Best Extended Car Warranty, Reviewed (2024 Ratings) (2024)

By:

Brogan Woodburn

By: Brogan Woodburn Senior Writer

Brogan is a Motor1.com Senior Writer based in Central Oregon. He produces in-depth auto product guides on topics spanning from auto warranties and insurance to tips on how to sell a car.

Last Updated 08/02/2024

Motor1 Reviews Team Take:

• Endurance offers the best extended car warranty. It offers the widest range of protection plans and was awarded Best Coverage by our team in 2024.
• Our second pick, autopom!, is known for providing excellent service with high ratings from customers.
• Extended warranties from leading companies cost, on average, $1,330 per year of coverage.

When factory coverage on your new car expires, you may be wondering how to best protect your car. Purchasing an extended warranty can give you peace of mind and cover your vehicle’s most essential components in the case of a mechanical breakdown.

Our expert review team spent over 1,475 hours combing through research to determine the best extended car warranties. To do this, we gathered hundreds of quotes, surveyed thousands of past and present warranty owners, pored over countless customer reviews, and even bought extended warranties for our own cars. In this article, we’ll give an in-depth explanation of our top five choices before highlighting some of the industry’s best coverage plans and cheapest providers.

Extended Car Warranty Ratings

Based on an extensive research study of the vehicle service contract (VSC) industry, we assessed the available extended vehicle protection plans and rated them on a scale of 1.0 to 5.0 stars. This overall score is weighted based on the factors most important to extended car warranty customers according to our consumer survey: coverage, cost, transparency, customer experience, and reputation.

What Are The Best Extended Car Warranties?

Our study found that the following providers offer the best extended car warranties. All ratings are out of 5.0 stars. You can learn more about how we give scores in each rating category in our methodology section at the end of this article.

Editor’s Note: On July 31, 2024, the Federal Trade Commissionannounced that CarShield will pay $10 millionto settle FTC charges that its advertisem*nts and telemarketing for vehicle service contracts are deceptive and misleading, and that many purchasers found that repairs were not covered. Our research team is currently reevaluating CarShield’s rating and will update this article with our latest recommendation as soon as possible.

Best Extended Car Warranties

Endurance is our top pick overall for its wide selection of coverage options and reasonable prices. However, depending on your situation, you may find that another auto warranty company on our list is a better fit. In our most recent 2024 third-party warranty consumer survey, we found that CarShield was the most popular provider among survey respondents, with 33 percent of participants having bought a plan from the company.

While no one-size-fits-all answer exists, there are a number of extended warranties that rise above the rest in the areas that matter to consumers. To present customers with a range of top extended car warranties to compare, we’ll review each of our top picks in detail below.

If you’re interested in learning more about different types of warranties before selecting a provider, see our buyers guide.

Best Extended Car Warranties: Coverage

In our latest third-party warranty consumer survey, 29 percent of respondents said coverage is the most important factor when choosing a warranty company. Our editorial team spent time analyzing the coverage options available from each extended warranty provider. We gave Endurance, CarShield, and Omega Auto Care the highest ratings for the coverage review category.

The table below provides a look at the score we gave each provider out of 5.0 stars, along with some insight into each one’s coverage options.

*The coverage rating given to each provider is based on the types of warranty plans offered, coverage term length, and added benefits like roadside assistance. A provider scores well if it offers more than three plans and has mileage limits over 150,000 miles. You can learn more about how we give scores in each rating category in our methodology section.

Best Extended Car Warranties: Plans

In addition to high ratings across the coverage review category, our team also looked into the providers that offer standout bumper-to-bumper, stated-component, and powertrain plans for the industry. If you’re looking for a specific type of plan, consider the following.

Endurance Supreme Plan: Best Bumper-To-Bumper Warranty Coverage

Because of its comprehensive coverage and included benefits, our editorial team found that Endurance Supreme is the best bumper-to-bumper extended warranty overall. Since Endurance is a direct warranty provider, it can provide coverage for up to 8 years and unlimited miles with only a short list of exclusions.

We also like that the plan comes with a free year of Endurance Elite Benefits like a tire allowance, key fob replacement, collision discounts, and up to $1,000 in total loss replacement. This is on top of standard benefits that come with the Supreme plan like roadside assistance, rental car reimbursem*nt, and trip interruption coverage.

CarShield Platinum: High Stated-Component Coverage

The CarShield Platinum plan provides some of the highest stated-component coverage in the industry. It stands out for being just as comprehensive as the Diamond bumper-to-bumper plan, covering 15 major vehicle systems including the air conditioning and power steering.

All exclusions are clearly outlined in CarShield Platinum sample contracts. This warranty takes care of systems that aren’t protected by many comparable plans, with coverage for the electrical system’s power windows, GPS system, and infotainment system.

Omega Auto Care: Multiple Powertrain Warranty Options

Omega Auto Care offers three levels of Powertrain Protection. This gives you multiple ways to cover the most essential parts of the vehicle. The company’s most basic option, Powertrain, covers the engine, transmission, transfer case, and drive axle. The next step up, Powertrain Plus, adds components in the A/C, heating, and electrical systems. The Powertrain Enhanced option adds cooling and fuel systems to the mix.

Any powertrain plan comes with roadside assistance, rental car reimbursem*nt, trip interruption, and road hazard tire repair for the life of the contract. Plans also come with maintenance coverage for one year.

Best Extended Car Warranties: Value

In our industry-wide study of the best extended car warranties, we found several providers that stood out in terms of affordability. Endurance, Carchex, and autopom! all received high cost ratings from our editorial team while also receiving a positive overall score. Because the warranty market has many low-cost providers with poor reputations, it is difficult to judge a provider purely by using the cost score from our research.

The table below compares cost ratings on a scale of 1.0 to 5.0, along with the cheapest monthly rate we were given.

*Our cost rating is determined by the providers that offer great coverage at an affordable price. You can learn more about how we give scores in each rating category in our methodology section.

The highest cost rating out of our top 10 recommendations came from autopom!. It might not have the lowest monthly cost, but with autopom! you pay off your four-year coverage in just two years. Meaning, over the course of 24 months you will pay $126 per month for a total of $3,177 (which includes an initial down payment of $158). After this, your coverage is paid for in full. If you divide this total cost by the four years you receive coverage from the company, you’re essentially paying $794 per year.

Endurance is one of the best value providers. Plans start as low as $93 per month and come with Endurance Elite benefits for one year. If you get into an accident, these benefits can help with $500 toward damage repair. And if you total your vehicle, Elite benefits can provide up to $1,000 toward replacing it.

Finally Carchex is also a good value for the coverage, at about $110 per month. Carchex representatives often offer discounts if you ask. The flexible month-to-month contracts let you stop coverage easily if you happen to sell your car or decide you don’t want a warranty.

Extended Car Warranty Buyers Guide

If you’re not sure where to start when shopping for extended car warranty coverage, read on to learn more about various types of warranties and plans.

What Is an Extended Car Warranty?

An extended auto warranty, also known as a vehicle service contract or vehicle protection plan, pays for damage caused by defective materials and workmanship after your initial factory warranty expires. By doing so, these plans can protect you from paying for potentially costly out-of-pocket repairs if your vehicle breaks down.

If you experience a covered breakdown after your waiting period is up, you’ll file a claim with the warranty provider. Depending on the contract, you may have to use a network of dealerships or might be able to pick your favorite repair facility. Most plans require you to pay a deductible before the extended warranty covers the rest of the repair cost.

Extended Auto Warranty Vs. Mechanical Breakdown Insurance

Some car insurance providers, like Geico, offer mechanical breakdown insurance (MBI). This is an add-on that covers mechanical issues in a similar way to extended auto warranties. However, MBI often requires you to visit a small network of dealerships, and it usually doesn’t last as long as plans from the best car warranty providers.

Out of the five providers featured in our review, only Endurance specifically states that it offers MBI. However, autopom! offers MBI for its customers depending on state requirements.

Extended Warranty Coverage

Extended car warranties cover repairs and replacements after breakdowns that come from normal use. Depending on your plan, it may cover the powertrain, electrical system, air conditioning, and other systems.

Most extended warranties don’t cover routine maintenance for your vehicle. Things such as oil changes, brake pads, and tires usually remain the owner’s responsibility. The best extended car warranty providers have several coverage options, so you can select the plan that best fits your vehicle’s needs.

How to Read a Vehicle Service Contract

An extended warranty protects you by covering the cost of certain repairs if a mechanical or electrical component breaks down. Exactly which parts are covered depends on your contract. In terms of how the warranty information is presented, there are typically two types of plans: exclusionary coverage and named-component coverage.

• Exclusionary coverage: This type of car warranty plan covers all parts of your vehicle in the case of a mechanical breakdown, except for a short list of excluded parts.
• Stated-component coverage: This type of auto warranty, also known as inclusionary coverage, is essentially the opposite of exclusionary coverage. Your contract will specifically list the covered parts and systems. Parts not listed aren’t protected.

Types of Extended Car Warranties

Another way to compare warranties is by the amount of coverage provided by each plan. Aftermarket car warranties generally fall under three main types: bumper-to-bumper, mid-level, and powertrain. We’ve outlined some of the basics of each warranty type below:

• Bumper-to-bumper: These warranties usually offer comprehensive, exclusionary coverage similar to the factory warranty that comes with new cars. Most include the car’s major mechanical systems apart from certain excluded items. The excluded components of a bumper-to-bumper extended warranty should be listed in the warranty’s sample contract.
• Mid-level: These plans can cover up to a dozen systems on your vehicle. These include the air conditioning, electrical, steering, suspension, and braking along with basic powertrain components.
• Powertrain: These warranties only cover the major parts that make your car move. This includes most internal parts of the engine, transmission, and drive axle. Extended powertrain warranties are usually recommended for high-mileage or older cars.

Read the fine print of your warranty or look at a sample contract to know what type of service contract your aftermarket car warranty falls under.

Stated-Component Car Warranty Plans

Within stated-component coverage, you can find various plan levels such as:

• High-stated coverage: Just one step below factory-level coverage, this level usually covers most of the main systems of the car and can take care of thousands of components in your vehicle.
• Powertrain plus: This covers the powertrain and a few other important systems like the air conditioning, steering, and electrical systems.
• Basic powertrain: This is typically the lowest protection level offered by an extended warranty company and is comparable to a factory powertrain warranty. It covers repair costs for the engine, drivetrain, and transmission. These can be costly repairs, so it’s a good idea to protect them if you own an unreliable or high-mileage car.

How Do Extended Warranties Work?

Extended warranties function similarly to insurance policies since they protect you from potentially pricey and unpredictable car repair costs. Instead of spending hundreds or thousands of dollars out of pocket, you’ll only need to pay a small deductible if your repairs are covered under warranty.

Extended Car Warranty Coverage Exclusions

Extended car warranties only cover components that break down as a result of normal use. Damage resulting from an accident, misuse, or improper maintenance won’t be covered. Certain items like bumpers, glass, trim, and upholstery won’t be taken care of. Wear items such as tires, brake pads, wiper blades, and shock absorbers are also typically excluded from coverage.

When surveying 1,000 consumers in our 2024 third-party warranty survey, just two percent of respondents said their warranty claim was denied. This is far less than our 2022 survey, where over 40 percent of respondents said their warranty claim was denied due to their contract not covering the specific part or component that needed repairs. To fully understand what is and isn’t covered by your warranty plan, it’s important to read the fine print in your contract before signing it.

Extended Car Warranty Waiting Period

After purchasing your contract, most warranty providers require you to go through a waiting period before you can use coverage. This protects the provider from someone purchasing a warranty right after discovering a major issue with their car. Most extended warranties require you to wait 30 days and 1,000 miles before making a car repair claim.

Canceling Extended Car Warranty Coverage

Reputable extended car warranty companies will allow you to cancel coverage for a full refund within 30 days. They’ll also provide prorated refunds after that. You must contact the contract administrator and provide a written odometer statement to cancel an extended car warranty.

Extended Car Warranty Cost

Based on our research, extended warranties from leading providers cost $1,330 per year of coverage on average. Bumper-to-bumper warranties tend to be costlier since they cover more vehicle components, and long-lasting coverage also increases the contract price. Other factors that affect car warranty costs include:

• Deductible
• Vehicle age, make, model, and mileage
• Existing coverage
• Selected provider

What Is a Good Price For an Extended Car Warranty?

A good price for a comprehensive extended car warranty is between $2,000 and $3,500 in total. Prices vary depending on the coverage and limitations you pick. Many companies offer monthly payments in the range of $80 to $160, though you can find higher and lower options.

Can You Buy an Extended Car Warranty After Purchase?

You can buy an extended warranty from reputable third-party providers at almost any time after purchase. Manufacturers, on the other hand, usually require you to buy an extended warranty before the factory warranty expires. Some only allow you to get one when you buy the vehicle.

Are Extended Warranties Worth It?

You may have never been in an accident, but you still need car insurance. The reasoning for an extended car warranty follows the same principle. You may not need it today, but you’ll likely be glad to have protection if an issue arises. However, it’s important to note that car warranties are not required by law.

Typical automakers offer bumper-to-bumper warranty coverage for 3 years/36,000 miles. Ford, Honda, Toyota, and others all offer this term limit. Some brands like Hyundai offer longer coverage, but it still falls short of the 150,000 miles that the average car owner can expect to put on a vehicle throughout its lifetime.

For this reason, those who are planning to keep their vehicles for a while might consider an extended warranty. Owners who plan to sell may want to think about coverage, too. If you plan to sell your vehicle on the private market after a few years, a transferable service contract could make your car more appealing to potential buyers.

According to Jessica Campbell, Director of Marketing at Endurance, “Whether or not an auto protection plan or extended warranty is ‘worth it’ largely depends on a vehicle owner’s needs and the quality of the vehicle itself.”

To be sure that the extra coverage is a wise decision, it’s important to consider the pros and cons of extended car warranties.

In addition, car owners should read the fine print of a vehicle service contract to understand what’s excluded and what could void the warranty. You should also make sure that you’re signing up for a monthly payment plan that fits within your finances.

Benefit of Extended Warranties on Cars

Extended car warranties keep your vehicle covered in the case of a mechanical or technological failure. Based on the type of car you have and how much it costs to own over its lifetime, this could save you money in the long run.

Besides protecting your vehicle after the manufacturer’s warranty expires, the best extended car warranties provide benefits such as:

• Convenience: If an issue is covered by your service contract, you’ll know exactly who to call for a fix. Most providers let you choose your own mechanic or repair facility. The best extended car warranty companies will even pay your repair shop directly.
• Risk mitigation: An aftermarket car warranty alleviates the cost of repairs as your vehicle ages. While some vehicles cost less than others to repair, recurring issues—or even just one costly repair—could quickly add up to a hefty repair bill.
• Added perks: Many of the best extended car warranty companies include benefits with their protection plans like roadside assistance, rental car reimbursem*nt, and towing.

Remember that car insurance generally doesn’t cover vehicle repairs due to mechanical breakdowns. It covers damages caused by collisions and environmental factors, so don’t think that you’re in the clear just because you have auto insurance.

If you want financial peace of mind, an extended warranty can be worth thinking about. Considering that vehicle repairs become more frequent as cars age, it may be worthwhile to invest in an extended warranty for an older model before repair bills start to pile up.

Car Maintenance Costs

According to AAA, 64 million Americans don’t have the funds to cover unexpected car repair costs. Instead, they’d go into debt to cover steep repair bills. An average car repair costs between $500 and $600, but you’ll be looking at much more if a major component breaks.

Here are a few average prices for some of the more expensive car repairs according to data from RepairPal.

Jessica Campbell, quoted earlier, states that the most common types of repair claims with Endurance are repairs dealing with transmissions and water pumps. She also mentions that costs vary due to factors “including vehicle type, model, age, and the complexity of the individual repair.”

Best Extended Car Warranties: Bottom Line

While there are many providers in the industry, we think Endurance has the best extended car warranty overall. The company offers a wide range of coverage options that last for several years and unlimited miles. Endurance is also a direct warranty provider, so you’ll never have to worry about dealing with another company. Our team also recommends autopom! for its excellent customer service and CarShield for both standard and electric vehicle coverage.

Getting a free quote online and comparing prices from several extended warranty providers can help you find the best fit for your car and budget.

Extended Car Warranty: FAQ

Below are some frequently asked questions about extended car warranty coverage plans:

Extended Warranty Reviews: Our Process

Each year, our research team collects hundreds of data points on extended car warranty plans to rank the best coverage on the market. We compare pricing from quotes obtained via secret shopping, analyze coverage quality and plan options, and evaluate contract transparency and customer satisfaction.

The extensive data we collect is used to create a score in each review category based on a systematic rating methodology. To keep our data current, we refresh our data points throughout the year. Below, you can learn more about how ratings are determined in each category:

Coverage

Focused on overall coverage quality, this rating is based on types of extended warranty plans, coverage term length, and added benefits like roadside assistance. A provider scores well if it offers more than three plans and mileage limits over 150,000 miles. Because it’s uncommon in the industry, coverage options for maintenance items like brake pads are also noted.

Cost

The overall cost of coverage is one of the most significant factors that impact customers’ decisions about buying an extended warranty. The review score for cost is determined by comparing the price per year of coverage from various providers, with higher scores being awarded for lower average rates.

To accurately estimate warranty pricing information, our research team reviews sample quotes for a variety of plans and vehicles. This data is compiled from over 140 individual quotes we receive each year from different companies for a range of plans and payment options. We present example quotes in this article, but be aware that you may find different prices based on personal factors like vehicle type, provider, length, and level of coverage.

Contract Transparency

Transparency is an important quality to look for in extended warranty providers. Some companies make it easy to find sample contracts and read the fine print, while others make it difficult. Our transparency score takes into account sample contract accessibility as well as the presence of a 30-day money-back guarantee.

Customer Service

Great coverage options and prices mean nothing if the company lacks good customer service. We comb through customer reviews and perform our own shopper analysis to get a sense of the responsiveness and helpfulness of each warranty company. When speaking to representatives, our researchers assess issues like whether agents are more likely to explain coverage or are focused only on making a sale.

Industry Standing

Warranty providers with a history of strong business practices and endorsem*nts from experts receive the highest scores in this category. We look at the longevity of a company, its availability by state, partnerships with industry leaders like RepairPal and CARFAX, and Better Business Bureau (BBB) ratings.

Extended Warranty Customer Survey

How we weigh each of our review categories to determine the overall score for a provider is influenced by a survey conducted by our research team. To complete the survey, we polled 1,000 consumers who have bought or thought about purchasing an extended warranty. We repeat this survey every two years.

Below are the top five factors most important to extended warranty customers, according to our most recent 2023 survey data:

• Coverage (57 percent)
• Cost (14 percent)
• Transparency (13 percent)
• Customer service (10 percent)
• Industry standing (6 percent)

Our survey process allows us to gain valuable insight into consumers’ purchasing decisions and satisfaction. Respondents in our most recent survey were overall satisfied with their coverage.

*Data accurate at time of publication.

Brogan Woodburn Senior Writer

Brogan is a Motor1.com Senior Writer based in Central Oregon. He produces in-depth auto product guides on topics spanning from auto warranties and insurance to tips on how to sell a car.