An extended car warranty picks up where your new vehicle limited warranty — or factory warranty — leaves off. Extended warranties are optional vehicle service contracts that cover certain repairs or parts for a set number of years or miles after your factory warranty expires.
Extended auto warranties are sold by dealerships and independent providers. We recommend purchasing an aftermarket policy from a standalone provider, such as Endurance, for the best coverage and price.
How does an extended car warranty work?
Put simply, an extended car warranty pays auto repair costs for covered breakdowns at approved facilities. The types of mechanical failures covered depend on the level of coverage you select. The table below highlights the most common repairs our December 2023 auto warranty survey respondents reported filing a claim for.
| Most Common Repair Claims | Percentages | Respondents |
|---|---|---|
| Engine | 18.74% | 104 |
| Air conditioning | 14.95% | 83 |
| Fuel system | 12.97% | 72 |
| Transmission | 10.99% | 61 |
| Brakes | 10.63% | 59 |
| Electrical | 9.37% | 52 |
| Drivetrain | 7.03% | 39 |
| Suspension | 4.50% | 25 |
| Water pump | 4.32% | 24 |
| Steering | 4.14% | 23 |
| Other | 2.34% | 13 |
| Total | 555 |
One of the main differences between an extended warranty from a manufacturer and a third-party provider is where you can have your car repaired. When you buy a plan from an automaker, you’ll need to take your vehicle to a dealership for warranty repairs. With a third party, you can take your car to any repair shop certified by the National Institute for Automotive Service Excellence.
Warranty providers vary in terms of how covered repair costs are paid. Most reputable aftermarket extended warranty companies will pay repair facilities directly. However, a few will require you to pay the full repair cost up front and then reimburse you.
There’s typically a waiting period for an extended warranty to take effect. The most common waiting period is 30 days or 1,000 miles.
What’s covered by an extended car warranty?
As mentioned, an extended warranty covers parts and systems of your vehicle when they break down. Depending on the coverage and mileage limit you choose, each plan covers different parts. You’ll need to read the fine print of your contract to know specifically what your extended car warranty covers.
The perks that most companies include with coverage are these:
- Rental car reimbursement
- Roadside assistance
- Towing
- Trip interruption coverage
What’s not covered by an extended car warranty?
Like a factory warranty, an extended car warranty is not intended to cover damage caused by accidents (that’s what your car insurance company is for). A vehicle service contract also doesn’t cover damage related to vehicle misuse, such as racing or driving over curbs. Here are a few other common extended warranty exclusions:
- Damage from environmental causes like natural disasters, tree sap, bird droppings or acid rain
- Damage from lack of routine maintenance
- Routine maintenance services like oil changes and tire rotations
- Tires (typically covered by separate manufacturer warranties)
- Wear-and-tear components like brake pads, wiper blades, shock absorbers and light bulbs
Types of extended car warranties
There are three main classes of extended car warranties: bumper-to-bumper warranties, mid-level plans often referred to as powertrain plus and powertrain coverage. Here are some additional details on these types of extended warranty coverage:
- Bumper-to-bumper: These warranties are also referred to as exclusionary plans because they cover all vehicle components outside of a small list of exclusions. These plans mimic new vehicle limited warranties.
- Mid-level: A middle ground between a comprehensive extended warranty and a basic powertrain plan, mid-level coverage often adds things like air conditioning, the fuel system and suspension to standard drivetrain protection.
- Powertrain: This type of vehicle service contract protects the key engine, transmission and drive axle components that create power and transfer it to your car’s wheels. A powertrain warranty offers basic coverage and is best for vehicles with high reliability ratings from outlets like J.D. Power and RepairPal.
Based on our survey of 1,500 extended warranty customers, most respondents were satisfied or very satisfied with their coverage plans. About 42 percent of respondents purchased a powertrain plan, 34 percent purchased a bumper-to-bumper plan and 12 percent purchased mid-level coverage.
According to our survey, the highest reported repairs were for the engine, air conditioning and fuel system. Keep this in mind when you’re looking into coverage options and are thinking about which plan would be best for you.
How much does an extended car warranty cost?
Based on the quotes we received from the top providers in the industry, an extended car warranty can cost anywhere from $1,500 to $4,000 or more in total, depending on coverage level and terms. If you want a bumper-to-bumper plan that lasts five years or 100,000 miles, you should expect to pay somewhere around $3,000 in total over the life of the warranty.
Extended car warranty cost factors
What you pay for an extended warranty depends on the following factors:
- Coverage level: An exclusionary plan covers more vehicle components so it costs more than a basic powertrain plan.
- Deductible: Third-party warranty providers give you a range of deductible options. You can often pick a deductible from $0–$200. The higher your deductible, the lower your monthly payments. Just remember that you’ll have to pay more out of pocket if you choose a higher deductible.
- Mileage: High-mileage vehicles are also more prone to expensive repairs, so they cost more to cover with an extended warranty.
- Vehicle make and model: Luxury cars, sports cars and exotic vehicles are more expensive to cover due to higher repair costs. Older vehicles in general also cost more to cover with an extended warranty because they’re more likely to need major work.
- Warranty provider: Some car warranty companies offer more affordable coverage than others. It’s always best to compare free quotes before you buy a vehicle protection plan.
Extended car warranty quotes
The table below features extended warranty quotes we received from our top-rated providers. Each of these estimates is for a 2020 Hyundai Elantra with 30,000 miles and includes a $100 deductible.
| Warranty Provider | Plan Type | Terms | Monthly Price | Total Price |
|---|---|---|---|---|
| Endurance | Exclusionary | 2.5 years/40,000 miles | $90 | $2,703 |
| Endurance | Mid-level | 2.5 years/40,000 miles | $90 | $2,697 |
| Carchex | Exclusionary | Unlimited/month-to-month | $140 | N/A |
| Carchex | Mid-level | Unlimited/month-to-month | $130 | N/A |
| Autopom | Exclusionary | 5 years/100,000 miles | $112 | $2,827 |
Compare the best extended car warranty providers
We’ve assessed and rated 41 providers using our rating methodology, ranking them based on their performance in areas including market standing, coverage, cost, trustworthiness and customer experience. The table below highlights our top picks for the best extended car warranty providers.
On July 31, 2024, the Federal Trade Commission (FTC) announced that CarShield must pay $10 million to resolve charges that its advertisements and telemarketing for vehicle service contracts have been deceptive and misleading. FTC also claims that CarShield deceptively represented that all repairs were covered under a plan, consumers were entitled to a rental car at no cost and consumers could use the repair facility of their choice. In response, CarShield released a statement indicating that its marketing efforts now include additional details about its plans and coverage, including a link to its sample contracts so consumers can review plans in full before buying. USA TODAY Homefront is reviewing this information and will reevaluate our CarShield scores within the coming weeks.
Final take: Extended car warranties put your repair costs into monthly payments instead of out-of-pocket costs
An extended car warranty is a great way to protect your automotive investment and save on repair bills after your factory warranty expires. Buying from a third-party provider gives you more flexibility in terms of when you can purchase extended coverage and where you can take your vehicle for covered repairs. The key to getting the best deal on an extended warranty is to compare quotes online from multiple providers.
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
Homefront has an affiliate disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Homefront editorial staff alone (see About Homefront). Homefront adheres to strict editorial integrity standards. The information is believed to be accurate as of the publish date, but always check the provider’s website for the most current information.
Go Back to Top
When you purchase a new car, it’s covered by a new car warranty, with the best car warranty plans providing 5 years/60,000 miles of comprehensive coverage. Certified pre-owned (CPO) vehicles are backed by separate CPO warranties that lengthen factory warranty coverage. When those warranties expire, you may consider purchasing an extended car warranty from your…
Most of the best extended car warranty companies offer similar options when it comes to coverage plans. However, they’re not all the same and have nuanced differences you’ll need to pay attention to while choosing a third-party warranty. For example, some offer the freedom to choose any repair shop, while others are only valid at…
Factory warranties come with every new car by default, though coverage varies depending on the manufacturer. The best new car warranties are provided by Hyundai, Genesis, Mitsubishi, Kia and Jaguar, all of which offer 5 years/60,000 miles of bumper-to-bumper coverage. Each of these companies — with the exception of Jaguar — also offer 10 years/100,000…
Bumper-to-bumper warranties are the most comprehensive level of car warranty coverage available. They’re available for new vehicles, certified pre-owned (CPO) vehicles and some used vehicles. If your like-new vehicle is coming to the end of its original limited warranty coverage, it may pay to consider an extended car warranty. We spoke to Michael Chung, senior…
If you’re in the market for a used vehicle, a certified pre-owned (CPO) car warranty and an extended warranty for a used car are worth considering. While a CPO warranty is included in the vehicle’s cost, an extended warranty is an add-on you can buy in addition to the price of a used car. Whether…