Tesla Model 3 extended warranty: cost, coverage and plans
Why an extended warranty could make sense
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Tesla Model 3s are known to have below-average reliability, which is why getting an extended warranty is a good idea to protect your purchase.
We’ll break down what a Tesla Model 3 warranty covers, how much it costs, what your options are and whether a warranty is worth it in the long run.
All new Tesla Model 3s come with a four-year/50,000-mile bumper-to-bumper warranty from the factory.
Jump to insightThe quote we received for an extended auto warranty on a 2021 Model 3 was $5,412.50 a year. That’s much more expensive than the average cost of an extended warranty.
Jump to insightTesla has below-average reliability compared with other vehicles.
Jump to insightGetting an extended warranty on a Model 3 gives you peace of mind and protection against repair bills once the factory warranty expires.
Jump to insightTesla Model 3 extended warranty coverage
An extended auto warranty is an optional, paid extension of the factory warranty your Model 3 comes with. For context, Tesla Model 3s come with the following warranties from the factory:
- A four-year/50,000-mile bumper-to-bumper 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 Tesla Model 3, you have two options:
- Buy the official Tesla extended warranty, called Tesla Extended Service Agreement.
- Buy a plan from a third-party extended warranty company, which allows you to take your car to any ASE-certified mechanic for repairs.
Without significant savings, having to deal with a massive repair bill can be disastrous. A ConsumerAffairs investigation found that most drivers surveyed couldn't afford to pay cash for a $1,000 repair bill, and 13% of respondents had no way to deal with a bill that large — even with credit.
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.
Note that auto warranties only pay for repairs and replacements of parts that are specifically covered and fail from normal wear and tear. They don't cover damage from accidents or aftermarket modifications. In general, repairs also aren’t covered under warranty if you don’t properly maintain the vehicle.
In general, here are the differences between what a bumper-to-bumper warranty and a powertrain warranty cover:
| Warranty type | Typical coverage | 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 Tesla Model 3 extended warranty cost?
We were quoted $5,412.50 a year from olive for three years of bumper-to-bumper coverage for a 2021 Tesla Model 3 registered in Austin, Texas, with 55,000 miles. This quote assumed a $100 deductible.
The “official” Tesla extended warranty is called the Tesla Extended Service Agreement, and it may cost less than a third-party option. Be sure to get a quote from your local Tesla dealer to compare your options.
In general, quotes for extended auto warranties vary based on coverage, vehicle, deductible, location and other factors. A 2022 Model 3 with zero miles typically has cheaper extended warranty options than a 2020 model with 50,000 miles, for example.
Shop around and get quotes from multiple warranty companies so you know you're getting the best deal for your Model 3.
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 Tesla Model 3 were more expensive by comparison.
Bumper-to-bumper warranties often go by names like "Platinum" or "Complete Care." Lower-tier plans are usually cheaper, but they cover fewer parts per dollar. Based on customer reviews, many people are disappointed by the coverage limits on these plans, so we suggest a bumper-to-bumper warranty for most situations.
Extended auto warranty providers may use varying language to describe plans. For example, Endurance provides 30 months and 40,000 miles of coverage with its plans — this is as of your vehicle's current age and mileage. Other providers may use the vehicle's original purchase date as the starting point for calculating coverage, so you'll have to subtract the age and mileage of your car (plus any remaining factory warranty) to determine the length of the coverage you're actually getting.
Is a Tesla Model 3 extended warranty worth it?
Yes, a Tesla Model 3 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.
While J.D. Power doesn’t consider Tesla eligible because it does not meet study award criteria, the brand’s problems per 100 vehicles are quite high. If it were included in the study, Tesla would have the fifth highest rate of problems among 30 makes, with 33% more problems than the study average.
Experts note that Tesla batteries tend to fail around 200,000 miles, depending on the type of driving the owner uses the car for (i.e., long-distance vs. short trips). Another issue worth noting is that when the 12-volt accessory battery fails, the car will hardly work and won’t charge. This could leave you in need of a tow, since it’s a special battery that you can’t just pick up at your local parts store.
Tesla Model 3 maintenance is expensive and the car’s reliability is poor. Both these factors suggest that an extended warranty is a good idea, even if it is pricer than an average vehicle. The likelihood of needing repairs 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.
