How To Buy An Extended Warranty: Buyer’s Guide (2024) (2025)

Dash Lewis

Dash Lewis Content Writer

02/05/2024 04:28 PM

The Gist:

• To buy an extended warranty, compare your manufacturer’s plans to third-party options.
• Get quotes from multiple warranty providers to find the best deal.
• Carefully review the sample contract to learn what is and isn’t covered.

When you purchase a new car, it comes with a factory warranty that lasts for a set number of years. However, once this warranty expires, it can be wise to buy an extended car warranty to help cover unexpected repair costs due to mechanical breakdowns or failures.

If you’re a first-time buyer or just beginning your search, you may be wondering what you should look for in a good car protection plan, where to find the best coverage, whether purchasing an extended warranty is worth it, and how to decide between plan options from multiple providers online. In this article, our team will discuss the best process for buying an extended car warranty online. We have also reviewed the best extended warranty companies on the market so you can make a well-informed decision.

Extended Car Warranty Overview

An extended warranty plan helps cover the cost of specific car repairs and reduces out-of-pocket expenses in the case of a mechanical breakdown.

While extended warranties do not generally cover damage due to a collision or routine maintenance costs, these plans offer drivers peace of mind that breakdowns or part failures due to defects in workmanship will be covered.

Providers like Endurance, Carchex, and CarShield offer various levels of coverage and benefits, ranging from full bumper-to-bumper coverage to basic drivetrain coverage. For instance, CarShield provides coverage for new and used vehicles with six types of warranty plans, and Endurance offers six coverage plans with additional benefits such as rental car reimbursement, roadside assistance, and trip interruption coverage.

Extended warranties are also known as vehicle service contracts. They help protect against unforeseen, potentially pricey repair costs, so many drivers think an extended car warranty is worth considering.

Extended Car Warranty Costs

Based on our research, the cost of an extended warranty can range between $1,000 and $6,500. The average cost for a plan is $3,026.

Extended warranty pricing can be affected by the following factors:

• Vehicle make, model, year, and mileage
• Type of warranty (powertrain, mid-level, bumper-to-bumper)
• Deductible
• Term length

How To Buy An Extended Warranty

The extended warranty plan that’s best for you will depend on your specific needs. However, it’s best to spend some time researching and comparing top-rated warranty providers to see which ones will provide the best value and coverage for your vehicle.

What To Look For In An Extended Car Warranty

To find the best extended warranty for you, we recommend following these steps:

• Check the BBB rating: A high rating from the Better Business Bureau helps you understand how the company handles customer comments and complaints.
• Check online reviews: Look at reviews to make sure your potential warranty company is honoring contracts and taking care of customers. Oftentimes, you learn the most about a company by what customers have to say.
• Read the contract: The contract is the only legally binding document that guarantees what is and isn’t covered under your plan terms. Always make sure to read the fine print when going through your contract. If you want to take a look at a contract without any commitments, check if the provider has sample contracts.
• Check the guarantee: Reputable extended car warranty companies often offer a money-back guarantee if you decide the plan isn’t for you after all. Find out when you need to cancel to receive a full refund.

It’s also helpful to remember that the overall value of the warranty coverage is most important–not necessarily the coverage plan with the cheapest price. Make sure you read through sample contracts from the providers, if available, to ensure you have a full understanding of what is covered under each plan.

Also, consider choosing a provider that will allow you to bring your car to a repair facility close to you and pay the repair shop upfront instead of reimbursing you for costs later.

Check Reviews And Compare Quotes Before You Buy

When searching online for an extended warranty, you’ll probably see several third-party providers mentioned within the first couple of search results.

Extended Car Warranty Reviews

Browse through trusted car review sites and articles that compare top-rated extended car warranty companies to decide which provider will best suit your driving needs. Online reviews vary depending on the warranty provider, but many customers of companies think that extended car warranties are worth the cost–even if the return is just peace of mind.

“CarShield gives me peace of mind. I know no matter what happens with my vehicle, it will only cost me $100.”

– Paul (BBB)

“Good, friendly service. No-nonsense sales. [Carchex] offered the most affordable long-term option.”

– James (BBB)

There are plenty of negative reviews for car warranty companies, too. However, if you read through them, it’s evident that many of the complaints have to do with repairs not being covered. Most of the time, this can be avoided by reading your contract and making sure you have a thorough understanding of your policy.

Extended Car Warranty Quotes

The best extended car warranty companies make it easy to get a quote online or by phone. When visiting a provider’s website, you will likely only need to fill out a short form to request a free quote. You can also contact a customer service representative directly to learn more about a provider’s pricing, coverage, and range of plans. Both options are generally quick and simple.

To get a quote, you should be prepared to submit information about yourself and your vehicle, including its year, make, model, and mileage. Remember to consider not only the monthly payment but also the total cost and deductible once you have your quote. A higher deductible can mean a lower overall payment and vice versa. But you will need to pay your deductible for any covered repairs.

We recommend comparing free quotes from multiple providers so you can look at pricing and determine which option is right for you. You can get started with quotes from our top-rated providers below.

Where To Buy An Extended Car Warranty

Finding a reputable warranty provider is the most important thing you can do when shopping for an extended warranty on a used car. Warranty providers know car owners want to save on mechanical repair costs, as it can be expensive to pay for labor and parts out of pocket. You have several options if you decide to purchase extended coverage. To find a trustworthy provider that fits your needs, you’ll first need to decide between buying a warranty from a dealership or buying from a third-party warranty company.

Extended Factory Warranty

Manufacturer-backed plans are usually only available at the dealership, which usually offers a factory extended warranty at the time of sale for new and pre-owned vehicles. For that reason, if you are buying a new or relatively low-mileage, used vehicle from the dealership it’s almost a guarantee that you will hear a pitch for extended protection plans at the dealership. If you decide to go this route, there are some important things to consider before you sign up for extended protection with the vehicle manufacturer:

• Repair shop limitations: Most dealership extended warranties require you to have covered repairs completed at a branded dealership. For example, a service contract from your Lexus dealership may require you to only visit a Lexus dealer for repairs. This means your preferred mechanic might not be an option.
• Name brand parts: Manufacturer-branded service contracts almost always require repairs to be made with genuine manufacturer parts. Branded parts are usually more expensive than their generic counterparts. If you use a local repair shop, it may use aftermarket or remanufactured parts.
• Greater expense: Dealership service contracts are generally more expensive than third-party contracts. Your dealer may even suggest you roll the cost of the warranty into your car’s financing. Be wary of including the coverage with your car loan. While this might sound convenient, it might not be a good idea for multiple reasons. First, you will likely pay interest on the service plan. Even if the company offers zero-percent interest for a short time, you will eventually pay extra for financing. Additionally, adding warranty costs to your loan can raise your loan-to-value ratio which may result in you owing more than your car is worth. For these reasons, consider paying for warranty coverage upfront instead of including monthly payments with your loan if you purchase an extended warranty from a dealer.

Third-Party Extended Car Warranty Companies

With a third-party warranty, you’ll gain flexibility in where your car can be taken for repairs, as most plans work with any licensed mechanic. You also tend to have more coverage options when you opt for a third-party extended warranty.

There are several reputable companies that offer affordable comprehensive vehicle service contracts. Reputable third-party companies present a more flexible alternative for an extended car warranty than a dealership plan. Here are a few benefits of buying third-party extended warranties:

• Choice of repair shop: Because they are not tied to a dealership, third-party warranty providers allow you to take your car to a network of local auto repair shops and national chains. As long as your favorite mechanic is certified by the National Institute for Automotive Service Excellence (ASE®), you should be able to go there for covered repairs.
• Lower costs: Without the dealership markup, third-party companies are able to provide much better pricing on your service contract, in the form of both lower prices and low to zero deductible options. Many third-party providers are brokers, meaning they offer warranty plans from a variety of administrators and have competitive pricing.
• No pressure: There’s no need to purchase your extended warranty on the day you buy your car. The dealership may require you to purchase your warranty when you buy your car. Other providers allow you to purchase a plan anytime.
• Coverage for older used cars: If you buy a used car with high mileage, you may not qualify for a dealership service agreement–even though you probably need it more for an aging vehicle than for a new car. A great third-party provider will offer warranties for cars with over 100,000 miles.
• Flexible Coverage: Additionally, you’ll be able to customize your coverage to walk away with a plan that fits your needs. Because you can shop around for the best deal, you can find coverage that includes additional perks like roadside assistance and towing. Buying a third-party warranty also allows for the flexibility of being able to purchase coverage at any time, even after your factory warranty expires.

Where To Buy An Extended Car Warranty Online

With dozens of extended car warranty companies that offer a variety of coverage options and costs, it can be overwhelming to research and figure out the best choice for your vehicle. A few of our top recommendations include CarShield, Carchex, and Endurance.

CarShield is the most popular provider in the industry. With some of the lowest rates on the market, it offers six coverage plans for cars and specialty vehicles like motorcycles.

Endurance and Carchex are two more top providers that offer six and five levels of coverage, respectively. Endurance is known for its extensive benefits, including roadside assistance, tire repairs, and lockout assistance. Carchex can also be a smart choice for high-mileage vehicles with coverage of up to 250,000 miles.

Best Companies For Buying An Extended Car Warranty

Our team has reviewed and ranked every top extended auto warranty company. Based on this research, we recommend Endurance, autopom!, Carchex, Omega Auto Care, and Olive.

• Endurance: Best Plan Offerings
• autopom!: Best Customer Experience
• Carchex: High Mileage Limits
• Omega Auto Care: Long-Standing Provider
• Olive: Great for Young Drivers

Here’s how our team rated these providers:

#1 Endurance: Best Plan Offerings

Endurance is a direct provider of vehicle service contracts and has multiple coverage options for different needs. It offers six coverage levels ranging from an affordable powertrain warranty like the Secure plan to coverage designed for high-mileage vehicles like the Select Premier plan. The company also provides a comprehensive plan that covers mechanical breakdowns as well as routine maintenance such as oil changes.

In addition, Endurance is known for having some of the best benefits in the industry. A few additional benefits included with every Endurance plan are 24/7 roadside assistance, rental car reimbursement, and a free Endurance Elite Benefits membership for one year. In our review of the company, we gave Endurance the highest rating of any provider with 4.6 out of 5.0 stars.

To learn more about this warranty provider, check out our Endurance review or get a free quote for your vehicle below.

#2 autopom!: Best Customer Experience

Founded in 2009, autopom! has been providing quality extended warranty coverage in all 50 states for the past 15 years. The aftermarket warranty provider holds an A+ rating from the BBB and is highly rated by customers with a rating of 4.7 out of 5.0 stars. The provider also boasts a 4.9-star Trustpilot customer rating.

autopom! offers four levels of coverage, which can cover your vehicle up to 7 years/150,000 miles. Based on our extensive research, our review team awards autopom! an overall rating of 4.6 stars and names it as the company with the Best Customer Experience.

To learn more about coverage from the provider, read our complete autopom! Review.

#3 Carchex: High Mileage Limits

Carchex is a leading provider of vehicle service protection for new and pre-owned vehicles. It offers five coverage tiers ranging from the exclusionary Titanium plan to the basic Powertrain plan that are available for vehicles up to 250,000 miles.

The average monthly payment for a Carchex extended warranty ranges between $167 and $222 according to our secret shopper analysis. Deductibles range from $0 to $100. The company has an A+ rating from the BBB and partners with industry leaders like Edmunds.com, Kelley Blue Book, and Carfax.

To learn more about this extended car warranty provider, check out our Carchex review or get a free quote below.

#4 Omega Auto Care: Long-Standing Provider

Omega Auto Care has been in business since 1968, which gives it a much longer reputation than most of its competitors. Omega offers three main plans: New Exclusionary, Used Stated, and Powertrain Protection. Its powertrain plan has three sub-plans of its own, so you really have five choices for coverage.

Omega Auto Care also provides some unique benefits. It offers rental car coverage, roadside assistance, and trip interruption, which are standard in the industry. Beyond that, it also offers road hazard tire repair and maintenance benefits on all plans. This makes it a good option if you want coverage for things like oil changes and tire rotations.

#5 Olive: Great for Young Drivers

Olive is an extended warranty company built for the modern world. Its website is well-designed and easy to use. You can compare sample contracts and find out exactly what each plan covers in just a few clicks.

Olive doesn’t offer as many plans as our other top picks, but sometimes simple is better. It offers three plans, and we found quotes to be very affordable for different options. Olive’s parent company Repair Ventures has been in business since 2000 and has an A+ rating with accreditation from the BBB.

Purchase Extended Warranty: Our Take

Buying an extended car warranty online can be worth it if you want peace of mind and extra protection for your vehicle after your factory warranty expires. You can purchase extended vehicle coverage online with a third-party provider like Endurance or from the dealership where you purchased your car.

We recommend that you get quotes from at least three extended car warranty providers to be able to compare your options side by side.

How to Purchase An Extended Vehicle Warranty: FAQ

Below are frequently asked questions about how to purchase an extended vehicle warranty.

How We Rate Warranty Providers

Our review process aims to deliver consistent and unbiased assessments of extended auto warranty providers. While there are multiple qualities that make a warranty company successful, our review team focuses on those we believe are the most important for consumers:

• Reputation: It’s important that an extended car warranty company is able to meet its claims obligations. Companies with a strong rating from the Better Business Bureau (BBB) and a long history of reliable service score well in this category. We also evaluate the availability and transparency of each company’s contracts, as well as whether each provider offers a money-back guarantee.
• Coverage: Our team of experts looks at the number of extended warranty plans available, as well as term limits, exclusions, and added benefits like roadside assistance. Ratings also take into account the availability of maintenance coverage.
• Price: Cost can be difficult to compare between providers because so many factors impact vehicle service contract pricing. To determine our cost score, we perform a secret shopper analysis for a variety of vehicles and plans and consider available deductibles.
• Customer Experience: We listen to real customer sales calls and comb through reviews on sites like the BBB to learn about customer experiences. Warranty companies with a low volume of complaints score well in this area. We also consider the availability of mobile apps and chat features.

Dash Lewis Content Writer