If you’re like many Americans, you may be hoping to get the most life you can from your car or truck. The average age of vehicles on the road hit a record high of 12.5 years in 2023, according to data gathered by S&P Global Mobility. Factors such as astronomical car sticker prices and rising costs in other areas of life are slowing down the rate at which Americans purchase new vehicles.
However, opting to keep your older car rolling may mean swapping the cost of a new vehicle for costly repairs. Planning ahead for potential repair bills can keep your budget on track no matter what. A reliable, cheap car warranty can shield your budget and keep your wheels turning longer.
We like Autopom, Concord Auto Protect, Endurance, Olive and Carchex for affordable extended auto warranties. We’ve ranked these providers and by how each scored in the cost category of our review standards.
We’ve reviewed sample contracts and requested quotes from over a dozen warranty providers to give you a head start. Here are our recommendations for affordable car coverage plans from the best extended car warranty companies.
Popular car warranty companies
When shopping for a used car warranty, many drivers are interested in the company’s coverage options, pricing and customer reviews. We reviewed over 40 warranty providers, focusing on these factors plus each company’s industry reputation and overall trustworthiness. We learned that the following providers offer the most well-rounded experience for most drivers:
Our top choices for cheap car warranty coverage
The companies below offer options ranging from essential powertrain protection to comprehensive coverage that protects your car or truck from bumper to bumper. These providers are not only reputable, but their extended warranty plans are also among the most affordable in the industry. Whether you’re looking to keep your trusted wheels turning longer or want to extend your new car’s manufacturer’s warranty, one of the providers below has something to offer.
What should you know about cheap car warranties?
If this is your first time shopping for extended car warranty plans, you may doubt their value. The truth is that car warranties can help shield your bank account from the shock of a sudden and expensive repair need. Knowing when a car warranty deal is too good to be true can go a long way toward ensuring you get the coverage you need rather than being taken for a ride.
How much do car warranties usually cost?
How much an extended car warranty costs depends on many factors. We contacted leading warranty companies to get quotes for coverage for popular sedans and SUVs, such as the Toyota RAV4 and the Hyundai Elantra. Based on these quotes, you can expect to pay the following in total, on average, for these types of plans:
- Exclusionary: $2,586
- Midlevel: $3,151
- Powertrain: $2,891
Often, these costs are payable via payment plans. You may pay a down payment followed by a stable monthly payment, typically in terms of 24 to 36 months. If you prefer, you may be able to pay the full contract price up front for a discount.
Midlevel plans tend to be more costly than both powertrain and exclusionary plans. Powertrain plans only cover select essential components in your vehicle’s engine, transmission and drivetrain. Midlevel plans build on that coverage to include more vehicle systems and components. Midlevel and powertrain are great plan options for older used vehicles or high-mileage vehicles.
Exclusionary plans cover most parts and repairs but may be more affordable because eligibility for these plans is typically limited to newer vehicles with less chance of critical repair needs. These plans also have shorter term limits compared to powertrain plans.
What do extended warranties not cover?
All warranties come with exclusions, so it pays to read the fine print. Unless explicitly stated in your vehicle service contract, your car warranty won’t cover wear-and-tear items or routine maintenance. You’ll need to keep up with oil changes, brake pads, filter replacements and tire rotations to keep your warranty coverage valid.
Auto warranty plans don’t cover damages from theft, vandalism or vehicle misuse. Weather events such as hail or flooding aren’t covered, either. You’ll need to look at your car insurance plan to determine your coverage for these situations. If you have full coverage, your insurance may help with these types of damages.
Are car warranties worth it?
Whether an extended car warranty is right for you depends on your vehicle, budget and how long you plan on keeping and driving your vehicle. If you want to keep your car on the road for as long as possible, you’ll likely encounter a serious repair need along the way.
For some vehicle brands, those repairs may not sting that much. For example, RepairPal estimates Toyota’s average repair costs at just $441 per year across all models. Compare that to RepairPal’s estimated $908 per year for Mercedes-Benz vehicles. Considering those numbers, extended warranty coverage might benefit Mercedes owners so their repair bills are more spread out.
What perks does a vehicle protection plan have?
Third-party car warranty providers strive to offer car owners plans that are more affordable and flexible than factory warranty coverage. With an extended vehicle warranty, you’ll have your choice of auto repair shop. With a manufacturer plan, you’ll need to take your vehicle to a dealership or certified repair facility for covered repairs.
Vehicle service contracts also typically come with included benefits or add-on coverages. Standard benefits often include the following:
- Rental car reimbursement
- 24/7 roadside assistance
- Towing
- Trip interruption coverage
Final take: Car warranties can offer valuable protection that won’t crash your budget
The price you’ll pay for your car warranty coverage will differ for many reasons, such as vehicle type, coverage level and your chosen deductible. However, don’t avoid getting the coverage you need to protect your budget — you may be able to find bumper-to-bumper coverage for cheaper than you think.
The right car warranty can pay off big if you face a sudden and expensive repair. Autopom is our top choice for cheap coverage, so be sure to get quotes from that extended warranty provider to compare with others when you’re shopping around.
Our rating methodology for warranty companies
At Homefront, we analyze, rate and rank top vehicle service contract providers to help you discover the right one for your needs. The best automotive service contract companies offer transparency, affordability and expansive coverage options, among other qualities.
We rate companies using our objective scoring methodology. We assess brands on factors that are important to consumers like you — including cost, coverage, market standing, trustworthiness and customer experience. After scoring companies on a 100-point scale, we simplify final scores into the 5-star ratings you see in our content.
BBB, Trustpilot and Google Review scores accurate as of April 2024.
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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