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 | 4.0 | 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 canceling 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.
6. Ask questions
After reviewing coverage options, customer reviews, quotes and exclusions, you may still have some questions. To help you narrow down your options and choose a company that fits your needs, here are some questions to ask an extended warranty provider before buying:
- Is the administrator licensed in my state?
- Who pays the repair shop directly?
- What are the maintenance requirements?
- Where can I take my vehicle for service?
- What is the deductible structure/options?
- Is there a waiting period?
- Can I cancel my extended warranty?
- Is the warranty transferable?
Choosing a warranty based on your vehicle type
If you own a luxury, high-mileage, or hybrid or electric vehicle, there are some additional considerations to keep in mind when choosing an extended warranty.
- Luxury vehicles can benefit from an extended warranty because repair and labor costs are often much higher than average. That said, extended warranties for luxury vehicles are usually more expensive and may come with stricter coverage limits or exclusions. Before buying coverage, confirm that the warranty company works with repair facilities experienced in servicing your vehicle brand and ask whether original manufacturer parts are included in covered repairs.
- High-mileage or older vehicles are good candidates for an extended warranty because as vehicles age, expensive systems like the suspension or transmission are more likely to fail. However, coverage for older cars is limited. Many providers cap eligibility based on the vehicle’s age or mileage, and plans for older vehicles may exclude common wear-and-tear items or preexisting conditions. Before purchasing coverage, compare the total warranty cost against your vehicle’s current value and expected repair expenses to decide whether the investment makes financial sense.
Warranty coverage for EV car batteries is somewhat limited.
- 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.
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.
Warning signs of scam extended auto warranty companies
Unfortunately, scams are very common in the extended auto warranty industry. Here are some red flags to watch for to help you find a reputable extended car warranty company.
- Calls or mail urging you to “act fast” to keep coverage
- Vague coverage details
- Pressure to purchase quickly
- Demanding large upfront payments
To verify a warranty provider's credibility, follow these steps:
- Check the company’s rating on sites like ConsumerAffairs or BBB.
- 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?
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. But extended warranties aren’t right for everyone, and whether one makes sense for you depends on your car.
“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.
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.
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
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?
Extended auto warranty claims are commonly denied because of preexisting conditions or because they were made during the warranty’s waiting period, according to various claims adjusters we’ve spoken with.
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.
If your extended auto warranty 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.
» 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
What is the difference between an extended warranty and a vehicle service contract?
The terms “extended warranty” and “vehicle service contract” are often used interchangeably. An extended warranty is usually backed by a vehicle manufacturer and extends the original factory warranty coverage. A vehicle service contract is typically offered by a third-party company and acts as a separate agreement to help pay for certain repairs after your factory warranty expires.
The biggest differences between extended warranties and vehicle service contracts usually come down to who administers the plan, where repairs can be completed and what components are covered.
Can you negotiate the price of an extended car warranty?
Yes, you can negotiate the price of an extended warranty. Dealerships and third-party providers 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 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.
