Best Extended Auto Warranty Companies

If your air conditioner breaks down or you have an engine or transmission failure your extended warranty will probably cover it.

Ask your provider if there are any rules against performing maintenance work yourself. Keep track of all maintenance records and receipts.

Not all extended auto warranties cover the vehicle from bumper to bumper, so it’s important to understand what is and is not covered by different companies when buying an extended auto warranty. Brakes, cooling systems and electronic components are just a few examples of services that may or may not be covered. Be sure to read the fine print and choose a plan with the coverage you actually need.

Most warranties do not cover damage to your car’s interior, paint or other issues resulting from normal wear and tear. Wear-and-tear plans cover the difference, often including tires. These auto protection plans may be especially appealing to those leasing a vehicle because they’ll be responsible for the cost of these repairs when the lease ends. Read the terms carefully and understand precisely what will be covered.

Part of any vehicle service contract agreement is understanding that the vehicle owner will perform routine maintenance recommended by the vehicle manufacturer. Failing to do so could void your contract. Typical maintenance responsibilities required by most vehicle service contracts include:

• Oil changes: A single delayed oil change is unlikely to void a warranty, but repeated misses could leave a car owner facing a full bill on a major system repair.
• Changing filters: Bad filters can cause build-up that impacts the engine, transmission, intake and other important systems. It is important to change filters regularly.
• System checks and service schedule: Regular testing and visual inspections can catch problems before they become major hazards. They are typically included in the recommended maintenance schedule.
• Using recommended gasoline types: Every vehicle requires a certain octane rating to help its engine get its best life and performance. Using the wrong or lower octane rating than is specified can cause engine damage and a voided warranty.

Often, vehicle service contracts or extended auto warranties purchased separately from the manufacturer's warranty cannot be used for 30 days or 1,000 miles, whichever comes later, after they are purchased. This policy prevents people from buying a vehicle service contract only after a problem develops.

Bumper-to-bumper extended warranty
Covers components like air conditioning, audio systems, vehicle sensors, fuel systems and major electrical components. Most policies exclude regular maintenance like fluid top-offs and oil changes, but a few brands have separate free-maintenance provisions. Often called an exclusionary warranty or new-vehicle warranty, a bumper-to-bumper policy, bumper-to-bumper or new-vehicle warranties usually expire faster than powertrain warranties.

Powertrain warranty
Typically covers the engine and transmission, along with any other moving parts that lead to the wheels, like the driveshaft and constant velocity joints. Some automakers also bundle seatbelts and airbags into their powertrain warranties. With a few exceptions, powertrain warranties don't cover regular maintenance like engine tune-ups and tire rotations.

Drivetrain warranty
Covers transmission, driveshaft, axles, and wheels, but does not cover the engine. A drivetrain warranty will usually last for longer than a powertain warranty.

Car maintenance warranty
Optional extended service or coverage for air filters, oil changes, tune-ups and similar items. Make sure to read all the details if you are purchasing this package. Sometimes included with new car purchases, maintenance packages are usually available from both dealerships and as additions to a vehicle service contract.

Wear-and-tear plans
Coverage for damage to upholstery, interior, paint coverage and cleaning or other issues resulting from normal use. These auto protection plans may be especially appealing to those leasing a vehicle because they’ll be responsible for the cost of these repairs when the lease ends.

Performance warranty
Repair or adjust emission controls for at least two years or 24,000 miles if the car fails an emissions test. Design and defect warranties cover at least two years or 24,000 miles if emission controls fail independently of a test. Major components like catalytic converters and engine control modules are covered for performance and defects for eight years or 80,000 miles. On some items, California residents are eligible for additional coverage.

Factory accessories warranty
Covers everything from a high-end audio system to an engine modification from a manufacturer's performance wing. Most automakers cover accessories for one to three years or the remainder of the bumper-to-bumper warranty, whichever is shorter. Be sure to check out all the specifics; modifying the accessories after they've been installed can void your coverage.

In total, an extended auto warranty costs about $1,800–$4,000. Depending on the level of coverage, monthly payments can range from $80 to several hundred dollars. Some plans have $0 deductibles, but those come with higher premiums. Prices vary based on your vehicle’s make, model, condition and location.

Usually, you’ll pay for extended auto warranties when you’re purchasing your new or new-to-you vehicle. You can pay up front or make payments in monthly installments.

Plan	Supreme package*	Titanium package*	Supreme package*
Coverage up to	4 years/95,000 miles	6 years/125,000 miles	5 years/100,000 miles
Deposit	$130	$0	$249
Monthly payments	$100/24 months	$196/18 months	$156/30 months
Deductible	$100	$100	$100

	Plan	Coverage up to	Deposit	Monthly payments	Deductible
	Supreme package*	4 years/95,000 miles	$130	$100/24 months	$100
	Titanium package*	6 years/125,000 miles	$0	$196/18 months	$100
	Supreme package*	5 years/100,000 miles	$249	$156/30 months	$100

*Quotes for extended auto warranties are based on a 2015 4-door sedan with 40,000 miles.

Factors that impact the cost of your extended auto warranty

• Level of coverage: While all new vehicles and most used vehicles come with some type of warranty, many dealerships offer premium coverage options that include more systems. Extended auto warranty providers often offer different auto protection plans depending on which systems a customer wants protected.
• One-time and recurring fees: Ask about any recurring charges in addition to the upfront fee or monthly premium. It can be difficult to get out of these types of contracts. If you're rolling your extended auto warranty into your auto loan, you're going to pay interest on the policy itself.
• Additional charges or deductibles: Some car warranties cover everything from chips in a windshield to door dents, but there may be service fees or deductibles for every repair.
• Maximum payout amount: Most extended auto warranties have a maximum payout; many will restrict the maximum payout to not exceed the total cash value of the car. Once you're quoted a price for your policy, consider if the cost is reasonable in relation to the limits of the liability terms of your auto protection plan.

How much is an extended warranty on a used car?

Typically auto warranties for used cars cost $350–$700 per year. Not all providers offer auto warranties for used cars, and not everyone qualifies for those who do. If your car is over 10 years old or has more than 100,000 miles, you may not qualify for coverage at all.

Best extended warranties for used cars
Endurance Auto Warranty, CarChex and Protect My Car all offer extended auto warranty packages for high-mileage cars that include 24/7 roadside assistance. Their extended auto warranties are also transferable to a new owner, which might increase the value of your car. Alternatively, you could receive a prorated refund if you sell your car before the warranty expires.

A used car extended warranty usually pays for itself with the first major repair. When buying a used car warranty, consider opting for mechanical breakdown insurance or an additional maintenance or wear-and-tear plan, which can help keep your vehicle on the road even longer, even if it has over a hundred thousand miles.

What is a car warranty?

A car warranty is a contract between you and your car’s dealership or manufacturer to make repairs within a certain period of time or mileage, often 3 years or 60,000 miles. It’s a guarantee that your car will be reliable and if it's not, it will be fixed at no cost.

Auto warranties typically do not cover theft, damage caused by natural disasters, vandalism, routine maintenance or normal wear and tear. You can opt for a full-coverage plan or choose a plan that only covers the major systems on your vehicle.

How do car warranties work?

Repair insurance for cars is like health insurance for people in some ways. Extended auto warranty providers usually have a network of mechanics and repair shops that car owners can use. Depending on the terms of your service contract, you may have to pay for repairs then wait for reimbursement from the service company. If you aren't sure how long it will take to be reimbursed for your expenses, talk to your extended warranty provider

How are auto warranty claims handled?

Repair insurance for cars is like health insurance for people in some ways. Extended auto warranty providers usually have a network of mechanics and repair shops that car owners can use. Depending on the terms of your service contract, you may have to pay for repairs then wait for reimbursement from the service company. If you aren't sure how long it will take to be reimbursed for your expenses, talk to your extended warranty provider.

Most extended auto warranties cover repairs only through authorized service providers, and any repairs outside the network may not be covered or may only be covered up to a specific dollar amount. Be sure to look at the available network of garages before settling on a particular warranty company. Preferably your repairs are done at the dealership or by an ASE (Automotive Service Excellence) certified technician.

The FTC offers advice on their website for consumers who need to file a claim with their service contract provider. They recommend asking if you need prior authorization for any repair work or towing services before choosing an auto repair shop.

What is a vehicle service contract?

Vehicle service contracts, also known as “extended car warranties,” help offset the costs of expensive repairs after your vehicle’s standard manufacturer’s warranty has expired. They will typically cover costs of repairs, including labor, parts and taxes, but only if all their terms are met.

How long is a car warranty effective?

A manufacturer’s car warranty usually lasts for at least three years or 60,000 miles, whichever comes first. An extended auto warranty provides additional coverage, typically for about five years, after your initial warranty has lapsed.

Should I buy an extended warranty on a new car?

If you’re planning to keep your car for longer than the manufacturer’s warranty covers, you should consider an extended auto warranty to save money on repairs as your vehicle ages. Extended auto warranties are also a good idea if you’re getting ready to sell your vehicle. Most auto protection plans are transferable to a new owner, which can help you sell your vehicle faster.

What’s the difference between bumper-to-bumper vs. powertrain warranties?

A powertrain warranty covers everything that keeps your vehicle driving, from the engine to the transmission to the parts that allow power to travel from the engine to the wheels. A bumper-to-bumper warranty is more comprehensive and includes additional coverage for electronic systems, suspension and more.

Are extended car warranties worth it?

The peace of mind that comes with additional coverage of an extended car warranty could be enough to make it worth it for you.

Think about the amount of money you've spent on out-of-warranty repairs on vehicles you've owned in the past, then compare that to the total price of an extended car warranty. If you're worried you won't have cash set aside to pay for repairs out of pocket, an extended warranty could help offset those costs.

In some cases, purchasing an extended auto warranty or vehicle service contract before the manufacturer’s warranty expires comes with added benefits. For example, if any part of your vehicle is repaired under the manufacturer’s warranty (and the repair is also covered by your extended warranty), some providers will reimburse you for a portion of the manufacturer’s deductible.