BMW X5 extended warranty: cost, coverage and plans
Why an extended warranty could make sense
+1 more
BMW X5s are known to have below-average reliability, meaning you're likely to get good value from an extended warranty that can offset future repair expenses.
We’ll break down what a BMW X5 warranty covers, how much it costs, what your options are and whether a warranty is worth it in the long run.
All new BMW X5s come with a four-year/50,000-mile bumper-to-bumper warranty and a four-year/50,000-mile powertrain warranty from the factory.
Jump to insightQuotes we received for an extended auto warranty on a 2021 X5 ranged from $2,091.36 to $4,595.26 a year. That’s more expensive than the average cost of an extended warranty.
Jump to insightBMW has below-average reliability compared with other vehicles.
Jump to insightGetting an extended warranty on an X5 gives you peace of mind and protection against repair bills once the factory warranty expires.
Jump to insightBMW X5 extended warranty coverage
An extended auto warranty is an optional, paid extension of the factory warranty your X5 comes with. For context, BMW X5s come with the following warranties from the factory:
- A four-year/50,000-mile bumper-to-bumper warranty
- A four-year/50,000-mile powertrain warranty
Factory warranties follow the vehicle, not the owner. So if you buy a 3-year-old car with 20,000 miles on it, you still have one year or 30,000 miles worth of factory bumper-to-bumper warranty remaining.
For an extended warranty on your BMW X5, you have two options:
- Buy the official BMW extended warranty, called BMW Extended Service Contract.
- Buy a plan from a third-party extended warranty company, which allows you to take your car to any ASE-certified mechanic for repairs.
Whether you get a third-party plan or a warranty from a dealer, a plan that offers comprehensive, exclusionary protection (often called bumper-to-bumper or Platinum) will provide the most value. These plans cover almost all the parts on your vehicle. Less comprehensive plans (e.g., Gold, Silver, powertrain) may be cheaper, but they also cover fewer parts per dollar.
Only 41% of Americans have enough in savings to pay for a $1,000 car repair out of pocket, and 13% say they have no way to handle a bill that large — even by borrowing.
Auto warranties don't cover damage or accidents, and repairs generally aren't covered if you don't properly maintain the vehicle or you make aftermarket modifications. They only pay for repairs and replacements of specifically covered parts that fail from normal wear and tear.
In general, here are the differences between what a bumper-to-bumper warranty and a powertrain warranty cover:
| Warranty type | Typically covered | Not covered |
|---|---|---|
| Bumper-to-bumper | ||
| Powertrain | Parts that create power and deliver it to the wheels | Parts not related to the engine, transmission or drive axle |
Note that some extended auto warranty plans fall somewhere between bumper-to-bumper and powertrain coverage.
» LEARN: What to know about manufacturers’ extended warranties
How much does a BMW X5 extended warranty cost?
We were quoted $4,595.26 a year from olive for three years of bumper-to-bumper coverage for a 2021 BMW X5 registered in Austin, Texas, with 55,000 miles. From Endurance, the quote for similar coverage was $2,091.36 annually for 30 months of coverage for the same vehicle with the same mileage. Both quotes assumed a $100 deductible. Note that both of these are third-party extended auto warranty companies.
The “official” BMW extended warranty is called BMW Extended Service Contract, and it may cost less than a third-party option. Be sure to get a quote from your local BMW dealer to compare your options.
In general, quotes for extended auto warranties vary based on coverage, vehicle, deductible, location and other factors. A 2022 X5 with zero miles typically has cheaper extended warranty options than a 2020 model with 50,000 miles, for example.
For context, the average cost of an extended warranty is around $1,000 per year of coverage. The quotes we collected for our hypothetical 2021 BMW X5 were more expensive by comparison.
This is a small sample of quotes for a warranty on your X5. Shop around and get multiple quotes so you know you're getting the best deal.
Bumper-to-bumper plans cover around 90% of your car's parts. Lesser plans may only cover 20%, and powertrain plans cover even less (though the most expensive repairs are usually covered under powertrain plans). You might pay more for a comprehensive plan, but that comes with a lot more peace of mind.
Keep in mind that some extended auto warranties start from the original owner's purchase date of the vehicle. So if the factory warranty lasts for four years and 50,000 miles, a six-year/100,000-mile plan may only provide two additional years or 50,000 additional miles of coverage.
Is a BMW X5 extended warranty worth it?
Yes, a BMW X5 extended warranty is worth it. In general, an extended auto warranty is worth it if any of the following are true:
- Your vehicle has a bad reputation for reliability.
- The warranty costs less than you expect to spend on repairs.
- A big repair bill could hurt you financially.
- You don’t mind paying for peace of mind.
BMW as a brand has below-average reliability, with J.D. Power ranking BMW 9th out of 29 car brands for overall dependability.
As for the X5 specifically, RepairPal gave it a 2.0 out of 5.
Many ConsumerAffairs reviewers reported issues with their BMW X5s.
Daby in New York complained about engine troubles: “After 2 weeks, the car needed to be towed to the dealer: engine malfunction preventing any type of driving.”
I’ve owned the vehicle about 14 months and it has had 2 engine malfunctions within one year.”
“I purchased a 2018 BMW X5 in 2017,” Claudia in California told us. “I’ve owned the vehicle about 14 months and it has had 2 engine malfunctions within one year. The vehicle just starts shaking and completely shuts off! Both times it happened in the freeway were cars are driving a constant speed of over 55 miles.”
These stories from real customers mentioning issues with BMW X5 maintenance suggest that an extended warranty is a good idea. The likelihood of needing repairs and the prices we found for BMW X5 extended warranties means you’re likely to come out ahead by purchasing a protection plan.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:- J.D. Power, “Vehicle Dependability Slumps as Rate of Deterioration Increases, J.D. Power Finds.” Accessed Aug. 14, 2024.
- RepairPal, “BMW X5 Reliability Rating.” Accessed Aug. 14, 2024.
