How to Choose an Extended Car Warranty

Step-by-step video guide for choosing an extended car warranty

Here’s our step-by-step video guide on choosing the best extended auto warranty company.

Editor’s note: Average extended warranty costs have changed since we filmed our video guide. We’ve updated the text in this article to match our most up-to-date estimates.

How to find the best extended car warranty in 2026

You’ll need to have an understanding of your coverage needs to find the best extended car warranty for you. Then, once you find a few providers that offer what you want, compare quotes, read the fine print and read customer reviews to help you make your final choice.

1. Assess vehicle age, mileage and reliability

Assess your vehicle’s age, mileage and reliability before you start shopping for coverage. Most providers only allow you to purchase coverage if your vehicle is under a certain age and mileage.

For example, manufacturer's extended warranties typically require your car to be within its factory warranty period, which usually ends around three years or 36,000 miles for most brands. For third-party extended warranties, you can typically purchase coverage until your car reaches around 20 years or 300,000 miles. However, you may be limited to high-mileage plans if your vehicle is over 100,000 miles.

As for reliability, if your vehicle is newer and highly reliable, you typically don’t need to purchase an extended warranty. However, if your vehicle isn’t reliable, or if the model isn’t known for its reliability, purchasing an extended warranty may provide valuable coverage and peace of mind. You can check your model’s reliability on sites like J.D. Power and RepairPal.

2. Decide on the level of coverage you want

Extended car warranties, also called vehicle service contracts (VSCs), are generally offered as either stated-component coverage or exclusionary coverage. Stated-component coverage only covers specific parts that are listed in a contract, while exclusionary coverage covers all vehicle parts and components unless they’re specifically listed as excluded.

• Bumper-to-bumper coverage: Bumper-to-bumper coverage is a type of exclusionary coverage, covering all vehicle systems and parts except for items listed as exclusions in the contract.

• Powertrain coverage: Powertrain coverage is a type of stated-component coverage that typically covers your engine, transmission and drive axle.

• Drivetrain coverage: Drivetrain coverage is another type of stated-component coverage. It typically covers the transmission, drive axle, drive shaft, differential and transfer case. Unlike powertrain coverage, it doesn’t cover the engine.

Learn what’s covered and not covered

Extended car warranties, similar to factory warranties, only cover mechanical breakdowns due to manufacturing defects. They won’t cover:

• Normal wear and tear

• Maintenance

• Preexisting conditions

• Damage caused by accidents, misuse, neglect or abuse

• Failures linked to aftermarket modifications

Extended auto warranties also won’t cover any repairs that are needed during your waiting period, which is the amount of time you need to wait between signing a contract and when your contract becomes active. Waiting periods typically last anywhere from 30 to 90 days and 1,000 miles.

3. Find a warranty company that fits your needs

You can generally buy an extended warranty through your car’s manufacturer or a third-party extended warranty provider.

Manufacturer's vs. third-party extended warranty

Both types of warranties may be available online or from a dealership.

4. Read customer reviews for extended car warranties

Reading what past and current customers have to say about an extended car warranty provider is a great way to learn what you can expect from it after you sign a contract. As you read reviews, look for positive and negative comments about customer service, the claim process or denied claims.

For example, Letty, a reviewer from Minnesota, said: “I was a customer for over a year, [but] once I needed to get my AC fixed, all went downhill. The shop held my car longer because the warranty [company] denied [my] claim, attempted to tell the shop what was needed and was wrong, [but] had no idea… [...] Everyone was so kind and helpful when I signed up [...] The positive reviews are fake because their real rating is [about] 1% on ConsumerAffairs[.] [...] Whatever you decide to do, do your research; I wish I had.”

However, keep in mind that some companies may not have great reviews online if customers don’t understand the coverage they purchase.

“It's not only about the company’s reputation but also about how much [the plan] covers,” said Gretchen Seidel, an automotive industry expert at Seidel & Co. “Some companies might not have the best reputation because customers don't know all the details about their coverage.”

Exclusionary coverage is often a better value since it covers more components than other types of coverage.

“Too often, I have seen customers come into the service department who opted for lower coverage when they should have got the best tier available,” Seidel said. “It could be the difference of thousands of dollars in possible covered repairs.”

5. Compare quotes from extended warranty providers

Costs for vehicle service contracts usually aren’t posted online, so you’ll need to collect and compare quotes from different extended warranty providers to ensure you’re getting a good deal for the coverage you need. It’s typically best to compare quotes from at least three providers.

Third-party extended warranties tend to cost around $1,000 per year for bumper-to-bumper plans, but prices tend to vary widely based on your vehicle and your warranty provider. Manufacturer's extended auto warranties also tend to be more expensive than third-party extended auto warranties.

Compare top extended car warranty companies

Our picks for the best extended car warranty companies are from third-party providers, which tend to offer more coverage options and higher maximum mileage limits.

6. Read the fine print of a sample contract

Read the fine print of a sample contract to learn how a company handles waiting periods, claims and cancellations. Then, make sure your final contract has everything you want.

• Confirm eligibility limits: Some providers won't cover vehicles over a certain mileage or older than 20 years.

• Exclusions: All auto warranties have a list of exclusions for items and sources of damage that they won’t cover.

• Maintenance requirements: In most cases, you need to follow the manufacturer’s recommended maintenance schedule in your owner’s manual to keep coverage active.

• Waiting period: Extended warranties have waiting periods defined in terms of days and miles after purchase. During this period of time, no claims will be approved.

• Deductibles: Many providers typically require a deductible every time you file a claim, though some providers don’t have a deductible.

• Payment options: Some companies require you to pay the full cost upfront, while others let you pay over time. If you buy a manufacturer's extended warranty when purchasing a car, the dealership can usually roll the cost into your auto loan.

• Cancellation policy: Warranty providers are required to give policyholders at least 30 days to cancel their contracts and receive a full refund. A cancellation fee will usually apply.

• Transfer policy: Extended car warranties can typically be transferred if the vehicle is sold to a new owner, though a transfer fee will usually apply.

It’s generally best to prioritize extended warranty companies with a long history, flexible payment options and a proven record of honoring claims. You can start by calling your preferred local auto repair facility to ask which car warranty providers they recommend. It’s also a good idea to find out if your auto warranty company works with mechanics in your area and covers vehicles matching your car’s manufacturer.

Warning signs of extended auto warranty scams

Common warning signs of extended auto warranty scams include:

• Unsolicited phone calls or mail urging you to act fast to buy or keep coverage

• Vague coverage details

• Pressure to purchase quickly

• Demanding large upfront payments

• Refusal to provide a sample contract

Unfortunately, scams are very common in the extended auto warranty industry. For example, Buddy2, a reviewer from California, said they were researching a policy online when someone claiming to be from Empire Auto Protect called them.

“[The representative] pushed a ‘bumper-to-bumper’ policy for $1,864 but absolutely refused to email me a written contract or a secure payment link,” Buddy2 said. “He demanded my credit card over the phone, claiming I could only pay the first part over the line before getting a link for the rest. When I stood my ground and refused to give financial information without seeing the paperwork first, he hung up on me. This is a classic high-pressure scam. [...] Do not give [...] any unsolicited caller your payment information over the phone. Verify everything in writing first!”

Questions to ask an extended warranty provider

Some of the questions to ask an extended warranty provider before purchasing a warranty include:

• Will you cover my vehicle? Extended warranty providers only cover cars up to a certain age or mileage, and some providers won’t cover certain car brands or models.

• What’s covered with my plan? Some plans only cover a few hundred stated components while others provide exclusionary coverage for all parts except stated exclusions.

• What’s not covered with my plan? All plans have exclusions and limitations. Find out what’s not covered, like damage from preexisting conditions or neglect.

• When does coverage start? Most extended warranties have a waiting period before coverage starts.

• What does the plan cost? You’ll want to ask about total costs, payment options, deductibles and any additional fees you might be responsible for.

• Where can I take my vehicle for repairs? Auto manufacturers generally require you to take your vehicle to a dealership for repairs, but third-party providers typically let you go to any licensed mechanic.

• Can I cancel or transfer coverage? You can usually cancel coverage for a full refund within a certain period of time, and you can typically transfer coverage to a new owner if you sell your vehicle.

Is an extended auto warranty worth it?

An extended auto warranty may be worth it if your vehicle or model isn’t known for reliability, if you expect repair costs to exceed the cost of a warranty or if you want peace of mind after your manufacturer’s warranty expires.

For example, a bumper-to-bumper plan costs around $1,000 per year on average. If you have an older or less reliable vehicle, one major repair, such as a new transmission or transfer case, may recoup the total cost of an extended warranty.

Consider the type of car you have

Extended warranties aren’t right for everyone, and whether one makes sense for you depends on the type of car you have.

• New cars: If you're driving a new car, it’s usually better to wait until your factory warranty is close to expiring before considering a new-car extended warranty.

• Used cars: If you’re driving a used car, an extended warranty can be worth considering if you plan to keep it long term or if your vehicle has a history of expensive repairs.

• Luxury cars: Luxury cars tend to have high repair and labor costs, so an extended warranty may help protect you against expensive repairs.

• High-mileage or older cars: Extended warranties can be worth it for older or high-mileage cars if repair costs are likely to exceed the warranty price.

• Electric and hybrid cars: If you plan to own an electric vehicle (EV) or hybrid car long term, batteries and related components can be expensive to replace after the factory warranty expires. An EV extended warranty can be a smart option.

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