Step-by-step video guide
Here’s our video version on choosing the best extended auto warranty company in five easy steps.
Editor’s note: Average prices have changed since we filmed the video above. We’ve updated the text here to match our most up-to-date estimates.
How to find the best extended car warranty in 2026
Start by deciding your ideal level of coverage. Once you find a few providers that offer what you want, read reviews and compare quotes. Always read the fine print before you make your final choice.
Follow the steps outlined in this section to make the best choice for you and your vehicle.
1. Decide on the level of coverage you want
Extended car warranty coverage is described in two main ways:
- Exclusionary coverage: This type of plan covers most parts of your vehicle. Anything not covered will be listed as an exclusion in the vehicle service contract. These plans offer the most protection and the fewest surprises — but they usually cost more.
- Stated-component coverage: This type of plan only covers the specific parts listed in the contract. If a part isn’t named, it isn’t covered. These plans are usually cheaper, but they offer less protection.
Exclusionary coverage is often the better value. “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 advised. “It could be the difference of thousands of dollars in possible covered repairs.”
Types of extended warranty plans
Car warranties pay for parts that fail due to factory defects. But extended warranty plans vary in what they cover.
Bumper-to-bumper (also called exclusionary) is the most comprehensive option. It includes nearly all vehicle systems except for items listed as exclusions in the contract. Some plans may also include perks like roadside assistance or rental car reimbursement. They usually include wear-and-tear parts like brake pads, wipers and tires, as well as routine maintenance like oil changes.
Powertrain and drivetrain coverage plans focus on your vehicle’s most important and expensive components. A drivetrain warranty only covers important components like your transmission, drive axle, drive shaft, differential and transfer case, whereas a powertrain warranty covers all those parts and your engine.
You often see bumper-to-bumper coverage marketed as Platinum or Supreme protection plans. Gold or Silver plan options are usually between a powertrain and a bumper-to-bumper warranty. If you want extra perks like roadside assistance or rental car reimbursement, you’ll pay more.
| Warranty type | Coverage |
|---|---|
| Powertrain | Basic protection for major parts like the engine and transmission |
| Mid-level | Powertrain coverage plus systems like steering, suspension and air conditioning |
| Bumper-to-bumper | Covers most vehicle parts except those listed as exclusions |
Understand what plans don’t cover
Keep in mind that even the most comprehensive coverage won’t reimburse car owners for:
- Preexisting conditions
- Repairs needed during your waiting period
- Maintenance
- Normal wear and tear
- Damage caused by accidents, misuse or abuse
- Failures linked to aftermarket modifications (like unauthorized lift kits)
- Any parts listed under the Exclusions section of your contract
Did you know?
Drivetrain warranties are rare now. According to several car dealers and extended warranty providers we spoke with, over 80% of customers end up choosing their most comprehensive options because it’s the best overall value.
2. Find a warranty company that fits your needs
You can buy an extended warranty through third-party providers, car dealerships or your car’s manufacturer. Either way, prioritize companies with a long history, flexible monthly 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.
- Confirm the provider's eligibility limits: Some won't cover vehicles over a certain mileage or older than 20 years.
- Ask about the mandatory waiting period: Many contracts don't pay claims until 30 days (and a set number of miles) have passed.
- Check local availability: Find out if your auto warranty company works with mechanics in your area and covers vehicles matching your car’s manufacturer.
- Review maintenance requirements: In most cases, you need to follow the manufacturer’s recommended maintenance schedule in your owner’s manual to keep coverage active. Be sure these requirements fit your budget.
Manufacturer vs. third-party extended car warranties
The two main warranty options are manufacturer extended warranties and third-party extended warranties.
| Manufacturer car warranty | Third-party car warranty | |
|---|---|---|
| Cost | Typically more expensive | Typically more affordable |
| Purchase window | Must purchase before factory warranty expires | Available at any time if vehicle meets eligibility requirements |
| Repair network | Branded dealerships and authorized repair centers only | Any participating ASE-Certified repair shop |
| Replacement parts | Original equipment manufacturer or brand-authorized components | Varies, determined by repair center |
| Coverage options | Limited plan selection | Larger selection of plans |
| Coverage limits | Usually up to 10 years/150,000 miles | Sometimes unlimited, typically up to 250,000 miles |
| Key advantages | Brand support, added resale value, manufacturer guarantees | Purchase and repair center flexibility, affordability, more generous coverage limits |
3. Read customer reviews for extended car warranties
Seeing what past and current customers have to say is a great way to learn what to expect from your auto warranty provider. As you read reviews, look for comments about customer service beyond the initial sale. Just because a sales rep is friendly initially does not mean the company is more likely to approve claims.
Read reviews from customers who have actually filed claims.
For example, a reviewer in California told us their provider started out “polite and then when you actually need them, it all ends!” We’ve heard many other complaints about misleading sales practices. So, reading about how customers are treated during the claims process can reveal which companies truly back up their products.
Once you’ve found a provider you trust, find at least two more.
4. Compare extended warranty quotes
Costs for vehicle service contracts usually aren’t posted online, so you need to compare offers to verify you’re getting a good deal.
On average, bumper-to-bumper extended auto warranties cost about $1,000 per year, but prices vary widely based on your vehicle and your warranty provider.
We’ve seen quotes for Platinum plans on the same car change as much as $1,500 between providers. That’s why getting several quotes is so important. But remember, be sure you’re comparing apples to apples. For instance, one provider may have a lower quote but a different payment plan or a higher standard deductible for each repair.
Compare popular extended car warranty companies
Read our guide on the best-rated car warranty companies for more information on coverage plans and costs.
| Company | Customer rating | Maximum mileage | Waiting period | Levels of coverage | |
|---|---|---|---|---|---|
 Endurance Warranty | Get Pricing | 4.5 | 500,000 | 30 to 60 days and 1,000 miles | 6 |
 CarShield | Get a Quote | 3.9 | 300,000 | 30 days and 1,000 miles | 6 |
 Omega Auto Care | Learn More | 3.9 | 250,000 | 30 days | 5 |
 Toco Warranty | Learn More | 4.3 | 250,000 | 90 days and 1,000 miles | 4 |
 American Dream Auto Protect | Get Pricing | 4.0 | 200,000 | 30 days | 3 |
 Zurich Vehicle Service Contract | Learn More | 4.5 | 150,000 | 10 to 30 days (varies) | 3 |
5. Read the fine print
Read the fine print of a sample contract. See how the company handles waiting periods, claims or cancellations. Then, make sure your final contract has everything you want.
- Exclusions: All warranties come with lists of exclusions for items and sources of damage they won’t cover. These vary between providers and plans.
- Waiting period: Extended warranties have waiting periods defined in terms of days and miles after purchase. During this period, no claims will be approved.
- Cancellation policy: Warranty providers are required to give at least a 30-day period for policyholders to cancel their contracts and receive a full refund. Some offer longer windows. Fees and procedures for cancelling coverage vary.
- Transfer policy: Used car warranties can transfer to the new owner when a vehicle is sold with coverage remaining. Providers vary in the fees they charge and the process they require to transfer coverage.
It’s common for people with extended warranties to feel frustrated when their claims are denied, but more often than not, it’s simply due to limitations that are listed in the contract. That’s why it’s critical to read your contract front to back before purchasing so you know exactly what’s covered (and what isn’t).
Consider your 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. This can make coverage easier to afford upfront, but it also increases the total cost because you’ll pay interest on the warranty.
Most third-party warranty providers offer monthly payment plans, typically ranging from about $50 to $150 per month. When comparing options, look at both the total price and the monthly payment to make sure the plan fits your budget.
Considerations for electric and hybrid vehicles
Electric and hybrid vehicles usually require less routine maintenance because they have fewer moving parts. However, key high-voltage components — like the battery, inverter and charger — can be very expensive to replace. For long-term owners, especially once the manufacturer’s battery warranty expires, a specialized extended warranty can be a smart option.
Warranty coverage for EV car batteries is somewhat limited.
Most new EVs come with long factory battery warranties (often eight years or 100,000 miles). However, extended warranty coverage for electric batteries and related components is still limited.
Reviewers on our site also complain about denied claims and unexpected fees when getting a warranty on a hybrid or EV vehicle. So, be extra careful when evaluating those contract terms.
Is an extended auto warranty worth it?
Considering a $1,000 repair would wreck most drivers' savings, a car warranty can be a good investment if your vehicle isn’t particularly reliable and you’d like added peace of mind after your manufacturer’s warranty expires.
“It’s similar to having insurance on your phone or laptop, you may not need it — but if you do, you’ll be happy you had it,” Seidel said.
But extended warranties aren’t right for everyone, and whether one makes sense for you depends on your car. If you're driving a new car, it’s usually better to wait until your factory warranty is close to expiring. 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.
There are a few reasons why buying coverage for your vehicle may not be the right move at this time.
Do you already have coverage?
One reason is that your vehicle may already have coverage. A newer used vehicle may still be under its original factory warranty. The average new car warranty lasts for three years or 36,000 miles. Some automakers provide bumper-to-bumper factory coverage for up to five years or 60,000 miles. Powertrain warranties last much longer in some cases.
If you purchased a certified pre-owned vehicle, it likely came with additional coverage from the manufacturer.
The previous owner of your vehicle may also have purchased an extended warranty for it. Since a warranty can transfer when a car is sold, you would be able to use any remaining coverage.
Can you pay for car repairs out of pocket?
Another reason you may not need a warranty for your used car is that you may be able to cover repair costs yourself, making additional coverage an unnecessary expense. If you can stash at least $3,000 in a vehicle repair fund that you won’t need for anything else, you won’t have to risk paying for warranty coverage you don’t use.
When to skip buying an extended car warranty
Examples of when an extended auto warranty may not be worth it include, but aren’t limited to:
- When you don’t plan to own your vehicle past the factory warranty period
- When you drive a vehicle that doesn’t break down a lot
- When you lease your vehicle
- When you can afford to pay for catastrophic repairs out of pocket
Bottom line
Extended warranties aren’t right for everyone, and whether one makes sense for you depends on your car. If you're driving a new car, it’s usually better to wait until your factory warranty is close to expiring. 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.
» TIPS: Avoiding car warranty scams
FAQ
Who has the best extended car warranty?
There’s no universal best choice when it comes to extended car warranty companies — one might have better coverage while another offers low rates for your vehicle's brand. At the end of the day, 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?
Bumper-to-bumper extended auto warranties typically cost around $1,000 per year of coverage, but prices vary significantly. How significantly? We’ve seen total costs ranging from roughly $1,500 to over $10,000.
The main factors that influence the cost of a used car warranty (specifically, an extended warranty) include, but aren’t limited to:
- Your vehicle’s make, model, age and mileage
- Your vehicle’s reputation for reliability
- The current cost of mechanic labor
- Your choice of warranty provider
- Your chosen coverage level, deductible and warranty length
For example, a two-year powertrain warranty on a 2021 Toyota Corolla — a car with a legendary reputation for reliability — may only cost a few hundred dollars. In contrast, a seven-year/100,000-mile bumper-to-bumper warranty on a 2010 Maserati GranTurismo may cost $10,000 or more.
» RELATED: How to get a cheap extended car warranty
What is mechanical breakdown insurance?
Mechanical breakdown insurance (MBI) is an actual insurance product, while extended car warranties are technically service contracts. Both can protect you from unexpected repair bills after your factory warranty expires, but MBI generally has simpler terms with stronger consumer protections, thanks to insurance regulations.
» COMPARE: Best mechanical breakdown insurance
Why are extended auto warranty claims denied?
According to various claims adjusters we’ve spoken with, extended auto warranty claims are commonly denied because of preexisting conditions and because they were made during the warranty’s waiting period.
However, this isn’t always the case. A claims adjuster with Mopar told us the most common reason he denied claims for Jeeps was due to customers installing unauthorized lift kits that damaged other components.
» RELATED: What voids a car warranty?
Are extended warranties worth it for older or high-mileage cars?
Extended warranties can be worth considering for older or high-mileage vehicles if repair costs are likely to exceed the warranty price. These warranties often have stricter coverage limits, so it’s important to review the terms and ensure the coverage aligns with your vehicle’s needs.
Is my warranty transferable if I sell my car?
Yes, you typically can transfer your extended car warranty to the new owner of your vehicle, but the specifics of the process will vary depending on your warranty provider. If you aren’t able to transfer the warranty, you can cancel before selling your car.
» COMPARE: Best new vehicle warranties
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 Jan. 21, 2026.
- California Department of Insurance, “Guide to Automobile Service Contracts, Extended Warranties and Other Repair Agreements.” Accessed Jan. 21, 2026.
- Consumer Advocates, “Auto Issues.” Accessed Jan. 21, 2026.
- Federal Trade Commission, “Used Car Rule.” Accessed Jan. 21, 2026.
