Best Extended Car Warranty Plans & Coverage (2024) (2024)

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 coverage and trip interruption protection.

Read more: Audi Extended Warranty

Ford offers four different coverage levels for drivers who want to purchase an extended warranty from the manufacturer. Plans can last up to 10 years or 175,000 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.

Read more: Ford Extended Warranty

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 plan also includes benefits like roadside assistance, rental car reimbursem*nt and trip interruption coverage.

Read more: Honda Extended Warranty

An extended car warranty — also called a vehicle protection plan or vehicle service contract — foots the bill for damage caused by defective materials and workmanship after your factory warranty expires. In other words, mechanical repairs and replacements for parts that break down over time as a result of normal use are covered.

While specific coverage varies from one provider to the next, all extended warranty contracts have some exclusions. Here are some of the most common exclusions in most contracts:

• Wear and tear items: Brake pads, rotors, windshield wiper blades and inserts, tires, hoses, spark plugs, filters, bulbs, belts and other items that need regular replacement are rarely covered — even by the best extended car warranty plans.
• Routine maintenance: Most warranties don’t cover services that are part of your regular maintenance schedule such as oil changes, alignments and tire rotations.
• Collision damage: Damage that comes as a result of an auto accident falls under the responsibility of your car insurance company and is not typically covered by an extended auto warranty plan.
• Damage from neglect: Failing to follow your manufacturer’s suggested maintenance schedule could void your warranty coverage.
• Damage from misuse: If your car breaks down as a result of using it in reckless ways like street racing or towing over capacity, your coverage plan won’t pay for repairs.
• Damage from modifications: Most warranty plans won’t cover damages caused by unauthorized aftermarket parts or modifications you’ve made to the vehicle.
• Environmental damage: Corrosion and other damages caused by weather or other environmental factors are not typically covered by an extended car warranty.
• Incidental damage: Damages caused by theft, vandalism, fire or sources other than normal mechanical failure won’t usually be covered by an auto warranty provider. These repairs are instead typically covered under a comprehensive auto insurance policy.

Depending on the company you select, you may find warranty options that include maintenance plans. These let you pay a specific amount up front to cover routine maintenance items for a certain period of time. If your warranty provider doesn’t offer a maintenance package, you may want to look into purchasing mechanical breakdown insurance from your car insurance company.

Read more: Types of Extended Car Warranties

Extended Warranty Coverage Benefits

Many of the best car warranty companies throw in a few bonus perks with each of their service plans, such as:

• Rental car reimbursem*nt: If your car’s in the shop and you need transportation, your warranty company will help you get a rental car.
• 24-hour roadside assistance: If you get a flat tire or need a jump-start when traveling, your warranty company will send someone to help.
• Towing services: If your car breaks down and isn’t driveable, your provider will send a truck to tow your vehicle to the nearest repair shop.
• Trip interruption coverage: If your vehicle breaks down and you can’t make it home, your warranty company will help cover your lodging and food expenses while your car gets fixed in the repair facility.

Purchasing an extended warranty can be a smart choice for some car owners, but it isn’t the right decision for everyone. For this reason, it’s best to consider your situation when shopping for a contract.

Since cars with higher repair costs benefit most from extended warranties, your expected vehicle repair expenses are the most important factor in determining whether or not an extended car warranty is worth it. According to RepairPal, Honda repairs and maintenance cost about $428 per year while Land Rover drivers pay $1,174. A warranty is more likely to pay out if the car has high average repair costs.

After considering your expected repair costs, you may determine that an extended warranty is worth it because you cannot afford to pay out of pocket for unexpected repairs. On the other hand, if your car doesn’t incur a lot of repair costs, you may decide that purchasing an extended warranty isn’t worth it.

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.

An extended warranty is typically worth it for drivers who own unreliable vehicles that are expensive to maintain or if covered repair costs meet or exceed the total price of the plan. You might find that a warranty is worth it if:

• You want peace of mind that many repairs are covered
• You want a predictable auto budget
• You plan on owning your car beyond 100,000 miles
• You want extra benefits like roadside assistance and trip interruption

Read more: Should You Get an Extended Warranty?

The average cost of an extended warranty is about $112 per month across all plan types, 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 typically range from $0 to $200. When different levels of coverage, 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 or more.

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: The best extended car warranty providers allow you to choose your own deductible. A lower deductible means you’ll pay less for repairs, but will likely pay more overall for extended warranty coverage.
• Coverage length: Longer-lasting contracts typically cost more.
• Coverage level: The higher the level of coverage you choose, the higher your warranty will cost. The most expensive type of extended warranties tend to be exclusionary, bumper-to-bumper warranties because they are more comprehensive, while basic powertrain protection is usually the cheapest.
• Vehicle make and model: Vehicles that are more expensive to repair or are more likely to need repairs generally cost more to cover.
• Vehicle age: Older cars and higher-mileage used cars tend to break down more frequently, which means that warranty companies tend to charge more for them.
• Mileage: When older or used vehicles have more miles on the odometer, they are more likely to break down, leading to pricier coverage.
• 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.

Monthly Payments vs. Pay-In-Full

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 and 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.

Fixed vs. Unlimited Terms

Multiple companies offer unlimited term contracts. This means you make a monthly payment as long as you have coverage, and you can stop the warranty plan at any time. While this is convenient, it becomes expensive if you have a contract for more than three years.

If you want to cover your vehicle for four or more years, we recommend choosing a fixed-term contract instead. Autopom’s Exclusionary plan is an example. Coverage extends for four years but you only have to make payments for two years to pay off the plan.

Once you understand the coverage that’s available and have determined the level of protection you need, the best way to get the most bang for your buck when purchasing an extended warranty is to get and compare extended warranty quotes.

To get a car warranty quote, you will need to provide each company with some basic information about your vehicle, such as its mileage, make and model, which will be used to estimate your price. We recommend reaching out to at least three companies that offer the best extended car warranty plans so you can compare your options and find the best deal.

If you have decided an extended warranty is right for your situation, it’s important to do your research during the buying process. This starts with understanding the various types of extended warranties offered by your automaker or an aftermarket warranty provider. The option that is right for you depends on your vehicle, coverage needs and personal preferences.

Direct Provider vs. Broker

Most extended warranty companies in the industry are actually brokers. This means they sell plans that are administered by another company. For example, if you buy a Carchex plan, you’ll call American Auto Shield to file a claim. Carchex can help resolve a dispute, but you really aren’t working with Carchex beyond purchasing the plan.

Endurance is the only one of our top picks that’s a direct provider. You work with Endurance for the whole claims process, which can make for a better customer experience.

Where To Get Extended Warranty Quotes

You can either buy warranty coverage from an aftermarket (or third-party) provider or your car manufacturer, and each type of plan has its benefits and disadvantages. We’ll outline the main characteristics of third-party and manufacturer warranties below:

When discussing the price of an extended warranty plan with the provider, we recommend doing some bargaining over the phone. In our experience, companies are willing to lower their price in order to gain your business.

After you decide where you want to purchase your coverage, it’s important to understand what is and isn’t covered in your contract. Based on our research and surveys, one of the top complaints from drivers who have purchased extended warranties is that expensive repairs weren’t covered.

To avoid disappointment down the road, read the fine print on your contract thoroughly before buying the plan. Look for and ask questions about these specific items:

• Labor rate coverage limits
• What defines mechanical failure
• Maximum payout per contract
• Original equipment manufacturer (OEM) parts coverage
• Waiting periods or inspections required before coverage
• Required maintenance documentation
• Emergency repair procedures
• Cancellations (make sure there’s a money-back guarantee) and contract transfers

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 reimbursem*nt check.

What Repair Shops Take Extended Car Warranties?

If you experience a mechanical breakdown, you’ll need to take your vehicle to an in-network repair facility that’s certified by the National Institute for Automotive Service Excellence (ASE^®). Keep in mind that some companies will only allow you to take your vehicle to specific repair shops or dealerships, which may not be accessible depending on where you live. To complicate the issue, some repair shops can refuse to work with certain third-party providers.

If your car does break down, here are some things you should immediately do:

• Call your plan administrator to see where to take the vehicle
• Take your vehicle to a licensed repair shop or dealership that is associated with your car warranty company
• Have the facility call your warranty provider for authorization
• Pay your deductible if you have one

A reputable warranty provider will then pay the repair shop directly for any vehicle repairs that are covered under your extended warranty.

Can You Cancel an Extended Car Warranty and Get a Refund?

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.