Best Extended Car Warranty Companies of 2024

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 36% between January 2019 and January 2024.

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.

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.

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 when parts fail, 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.) And you’ll typically have a deductible of up to $200, 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, but they usually let you visit any ASE-certified mechanic. Just note that you’ll likely need to have your repairs pre-authorized by your warranty provider before the shop can begin working.

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 probably don’t need to worry about how much they cost. (Most warranties don’t cap payouts until they 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 more like five years/50,000 miles. Just know that doesn’t always mean it adds five years to your factory warranty. Some warranty providers count their terms from when your car was new, so your “five-year warranty” may expire when your vehicle is just 5 years old. In these cases, you’re effectively purchasing up to two years of additional coverage on top of your three-year factory warranty.

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

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 — the absolutely 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).

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.

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, midtier or powertrain plans by other names.

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

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 can judge the odds of a warranty being worth it for you depending on how you answer the following questions.

1. Do 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. Is the cost of the warranty 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. Would a large repair bill wreck your finances?

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:

• Airbags
• Air conditioning
• Alternators
• Axles (repair)
• Axles (replacement)
• Brake calipers
• Catalytic converters
• Differentials (front)
• Differentials (rear)
• Electric vehicle batteries
• Engines
• Fuel injectors
• Fuel lines
• Fuel pumps
• Fuel tanks
• Head gaskets
• Radiators (repair)
• Radiators (replacement)
• Starters
• Suspension
• Stereos
• Timing belts
• Timing chains
• Transfer cases
• Transmissions
• Water pumps

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.)

» MORE: 10 most expensive car repairs

4. Do you value 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 answered yes to any of those questions, you may find a warranty worth it, both financially and emotionally.

If you didn’t, 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

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

We previously 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.

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.

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

“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.