A long-term protection plan is likely a wise choice if you plan to keep your vehicle long after its initial factory warranty coverage expires. A good extended car warranty could save you thousands of dollars in future repairs depending on your coverage and the breakdowns you experience.
Look for car warranty companies with plenty of coverage plans to fit your needs and budget. Customizable plans can help you get the most value out of your auto warranty coverage.
However, there’s also a chance you’ll never actually need the benefits that an extended auto warranty provides. That’s why the answer to whether an extended car warranty is worth it depends on your situation.
What is an extended warranty?
An extended auto warranty is an optional protection plan that offers coverage of specified vehicle components after your manufacturer’s warranty expires. Extended warranties are commonly known as vehicle protection plans or vehicle service contracts.
When and where can you buy an extended warranty?
You can purchase an extended warranty directly from an automaker or from a third party. When you buy from an automaker at a dealership, you typically have to do so before your new car factory warranty expires. With third-party warranty providers, you usually have the freedom to purchase a plan at any time.
Aside from purchase flexibility, buying from a third-party warranty company also means you can take your vehicle to any repair shop. Most manufacturer extended warranties require you to return to the dealership for covered car repairs.
What does an extended warranty cover?
Like factory warranties, extended car warranties cover repair costs related to faulty parts or flaws in workmanship. The parts that are covered by a long-term protection plan depend on the level of coverage you choose. That brings us to the two most common types of extended warranties: bumper-to-bumper coverage and powertrain coverage.
Bumper-to-bumper extended car warranties
A bumper-to-bumper extended warranty is often referred to as an exclusionary plan. That means that every part of your vehicle is covered outside of a short list of exclusions. You get extensive coverage similar to a new vehicle limited warranty with this type of plan, but it also comes with a higher tag.
Powertrain extended car warranties
Powertrain warranties are the basic versions of long-term vehicle protection plans. They cover engine, transmission and drive axle components that power your car. A powertrain extended warranty is considered an inclusionary plan, as only specific components are covered from mechanical breakdown.
Additional coverages
There’s a wide middle ground between these two types of plans. Mid-level coverage in the extended warranty world is known as stated-component coverage. If you want more than basic protection but aren’t ready for a bumper-to-bumper warranty, it’s a good idea to explore the many mid-level extended protection options.
On top of the warranty plan, many third-party providers include these standard additional coverages:
- Rental car reimbursement
- Roadside assistance
- Towing
- Trip interruption coverage
What isn’t covered by an extended car warranty?
No matter what level of coverage you choose with your extended warranty, there are some things that won’t be covered. These are a few of the most common exclusions from extended auto warranties:
- Damage from improper or reckless vehicle use
- Damage from lack of routine maintenance
- Damage from severe weather or natural disasters
- Routine maintenance such as oil changes and tire rotations
- Wear-and-tear parts such as brake pads and wiper blades
Extended warranties also won’t pay for repairs in the event of an accident, theft, vandalism or fire. These are all issues that can be covered by your car insurance company depending on the level of coverage you carry.
What are the pros and cons of extended car warranties?
Your unique situation will determine whether an extended warranty is worth it. The important factors to consider include: car mileage, repair out of pocket costs and your vehicle model.
You also need to weigh the following pros and cons of an extended car warranty:
How much does an extended warranty cost?
According to the quotes we got from top third-party warranty companies, an extended auto warranty can cost anywhere from $1,500 to more than $4,000 in total. Factors that determine car warranty cost include these:
- Deductible: If you select a higher deductible, your plan will have lower monthly payments. Although you can often find plans with $0 deductibles (meaning you pay nothing out of pocket when you have a covered repair), they usually come with higher monthly and overall costs.
- Level of coverage: An exclusionary plan will cost more than a basic powertrain extended warranty.
- Mileage: The higher your odometer reading, the more you’ll pay for warranty coverage. High-mileage vehicles are more likely to require major repairs.
- Provider: You’ll find different coverage rates from one aftermarket warranty provider to another; it’s best to compare free quotes.
- Vehicle age: Older vehicles are more likely to need expensive repairs, so warranty plans will cost more.
- Vehicle model: If your vehicle has high average repair costs, the price of an extended warranty plan will be higher as well. Sports cars and luxury brands are the ones to watch.
Some car owners with extended warranties chose coverage not because it necessarily saves money, but because it breaks a repair cost down into monthly payments. Rather than paying for repairs out of pocket and up front, you might prefer to purchase an extended warranty so that you have expected monthly payments.
There’s always the risk you might not use your coverage if you don’t have a breakdown, but it can be a good financial choice if you don’t have the out-of-pocket savings or cash to cover repairs. However, if you have the means to cover repairs, then a car warranty might not be worth it for you.
Extended car warranty quotes
We reached out to three of our top-rated warranty providers for quotes on various levels of coverage. We’ve included quotes for three vehicle models with different mileage to give you a full view of what extended warranties cost depending on your car’s coverage and other details.
| Provider | Vehicle | Plan Type | Coverage Terms | Monthly Payment | Total Price |
|---|---|---|---|---|---|
| Endurance | 2020 Hyundai Elantra with 30,000 miles | Exclusionary | 2.5 years/40,000 miles | $90 (30 months) | $2,703 |
| Autopom | 2020 Hyundai Elantra with 30,000 miles | Exclusionary | 5 years/100,000 miles | $112 (24 months) | $2,827 |
| Carchex | 2020 Hyundai Elantra with 30,000 miles | Mid-level | Unlimited/month-to-month | $130 | N/A |
| Autopom | 2014 Nissan Altima with 90,000 miles | Mid-level | Unlimited/month-to-month | $82 | N/A |
| Endurance | 2018 Toyota RAV4 w/ 50,000 miles | Mid-level | 2.5 years/40,000 miles | $93 (30 months) | $2,796 |
| Carchex | 2014 Nissan Altima w/ 90,000 miles | Powertrain | Unlimited/month-to-month | $140 | N/A |
Estimated repair costs
When deciding whether to invest in an extended warranty, you should consider reliability ratings for your make and model as well as the typical repairs your vehicle needs. One way to do this is to go to RepairPal to get common repair estimates for your vehicle. In the table below, we gathered common repairs and estimated costs for the vehicles listed above.
These estimates are based on the location listed and will vary by location.
| Vehicle Model | Location | Repair | Estimated Cost |
|---|---|---|---|
| 2020 Hyundai Elantra SE | Raleigh, N.C. | Water pump replacement | $662–$739 |
| 2018 Toyota RAV4 LE (AWD) | Mesa, Ariz. | Alternator replacement | $715–$1,058 |
| 2020 Hyundai Elantra SE | Albany, N.Y. | AC compressor replacement | $844–$882 |
| 2014 Nissan Altima | Santa Cruz, Calif. | Catalytic cConverter replacement | $1,088–$1,149 |
| 2018 Toyota RAV4 LE (AWD) | Lafayette, Ind. | Head gasket replacement | $3,557–$4,328 |
Compare the best extended car warranty providers
When evaluating car warranty companies, compare each provider’s coverage options, costs and term lengths to meet your specific needs. Our top three recommendations are Endurance, Autopom and Carchex.
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: An extended warranty is usually a good investment
A vehicle protection plan is an especially wise investment if your car has a reputation for expensive upkeep or below-average reliability. An extended car warranty can offer peace of mind and protect you from high repair bills. However, an extended warranty might not be worth it if you have a reliable vehicle and the cash to cover repairs.
The key is to explore coverage options by reading the fine print and compare free quotes from multiple car warranty companies to find the best deal.
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.
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