Our 5 picks for cheap home warranties
Below, we compare five of the cheapest home warranty companies rated above 3.5 stars on our site. Service fees differ based on the coverage plan you choose, but monthly premiums start around $40 or less. All of our top picks offer combo plans that average less than $60 per month.
Prices are based on a quote for a house of less than 5,000 square feet in Austin, Texas. To find the top affordable home warranties, we compared 15 popular providers on the following factors:
- Starting monthly premium
- Average cost for combo plan
- Annual premium cost range
- Service call fees
- Coverage options
- Discounts
- Availability
The ConsumerAffairs Research Team also analyzed more than 6,500 recent verified reviews. To make our final selections, we gave preference to companies rated above 3.5 stars on our site.
| Company | Customer rating | Starting cost* | Average combo plan cost* | Service fee* | Roof leak add-on | |
|---|---|---|---|---|---|---|
 First American Home Warranty | Get a Quote | 4.1 | $42 | $48.50 per month | $100 or $125 | Add-on |
 ARW Home | Get a Quote | 4.4 | $39.99 | $60 per month | $125 | Add-on |
 HomeServe | Learn More | 1.6 | $3.99 | $58.33 per month | Varies | No |
 Choice Home Warranty | Get a Quote | 4.0 | $49.17 | $54.75 per month | $100 | Add-on |
 American Home Shield | Get a Quote | 3.6 | $29.99 | $60 per month | $100 or $125 | Add-on |
First American Home Warranty
- Monthly premium starting price
- $42
- Annual premium
- $420 to $546
- Service call fee
- $100 or $125
- Discounts
- Reduced premiums for paying annually
ARW Home
- Monthly premium starting price
- $39.99
- Annual premium
- $479.99 to $779.99
- Service call fee
- $125
- Discounts
- Reduced premiums for paying annually or quarterly
HomeServe
- Monthly premium starting price
- $3.99
- Annual premium
- $95.76 to $839.88
- Service call fee
- Varies
- Discounts
- 20% off first year on TotalHome plans
Choice Home Warranty
- Monthly premium starting price
- $49.17
- Annual premium
- $560 to $660
- Service call fee
- $100
- Discounts
- Reduced premiums with annual payments; free extra month
American Home Shield
- Monthly premium starting price
- $29.99
- Annual premium
- $359.88 to $839.88
- Service call fee
- $100 or $125
- Discounts
- AARP and military service; $50 discount for covering multiple properties
Cheapest home warranties buyers guide
Finding a cheap home warranty plan doesn't mean sacrificing peace of mind — it means knowing where to look and what to look for. This guide is here to help you understand how to spot affordable options that still provide reliable coverage.
With the right information, you can compare costs, evaluate features and avoid common pitfalls that lead to overspending. From monthly premiums to service fees, we'll break down what contributes to the total cost and how to keep it low.
What is a home warranty and how does it work?
A home warranty is a service contract that helps homeowners pay for the repair or replacement of covered appliances and systems that break down due to normal wear and tear. It acts as a financial safety net for unexpected issues with essential household items, such as HVAC systems, water heaters, refrigerators and more.
When a covered item fails, the homeowner submits a claim to the warranty provider. The provider then sends a qualified contractor to assess the problem. If the issue is approved under the warranty's terms, the provider will pay for the repair or replacement, minus any applicable service fee. Home warranties typically require annual or monthly payments and come with terms and coverage limits.
How much does a home warranty cost?
The cost of basic home warranty plans starts around $30 or $40 per month. On average, it costs $50 per month for comprehensive coverage, which protects both systems and appliances. The average annual cost ranges from $350 to $900.
On top of the plan cost, you should also expect to pay a service fee any time a technician is sent to your home. Most service fees range from $75 to $150.
» WEIGH THE PROS AND CONS: Is a home warranty worth it?
Factors that influence the cost of a home warranty
The total cost of a home warranty is made up of a monthly or annual premium and any service fees you need to pay when you make a claim and a contractor visits your home to diagnose the problem.
The main factors that companies use when determining the cost of their plans include:
- Plan type: If you choose a plan with more items covered, like a combo plan that covers both appliances and systems, the cost will be higher than a policy that covers just appliances or systems.
- Service call fee: This is the amount you pay each time you make a claim and a contractor comes to your home. Service fees tend to vary between companies, and some offer multiple options. Many home warranty companies offer plans where you can pay a lower monthly fee but have a higher service call fee. In general, the higher this fee is, the lower the plan cost.
- Availability: Where you live can affect the cost of your home warranty. If you live in a city where contractors charge more, the price of your plan is likely going to be higher.
- Home size and age: The larger or older your home, the more coverage you’re going to need, leading to a higher price.
» LEARN: What does a home warranty cover?
| Appliance/system | Replacement cost |
|---|---|
| Dishwasher | $370 to $3,500 (not including a $150 to $350 cost to remove an old dishwasher) |
| Washing machine | $500 to $1,000 |
| Garbage disposal | $250 to $625 |
| Oven | $500 to $2,500 |
| Central air conditioner | $3,500 to $8,000 |
| Water heater | $800 to $3,000 |
Are home warranties worth it?
Home warranties are typically worth the cost, but it depends heavily on the condition and age of your home appliances and systems. If you live in an older home or have aging appliances that are more likely to break down, a home warranty can provide significant financial relief. The cost of a single repair or replacement for major appliances such as water heaters or HVAC systems can be high, sometimes exceeding the annual cost of a home warranty policy.
In addition to cost savings, a home warranty provides peace of mind. Knowing that you're protected against surprise repair bills can reduce stress and help with budgeting, especially for first-time homeowners or those unfamiliar with managing home maintenance. It also simplifies the repair process, as warranty providers typically have a network of pre-vetted service professionals ready to respond to claims.
However, the value of a home warranty depends on how often you need to use it. If your home is new or your appliances are still under manufacturer warranty, you may not see as much benefit. It's essential to read the fine print of any policy to understand what is and isn't covered and to determine if the potential savings align with your household's specific needs.
Pros
- Can save money on major appliance or system repairs
- Provides peace of mind and financial predictability
- Simplifies finding a qualified contractor
- Helpful for first-time or less experienced homeowners
- Can be transferred during a home sale
Cons
- Doesn't cover preexisting conditions or improper maintenance
- May come with service fees for each claim
- Limited coverage with exclusions and caps
- Some companies have slow claims processing
- Not always cost-effective for new homes or newer appliances
How to save money on a home warranty
If you're looking for the cheapest home warranty possible, there are several ways to keep your costs low without sacrificing the coverage you need.
- Compare multiple companies: Pricing can vary significantly between providers, even for similar coverage. Getting quotes from multiple home warranty companies can help you find the most competitive monthly premium.
- Choose a higher service fee: Many companies allow you to choose your service call fee. Selecting a higher fee often lowers your monthly premium, which can reduce your overall yearly cost if you don’t expect to file many claims.
- Skip unnecessary add-ons: Optional coverage for items like pools, spas or additional refrigerators can increase the cost of your plan. Only add coverage for items you actually need.
- Look for discounts or promotions: Some home warranty companies offer discounts for new customers, annual payments or bundled coverage plans. Taking advantage of these offers can reduce your overall price.
- Pay annually instead of monthly: Some providers offer a lower overall cost if you pay for the entire year upfront rather than making monthly payments.
Choose the cheapest plan for your situation
If you rarely file claims → lower premium, higher service fee
If you expect multiple claims → higher premium, lower service fee
If you want roof leaks → prioritize roof add-on availability
What to look for in a home warranty (besides cost)
Cost matters when you’re choosing a home warranty. However, you also want to be sure you select a reputable provider that offers the right coverage for your home.
Consider these factors when making your decision.
- Service plans and coverage: If you have something specific you want covered, be sure it's in the plan you select. This is especially important if it's something that not all companies cover in their standard plans, like roof leaks. Always check the fine print for parts and components that are excluded from coverage. If you're not sure, ask a representative.
- How to submit a claim: Most home warranty companies offer the ability to submit claims online, through an app or by calling. Before purchasing a plan, you should know how to submit a claim and make sure it’s convenient for you.
- Customer service access: If an appliance or system breaks down and you can't get someone on the phone, it only adds to your frustration. Look for a company that gives you 24/7 access to customer service.
Shri Ganeshram, CEO of Awning, a real estate platform that helps investors find, finance, insure, design and operate real estate, gave us this advice: “Look fоr cоmpanies that оffer customizable cоverage options, cleаr communication, аnd a strоng trаck recоrd оf сustomer satisfaction. Remember, investing in a solid hоme wаrrаnty cаn be thе diffеrеncе bеtwееn a minor inсonvenienсe аnd a majоr finаnciаl sеtback.
Remember, investing in a solid home warranty can be the difference between a minor inconvenience and a major financial setback.”
How to avoid bad home warranty companies
Before you purchase a home warranty, it’s important to know what red flags to avoid. Read reviews and look out for warning signs like a slow claims process or limited service network.
Previous and current customers can tell you a lot about a company. If there’s a large number of reviews that mention difficulty with filing claims, denied claims, poor repairs or bad customer service, you should look elsewhere.
Slow claims process
Limited service network
Repair and replacement restrictions
Don't gloss over the fine print in your home warranty contract — you should read it to ensure it provides what you need. The contract should cover the topics below, and you should make sure the terms meet your expectations so there are no surprises. Here are some of the questions to ask before buying a home warranty:
- What are the repair limits? All home warranty companies have dollar limits for repairs. This means there is a maximum amount of money the company will pay per term or per repair for an individual system or appliance. You will usually have to pay for any costs that go above the limit. Companies also limit what parts or components of a system or appliance are covered; check the terms for each household item.
- What is the replacement policy? If an appliance or system can’t be repaired, the home warranty company should offer a replacement. If a replacement is required, there is a limit on the amount the company pays and the effort it makes to match your existing item. Understanding these details can save you a headache if you end up with something that can’t be fixed. The fine print of a home warranty contract states the criteria for replacing a product when it can’t be repaired properly.
- What is the time frame for repairs? You can get this information from the home warranty company, but it is also something you can research by reading customer reviews. The company might say it aims to have a technician come out within 48 hours, but customers might note longer times before a contractor arrives.
FAQ
What are the cons of a home warranty?
Home warranties don’t cover appliance or system issues that result from human error. That means if an appliance or system isn’t properly maintained or has any preexisting conditions, a home warranty will not cover repairs needed as a result. They can also add up, and if your appliances are not relatively old, the price tag of a home warranty may not be worth it.
What is the difference between a home warranty and home insurance?
Both home warranties and homeowners insurance provide coverage, but what they specifically cover is the main difference. A home warranty helps cover repairs or replacements to major appliances and systems from everyday use. Home insurance, covers damage or destruction done by perils. Appliances like dishwashers, dryers and AC systems are covered by a home warranty. Home insurance covers the physical structure of a home, personal property and other structures like garages or sheds. Home insurance is also typically a requirement by mortgage companies for a home loan, whereas a home warranty is a service contract.
Can I transfer my home warranty if I move?
Yes, many home warranty companies allow you to transfer your warranty to the new owner if you sell your home or take it with you to your new property. However, it’s important to check the specific terms and conditions with your provider before making a move.
Can I cancel a home warranty?
Yes, you can typically cancel a home warranty. Most companies allow cancellations, but the process and any associated fees vary by provider. Some companies may offer a prorated refund, while others might charge a cancellation fee. It’s important to read the contract carefully and contact customer service to understand the specific terms of cancellation.
Can you negotiate a home warranty?
In some cases, yes. While home warranty prices are often advertised as fixed, some companies may offer discounts or promotional pricing if you ask. You might be able to negotiate a lower monthly rate, a reduced service fee or free add-on coverage, especially if you’re comparing multiple providers or signing up during a promotion.
What’s a good service fee for a budget home warranty?
A typical service fee for a home warranty ranges from $75 to $150 per claim. Choosing a higher service fee can lower your monthly premium, which may help keep the overall cost of your plan more affordable.
