Best Extended Car Warranties of 2024

Vault’s Viewpoint: Compare Our Best Extended Car Warranty Plans

Product	Starting Price	Claims-filing process	Exclusions	Roadside Assistance
Endurance	$99/month	Handled by the auto repair shop	Pre-existing conditions, misuse or neglect, gradual deterioration, towing and rental costs	24/7 roadside assistance included with all plans
CARCHEX	$99/month	Phone call required	Pre-existing conditions, misuse or neglect, abusive driving practices, modified parts and more	Roadside assistance included in plans
autopom!	$2,500 per year ($1,488 in California)	Handled by the auto repair shop	Maintenance, battery, tires	24/7 roadside assistance included in plans
CarShield	$99/month	File online or by phone	Not publicly disclosed	24/7 roadside assistance included in plans
Omega Auto Care	$95 to $160 per month	Phone call to Omega Auto Care required	Pre-existing conditions, negligence, parts not included in the plan	Roadside assistance included in plans
Olive	$50/month	Handled online through RepairPal	Pre-existing conditions, routine maintenance, neglect	Pickup breakdown coverage for vehicles up to 10 years old or up to 140,000 miles
Toco Warranty	$35/month	Handled by the auto repair shop	Pre-existing conditions, neglect, storm damage, vandalism, wear and tear	Roadside assistance included in plans

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Learn More About Extended Car Warranties

An extended car warranty helps offset the cost of repairs when your vehicle malfunctions. Here are some commonly asked questions about extended car warranties.

What Is an Extended Car Warranty?

When you buy a new car, often it comes with a limited warranty. A typical dealer warranty covers a vehicle for the first three years or 36,000 miles, whichever comes first. If you have a comprehensive, or bumper-to-bumper, warranty, your entire vehicle will be covered, while a powertrain warranty only covers the mechanical parts responsible for putting the vehicle in motion. The initial warranty is included in the price of the vehicle.

Once a vehicle’s initial warranty expires, drivers have two options. They can go without a warranty and pay for all vehicle repairs out of pocket, or they can purchase an extended warranty. If you buy a used car, the warranty may have already expired, and a used car extended warranty can kick in to protect it. Extended warranties can be purchased at the dealership when you buy the car or from a third-party extended car warranty provider.

How Do Extended Car Warranties Work?

An extended car warranty acts similarly to an insurance policy. You’ll sign up for coverage and pay a monthly premium. If you have a claim, you’ll go through the warranty provider’s filing process—which either involves taking it to a repair shop and presenting your warranty paperwork or contacting the warranty provider to expedite the repair process.

Who Are Extended Car Warranties Best For?

The value of an extended car warranty comes from its cost savings. If you have a vehicle with high repair costs, an extended car warranty can be worth the monthly premiums. Cars that fall into that category include older vehicles, high-mileage vehicles and expensive-to-repair vehicles like vintage and luxury automobiles.

What Are the Pros and Cons of an Extended Car Warranty?

Purchasing an extended car warranty is an optional part of car ownership—however, it’s an important added cost to factor in.

The main benefit of an extended vehicle warranty is the added protection you receive in case of mechanical breakdowns or necessary repairs. However, it does come with an upfront cost. Depending on the life of your vehicle, this may or may not be worth it to you.

Comparing Inclusionary vs. Exclusionary Car Warranty Coverage

There are two main categories of extended car warranty coverage: inclusionary and exclusionary coverage. Both can help you save money and give you peace of mind, but their structures are what sets them apart.

Inclusionary warranties spell out exactly which items are covered, meaning anything not listed is excluded. Exclusionary warranties work the other way around—they list the parts that aren’t covered under your warranty, which means anything that isn’t explicitly listed under the exclusions is covered. 

Exclusionary warranties typically offer more comprehensive coverage, and here’s why: It’s much easier to list a few specific items that are excluded than to provide an exhaustive list of everything that’s covered. This generally means that the list of included coverage is pretty extensive. And because of this broader coverage, exclusionary warranties typically cost more than inclusionary warranties.  

Which one should you choose? For newer and higher-value vehicles where you might want extensive protection, an exclusionary warranty is likely a better investment. But if you drive an older vehicle that’s less expensive to replace, inclusionary warranties may make more financial sense.

Types of Extended Car Warranties

• Powertrain car warranty: A powertrain car warranty covers the parts of your vehicle that are responsible for movement, including the engine and transmission. This type of coverage is highly recommended because these are some of the most expensive repairs for your vehicle.
• Bumper-to-bumper car warranty: A bumper-to-bumper warranty is also known as an exclusionary warranty. It provides coverage for almost all parts and components of your vehicle with just a few exceptions. It is the closest type of extended warranty to your original manufacturer’s warranty.
• Drivetrain car warranty: A drivetrain warranty is all about the wheels. With this type of car warranty, you receive many of the same protections as a powertrain warranty, like coverage for your transmission, wheels and drive axles. However, it does not include coverage for your engine.
• Corrosion coverage: This type of coverage protects against corrosion on your vehicle that can happen after long-term exposure to salt or water.
• Stated component warranties: Some warranty providers give the ability to add on the extra features you need, listing the exact features that are covered. You might choose a powertrain warranty, for instance, but add on coverage for your vehicle’s air conditioning system.
• Anti-perforation warranty: This pertains to a specific type of corrosion that leaves holes in your vehicle’s sheet metal. Corrosion erodes the metal from the inside until there is nothing left but a giant hole. Coverage for rust is typically not included with this warranty. 
• Wrap warranty: Car warranty companies offer wrap warranties to upgrade your existing powertrain coverage into a bumper-to-bumper warranty with greater coverage. 

All policies are subject to exclusions, or items that are not covered under your policy. Normal wear and tear is generally not included, including damage from rust. You’re expected to reasonably maintain your vehicle, so any damage from a lack of regular maintenance isn’t covered by the car warranty company.

How To Choose an Extended Car Warranty Plan

While there are many extended car warranty companies, only a select few have solid reputations in the business. Using the list of the top extended car warranties above, you can narrow down your options to those that fit your unique needs.

1. Research Providers

While numerous companies offer extended car warranties, some companies stand out and are well-regarded within the industry. By reviewing our list of the top extended warranty providers, you can focus on those that align with your specific wants and needs.

Read Customer Reviews

To accompany our list, read a few company reviews to get a better idea of what to expect. After all, customers know a company best. Sites like the Better Business Bureau and Trustpilot are great places to find unbiased consumer reviews on each company. Pay close attention to customer service reviews and reviews of the claims process.

2. Review Available Coverage Levels, Limitations and Exclusions

Coverage varies significantly based on the company. For every company you’re considering, review all available coverage levels (from basic powertrain plans to exclusionary plans to specialty vehicle plans), as well as term lengths, maximum vehicle ages and maximum mileages.

Typically, you can ask for a copy of a sample contract to see exactly what’s included and what’s not, or the company may provide copies on its website. Many extended car warranty companies offer an online quote process that can help you select the right coverage for your vehicle.

You’ll also want to consider a company’s repair networks or the ability to choose your mechanic, cancellation policies, plan waiting periods and deductibles.

Coverage Exclusions

Some warranty plans have extensive exclusions, so it’s essential to understand them fully before committing. Further, many warranty providers require that you maintain the vehicle with specific maintenance schedules, and failure to perform routine maintenance could result in a claim being denied.

Coverage Limitations

Most extended car warranties will stop coverage once the vehicle reaches a certain age and/or reaches a level of high mileage—typically between 200,000 to 250,000 miles. Details regarding age cutoffs might not be publicly disclosed, so confirming these specifics in your contract is necessary to avoid surprises.

3. Consider Additional Plan Benefits

Some extended car warranty companies offer additional benefits on top of their plans’ coverages. Many companies offer complimentary 24/7 roadside assistance, towing and rental car coverage. Further, companies like Endurance offer a free year of premium benefits like key fob and tire replacement, which can be purchased after the first year for $29 per month.

Some companies offer new customer discounts as well. For example, Endurance offers a $300 new policy discount, while American Dream Auto Protect offers a $350 discount.

4. Shop Around for Quotes

Most warranty companies price on a vehicle-by-vehicle basis, making it tough to get an idea of pricing beforehand. You’ll likely need to get a few preliminary quotes to find the best deal. Your cost will be based on the age and condition of your vehicle, in addition to the level of coverage you’re seeking.

How Extended Car Warranties Cover Different Parts of Your Vehicle

A bumper-to-bumper warranty covers most parts of your vehicle—items that wear out over time, such as shocks, struts, brake pads and rotors, typically aren’t covered by any type of extended warranty.

Here’s a sampling of various parts of a vehicle that are covered under most extended warranties, along with estimated repair times. However, extended warranties differ by provider, so coverages (and shop repair times) can vary:

• Engine. The estimated time to repair or rebuild an engine is between eight and 20 hours.
• Suspension. A repair shop may take between four and six hours to replace worn-out shock absorbers—add an hour to that total for new struts. Suspension components that may be covered under extended warranties, such as control arms, ball joints, tie rods and sway bars, may take a similar amount of time.
• Transmission. Transmissions are extremely complex and often require removal of the engine to access the transmission. Repair time is usually two or more full days of work.
• Axles. It can take up to three hours to replace an axle and CV axle boot.
• Air conditioning system. A faulty AC compressor takes about three hours to replace, longer if it’s located in a difficult position that requires additional disassembly to access.
• Fuel system. Installing a new fuel pump could take up to three hours.
• Airbags. If your vehicle is part of an airbag recall, expect the repair shop or dealership to take up to three hours to install new airbags.

If one of these systems or components breaks down while your extended warranty is in place, you’ll only pay the deductible that’s stated in your warranty.

Other Extended Car Warranty Alternatives

Emergency Fund

The best alternative to a car warranty is to fund the cost yourself. If you put the money you’d spend on monthly premiums in a high-yield savings account, you’ll earn interest on it instead of paying premiums to a company.

Emergency funds can take time to build, though. In the meantime, you’ll face setbacks when you do need repairs. If possible, put extra money into your fund for a while until you have enough to cover any sudden repairs you might need.

Manufacturer Extended Warranty

When you buy your car, it will likely come with a warranty. This warranty comes from the manufacturer and is designed to encourage you to buy a new car. If you buy a used car, any warranty period remaining on that vehicle will transfer to you.

But you aren’t limited to the original manufacturer warranty. Car manufacturers also offer extended warranties, which you can only purchase when you buy your car. You’ll need to pay extra for this warranty, and it might cost more than a third-party extended warranty. For that reason, it could help to get a few quotes before you buy your car to make sure you’re getting the best deal.

Auto Repair Financing

Auto repair financing is essentially a personal loan that lets you borrow funds to pay for your repairs. You’ll have to repay the money with interest as specified in the terms of the loan. Many repair shops and auto dealership service departments now offer “buy now, pay later” financing through third-party companies or apps. You don’t have to go through a dealership or repair shop to get vehicle repair financing. You can search around and find the best rate, then line up the financing on your own.

While you’re considering auto repair financing, don’t rule out personal loans. You’ll find plenty of options that make it easy to secure a loan quickly. Compare interest rates and terms and find the best one.

Extended Car Warranties: The Bottom Line

Extended car warranties can be a valuable investment for many car owners, offering peace of mind and potentially saving your money on costly repairs after the original manufacturer’s warranty expires. After careful research, we found Endurance offers the best overall coverage for those seeking an extended car warranty based on its reasonable monthly plan costs, coverage options (including an unlimited mileage plan) and additional plan benefits.

Newsweek writer Jamela Adam contributed to this post