Best Extended Car Warranty Companies of 2025

Regardless of your vehicle’s make, age and mileage, repairs are rarely cheap. They’re also getting more expensive — according to the U.S. Bureau of Labor and Statistics, the cost of maintaining and repairing a vehicle rose over 34% between November 2020 and November 2024.

That’s where extended auto warranties come in. Think of an extended warranty as insurance against high repair bills. They can actually save you money if you need enough covered repairs, and they often provide peace of mind — even when you’re not using them.

But how exactly do extended auto warranties work? What do (and don’t) they cover? What do they cost? And how do you know if it’s worth buying one?

Read on to find out.

Extended car warranty cost

A bumper-to-bumper extended warranty will typically cost you $1,000 for each year of coverage. Some warranty companies require a lump-sum payment, while others may offer financing plans. An increasingly popular option is to let warranty holders pay month to month, which means you can cancel at any time.

Costs can vary based on several factors. If you drive a $90,000 BMW M4, you can expect to pay significantly more for warranty coverage than the driver of a $30,000 Mazda Miata, for example.

Factors that impact the cost of your extended auto warranty

When quoting a price for coverage, the best extended car warranty companies examine multiple factors, including your vehicle’s make, model, condition and location. Some of the most significant factors that affect the price of your extended auto warranty include:

» LEARN: How to get a cheap extended car warranty

How to find the right extended car warranty

Finding the right extended warranty takes time and research. Don’t just go with the first offer you get, even if it’s from a top-rated car warranty company. Prices, benefits and coverage can vary between providers, so it pays to shop around.

Here’s how to find the best extended warranty for your car:

1. Consider the amount of coverage you need: While exclusionary warranties tend to offer the best value, you might also consider a more focused powertrain warranty if you’re on a strict budget and all you need is protection for your engine, transmission and drive systems.
2. Get multiple quotes: Warranty prices often vary significantly from provider to provider, and the most reliable way to know that you’re getting a good deal is to get estimates from multiple sources.
3. Compare reviews: Many 5-star reviews about vehicle service contract companies refer to the initial sign-up process. Look for reviews about the claim process, the speed and ease of claim approvals, and the timing of payouts for repairs. If you read about difficulty filing claims or patterns of rejected claims, be wary. And be sure to avoid the lowest-rated extended auto warranty companies.
4. Consider the waiting period: Most plans require you to wait up to 30 days and 1,000 miles before you can request service. This is intended to prevent car owners from getting repairs on preexisting conditions. However, for some drivers, it could take several months to put another thousand miles on the odometer. Some companies, like olive, offer plans with no waiting period.
5. Look for perks: Extended warranties commonly include perks like 24/7 roadside assistance, reimbursement for rental cars and trip interruption insurance, which compensates you up to $200 per day if your vehicle breaks down 100-plus miles from home. These perks could be worth $1,500 alone, so be sure to keep an eye out for them as you shop and use them after purchasing an extended car warranty.
6. Read the fine print: Be sure you understand what is and isn’t covered. Ask about any restrictions or conditions that might void your coverage. Find out where your warranty company is allowed to source replacement parts from. If you prefer having more control over the specifics of your coverage, look for a company that offers multiple plans or lets you customize your coverage.
7. Consider the cancellation and refund policy: If you think you might want to sell your car before the warranty expires, check if the company lets you transfer the coverage to the next owner — and ask if there’s a fee. This could be a selling point to potential buyers.

» LEARN MORE: Car warranty guide: what you need to know

How do extended auto warranties work?

An extended car warranty functions as a contract between you and your warranty provider — either your car’s manufacturer or a third party — that states the provider will help cover the cost of certain repairs following a breakdown during an agreed-upon period.

Extended car warranties help pay for repairs or replacements when parts fail, but they do not cover damage caused by accidents or misuse.

The key word there is “breakdown.” The most common misconception about warranties is that they cover everything: chips, dings, flood damage, worn leather, etc. In reality, warranties cover parts that fail entirely on their own and not as a result of damage.

To maintain this coverage, you must pay your warranty provider ahead of time. (How much will largely depend on the coverage you want and the car you want covered.) And you’ll typically have a deductible of up to $200, which you’ll pay each time you take your car in for a covered repair.

Your car warranty company may decide where you can take your vehicle for repairs, but they usually let you visit any ASE-certified mechanic. Just note that you’ll likely need to have your repairs pre-authorized by your warranty provider before the shop can begin working.

Once your car is ready for you to pick up, you’ll pay your deductible to the shop and be on your way.

You can buy an extended car warranty, more accurately called a vehicle service contract, at nearly any time. But it’s usually a good idea to have your coverage start when your factory warranty ends. You may see your warranty term written as “three years/36,000 miles,” which means it expires after three years or 36,000 miles — whichever comes first.

Some companies will cover your vehicle for up to 250,000 miles, but a typical extended warranty term is more like five years/50,000 miles. Just know that doesn’t always mean it adds five years to your factory warranty. Some warranty providers count their terms from when your car was new, so your “five-year warranty” may expire when your vehicle is just 5 years old. In these cases, you’re effectively purchasing up to two years of additional coverage on top of your three-year factory warranty.

» READ OUR SURVEY: Do you trust your mechanic?

Types of extended car warranties

Depending on your car’s age and mileage, you should have a variety of extended car warranty plans to choose from. However, only 35% of drivers are confident about choosing warranty coverage for their vehicles, according to our survey results.

Here’s a summary of the most common coverage options that you’ll see as you shop for an extended warranty:

You may also see labels like “Supreme” or “Gold Plus” as you shop, but for the most part, 95% of extended warranty plans are just exclusionary, midtier or powertrain plans by other names.

• Exclusionary warranties: These warranties, which are also called bumper-to-bumper warranties, offer exclusionary coverage. Basically, rather than stating what your warranty covers, your contract lists what isn’t covered, and everything else is covered by default. Third-party companies may also call these plans “Platinum,” “Diamond” or something similar. Just keep in mind that the most comprehensive warranties are typically reserved for cars with less than 100,000 miles on their odometers.
• Midtier stated-component warranties: These are typically called “Gold” warranties by warranty providers, and they tend to provide coverage that’s somewhere between the powertrain and bumper-to-bumper tiers. Details vary between plans, but you can check your contract to see which components are covered. Be sure to compare the price against the cost of an exclusionary plan if your car qualifies for both. (Exclusionary plans tend to be far more comprehensive for only a slight increase in cost.)
• Powertrain warranties: These warranties effectively extend your factory powertrain warranty, as the name implies. That means they cover the critical components that create power and deliver it to your wheels, like your engine, transmission, drivetrain, etc.
• Drivetrain warranties: A drivetrain warranty is similar to a powertrain warranty but does not cover your engine. (These warranties are now exceedingly rare.)
• Specialty warranties: Specialty coverage is an umbrella term that we use to describe warranties that only target specific component groups on your vehicle, like electronics. Not all manufacturers offer specialty plans, and those that do may have very different offerings. However, if you’re mostly worried about just a few components and you want to keep costs down, you might want to consider specialty coverage.
• Wrap warranties: These plans are designed for cars that are still under a manufacturer’s powertrain warranty. Wrap warranties complement your existing coverage and get the rest of your vehicle back under warranty.

What do extended car warranties cover?

Car warranties only cover parts that fail entirely on their own during normal, everyday driving. They do not cover failures due to damage, bad weather, abuse or lack of maintenance (e.g., missed oil changes).

Exclusionary warranties are often called “bumper-to-bumper” or “platinum” plans.

Let’s say you’re driving down the road, and your infotainment system suddenly stops working for no discernible reason. A part failure like this would very likely be covered under warranty.

However, if you spill coffee on it first, that would not be covered under an extended warranty. Again, the general idea of a warranty is to protect you from factory defects, not damage.

Not all car warranties are built the same, some cover a few dozen parts, while some cover 5,000-plus parts. It mostly depends on whether the warranty is inclusionary or exclusionary.

• Inclusionary warranties cover only the parts listed in the warranty.
• Exclusionary warranties cover all parts except the ones listed in the warranty.

A great example of an inclusionary warranty, also known as a stated-component warranty, is your standard “powertrain warranty.” Most powertrain warranties only cover 50 or so parts inside your engine, transmission and drive systems — the absolutely essential parts needed to make your car go.

“Bumper-to-bumper” and “Platinum” are labels typically reserved for exclusionary warranties, which cover virtually everything on your car except wear and tear, cosmetics and the excluded parts listed in your contract (hence, the name).

What extended car warranties don’t cover

Let’s break down what car warranties don’t cover in more detail to prevent any misunderstandings or false expectations. Car warranties — factory or extended — typically will not cover the following:

Is an extended car warranty worth it?

As you shop for an extended warranty, it’s important to consider the benefits and costs involved so that your warranty is worth what you pay for it. Basically, if your repairs don’t qualify for coverage (or your vehicle just doesn’t break down enough), your warranty may cost you more than it saves you.

Pros and cons of extended auto warranties

Extended car warranties offer protection against costly repairs, but it's crucial to weigh the potential benefits against the costs.

As wise an investment as an extended warranty may look on paper, even the most robust Platinum-level warranty has exclusions and exceptions. A warranty is not bulletproof; it will cover only some parts in some cases.

You can judge the odds of a warranty being worth it for you depending on how you answer the following questions.

If you answered yes to any of those questions, you may find a warranty worth it, both financially and emotionally.

If you didn’t, consider paying out of pocket for repairs to potentially save money over the investment in a warranty. That way, you’ll also maintain more control over your vehicle, deciding where and how your repairs are done and what replacement parts are used. (Some warranty companies may force you to use rebuilt or aftermarket parts for covered repairs.)

» RELATED: Should I buy an extended auto warranty on a used car?

Car repair costs

Wondering how expensive car repairs can get? Understanding these costs may help you feel more confident in purchasing an extended warranty.

What reviewers say about extended car warranties

Are consumers who invested in an extended warranty happy with their purchase? Tens of thousands of ratings on ConsumerAffairs would indicate that, yes, they’re happy for the most part.

We analyzed a year of consumer ratings for auto warranty companies on our site and calculated an overall satisfaction rating of 4.5 stars out of a possible 5. Overall, 78% of reviewers in that period were happy or satisfied with their extended auto warranty provider.

Look for a warranty company with good reviews, and pay extra attention to the reviews that actually mention filing a claim.

“The deductible was $500. But I’m okay with that because the repairs were up in the $2,000 range,” said one reviewer from California. “I’m very satisfied.”

“I was pleased with my experience because that was a $775 repair of which I only paid $100 on,” said a reviewer from Texas. “I paid $2,800 for the policy. So, I'm going to keep a running total to see whether it was worth it or not. I don't put that many miles on the car and I may have another repair or I may not. But at least I know if I have a major repair, it's going to be covered.”

It’s worth noting, however, that among our verified reviewers during that time who mentioned filing a claim, 40% were upset. Reviewers especially express frustration after discovering their coverage limitations, such as a California reviewer who learned their warranty did not cover consumable parts such as batteries.

Other reviewers noted communication issues with their providers. Reviews that mentioned sales and marketing and those that mentioned refunds and payouts had the lowest average sentiment, with roughly 30% of those reviewers being upset.

In short, most purchasers of warranties are happy, but experiences can vary.

» RELATED: Best online car buying sites

Survey: Do you know what’s included in car warranty coverage?

A ConsumerAffairs survey of 1,000 drivers found that about 45% of respondents either didn’t know what was covered under a car warranty or weren’t sure about what was covered. And the 55% who said they did know what a warranty covered? About half of them mistakenly thought that a warranty usually covers routine maintenance.

How can I avoid car warranty scams?

“Hello, we’ve been trying to reach you about your car’s extended warranty.”

Car warranty scams are common, but they’re also easily avoided. Here are the key takeaways from our feature on how to avoid car warranty scams:

1. Never purchase anything or forfeit personal information to an unsolicited caller. If the mysterious caller mentions anything about an extended warranty — or even says, “Hello, can you hear me?” — immediately hang up without speaking.
2. Only purchase a car warranty directly from a trusted source. This will not only help you avoid scams; it may save you money, since middlemen not working directly with the warranty provider may charge hidden fees.
3. Report scams to the Federal Communications Commission. Every valid consumer complaint will go toward reducing the number of scams and robocalls we all receive. You can file complaints directly with the FCC.

It’s especially worth prioritizing stable, established warranty companies so that you’re not left with a worthless service contract.