranty Pros |
Manufacturer Extended Warranty Cons |
|---|---|
Repairs are guaranteed to be made by factory-trained technicians using genuine parts. |
The average extended car warranty cost can be higher than third-party coverage, and if you roll the price of your warranty into your auto loan, you’ll end up paying interest on it. |
Plans are often tailored to the unique needs of your vehicle. |
Repairs must always be conducted at the dealership's repair facility. |
If you have a luxury vehicle, you may not be eligible for third-party coverage, but you can generally still get coverage through your manufacturer. |
Manufacturer plans often have shorter coverage terms than third-party alternatives, and eligibility is stricter for many car brands. |
Here are some advantages and disadvantages of purchasing an extended car warranty from a third-party provider:
Third-Party Extended Warranty Pros |
Third-Party Extended Warranty Cons |
|---|---|
Coverage from car warranty companies is often less expensive than manufacturer warranties. |
It’s more difficult to find third-party coverage for luxury vehicles. |
Vehicle repairs can usually be done at any repair shop certified by the National Institute for Automotive Service Excellence (ASE ®), including dealerships. |
With so many fly-by-night companies in the extended warranty industry, you need to do your research before committing to a company. |
Plans are often customizable and come with added perks like roadside assistance, trip interruption coverage, and rental car reimbursement. |
Plans aren’t always tailored to your vehicle make or model. |
Are Extended Car Warranties Worth the Cost?
If you drive an older vehicle or an unreliable vehicle prone to major breakdowns, an extended car warranty can be well worth the investment to protect your wallet against hefty repair bills.
If you’re confident in your vehicle’s reliability, you may not need a vehicle protection plan. However, it’s important to remember that even the most dependable vehicles can experience unexpected issues after the manufacturer's warranty expires. The added peace of mind makes the extended car warranty cost worth it for many drivers.
According to a study by Pegasystems, Inc., 62 percent of Americans who own a vehicle service contract reported having benefited from its coverage within the past year, but less than half of Americans actually buy extended warranty plans due to their lack of availability, high costs, and the chance that you may not use the coverage you purchase.
Car Repair Costs
It also helps to consider your personal financial situation when determining whether the cost of an extended car warranty would be worth it for you. If you could easily cover an unexpected auto repair bill, you might not need coverage. Below are some of the most common repairs and what they cost, according to RepairPal. Take a look and see if you’d feel comfortable paying any of these repairs out of pocket or if you'd prefer to find a warranty company that offers coverage for these parts:
- Transmission replacement: $5,383
- Air conditioning condenser replacement: $509
- Fuel pump replacement: $1,320
- Starter replacement: $478
- Alternator replacement: $786
- Timing chain replacement: $1,567
- Rack and pinion replacement: $2,122
Cost of Extended Car Warranty: Conclusion
This article reviewed all the cost information you will need for an extended car warranty. As you read above, the average cost of an extended car warranty is around $2,800. If you want an extended car warranty, it is wise to look at and compare some of the top providers. Below, we will go in-depth on some of them.
Extended Car Warranty Companies
We’ve researched dozens of industry-leading warranty companies, taking a look at extended car warranty cost, coverage, availability of sample contracts, and more. Based on our research, we’ve determined that Endurance and CARCHEX offer the two best extended car warranties on the market.
#1 Endurance: Best Coverage
An Endurance extended car warranty costs slightly more than the industry average, but the company’s comprehensive plans and the perks that come with your first year of coverage make the price tag worth it for many drivers.
Endurance has a strong reputation, earning an A+ AM Best financial strength rating and a 4.4 out of 5.0-star customer rating on Trustpilot.
The company offers six coverage plans:
Plan |
Best For... |
Type of Coverage |
|---|---|---|
Supreme |
Drivers of new, high-tech, commercial, or hybrid vehicles |
Bumper-to-bumper exclusionary coverage |
Superior |
Drivers who want comprehensive coverage |
Comprehensive stated-component coverage |
Secure Plus |
Drivers who need coverage sooner |
Enhanced powertrain coverage with the shortest wait period |
Secure |
Drivers on a budget |
Affordable basic powertrain coverage |
Select Premier |
Drivers of high-mileage vehicles |
Specialty coverage designed for high-mileage vehicles |
EnduranceAdvantage™ |
Drivers who want mechanical coverage |
Covers mechanical breakdowns as well as maintenance |
Endurance offers one year free of Elite Benefits, which comes with:
- 24/7 roadside assistance
- Key fob replacement
- Total loss protection
- Tire repairs and replacements
- Collision discount
- Endurance mobile app
Learn more about the provider in our complete Endurance warranty review. To see how much an extended car warranty would cost for your vehicle, get a free quote below.
#2 CARCHEX: Best For Used Cars
If you’re looking for a lower average extended auto warranty cost, we recommend getting a quote from CARCHEX, our second-highest-rated provider.
CARCHEX has an A+ rating from the Better Business Bureau (BBB) and won the BBB Greater Maryland’s Torch Awards for Marketplace Excellence in 2012. Trustpilot consumers rate CARCHEX at 3.2 out of a possible 5.0-star rating.
CARCHEX offers customers five coverage plans to choose from:
Plan |
Best For... |
Type of Coverage |
|---|---|---|
Titanium |
Drivers who plan to own their car for a long time |
Exclusionary coverage, similar to a bumper-to-bumper warranty |
Platinum |
Drivers who want comprehensive coverage |
Comprehensive stated-component coverage |
Gold |
Drivers of vehicles with over 60,000 miles |
Mid-tier stated-component coverage |
Silver |
Drivers of older cars that are prone to major breakdowns |
Enhanced powertrain coverage |
Bronze |
Drivers who want affordable basic coverage |
Basic powertrain coverage |
Some benefits that come with every CARCHEX plan include:
- 24/7 roadside assistance
- Courtesy towing
- Rental car reimbursement
- Trip interruption services
Read more in our full CARCHEX review, and get a free, personalized quote below.
Methodology
- Price: Comparing providers can be difficult due to the many factors that influence cost. To determine this score, we employ a secret shopper analysis using different vehicles, mileages, warranty plans, and locations.
- Coverage: A wide variety of coverage is essential to support the differing needs of customers. We take into account the number of extended car warranty plans available, term limits, exclusions, and additional benefits.
- Customer Service: The level of customer service and care provided by an extended warranty company is an important consideration. Our review team sifts through customer reviews and complaints from reputable sources such as the Better Business Bureau (BBB) and Trustpilot. We also consider the responsiveness of each company’s customer service team based on our secret shopper analysis.
- Reputation: Good extended warranty providers consistently provide quality experiences. Our team takes into account BBB ratings and the company’s history of reliable service when giving this score.
- Transparency: Customers value a commitment to open and honest communication when it comes to vehicle service contracts. Our team of experts takes into account the availability of money-back guarantees and sample contracts.
Q & A
How much does an extended car warranty cost?
On average, an extended car warranty costs about $2,800. Many warranty companies have options for monthly payments, so you can pay off your extended warranty over several years.
Is an extended car warranty worth it?
An extended car warranty is worth it for many drivers, especially those with older vehicles or unreliable vehicles that may experience mechanical breakdowns. The value of an extended warranty is also in the peace of mind that comes with knowing your wallet is protected from expensive repairs.
Is CarShield a good deal?
CarShield is a good deal for drivers looking for a low-cost extended warranty. After reviewing every major provider in the industry, we recognized CarShield for having the Best Budget Warranty.
How much does CarShield cost?
Carshield costs about $70 to $130 per month on average. We reached out to CarShield for quotes for a 2017 Ford Explorer with 45,000 miles and were quoted $130 monthly for a bumper-to-bumper extended warranty and $78 monthly for a powertrain plan.
Stephen Kenney is a writer and editor who focuses on car insurance, auto financing, and vehicle shipping services. He's a graduate of UNC-Chapel Hill and has experience covering categories ranging from travel to sports to environmental sustainability. In his free time, Stephen enjoys going on long-distance runs, trying out new recipes, and exploring his adopted hometown of Cincinnati.
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