Best Extended Car Warranty Companies of 2024

We compared 50 companies and chose the top extended auto warranty companies

    • Endurance Auto Warranty
      4.6(11,981)
    • American Dream Auto Protect
      4.7(676)
    • olive
      4.4(558)

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      Extended car warranties help protect you from the costs of expensive vehicle breakdowns, but finding the perfect one for you can be a time-consuming task — especially since the industry has been heavily targeted by scammers. We analyzed thousands of consumer reviews to help you make the right choice.

      Read our full methodology for details on how we selected our top picks. Our picks may be Authorized Partners that compensate us — this does not affect our recommendations or evaluations but may impact the order in which companies appear.

      Our editor's top picks

      Note to California residents: California state regulations prevent any business other than a car dealership from selling vehicle service contracts, but you can purchase mechanical breakdown insurance from several companies on our list.

      Why trust ConsumerAffairs?
      • Our recommendations are based on what reviewers say.
      • 4,412,346 reviews on ConsumerAffairs are verified.
      • We require contact information to ensure our reviewers are real.
      • We use intelligent software that helps us maintain the integrity of reviews.
      • Our moderators read all reviews to verify quality and helpfulness.

      Compare our top 8 extended car warranty companies

      Endurance Auto WarrantyEndurance Auto WarrantyAmerican Dream Auto ProtectAmerican Dream Auto ProtectoliveoliveOmega Auto CareOmega Auto CareToco WarrantyToco WarrantyConcord Auto ProtectConcord Auto ProtectCarShieldCarShieldCARCHEXCARCHEX
      Rating4.64.74.43.85.04.04.54.3
      # of reviews11,9816765581,3176691,1599,3594,275
      Our pick for Best overall Deals No waiting period Maintenance benefits No down payment Focused coverage High-mileage vehicles Wide coverage selection
      Levels of coverage 12 3 3 5 1 3 6 5
      Maximum mileage Unlimited 130,000 140,000 250,000 250,000 120,000 300,000 250,000
      Waiting period 30 days and 1,000 miles 30 days None 30 days 90 days and 1,000 miles (varies) 30 days 20 days and 500 miles 30 days and 1,000 miles
      Availability Most states (not MA) Most states (not CA) Nationwide Nationwide Most states (not AK, MO or WA) Nationwide Most states (not CA) Nationwide
      Read reviews Read reviews Read reviews Read reviews Read reviews Read reviews Read reviews Read reviews

      More details about our top 8 extended car warranty picks

      Our top pick overall
      Levels of coverage
      12
      Maximum mileage
      Unlimited
      Waiting period
      30 days and 1,000 miles
      Availability
      Most states (not MA)

      To put it simply, Endurance is incredibly well-established in the auto warranty world. The company says it has paid out $355 million in claims since 2012, and it has over 11,000 reviews on ConsumerAffairs as of publishing. That’s significantly more than any of our other top picks.

      In an industry where scams and unproven companies are common, having that much consumer feedback and maintaining a good overall satisfaction rating really means a lot.

      Endurance lists three plans on its website that should work for most extended warranty shoppers:

      • Secure Plus: The company’s most basic plan covers 10 component groups across your vehicle’s powertrain, air conditioning, brakes, steering and electrical system.
      • Superior: This midtier plan adds coverage for your suspension, fuel system and cooling system.
      • Supreme: This plan offers exclusionary coverage (meaning all parts are covered except specific exceptions listed in your contract).

      Here’s a tip: If you want more options, call and speak to an Endurance representative to hear about all 12 of the plans it offers (but doesn’t always advertise).

      All Endurance plans come with one year of Elite Benefits, which include 24/7 roadside assistance, reimbursement for up to two tires per year for damage caused by road hazards, key fob replacement, up to a $500 discount on post-collision bodywork, and Total Loss Protection, which applies up to $1,000 toward the purchase of a new vehicle.

      When we compared the review data for our top picks, Endurance didn’t really shine in any area beyond having the most reviews. And in our analysis of reviews for specific topics, Endurance usually hovered close to the industry average, but that’s in part because Endurance’s massive number of reviews largely defines the average for the entire industry on our site.

      Also, some of Endurance’s best and most unique perks are only available for the first year of coverage, so don’t expect to keep your complimentary Elite Benefits long-term.

      As we already mentioned, Endurance is ConsumerAffairs’ most-reviewed auto warranty provider by far, but that wouldn’t be noteworthy if those reviews weren’t mostly positive. Only 14% of reviewers from the two-year period we analyzed were upset, which is better than the 15% industry average during the same period.

      Five-star reviews frequently highlight helpful reps, good value and comprehensive coverage. However, some negative reviews indicate misunderstandings about what was covered under a specific warranty plan.

      “The plan was extremely reasonable and affordable. It's less than $125 per month,” said a reviewer in South Carolina. “I have a BMW, so my premiums typically range way more than that. The military discount made things even sweeter and took my decision over the top.”

      “I canceled my other policy because Endurance covered more, and it was the most affordable,” a reviewer in Ohio said. Another reviewer in Louisiana said their coverage “came to about $1,000 a year.” (That’s about average for a bumper-to-bumper extended warranty in our experience.)

      Our top pick for deals
      Levels of coverage
      3
      Maximum mileage
      130,000
      Waiting period
      30 days
      Availability
      Most states (not CA)

      American Dream Auto Protect was only founded in 2021, but it already has a strong trend of positive reviews. This company has as many reviews in our analysis period as several of our more established top picks, and it scored above the industry average for almost every topic we looked at.

      Plus, it frequently offers generous promotional discounts, such as $750 off for Black Friday 2023, so you might be able to score a deal if you’re shopping while a promotion is active.

      American Dream Auto Protect offers three plans, with relatively small increments in coverage between them:

      • Silver: The company’s most basic plan covers your engine, transmission, brakes and other mechanical components.
      • Gold: The midtier plan is the same as Silver but includes the steering system.
      • Platinum: American Dream Auto Protect’s most comprehensive plan adds coverage for your navigation/GPS system, air conditioning, suspension, and various seals and gaskets.

      American Dream Auto Protect is a relatively new and untested company. Its early reviews are promising, but it lacks some of the credibility that you tend to see with companies that have been around longer. We have few solid reasons to doubt American Dream Auto Protect, but this is an industry where longer track records should be valued.

      If you do choose to work with American Dream Auto Protect, just be aware that it doesn’t provide quotes online, so you’ll need to call to get pricing. The company also doesn’t offer an exclusionary, bumper-to-bumper plan. Its Platinum plan only covers a few hundred parts out of the 5,000+ on the average vehicle, making it more akin to most competitors’ midtier plans.

      American Dream Auto Protect reviews are overwhelmingly positive so far. 71% of the American Dream Auto Protect reviews we analyzed were happy, and only 10% were upset. The remaining 19% were satisfied but not enthusiastic. All three of those numbers are better than the industry average.

      “Samuel has now insured 3 vehicles for me. Returning directly to him should speak volumes. He has worked to find me the best coverage at an affordable price,” said a reviewer in Texas.

      However, American Dream Auto Protect had the worst reviews of any of our top picks when it came to giving refunds. It makes sense that reviews from people who asked for refunds tend to have lower satisfaction ratings, but American Dream Auto Protect’s average rating of 2.6 for this topic was still far below the industry average (3.3).

      “I had a really hard time getting anything from them after I gave them money,” said a reviewer in Colorado. “They took money out of my account but they didn't send me anything written to show I had American Dream.”

      Our top pick for no waiting period
      Levels of coverage
      3
      Maximum mileage
      140,000
      Waiting period
      None
      Availability
      Nationwide

      olive lets you purchase a policy from its website in minutes and be covered instantly. That’s a big improvement over the industry-standard 30-day/1,000-mile waiting period. (We still recommend sending your extended warranty provider a vehicle inspection report, which typically costs around $200. That way, there’s a record of what was and wasn’t a preexisting condition.)

      olive also lets you receive a quote and manage your account entirely online, so it’s more convenient than many of its competitors. Plus, it scored high marks from reviewers across the board, making olive easy for us to recommend.

      olive offers three different plans:

      • Powertrain: The company’s most basic plan covers what you’d expect from a powertrain warranty, including your engine, transmission and drive systems.
      • Powertrain Plus: This plan adds coverage for steering, braking, air conditioning, heating, electronics and other systems.
      • Complete Care: olive’s most comprehensive plan effectively extends your factory bumper-to-bumper warranty, offering exclusionary coverage that protects the majority of parts on your car.

      Coverage is limited to 36-month terms, and olive is pickier than others about vehicles it’s willing to cover. We’ve been unable to collect quotes for certain luxury, performance and/or historically unreliable vehicles.

      Only 7% of reviewers in our analysis period were upset with olive, compared to the 15% average across providers. Three-quarters of them were even considered “happy,” lauding the company for its low-pressure sales experience, simple payment structure and ease of cancellation.

      “I like the idea that I can stop the coverage at any time,” a reviewer in Missouri said.

      On the other hand, a few say that the claims department can take a little while to call back.

      “I called when they were supposed to be open but they weren't. I see that's a pattern with them,” said a reviewer in New York. “I was not able to make the claim and I had a serious car issue.” (In a response to this review, olive claimed to have no record of the reviewer’s call.)

      Our top pick maintenance benefits

      Omega Auto Care

      Levels of coverage
      5
      Maximum mileage
      250,000
      Waiting period
      30 days
      Availability
      Nationwide

      One of the most overlooked stipulations in extended auto warranty contracts is that you must perform all the recommended maintenance in your owners manual (and you probably want to keep your receipts). Otherwise, your provider may deny your claims on the basis that you didn’t take care of your car.

      Omega Auto Care actually helps you keep up with maintenance by partially or fully compensating you for oil changes, brake pads, wiper blades and cooling system maintenance during your warranty term.

      In total, the included maintenance program could save you north of $500 on top of the company’s other benefits, such as roadside assistance, tire repair, rental car reimbursement and trip interruption coverage.

      Omega offers five different plans, including three levels of powertrain-adjacent coverage:

      • Powertrain: Omega’s lowest-tier plan covers your engine, transmission and other drivetrain-related components.
      • Powertrain Plus: The Powertrain Plus plan adds coverage for a few miscellaneous parts to the Powertrain plan.
      • Powertrain Enhanced: Another step up from the Powertrain Plus plan, this coverage adds a few more miscellaneous parts, including many pricey electrical components (e.g., window power regulators).
      • Used Stated: The Used Stated plan covers a large number of parts across all of your vehicle’s systems, similar to other providers’ Gold plans.
      • Exclusionary: This plan provides bumper-to-bumper coverage with only a handful of exceptions, as the name implies.

      The Omega Auto Care Maintenance Program expires 13 months after your warranty purchase date (in effect, 12 months after the 30-day waiting period). You also cannot purchase an Omega Auto Care policy online like you can with some competitors — you must call and speak with a rep.

      Omega Auto Care reviewers are overall positive but not very enthusiastic compared to reviewers for our other top picks. Of our top picks, Omega Auto Care had the highest rate of “satisfied” reviews (27%), meaning they mentioned minor gripes but still left a positive rating. The good news is that its proportion of “upset” reviews (12%) was still better than average (15%).

      Some satisfied Omega Auto Care reviewers noted how easy it was to file a claim when they needed a repair.

      “When I needed service for my transmission, I just brought my car into the dealership and let them know what extended warranty I had,” said one customer from Louisiana. “They dealt with the people and got everything going. … It’s very important to have coverage. That saved me $6,000.”

      Other customers noted the maintenance benefits Omega offers, noting that it helped them save money on routine automotive care.

      “I was looking for a full bumper-to-bumper coverage, and I got everything that I wanted, plus a maintenance care [benefit],” said a customer from Florida. “We just put brakes on my wife’s vehicle and they covered up to a couple of hundred dollars on the brake replacement.”

      Our top pick for no down payment

      Toco Warranty

      Levels of coverage
      1
      Maximum mileage
      250,000
      Waiting period
      90 days and 1,000 miles (varies)
      Availability
      Most states (not AK, MO or WA)

      Toco Warranty doesn’t require a down payment, and it offers pay-as-you-go coverage, which is significantly more convenient than jumping through hoops to cancel a policy.

      Toco also takes a unique approach to its plans. Instead of offering multiple options to choose from, Toco has a single plan with different levels of coverage based on your vehicle’s current mileage.

      Tack on some of the best reviews in the industry and generous benefits, and Toco was an easy top pick.

      Toco only offers one plan, but it has several levels of coverage. Which level you receive depends on your vehicle’s mileage:

      • Orange: This level of coverage is available for cars with less than 100,000 miles. It’s effectively an exclusionary, bumper-to-bumper warranty.
      • Yellow: Once your car passes 100,000 miles, you receive Yellow coverage, which is similar to Orange but has more exclusions, including exhaust components and safety systems.
      • Blue: Vehicles with between 150,000 and 200,000 miles are covered under the Blue tier, which removes coverage for technology and infotainment systems.
      • Green: The company’s powertrain-equivalent plan covers vehicles with between 200,000 and 250,000 miles. Just know that you must purchase the plan before your vehicle actually reaches 200,000 miles.

      The main drawback to Toco’s single-option approach is that you can’t choose powertrain- or Gold-equivalent coverage for a vehicle with less than 100,000 miles. (Likewise, you can’t get exclusionary coverage from Toco for a high-mileage car.)

      Plus, it has an above-average waiting period, and it doesn’t serve customers in every state, so you’re out of luck if you live in states like Alaska, Missouri or Washington.

      Toco comes highly recommended by existing customers. Although ConsumerAffairs had a relatively small amount of Toco reviews to learn from, 95% of the reviewers in our analysis were happy with their purchases. That was more than any other company in our top picks and enough to guarantee that Toco had the smallest amount of upset reviewers, too.

      Positive reviewers say that prices are good and the reps are “honest” and “respectful.”

      “My customer representative Matthew was AWESOME. He was very patient and explained everything. He answered all my questions that I had. The price I was given was great for a bumper-to-bumper warranty,” a reviewer in Maryland said.

      “The perks are great too! $40 credit towards oil changes and the first month free is hard to resist,” according to a reviewer in North Carolina.

      Our top pick for focused coverage
      Levels of coverage
      3
      Maximum mileage
      120,000
      Waiting period
      30 days
      Availability
      Nationwide

      Concord Auto Protect is known for undercutting the competition on prices and not offering bumper-to-bumper coverage, making it a good fit if you want to save money and don’t necessarily need the most comprehensive coverage.

      It also has a $0 deductible option — which isn’t as common as you might think — and very good reviews despite its narrower, more focused plans.

      Concord's three plans provide different levels of stated-component coverage:

      • Powertrain: This plan covers the usual powertrain components (engine, transmission and drive axles) plus your cooling system and brakes.
      • Advanced: Concord’s midtier option adds coverage for your electrical components, four-wheel drive system and steering system.
      • Premium: Concord’s most comprehensive plan adds coverage for your heating, air conditioning, fuel system, suspension and more, but it still isn’t exclusionary/bumper-to-bumper coverage like most competitors’ top-tier plans.

      If you’re not paying attention, you may assume that Concord Auto Protect’s top-tier Premium plan offers bumper-to-bumper, exclusionary coverage. In reality, it’s more like many competitors’ midtier offerings. Concord’s coverage can still be a good value, but just be aware that it’s best suited for situations where you’re only worried about a few big-ticket components.

      Concord is highly recommended by existing customers for its prices and customer support.

      According to a reviewer in Idaho, Concord is “anywhere from $1,400 to $3,600 less expensive than others. … For the difference in price, with what appears near-identical terms, 30-day wait, $100 deductible, etc., I'll gamble.”

      In addition to offering simple plans at solid prices, Concord Auto Protect has very strong reviews on ConsumerAffairs. Over the two years of reviews we analyzed, 90% of Concord reviewers were happy. That was the second-best rate of our top picks (Toco was first with 95%), but Concord had almost seven times as many reviews, giving us more confidence in its data.

      Our top pick for high-mileage vehicles
      Levels of coverage
      6
      Maximum mileage
      300,000
      Waiting period
      20 days and 500 miles
      Availability
      Most states (not CA)

      CarShield has comprehensive coverage options, wide availability and great reviews. It also has flexible monthly payment plans, and you can transfer most contracts. But it stands out for covering cars with up to 300,000 miles, one of the highest limits among extended auto warranty companies.

      CarShield’s plans are administered by American Auto Shield, and they can include additional benefits like 24/7 roadside assistance, courtesy towing and rental car reimbursements (or an actual rental car).

      As stated, we like CarShield’s high mileage cap of 300,000 miles, which should appeal to consumers who plan to drive their cars until the wheels fall off. We also like how CarShield offers a unique Aluminum plan that covers sensitive electronics that lead to pricey repairs later in life (the engine control module, alternator, etc.).

      CarShield has drawn criticism for allegedly misleading advertising. Always be sure to read the fine print in your contract terms and conditions carefully before purchasing an extended warranty.

      CarShield’s five plans include one specifically designed to help pay to repair or replace pricey electronic components.

      • Silver: The company’s most basic plan is essentially a powertrain extended warranty.
      • Gold: This plan adds coverage for your water pump, alternator, power windows and more.
      • Platinum: The Platinum plan is a stated-component plan that adds a few more component groups to Gold coverage.
      • Diamond: The company’s Diamond plan is an exclusionary plan, making it CarShield’s most comprehensive plan.
      • Aluminum: The Aluminum plan is a type of specialty coverage that only covers sensitive and expensive electronics, like your engine control module (ECM) and infotainment system.

      CarShield also offers an extended warranty for motorcycles and ATVs.

      Satisfied customers recommend CarShield for the company’s helpful service and great customer support. A reviewer in Oklahoma said their plan saved them “at least $300” when a water pump gave out. “I recommend CarShield for anyone with an older car. It sure helps save money.”

      As with most car warranty companies, CarShield has received a few negative reviews from people who had claims denied after a breakdown. This is why it’s so important to understand your coverage before you sign up.

      “They covered my air conditioning compressor in full on my 2010 Cadillac, which could have ran me $1,500 to $2,000,” a reviewer in Illinois said, adding that “it was very seamless after my mechanic called their office. I would definitely recommend [the company] to all people out there, especially if you don’t have a lot in [your] savings account.”

      Our top pick for wide coverage selection
      Levels of coverage
      5
      Maximum mileage
      250,000
      Waiting period
      30 days and 1,000 miles
      Availability
      Nationwide

      CARCHEX offers more coverage plans (22 options across five levels of coverage) than our other top picks because it works with multiple warranty providers. It’s a good pick for anyone who wants instant quotes online for up to 10 years of coverage.

      Each plan — whether it’s Bronze, Silver, Gold, Platinum or Titanium — offers term options that range from monthly to at least five years. If you’re looking for comprehensive, exclusionary coverage, check out Titanium plans.

      In addition to repair costs, plans cover 24/7 roadside assistance, gas delivery, towing, rental car coverage and trip interruption service. They also come with CARCHEX’s “no-haggle, low price, everyday guarantee.” CARCHEX requires small down payments and lets you spread the remaining cost over six to 24 months.

      CARCHEX's plans have several highlights, including multiple plans at each level of coverage and the ability to transfer your coverage if you sell the car. The company also offers roadside assistance with its plans, and there’s a $0 deductible option.

      Some recent reviews on our site have reflected that customers who filed claims have experienced issues with poor communication and slow claims processing.

      CARCHEX offers plans across five different levels of coverage. Talk to a company representative to determine which plan best fits your needs.

      • Powertrain: This plan serves as a basic warranty that covers the most common engine and transmission failures.
      • Powertrain Plus: The Powertrain Plus plan adds coverage for many other major vehicle systems.
      • Extra Care: Specialty Extra Care coverage helps pay for repairs outside of the powertrain, including components from your steering, brake, suspension and electrical systems.
      • Platinum: This plan is CARCHEX’s most comprehensive stated-component coverage.
      • Titanium: The Titanium tier is exclusionary coverage, meaning it covers everything except a list of items stated in your contract.

      Reviewers like that CARCHEX has helpful reps and reasonable rates.

      "The rep explained everything that he was supposed to and the questions that I had, so I went into CARCHEX with a clear understanding,” a reviewer in Maryland said. “It’s supposed to be the best warranty, so that's what I got. If you get three repairs with the average being about $1,200, the policy is paid.”

      “I have a super expensive vehicle and if it breaks, that would be very expensive,” a reviewer in Nevada told us. “Once I got the policy set up, CARCHEX's website to pay was user-friendly and it allowed me to set up extra options for those going through the process.”

      A reviewer in Arizona renewed for another four-year term: “I know the priceyness of some of these repairs, especially if you got a valve cover gasket that is leaking. … If I could get that covered under this warranty, it's peace of mind more than anything else.”

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        Extended auto warranty buyers guide

        Regardless of your vehicle’s make, age and mileage, repairs are rarely cheap. They’re also getting more expensive — according to the U.S. Bureau of Labor and Statistics, the cost of maintaining and repairing a vehicle rose over 31% between September 2019 and September 2023.

        That’s where extended auto warranties come in. Think of an extended warranty as insurance against high repair bills. They can actually save you money if you need enough covered repairs, and they often provide peace of mind — even when you’re not using them. Case in point, our review data from November 2021 to November 2023 suggests that a healthy majority of extended warranty customers (80%) are happy or satisfied with their purchases.

        But how exactly do extended auto warranties work? What do (and don’t) they cover? What do they cost? And how do you know if it’s worth buying one?

        Read on to find out.

        Key insights

        • Extended warranties, also known as vehicle service contracts, pay to fix your car when a covered part breaks on its own.
        • The exact parts covered will depend on your contract, but exclusionary, bumper-to-bumper coverage is often the best value.
        • That kind of comprehensive coverage will usually cost about $1,000 per year, but prices vary a lot based on your vehicle and warranty provider.
        • An extended warranty won’t be worth it for everyone, so make sure you’re the kind of person who has the best chance of benefiting from one before you buy.

        How do extended car warranties work?

        An extended car warranty functions as a contract between you and your warranty provider — either your car’s manufacturer or a third party — that states the provider will help cover the cost of certain repairs following a breakdown during an agreed-upon period.

        Extended car warranties help pay for repairs or replacements for parts failure, but they do not cover damage caused by accidents or misuse.

        The key word there is “breakdown.” The most common misconception about warranties is that they cover everything: chips, dings, flood damage, worn leather, etc. In reality, warranties cover none of these things — they cover parts that fail entirely on their own and not as a result of damage.

        A ConsumerAffairs survey of 1,000 drivers found that about 45% of respondents either didn’t know what was covered under a car warranty or weren’t sure about what was covered. And the 55% who said they did know what a warranty covered? About half of them mistakenly thought that a warranty usually covers routine maintenance.

        To maintain this coverage, you must pay your warranty provider ahead of time. (How much will largely depend on the coverage you want and the car you want covered.) You’ll typically have a deductible of up to $200, too, which you’ll pay each time you take your car in for a covered repair.

        Your warranty company may decide where you can take your vehicle for repairs, and you’ll likely need to have your repairs pre-authorized by your warranty provider before the shop can begin working.

        If your repairs are covered, you just need to wait until your repairs are complete. Once your car is ready for you to pick up, you’ll pay your deductible to the shop and be on your way.

        » READ MORE: How do you get your car warranty claim approved?

        Does your mechanic overcharge?

        A ConsumerAffairs survey found that the vast majority of drivers don’t trust their mechanics, with 80% of respondents saying they’d been overcharged by a garage before. According to the experts we spoke with, technicians don’t usually set their own prices, but that doesn’t stop some shops from charging for services you don’t need.

        Of course, if your repairs are covered by your extended warranty, you usually don’t need to worry about how much they cost. (Just be aware that most warranties have a payout cap that’s equal to the value of your car.)

        Additional findings:

        • Roughly 3 out of 4 drivers we surveyed said they don’t always trust mechanics.
        • Compared to women, men were more than twice as likely to say they always trusted their mechanics.
        • About 5 out of 6 people said they sometimes or always consult a person they know after getting a recommendation from a technician.
        • However, most respondents (65%) still said they preferred taking their car to the mechanic over visiting the dentist.

        » READ THE FULL REPORT: Driven to distrust? 78% of drivers are skeptical of mechanics

        You can buy an extended car warranty, more accurately called a vehicle service contract, at nearly any time. But it’s usually a good idea to have your coverage start when your factory warranty ends. (Not sure when your original warranty ends? You can look it up with your vehicle identification number.) You may see your warranty term written as “three years/36,000 miles,” which means it expires after three years or 36,000 miles — whichever comes first.

        Some companies will cover your vehicle for up to 250,000 miles, but a typical extended warranty term is 10 years/100,000 miles. Just know that doesn’t necessarily mean it adds 10 years to your three-year factory warranty. Instead, that often means your new warranty expires when your vehicle is 10 years old. In effect, you’re purchasing an additional seven years/64,000 miles of coverage on top of your three-year/36,000-mile factory warranty.

        » READ MORE: Car warranty guide: what you need to know

        What does an extended car warranty cover?

        Generally speaking, car warranties only cover manufacturing defects. In other words, they only cover parts that fail entirely on their own during normal, everyday driving. Car warranties do not cover failures due to damage, bad weather, abuse or lack of maintenance (e.g., missed oil changes).

        Exclusionary warranties are often called “bumper-to-bumper” or “platinum” plans.

        Let’s say you’re driving down the road, and your infotainment system suddenly stops working for no discernible reason. Nothing happened to it; it just went black. A part failure like this would very likely be covered under warranty.

        However, if you spill coffee on it first, that would not be covered under an extended warranty. Again, the general idea of a warranty is to protect you from factory defects, not damage.

        In terms of exactly which parts are covered, not all car warranties are built the same. Some cover a few dozen parts, while some cover 5,000-plus parts. It mostly depends on whether the warranty is inclusionary or exclusionary.

        • Inclusionary warranties cover only the parts listed in the warranty.
        • Exclusionary warranties cover all parts except the ones listed in the warranty.

        A great example of an inclusionary warranty, also known as a stated-component warranty, is your standard “powertrain warranty.” Most powertrain warranties only cover 50 or so parts inside your engine, transmission and drive systems. In other words, a powertrain warranty only covers the absolute most essential parts needed to make your car go.

        On the other end of the spectrum, you have your exclusionary warranties. “Bumper-to-bumper” and “Platinum” are labels typically reserved for exclusionary warranties, which cover virtually everything on your car except wear and tear, cosmetics and the excluded parts listed in your contract (hence, the name).

        What extended car warranties won’t cover

        We’ve gone over what car warranties cover, but let’s break down what they don’t cover in more detail to prevent any misunderstandings or false expectations. Car warranties — factory or extended — typically will not cover:

        • Damage, negligence or abuse: If the warranty company can link a part failure to damage (e.g., a rear-end collision causing an emissions failure), negligence (e.g., missed oil changes causing engine damage) or abuse (e.g., doing donuts in the Walmart parking lot), it will deny your warranty claims for repairs and may void your warranty entirely.
        • Preexisting conditions: If something was a problem on your vehicle before your warranty became active, your warranty won’t cover it. Many extended auto warranties have 30-day/1,000-mile waiting periods to prevent consumers from purchasing them the minute they break down. Likewise, breakdowns or part failures that you can’t prove happened during the warranty period may not be covered, which is why we strongly suggest you get a pre-purchase inspection (typically around $150) in tandem with your warranty purchase.
        • Routine maintenance: Most car warranties won’t cover regular maintenance items like oil changes, filter changes, tire rotations, fluid top-offs, alignments and more. You’ll be required to stick to the regular maintenance schedule in your owners manual and prove that you’re maintaining your car in order to keep your warranty active. Keep your receipts!
        • Cosmetics: Unless otherwise stated, most warranties will not cover upholstery, dashboards, trim, fabrics, leather and other visual items that don’t impact the function of the car.
        • Regular wear and tear: Items that are expected to need replacing after a certain mileage won’t be covered. That typically includes your brake pads, tires, wiper blades, clutch and more.
        • Off-road or racetrack use: Your warranty likely won’t cover parts that fail while you’re off-roading or tracking your car. Certain specialty vehicles may be covered during this kind of use (e.g., Jeep Wranglers or Z06 Corvettes), but never assume they are — check your contract.
        • Aftermarket parts: The Magnuson-Moss Act prohibits companies from voiding your warranty simply because you installed an aftermarket part. However, if that part causes a factory part to fail (e.g., a lift kit ruining your truck’s suspension), neither part will be covered under warranty.

        Types of extended car warranties

        Depending on your car’s age and mileage, you should have a variety of extended car warranty plans to choose from. However, only 35% of drivers are confident about choosing warranty coverage for their vehicles, according to our survey results. If you want to know you’re picking the right kind of warranty (and likely getting a better outcome in the long run), it pays to familiarize yourself with what’s available.

        Here’s a summary of the most common coverage options that you’ll see as you shop for an extended warranty:

        • Exclusionary warranties: These warranties, which are also called bumper-to-bumper warranties, offer exclusionary coverage. Basically, rather than stating what your warranty covers, your contract lists what isn’t covered, and everything else is covered by default. Third-party companies may also call these plans “Platinum,” “Diamond” or something similar. Just keep in mind that the most comprehensive warranties are typically reserved for cars with less than 100,000 miles on their odometers.
        • Midtier stated-component warranties: These are typically called “Gold” warranties by warranty providers, and they tend to provide coverage that’s somewhere between the powertrain and bumper-to-bumper tiers. Details vary between plans, but you can check your contract to see which components are covered. Be sure to compare the price against the cost of an exclusionary plan if your car qualifies for both. (Exclusionary plans tend to be far more comprehensive for only a slight increase in cost.)
        • Powertrain warranties: These warranties effectively extend your factory powertrain warranty, as the name implies. That means they cover the critical components that create power and deliver it to your wheels, like your engine, transmission, drivetrain, etc.
        • Drivetrain warranties: A drivetrain warranty is similar to a powertrain warranty but does not cover your engine. (These warranties are now exceedingly rare.)
        • Specialty warranties: Specialty coverage is an umbrella term that we use to describe warranties that only target specific component groups on your vehicle, like electronics. Not all manufacturers offer specialty plans, and those that do may have very different offerings. However, if you’re mostly worried about just a few components and you want to keep costs down, you might want to consider specialty coverage.
        • Wrap warranties: These plans are designed for cars that are still under a manufacturer’s powertrain warranty. Wrap warranties complement your existing coverage and get the rest of your vehicle back under warranty.

        You may also see labels like “Supreme” or “Gold Plus” as you shop, but for the most part, 95% of extended warranty plans are just exclusionary, stated component or powertrain plans by other names.

        Extended car warranty costs

        A bumper-to-bumper extended warranty will typically cost you $1,000 for each year of coverage. Sometimes, the warranty company will require a lump-sum payment, while other times it may offer a financing plan (e.g., $80 a month for 36 months). An increasingly popular option is to let warranty holders pay month-to-month, which means you can cancel anytime.

        Costs can vary based on numerous factors. If you drive a $90,000 BMW M4, you can expect to pay significantly more for warranty coverage than the driver of a $30,000 Mazda Miata, for example.

        Factors that impact the cost of your extended auto warranty

        When quoting a price for coverage, the best extended car warranty companies examine multiple factors, including your vehicle’s make, model, condition and location. Some of the most significant factors that affect the price of your extended auto warranty include:

        • Vehicle make, model and year: Warranties tend to cost more for luxury vehicles, sports cars and other expensive cars since these vehicles tend to require pricier parts and labor.
        • Expected reliability: Warranties typically cost significantly more for vehicles with known build quality issues and below-average expected reliability. That’s why a warranty on an Alfa Romeo will almost always cost more than the equivalent warranty on a Mazda.
        • Vehicle mileage: Expect to pay more if your odometer reading is higher. Warranty providers know higher-mileage vehicles are more likely to need repairs.
        • Level and length of coverage: Bumper-to-bumper plans with comprehensive, exclusionary coverage cost the most parts, while simpler warranties that only cover essential parts, such as powertrain warranties, are the most affordable. Also, plans with longer coverage periods have higher costs.
        • The deductible: Most extended car warranties require a deductible, though some companies offer zero-deductible policies. You’ll have to pay this deductible each time you take your car in for a covered issue. A typical deductible for a repair or replacement is $100. All else being equal, the higher a deductible is on a policy, the less expensive the “premium” is.
        • Your driving habits: Before buying an extended auto warranty, you’ll probably be asked about how you use your vehicle and how much you drive. If you spend a lot of time in the car, the price of a contract can be higher.
        • Annual mileage: Most warranty companies will ask you to estimate how many miles you put on the car each year, although it’s unclear how this may impact your rate. Drivers who commute 20,000 miles per year will encounter part failures more often but will also run out of warranty faster.
        • Special use and aftermarket parts: Commercial use (such as using your vehicle for Lyft or to carry construction materials), regular towing use or installing aftermarket parts may impact your rates (or lead to your claim being denied).

        » LEARN: How to get a cheap extended car warranty

        Is an extended car warranty worth it?

        As you shop for an extended warranty, it’s important to consider the benefits and costs involved so that your warranty is worth what you pay for it. Basically, if your repairs don’t qualify for coverage (or your vehicle just doesn’t break down enough), your warranty may cost you more than it saves you.

        As wise an investment as an extended warranty may look on paper, even the most robust Platinum-level warranty has exclusions and exceptions. A warranty is not bulletproof; it will cover only some parts in some cases.

        You improve your odds of the warranty being worth it if you meet any of the following conditions.

        1. You drive a vehicle with below-average reliability.

        If your vehicle only needs affordable, infrequent repairs, you’re probably fine paying out of pocket when it needs to go to the mechanic. But if you plan to purchase a model that’s known for breaking down, an extended warranty may be a smart choice.

        2. The cost of the warranty is less than your expected cost of repairs.

        Look up the expected cost to repair your vehicle each year and multiply that by the number of years you plan to own it. Is the cost of your extended warranty (plus a few deductibles) significantly less? If so, getting a warranty might make mathematical sense, even if it doesn’t cover 100% of expected repairs (which it won’t).

        3. You can’t afford a large repair bill.

        When we surveyed drivers nationwide, almost 60% of respondents said they couldn’t pay cash for a $1,000 repair bill, and 13% of people said they’d have no way to pay for it at all — even by taking on debt. If you’re in a similar position where a large repair could mean you lose your main mode of transportation, you might consider paying monthly for an extended warranty.

        Wondering how expensive car repairs can get? Check out our articles on how much it costs to repair or replace major components in your car:

        Just note that a catastrophic problem could theoretically exceed your plan’s coverage limits. (Most extended warranties have coverage limits close to your vehicle’s estimated value.)

        4. You want peace of mind, even if you never file a claim.

        Some folks sleep better knowing they're partially protected against surprise repair bills. Just don’t make the common mistake of thinking your warranty will cover 100% of parts 100% of the time.


        If you agree with one of those statements, you may find a warranty worth it, both financially and emotionally.

        If you don’t agree with any of them, consider paying out of pocket for repairs to potentially save money over the investment in a warranty. That way, you’ll also maintain more control over your vehicle, deciding where and how your repairs are done and what replacement parts are used. (Some warranty companies may force you to use rebuilt or aftermarket parts for covered repairs.)

        For those shopping for a vehicle, sometimes the best “extended warranty” can be to buy one that’s historically reliable and has a strong factory warranty and then keep up with regular maintenance.

        » READ MORE: Pros and cons of extended auto warranties

        What reviewers say about extended car warranties

        Are consumers who invested in an extended warranty happy with their purchase? Hundreds of thousands of ratings on ConsumerAffairs would indicate that, yes, they’re happy for the most part.

        We analyzed two years of consumer ratings for auto warranty companies on our site and calculated an overall satisfaction rating of 4.2 stars out of a possible 5. Overall, 67% of reviewers in that period were happy, 18% were satisfied, and just 15% were upset with their extended auto warranty provider.

        Look for a warranty company with good reviews, and pay extra attention to the reviews that actually mention filing a claim.

        “The deductible was $500. But I’m okay with that because the repairs were up in the $2,000 range,” said one reviewer from California. “I’m very satisfied.”

        “I was pleased with my experience because that was a $775 repair of which I only paid $100 on,” said a reviewer from Texas. “I paid $2,800 for the policy. So, I'm going to keep a running total to see whether it was worth it or not. I don't put that many miles on the car and I may have another repair or I may not. But at least I know if I have a major repair, it's going to be covered.”

        It’s worth noting, however, that among our verified reviewers over the last two years who mentioned filing a claim, 20% were upset, dropping the average overall satisfaction rating for that topic to 3.8 stars. Reviewers especially express frustration after discovering their coverage limitations, such as a California reviewer who learned their warranty did not cover consumable parts such as batteries.

        The deductible was $500. But I’m okay with that because the repairs were up in the $2,000 range.”
        ROY, CALIFORNIA

        Other reviewers noted communication issues with their providers. Reviews that mentioned sales and marketing and those that mentioned refunds and payouts had the lowest average sentiment, with roughly 30% of those reviewers being upset.

        In short, most purchasers of warranties are happy, but experiences can vary. You improve your chances of being satisfied with an extended warranty purchase by finding the right company.

        How to find the right extended car warranty

        Finding the right extended warranty takes time and research. Don’t just go with the first offer you get, even if it’s from a top-rated company. Prices, benefits and coverage can vary between providers, so it pays to shop around.

        Here’s how to find the best extended warranty for your car:

        • Consider the amount of coverage you need: While exclusionary warranties tend to offer the best value, you might also consider a more focused powertrain warranty if you’re on a strict budget and all you need is protection for your engine, transmission and drive systems.
        • Get multiple quotes: Warranty prices often vary significantly from provider to provider, and the most reliable way to know that you’re getting a good deal is to get estimates from multiple sources.
        • Compare reviews: As mentioned, many 5-star reviews about vehicle service contract companies refer to the initial customer service and sign-up process. Friendly reps are a plus, but what you really care about is whether the plan is worth your money.
          Look for positive reviews about the claims submission process, speed and ease of getting claims approved, and quick payouts for repairs. If you read about difficulty filing claims or patterns of rejected claims, be wary. And be sure to avoid the lowest-rated extended auto warranty companies.
        • Consider the waiting period: Most plans require you to wait up to 30 days and 1,000 miles before you can request service. This is intended to prevent car owners from getting repairs on preexisting conditions. However, for some drivers, it could take several months to put another thousand miles on the odometer. Some companies, like olive, offer plans with no waiting period.
        • Look for perks: Extended warranties commonly include perks like 24/7 roadside assistance, reimbursement for rental cars and trip interruption insurance, which compensates you up to $200 per day if your vehicle breaks down 100-plus miles from home.
          These perks could be worth $1,500 alone, so be sure to keep an eye out for them as you shop and use them after purchasing an extended car warranty.
        • Read the fine print: Be sure you understand what is and isn’t covered. Ask about any restrictions or conditions that might void your coverage. Find out where your warranty company is allowed to source replacement parts from. If you prefer having more control over the specifics of your coverage, look for a company that offers multiple plans or lets you customize your coverage.
        • Consider the cancellation and refund policy: If you think you might want to sell your car before the warranty expires, check if the company lets you transfer the coverage to the next owner — and ask if there’s a fee. This could be a selling point to potential buyers.

        » READ MORE: Questions to ask a car warranty provider

        How can I avoid car warranty scams?

        “Hello, we’ve been trying to reach you about your car’s extended warranty.”

        Car warranty scams are common, but they’re also easily avoided. Here are the key takeaways from our feature on how to avoid car warranty scams:

        1. Never purchase anything or forfeit personal information to an unsolicited caller. If the mysterious caller mentions anything about an extended warranty — or even says, “Hello, can you hear me?” — immediately hang up without speaking.
        2. Only purchase a car warranty directly from a trusted source. This will not only help you avoid scams; it may save you money, since middlemen not working directly with the warranty provider may charge hidden fees.
        3. Report scams to the Federal Communications Commission. Every valid consumer complaint will go toward reducing the number of scams and robocalls we all receive. You can file complaints directly with the FCC.

        It’s especially worth prioritizing stable, established warranty companies so that you’re not left with a worthless service contract. Car warranty companies that have gone out of business have left their customers out of luck.

        Extended car warranty questions

        What is an extended car warranty?

        An extended auto warranty, also known as a vehicle service contract, is like an insurance policy that can safeguard you against repair bills when your car breaks down — after you pay a deductible. This coverage lasts for an agreed-upon period of time or until your car hits a given mileage.

        It’s important to understand the service requirements, exclusions and perks attached to any vehicle service contract you’re considering. Different providers offer varying types and levels of coverage, and an extended warranty is not the same as car insurance, which you’ll want to have regardless.

        Do extended warranties cover every single part?

        We’ve spent hundreds of hours researching extended warranties, and we’ve never come across a plan that covers every part of your vehicle. Top-of-the-line exclusionary warranties may cover most parts, but practically no warranty will cover cosmetic items or wear-and-tear parts that are designed to be replaced over time, like brake pads, wiper blades, tires and fluids.

        When can I purchase an extended auto warranty?

        Most third-party extended warranty companies will let you purchase an extended warranty at any point while your vehicle is under 10 years old or has fewer than 100,000 miles. Some automakers, however, require you to purchase coverage before your factory warranty expires.

        In either case, the price will typically rise as your vehicle ages.

        What voids a car warranty?

        It’s rare for an extended warranty provider to void a warranty altogether. In most cases, they’ll simply deny your claims repeatedly until you cancel the plan yourself for a partial refund.

        Reasons for repeated claim denials may include:

        • Failure to get routine maintenance as recommended in the owners manual
        • Inability to prove the condition wasn’t preexisting
        • Unauthorized off-road or racetrack use
        • Unauthorized aftermarket parts causing other parts to fail (e.g., lift kits causing suspension issues)
        • Failure to get preauthorization for repairs
        What are the different types of car warranties?

        There are several different types of warranty plans. Bumper-to-bumper coverage is the most comprehensive, providing protection for all vehicle components except those that are specifically excluded. A powertrain warranty covers parts that power the vehicle, including the engine and transmission. Stated-component coverage provides a list of parts covered — anything not listed is not covered.

        New vehicle warranties come from the automaker, while extended auto warranties may be from the manufacturer or a third party.

        What’s the difference between vehicle service contracts vs. manufacturer warranties vs. car repair insurance?

        As you shop around, you may encounter these three terms. They can be a bit confusing at first, so here’s a clear breakdown:

        • Vehicle service contracts: In a broad sense, a “vehicle service contract” is just a contract to service or repair your vehicle under certain conditions. All extended warranties are vehicle service contracts (which is why you’ll often see the terms used interchangeably), but not all vehicle service contracts are extended warranties. Sometimes, companies sell routine maintenance plans (e.g., prepaid oil changes) as vehicle service contracts, too, so just be sure you know what you’re buying.
        • Manufacturer warranties: These are basically synonymous with factory warranties. You may also see them abbreviated as OEM warranties, which stands for "original equipment manufacturer."
        • Car repair insurance: This is essentially an extended warranty sold by an insurance provider instead of a warranty provider. You may also see this called mechanical breakdown insurance (MBI).
        What is a manufacturer’s warranty?

        All new cars come with a manufacturer’s warranty, also called a factory warranty, that's backed by the car maker. The minimum new car warranty is three years/36,000 miles, and factory warranties are transferable to subsequent owners.

        To see what warranties automakers currently offer on their new vehicles, check out our factory warranty guide.

        We should also mention that most manufacturers have their own extended warranty programs. However, these plans are usually limited to covering the brand’s own vehicles.

        » LEARN: What to know about manufacturers’ extended warranties

        Which manufacturer offers the best extended warranties?

        To find out which manufacturer offers the best extended warranties, we performed an in-depth analysis of 34 major car brands and the extended warranties they offered for their own vehicles, collecting hundreds of quotes along the way.

        Honda offered us the best value by far, with some Honda Care plans priced 50% below their Toyota or Hyundai equivalents.

        That being said, Honda vehicles only come with a three-year/36,000-mile bumper-to-bumper warranty from the factory. Hyundai, Kia and Genesis vehicles come with a five-year/60,000-mile factory warranty, which some might consider to be a “free” extended warranty. But if you’re looking for the brand with the best overall warranty protection, all four are worth considering.

        We’ve covered the pros and cons of most automakers’ extended warranty programs in other articles. If you want to know how your car’s manufacturer stacks up, click on the relevant link below.

        How do I check whether my car is under warranty?

        We can help with that. Check out our car warranty check by VIN article. You can also check your owners manual or your automaker’s main warranty page.

        Methodology

        ConsumerAffairs carefully collects in-depth, verified reviews to share customers' experiences with a company. We believe customer experiences are a crucial indicator when evaluating companies, so these reviews are a significant factor when selecting our top picks.

        To choose our top extended auto warranty companies, we started with the 50 popular providers listed on our site and eliminated any company from contention if it had an overall satisfactory rating of less than 4 stars and less than 50 reviews on our site as of Nov. 9, 2023.

        To further refine that list, we analyzed a total of 35,164 reviews from between Nov. 15, 2021, and Nov. 15, 2023, and compared several key features to ensure all of our top picks met our standards for consumer-friendly offerings and to more deeply understand each of their strengths and weaknesses. That analysis informed the highlighted headline for each brand and our write-ups guiding consumers’ choices based on their specific situations.

        We looked at:

        • Consumer review sentiment: We examined how happy, satisfied or upset reviewers were with each company, and we watched how consumer sentiment changed across different topics, including customer service, claims handling, coverage, price, tech, speed/punctuality and refunds/payouts.
        • Coverage options: We checked every company’s plans to assess whether they offer a variety of coverages for customers in multiple situations.
        • Availability: We made sure our top picks operate in the majority of U.S. states. We also eliminated providers that don’t sell directly to consumers.
        • Waiting periods: Most companies require a 30-day and 1,000-mile waiting period, though a few brands have plans that go into effect immediately after purchase, and some require a longer wait.
        • Mileage maximums: We checked out top picks’ mileage limits to help consumers identify which brands were better for higher-mileage vehicles.
        • Brand reputations: Finally, we looked at each company’s broader reputation to identify any additional causes for concern.

        Guide 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:

        1. Federal Reserve Bank of St. Louis (FRED), “Consumer Price Index for All Urban Consumers: Motor Vehicle Maintenance and Repair in U.S. City Average.” Accessed Nov. 27, 2023.
        2. Federal Trade Commission (FTC), “Auto Warranties and Auto Service Contracts.” Accessed Nov. 17, 2023.
        3. Federal Trade Commission (FTC), “Extended Warranties and Service Contracts.” Accessed Nov. 17, 2023.
        4. Consumer Financial Protection Bureau (CFPB), “What is an extended warranty or vehicle service contract?” Accessed Nov. 17, 2023.
        5. Federal Reserve Bank of St. Louis (FRED), “Do You Want an Extended Warranty with That?” Accessed Nov. 17, 2023.

        Not sure how to choose?

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