8+ years writing for major outlets, including MarketWatch and Business Insider
Master’s in Education
Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Extended auto warranties help pay for mechanical breakdowns and other repair issues that aren’t from an accident or wear and tear. It’s an optional coverage you can use as needed. Most plans also include roadside assistance and rental car assistance or offer it for an extra fee.[1]
The cost of car repair parts has increased by more than 6% since 2021.[2] With inflation still on the rise, budget-friendly extended warranties are one way to ensure you can afford expensive repairs.
But not every plan is the same or offers equal coverage. Let’s take a look at the cheapest warranty plans, coverage levels, and how to save money.
Quick Facts
Most extended warranties are multi-year commitments, but some have month-to-month options.
Olive is the best overall option for an extended car warranty due to its straightforward coverage and no waiting period.
Autopom! and Endurance are the best picks for older cars with high mileage.
The cheapest auto warranty companies
The best extended auto warranty depends on your car’s features, including age, make, model, and mileage. The following warranty companies have some of the best repair prices for budget-conscious drivers.
Endurance: Best for older cars
Cheapest plan cost: $113
Endurance is a top pick for drivers with older cars. The company extends warranty coverage options for vehicles up to 20 years old, which is more generous than most companies. You can also take advantage of unique sign-up perks, including a free year of Elite benefits and coverage transfers if you sell your car.
But the waiting period is longer than average. Even though most customer feedback is positive, some drivers on the Better Business Bureau (BBB) website find the claims process to be complicated and the communication from the company lacking.
Pros
Higher-than-average vehicle age limit
No mileage restrictions
Transferable coverage
Cons
30-day waiting period
Limited extra coverage
Hit-or-miss customer experience
CARCHEX: Best for customized coverage
Cheapest plan cost: $160
CARCHEX stands out with an impressive variety of coverage options. You can choose from five different plans, including powertrain components. Most companies offer only two or three component coverage options, so CARCHEX is a solid pick if you want more. If you want warranty prices from the company, you’ll need to talk to an agent over the phone.
The company is BBB-accredited and earns an A+ rating, but customer reviews are below average. Some car owners complain about insufficient repair cost payment from CARCHEX when filing a claim. You also won’t find a month-to-month option, so canceling the plan might be complicated.
Pros
Extensive coverage options
24/7 roadside assistance available
Covers powertrain components
Cons
Can get a quote only over the phone
Only long-term plans
30-day and 1,000-mile waiting period
Olive: Best overall
Cheapest plan cost: $68
Olive is the best option if you want an entirely digital experience and no waiting period. You can get an online quote in less than two minutes — no phone calls, emails, or in-person visits necessary. Coverage starts the next day, so you don’t have to wait one month for protection.
But the vehicle age and mileage limits are lower than some other companies. Plus, you can set up coverage only for cars that are 10 model years old and with up to 140,000 miles.
Pros
Very easy to get quotes
No waiting period
Month-to-month coverage
Cons
10-year vehicle age limit
Strict mileage limits
Only three coverage plans
CarShield: Best for customer experience
Cheapest plan cost: $170
CarShield is a well-known company with an extensive list of protection plans and solid customer service. You can choose from seven options, much more than most companies offer. Every plan includes free roadside assistance, towing, and rental car reimbursement.
But not every plan is available for cars with more than 100,000 miles. You also can’t get a quote online, and most communication requires a phone call, which might be a dealbreaker for some drivers.
Pros
Strong customer reviews on Trustpilot
Complimentary roadside assistance and towing
Includes rental car or rideshare endorsement
Cons
Must call for a quote
Limited information about mileage requirements
Not available in California
Autopom!: Best for high-mileage cars
Cheapest plan cost: $112
With no mileage limit, Autopom! is the best option for high-mileage cars. The company earns solid customer reviews for reliability and a straightforward claims process. You can sign up for one of the company’s interest-free payment plans if you don’t want to pay up front.
But regardless of how you pay, you won’t get a full refund unless you cancel during the waiting period. You also have to call to get detailed information about coverage options and request a quote, so it’s more of a hassle if you prefer a digital sign-up process. Additionally, the company doesn’t offer month-to-month coverage and has only yearly plans.
Pros
No mileage limit
Solid customer reviews on Trustpilot
Interest-free payment plans
Cons
Partial refunds for most cancellations
Some waiting periods longer than 30 days
Must call for coverage and pricing information
Our editorial team analyzed national extended car warranty companies that sell vehicle service contracts to evaluate which offer the best coverage options, customer service, and accessibility. We prioritized plan customization, extra benefits, claims support, customer reviews, repair shop networks, and discounts for new customers.
Quotes were calculated using an Ohio address and a 2019 Nissan Altima with 65,000 miles. We chose the cheapest month-to-month or yearly plan offered.
Get Breakdown Coverage You Can Count On
Find a vehicle service contract that works for you
How car warranties work
Buying an extended warranty, or auto service contract, is only the first step. It’s essential to understand how it works so you can get repair help when you need it.
Let’s say your car breaks down while you’re driving. You pull over to the side of the road in a safe location, but your car can’t move.
2. File a claim
Start the claims process on the company’s website or app. Some companies may require you to call to submit a claim. Take photos and give a detailed description of your issue.
3. Find a shop and get roadside assistance
You’ll need to take your car to an authorized service center. You might be able to search a digital database or map that makes it easy to find the nearest option. Or you may need to contact the warranty company to verify whether your repair shop choice is in network. Once you know where you want to take the car, contact roadside assistance through your extended warranty plan.
4. Figure out payment and deductible
Tell the repair shop about your extended warranty coverage. The shop will contact the warranty company for confirmation, and payment for any services that your extended warranty plan covers typically goes right to the repair shop. You’re responsible for paying the deductible, which is usually due when you pick up the car after repairs are complete.
5. Get a rental car
Most extended vehicle service contracts come with transportation reimbursement. Pick up your rental car or use a rideshare credit to get around while your vehicle gets fixed.
Good to Know
Extended warranties don’t cover basic maintenance repair costs. It’s important to follow the maintenance schedule for your car, including tire rotations, oil changes, and everything else outlined in your owner’s manual. If you don’t, it could void your warranty coverage.
How to get a cheaper auto warranty
Extended warranties usually cost between $1,000 and $4,000 per year. The good news is that you can take the following steps to lower the cost:[3]
Increase the deductible. The deductible is the amount you have to pay for a claim. When you have a higher deductible, the extended warranty is usually cheaper. But you’ll have to pay more out of pocket for any work.
Consider month-to-month options. Some companies, like Olive, have month-to-month extended warranties that you can cancel anytime. It’s a different model than a multi-year contract, and it might be cheaper in the long term, especially if you ever need to cancel.
Understand your existing warranty. Double-check whether your car has a current manufacturer warranty and what its exclusions are. If it does, you might not need an extended warranty.
Ask about discounts. Some companies offer discounts, coupon codes, or one-time sign-up bonuses. Ask about ways to reduce the rate before you finalize the contract.
Compare at least three quotes. Shopping around for quotes from various warranty companies can help you understand your options and find the cheapest rates.
Find a Vehicle Service Contract That Works for You
Customize a plan and get covered in 60 seconds
Cheap auto warranty FAQs
Even though an extended car warranty is an extra expense, it can be worth it for some drivers. Here’s what you need to know about auto warranty basics.
Which company has the cheapest car warranties?
The cheapest car warranty depends on your car’s make, model, mileage, age, and location. But we found that Olive had the cheapest rate for its base policy, at $68 per month.
Another option is a vehicle protection plan. These plans are often much cheaper, starting at $12 per month. The coverage isn’t as comprehensive, but it’s a helpful option if extended warranties are too expensive.
How much is CarShield per month?
CarShield advertises that its rates start at $99 per month, but you might spend more depending on your vehicle’s age and mileage. For example, we got a quote for $170 per month.
Is Endurance cheaper than CarShield?
Endurance is slightly cheaper than CarShield, according to the rates we received. Monthly costs start around $100 for the cheapest plans. But pricing is personalized, so you might find that one company is more affordable based on your specific car.
How much do car warranties usually cost?
Car warranties usually cost around $1,000 to $4,000 per year. The exact cost depends on your vehicle’s age, location, mileage, and make. Your annual costs might be less or more than the average, so it’s important to compare plans.
Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.
Taylor has been a contributor at Insurify since February 2023.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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