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. 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.
2. 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. Both types of warranties may be available online or from a dealership.
| Manufacturer extended car warranty | Third-party extended car warranty | |
|---|---|---|
| Coverage options | Typically more limited, but usually bumper-to-bumper and powertrain coverage | Typically more options, including bumper-to-bumper and powertrain coverage |
| Coverage limits | Usually up to 10 years/150,000 miles | Usually up to 250,000 miles |
| Coverage benefits | Plans typically include roadside assistance, rental car reimbursement and trip interruption coverage | Plans typically include roadside assistance, rental car reimbursement and trip interruption coverage |
| Cost | Typically more expensive | Typically more affordable |
| Deadline to purchase | Usually before the factory warranty expires | No deadline, available at any time as long as the vehicle meets eligibility requirements |
| Where repairs are done | Branded dealerships and authorized repair centers only | Any approved repair shop |
| Replacement parts | Original equipment manufacturer (OEM) or brand-authorized components | Varies, determined by repair center |
| Key advantages | OEM parts, brand support, manufacturer guarantees | Purchase and repair center flexibility, affordability and usually longer coverage terms |
3. 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.
“Some companies might not have the best reputation because customers don't know all the details about their coverage.”
“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.”
4. 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 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.
| Company | Customer rating | Maximum mileage | Waiting period | Levels of coverage | |
|---|---|---|---|---|---|
 Endurance Warranty | Get Pricing | 4.5 |  | 30 to 60 days and 1,000 miles | 6 |
 CarShield | Get a Quote | 4.0 | 300,000 | 30 days and 1,000 miles | 6 |
 Omega Auto Care | Learn More | 3.8 | 250,000 | 30 days | 5 |
 Toco Warranty | Learn More | 4.1 | 200,000 | 90 days and 1,000 miles | 4 |
 American Dream Auto Protect | Get Pricing | 4.1 | 250,000 | 30 days and 1,000 miles | 3 |
 Zurich Vehicle Service Contract | Learn More | 4.4 | 150,000 | 30 days and 1,000 miles | 3 |
5. 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 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!”
How to confirm an extended warranty company is legit
To confirm an extended warranty company is legitimate, follow these steps:
- Check the company’s rating on sites like ConsumerAffairs.
- Verify the administrator is licensed in your state.
- Confirm the contract is backed by a trustworthy, highly-rated insurer.
- Search for complaints before purchasing.
Is an extended auto warranty worth it?
An extended auto warranty can be worth it if your vehicle or model isn’t known for reliability, if you expect repair costs to exceed the cost of the warranty or if you want peace of mind after your manufacturer’s warranty expires. You can check your vehicle or model’s reliability on sites like J.D. Power and RepairPal.
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
An extended warranty for a luxury car can often be worth it because repair and labor costs are often much higher than average. However, extended warranties for luxury vehicles are usually more expensive and may come with stricter coverage limits or exclusions.
High-mileage or older cars
Extended warranties can be worth considering for older or high-mileage cars if repair costs are likely to exceed the warranty price. However, these warranties often have stricter coverage limits, so it’s important to review terms, eligibility and coverage exclusions.
Electric and hybrid cars
Electric vehicles (EVs) and hybrid cars usually have long factory warranties for batteries, but if you plan to own a vehicle long term, batteries and related components can be very expensive to replace. For long-term owners, especially once the manufacturer’s battery warranty expires, an EV extended warranty can be a smart option.
» MORE: Best SUV extended warranty companies
When getting an extended car warranty isn’t worth it
Getting an extended car warranty typically isn’t worth it if you:
- Don’t plan to own your vehicle past the factory warranty period
- Drive a reliable vehicle
- Lease a vehicle
- Can afford to pay for repairs out of pocket
FAQ
Who has the best extended car warranty?
Our top pick for the best extended car warranty is Endurance for its coverage options and broad vehicle eligibility. However, there’s no universal best choice when it comes to extended car warranty companies. One company might provide better coverage, while another offers low rates for your vehicle's brand. Ultimately, the best extended car warranty company is one that has good reviews, a plan that fits your needs and an affordable price.
How much does an extended car warranty cost?
An extended car warranty typically costs around $1,000 per year of coverage for a bumper-to-bumper plan, though powertrain plans are typically cheaper. How much you’ll pay for an extended car warranty typically depends on your vehicle’s make, model, age and mileage, along with the provider, coverage level and terms you choose.
What is mechanical breakdown insurance?
Mechanical breakdown insurance (MBI) is an insurance product that covers repairs or replacement parts for your vehicle if your car breaks down due to a mechanical problem. Unlike extended car warranties, mechanical breakdown insurance is sold by an insurance provider, and it typically has simpler terms with stronger consumer protections, thanks to insurance regulations. MBI also typically has stricter age and mileage requirements than auto warranties.
Why are extended auto warranty claims denied?
Extended auto warranty claims are typically denied when the repairs that are needed aren’t covered by the contract or when the repairs are related to damage caused by neglect, misuse, abuse, a preexisting condition or aftermarket parts. Claims may also be denied if they’re made during the warranty’s waiting period. If your claim is denied and you want to appeal, request a formal denial in writing. Then, gather documentation from your mechanic and carefully review your coverage before initiating the formal appeals process.
Is my warranty transferable if I sell my car?
Yes, your warranty is typically transferable if you sell your car to a new owner. The specifics of the transfer process will vary depending on your warranty provider. If you aren’t able to transfer the warranty, you can cancel before selling your car.
Can you negotiate the price of an extended car warranty?
Yes, you can negotiate the price of an extended warranty with dealerships or third-party providers, since they may have flexibility on pricing, deductibles, payment terms or coverage levels. It’s smart to request quotes from multiple providers and use competing offers to negotiate a better deal.
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:
- Federal Trade Commission, “Extended Warranties and Service Contracts.” Accessed Aug. 7, 2026.
- Federal Trade Commission, “Used Car Rule.” Accessed Aug. 7, 2026.
- National Association of Consumer Advocates, “Auto Issues.” Accessed Aug. 7, 2026.
