Best Extended Car Warranty: Cost and Coverage Guide (2024) (2024)

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The best extended car warranty coverage comes from Endurance, CARCHEX, Protect My Car, and CarShield. Anyone looking for a long-term vehicle service contract ought to consider protection plans from these leading providers.

In this article, we’ll explain what an extended car warranty entails and compare the top-rated companies.

Table of contents

• Best Extended Car Warranty: Top Picks
• #1 Endurance: Best Coverage
• #2 CARCHEX: Best for Used Cars
• #3 Protect My Car: Best Financing
• #4 CarShield: Best Monthly Payments Plans
• #5 autopom!: Best Claims Process
• Extended Car Warranty Costs
• How Does an Extended Car Warranty Work?
• How To Find the Best Extended Car Warranty
• Our Warranty Review Standards
• Q & A

When purchasing an aftermarket car warranty, you can buy one from the dealership or from a third-party provider. The second type is generally cheaper and provides a broader range of extended warranty coverage.

Below, we'll compare the nine best extended car warranty companies before taking an in-depth look at the top five.

All of the companies listed above have excellent plans that rank as some of the best extended warranty options available. Be sure to compare coverage and costs from each of them before making a final decision.

What Are the Most Popular Extended Warranty Companies?

Since there are several different companies looking to gain ground in the extended warranty space, it's often worth finding out which providers are leading the market. The largest players offering vehicle service contracts include CarShield, CARCHEX, Endurance, Protect My Car, and autopom!

Below, we've ranked the most popular extended auto warranty companies currently available.

Why we picked it: Plenty of coverage options, standout benefits, streamlined claims process

Customer rating: 4.4 stars out of 5.0 on Trustpilot

Availability: Every state but California

Endurance is a direct provider backed by an A-rated insurance provider on AM Best, so it can easily cover its own quotes and claims. The company is known for the strong customer service that comes with the choice of any of its six plans.

Many of the best extended car warranty companies work with third-party administrators, leading to less consistent coverage than that from Endurance.

Read more: Endurance warranty review

Endurance Warranty Costs

While Endurance offers extensive plans with impressive benefits, we didn't find its prices to be particularly competitive. Below, we'll look at the rates offered up by Endurance:

While the total price of extended auto warranty plans from Endurance is sometimes cheaper than most, that's often balanced out by shorter coverage terms. Many car owners report getting affordable rates from Endurance, so make sure to find your rate by getting quotes.

Endurance Coverage Plans

Endurance warranty reviews rate the company's six plans quite well, and we've given an overview of each tier below:

Endurance offers one of the best extended car warranties due to its excellent benefits, but also because its plans can fit nearly any vehicle's needs.

Endurance Warranty Benefits

The Endurance Elite benefits set the company apart the most from other extended warranty companies. These benefits are free to new customers for one year (they cost $29 a month after the first year) and include:

• Tire repair and replacement: Endurance will reimburse you for up to two replaced or repaired tires per year.
• Total loss protection: Endurance will reimburse you up to $1,000 toward vehicle replacement.
• Collision discount: Get $500 per covered collision, up to a $1,000 limit.

Why we picked it: Affordable coverage, impressive industry experience, wide-ranging plans

Customer rating: 3.7 stars out of 5.0 on Google

Availability: All 50 states

CARCHEX has been in business since 1999 and holds plenty of expertise in the field. There's no provider that offers used car coverage that's as extensive and affordable as CARCHEX, and it's a strong choice for higher-mileage vehicles.

While most extended warranty companies don't offer plans in California, CARCHEX is available for Golden State drivers.

Read more: CARCHEX review

CARCHEX Warranty Costs

We reached out to CARCHEX for extended car warranty quotes and found that its rates were extremely affordable. Look below for more information about the company's costs:

It's difficult to find cheaper vehicle protection that's as comprehensive as that from CARCHEX. If you're looking for a strong value proposition, be sure to consider this provider.

CARCHEX Coverage Plans

CARCHEX offers five levels of coverage through American Auto Shield, Royal Administration Services, and other administrators. We'll look at these protection plans below:

The five levels of coverage available through CARCHEX allow drivers to receive affordable and basic plans or almost complete protection to keep their car safe for years to come.

CARCHEX Warranty Benefits

Some of the top driver perks that come with CARCHEX include the following:

• 30-day money-back guarantee
• Choice of over 30,000 licensed repair shops in the US
• Emergency roadside assistance with flat-tire changes and fuel delivery
• Rental car benefits
• Towing services
• Trip interruption benefits

Why we picked it: High-quality plans, flexible payment options, standout customer service

Customer rating: 4.5 stars out of 5.0 on Trustpilot

Availability: Every state except Alaska, California, Hawaii, Missouri, Oklahoma, and Washington

Protect My Car allows drivers to cover for their extended warranty over payment periods of up to four years. Most companies require payments near the start of the contract, so this kind of flexibility is quite rare.

Along with generous payment terms, Protect My Car is known for quality plans. While there are only three main options, drivers can also opt for routine maintenance coverage.

Read more: Protect My Car review

Protect My Car Warranty Costs

Protect My Car rarely has the cheapest rates among the most reputable extended car warranty companies, but its long payment terms often make up for that. The provider also routinely ranks near the top for customer service, so you're purchasing a high-quality plan.

Expect to receive exceptional coverage from Protect My Car, but not at the lowest rate possible. The company's long-term payment options make it easier for many drivers to afford a plan, though.

Protect My Car Coverage Plans

Protect My Car offers three main extended warranty plans. The company is known for its monthly payment options, which add some accessibility to vehicle protection plans even for those without much expendable income.

While there aren't many levels of Protect My Car coverage, drivers can receive coverage for everything from the alternator to the electrical system. On top of that, Ambassador Maintenance Plans can protect most used vehicles and older cars.

Protect My Car Warranty Benefits

Protect My Car offers perks such as emergency roadside assistance and rental car coverage to drivers. The PMC Rewards program also provides drivers with dining and shopping discounts at assorted retailers.

To find out more details about PMC Rewards, head to Protect My Car’s website.

Protect My Car is our pick for best long-term financing.

Why we picked it: Tremendous value, generous coverage limits, largest number of plans

Customer rating: 4.0 stars out of 5.0 on Trustpilot

Availability: Every state but California

CarShield is one of the most popular providers on our list of the best extended car warranty companies. The company has been offering extended warranties since 2005 and CarShield administrators have paid over $1 billion in claims to drivers over this time period.

Read more: CarShield review

CarShield Warranty Costs

Most drivers find competitive rates from CarShield, but remember that the company offers different payment options compared to other providers. Instead of having a specific length of coverage, drivers will pay the same rate for an unlimited amount of time with a CarShield extended warranty.

Many motorists enjoy the flexibility of an unlimited-length plan from CarShield, but you'll need to make sure that your rate is affordable. That's generally the case with CarShield, as it's known as one of the cheapest options among the best extended car warranty companies.

CarShield Coverage Plans

CarShield offers six different varieties of extended service plans. Notably, motorcycles and all-terrain vehicles can be covered by CarShield in addition to most automobiles.

Through CarShield, drivers receive a plethora of plan options that come with generally affordable prices. The Motorcycle & ATV coverage option is a rarity among the best extended car warranty companies, and it makes CarShield further stand out.

CarShield Warranty Benefits

CarShield offers many of the best extended car warranty perks such as emergency roadside assistance, rental car coverage, towing coverage, and trip interruption benefits. You’ll also find that CarShield provides a 30-day money-back guarantee to make sure that drivers receive the coverage that they want.

One of the top benefits of CarShield that makes it a best extended car warranty is its low costs. CarShield offers plenty of perks, but it does so without charging drivers much for extended coverage.

Our rating: 4.5 out of 5.0

Our research found this provider to offer the best monthly plans.

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Why we picked it: Fantastic customer service, unique benefits, excellent value

Customer rating: 4.6 stars out of 5.0 on the Better Business Bureau (BBB)

Availability: All states, but only mechanical breakdown insurance in California

The name autopom! stands for "automotive peace of mind," and that's exactly what the provider aims to offer. The company sells four different types of vehicle service contracts and runs off of a dedicated service team. Drivers seem to notice the customer emphasis given by autopom!, as seen through its strong reviews.

Read more: autopom! review

autopom! Warranty Costs

We're pretty impressed by the quotes offered up for autopom! coverage. The provider has outstanding rates for some relatively long-lasting plans, and most drivers believe that autopom! has incredible service as well.

Even among the most reputable extended car warranty companies, autopom! stands out. You'll find strong protection for your vehicle at relatively cheap rates when you pick this provider.

autopom! Coverage Plans

Drivers choose from four autopom! plan options that range from bumper-to-bumper coverage down to the most basic components. Contracts are transferable and can protect your vehicle for up to 7 years/150,000 miles.

There aren't particularly many plans from autopom!, but the choices that exist cover most drivers' wants. Whether you're looking for almost complete auto protection or basic powertrain coverage, autopom! can cover your car.

autopom! Warranty Benefits

All autopom! plans also come with perks such as rental car reimbursem*nt, roadside assistance, towing, trip interruption coverage, and tire protection. Even the best extended car warranty generally doesn’t keep tires safe from road hazards such as potholes and nails, so it’s a strong perk from this company.

When issues arise, drivers move through a simple claims process with an autopom! extended warranty. The company’s excellent claims process adds peace of mind for motorists who run into unexpected breakdowns.

Our research team found that the average extended car warranty cost ranges from $1,000 to over $3,000. While some warranty providers require that you pay upfront, most allow you to make monthly payments of between $100 and $200 per month.

We obtained quotes from some of the best extended car warranty providers to see how much bumper-to-bumper coverage could cost on a 2017 Ford Explorer with 45,000 miles. Here’s what we found:

Most motorists pay somewhere between $1,600 and $3,200 for the full duration of their extended warranty. If you're being given a rate that's higher than this amount, it may be worth comparing quotes from other providers before selecting a plan.

What's the Average Cost of an Extended Car Warranty?

Below is an overview of how much drivers typically pay for extended auto warranties. Since the Ford Explorer isn't one of the cheapest vehicles for a vehicle protection plan, the average driver pays a lower overall rate.

It's not always cheap to gain the best extended car warranty coverage, but vehicle service contracts quickly begin to pay for themselves as vehicles start to face significant mechanical breakdowns.

Is an Extended Car Warranty Worth It?

For many motorists, extended auto warranties are worth it for the peace of mind they bring and for the reduced costs that come with covered repairs. That's not the case for every driver, though.

You may want to skip even the best extended car warranty if your vehicle is still under its manufacturer's warranty or if you're confident in its reliability moving forward. Also remember that not every repair gets covered by extended coverage, so factor in possible savings before jumping for a plan.

On the other hand, the best extended car warranties reduce stress during mechanical breakdowns and significantly lower your average costs. It often takes only one major powertrain incident for an extended warranty to pay for itself, and older cars tend to face larger issues as mileage increases.

Be sure to carefully consider your car's make and model, your current financial situation, and your willingness to pay for unexpected and costly repairs before opting for a contract. It's the smart choice for many drivers, but be careful before taking the plunge.

How Are Warranty Costs Determined?

The cost of your aftermarket car warranty depends on your vehicle and how much you're willing to spend. Here are some factors that extended warranty providers look at when determining prices:

• The car's manufacturer, model, and mileage
• Location
• The level of coverage
• Deductible amount

An extended auto warranty is a vehicle service contract designed to protect your vehicle from costly repairs after your manufacturer’s warranty has expired. While a manufacturer’s factory warranty is included with every new vehicle for free, an extended car warranty must be purchased separately.

Types of Extended Car Warranties

There are three major types of extended coverage: a bumper-to-bumper warranty, stated component coverage, and a powertrain warranty. We'll quickly run through what each of these plans entail.

• Bumper-to-bumper warranty: Offers comprehensive coverage that's exclusionary in scope. As the highest level of coverage, bumper-to-bumper warranty plans cover almost all auto repairs other than exclusions found in the warranty contract.
• Stated component coverage: An inclusionary contract that specifically names all covered parts. Some stated component car warranties cover only the high-tech items in your vehicle, while others protect hundreds of car parts.
• Powertrain warranty: Covers your vehicle's powertrain, which consists of the engine, transmission, and drivetrain. Fixing these car parts is typically quite expensive, so many consumers opt for an extended powertrain warranty.

While not all of the best extended car warranty plans fit these exact definitions, you'll generally find that coverage falls into one of the categories listed above.

How To Use an Extended Car Warranty

Those with an extended warranty gain added peace of mind and long-term protection on their vehicles. Keep reading to see how a vehicle service contract can cover the repair costs for your car.

• Each new car comes with a new vehicle limited warranty
• Bumper-to-bumper new car warranty expires, typically after around 3 years/36,000 miles
• Extended warranty contract kicks in, continuing protection
• Repairs are covered by your warranty provider during a mechanical breakdown

While some drivers may be fine dealing with unexpected and costly vehicle repairs on the road, many find that the best extended car warranties remove most of the hassle.

How Common Are Mechanical Breakdowns?

It may seem unlikely that your car will face a mechanical breakdown, but they occur more often than most drivers expect. Below, we've listed out the typical frequency of mechanical breakdowns that require significant repairs:

It's worth learning about how to use the best extended car warranty plans because most drivers will end up using them at some point. The process is relatively simple, and most motorists who opt for a vehicle protection plan will receive quality protection and a drastically reduced repair cost.

Extended Auto Warranty Benefits

Car repairs can be very expensive, with common issues costing between $1,500 and $3,000. For people with savings, the best extended car warranty may not be necessary. However, those who can't afford repair shop visits might want a plan to stop worrying about potentially bank-breaking costs.

Here are a few of the benefits of purchasing coverage from one of the best extended car warranty companies:

• Peace of mind: You won't have to stress about large repair bills when you have an extended warranty.
• Convenience: Reputable extended car warranty companies pay the repair facility directly, so the only upfront payment is your deductible.
• Additional benefits: Most vehicle protection plans offer benefits such as 24/7 roadside assistance, towing services, and rental car coverage.

Along with the benefits above, many drivers find savings from opting for an extended auto warranty. If you've got an older vehicle, one with high mileage, or a model that's prone to breakdowns, extended coverage may pay for itself down the road.

Extended Auto Warranty Exclusions

Remember that extended auto warranties only cover repairs when your car breaks down due to mechanical failure. Other damages may be your responsibility or that of a car insurance company.

The following will likely not be covered by even the best extended car warranty:

• Wear and tear items (brake pads, wiper blades, and seat belts)
• Damage caused by an accident or environmental damages
• Routine maintenance needs (oil changes and tire rotations)
• Issues caused by misuse or lack of maintenance
• Certain car parts (auto glass, headlights, bumpers, and interior decorations)

The point of an extended auto warranty is to cover vehicles after a mechanical breakdown, so you shouldn't expect it to cover your vehicle after an accident or a severe weather situation. Also remember that routine maintenance and car parts that break down over time will typically remain the owner's responsibility.

Does an Extended Warranty Cover Repairs?

While there are exclusions to even the best extended car warranty contracts, it's worth noting that the overwhelming majority of mechanical breakdowns are covered. Our 2021 warranty survey looked into how many drivers received full coverage from their provider after a mechanical breakdown. Below are our overall findings:

The best extended car warranty choices above are excellent, but plenty of options exist if you want to keep searching. Know that some scams pose as trustworthy extended auto warranty providers. Below are some guidelines to help you find the best extended car warranty.

Look for Transparent Warranty Providers

Why it matters: The best extended warranty companies provide most of your information upfront. That includes sample contracts, information on deductibles and the claims process, and details on cancellation fees. If a warranty provider withholds basic coverage information before you pay, consider that a red flag.

What to do: Look for the sample contract for your potential extended auto warranty. It should be readily available and should clearly list out what is and isn't covered, how the company plans to take care of repairs, and its methods for satisfying customers' needs. Walk away if the sample contract is vague or if it seems to discount drivers' concerns.

Read Customer Reviews

Why it matters: Nobody understands how a company treats its customers quite like a product's users. The best extended car warranty companies all receive stellar reviews from the majority of drivers, but that's not the case of every provider on the market. Research to make sure you don't get ripped off or have to deal with an uncooperative extended warranty provider.

What to do: Head to the BBB, Trustpilot, and Google reviews to make sure that your top choice is indeed one of the best extended car warranty providers. A score of above 4.0 is generally a sign of standout customer service in this industry. Read through some reviews as well so that you'll be able to learn about the benefits and drawbacks of each potential provider.

Compare Extended Warranty Costs

Why it matters: It's never fun to get ripped off, and that's especially true of a major purchase such as an extended auto warranty. The best extended car warranty companies consistently give fair rates to motorists, but some other providers are slightly less transparent. You'll need to learn what a competitive rate is for your potential coverage so that you can discount the options that cost too much.

What to do: Get free quotes from multiple extended auto warranty companies to figure out what the standard rate is for coverage. You'll be able to compare prices to make sure that you get the best rate possible on coverage for your vehicle. If you take one company's word for it, there's a strong chance that you'll overpay for coverage on your car.

• 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

Are extended warranties worth the money?

Yes, extended warranties are worth the money for drivers who crave peace of mind on the road and want to avoid unexpected and costly car repairs. If you can easily pay for unexpected mechanical breakdowns, an extended car warranty may not be worth it.

Where can I get the best extended car warranty?

The best extended car warranty is from Endurance, CARCHEX, and CarShield. Each of these companies is committed to customer service and offers reasonably priced plans.

What is a fair price for an extended car warranty?

A fair price for an extended car warranty is between $1,000 and $2,000. Longer and more extensive coverage plans may cost slightly more, though.

Is CarShield a ripoff?

No, CarShield is not a ripoff. The company offers some of the market's most affordable extended warranty plans, and they come with excellent coverage.

Can I buy an extended warranty later?

Yes, you can buy an extended warranty later from a third-party provider. Dealership extended warranties must be purchased before the end of your new vehicle limited warranty, however.

How do I cancel an extended warranty on a car?

You can typically cancel an extended car warranty by sending a written note to your provider alerting them of your plans. A slight cancellation fee might apply with certain warranty companies.

How do I purchase an extended car warranty?

You can purchase an extended car warranty by reaching out for quotes from multiple third-party providers such as CARCHEX and Endurance. Once you've got a few quotes, compare the term limits, coverage amounts, and overall cost to see which one is best.