Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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An extended car warranty, also known as a vehicle service contract, can help pay for vehicle repairs outside the scope of a standard car manufacturer’s warranty. You can also purchase one if your vehicle’s manufacturer's warranty has expired.[1]
You may consider buying an extended car warranty if you’re planning to keep your vehicle for a long time, you’re concerned about the financial effect of a mechanical breakdown, or your vehicle has a low reliability rating.
If you’re thinking about getting one, here are our top picks for the best car warranty companies.
Quick Facts
Car warranty companies may offer a wide variety of coverage options to help you customize based on your needs.
An extended warranty typically costs between $1,000 and $4,000 per year.
Extended warranties usually don’t cover maintenance, wear and tear, pre-existing conditions, or accidents.
Best extended car warranty companies
No single car warranty company is best suited for everyone, so it’s important to shop around and compare several options. Here are some of our top choices to help you get started with your search.
Endurance: Best for customization
Endurance
Endurance offers more than six different plans, giving drivers plenty of ways to customize their coverage. Each plan comes with one free year of a benefit package that includes roadside assistance, complete tire coverage, key fob replacement, collision discount, and total loss protection.
A basic plan has a monthly payment ranging from $100 to $160, while comprehensive plans cost more. The provider offers $300 off any new plan, with savings spread over the life of the contract. You can get a free quote online by providing some basic information.
Pros
Discount and benefits with new plans
Network of more than 3,500 certified repair shops
No mileage restrictions
Cons
Vehicles must be 20 years old or newer
30-day waiting period before coverage begins
Benefits only free for one year
American Dream: Best for claims support
American Dream
American Dream offers three different plan options and provides 24/7 claims support. It approves claims in as little as 48 hours. All plans include towing, car rental, and roadside assistance.
The company doesn’t disclose pricing, and you have to talk to someone on the phone to get a quote. But it does offer $350 off all new plans.
Pros
No waiting period
24/7 claims support
Network of more than 200,000 certified repair shops
Cons
Fewer plans with limited customization
Doesn’t cover vehicle models prior to 2000
Quotes not available online
Omega Auto Care: Best for maintenance coverage
Omega Auto Care
Omega Auto Care offers five different coverage options. Each plan comes with a 12-month maintenance program that follows a 30-day waiting period. The plan offers reimbursements for oil changes, brakes, batteries, and a variety of other maintenance needs.
Other benefits include roadside assistance, tire road hazard coverage, rental car reimbursement, and trip interruption protection. Unfortunately, Omega doesn’t disclose pricing on its website, and there’s no option to get a quote online.
Pros
Several plan options for easy customization
Offers valuable extras
No waiting period for warranty coverage
Cons
Vehicles must be 15 years old or newer
Quotes not available online
Maintenance benefits only available for one year
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.
How car warranties work
Car warranties are broken down into two options: manufacturers and extended. Here’s what to know about how they differ.
Manufacturer’s car warranty
Also known as a standard warranty, this plan typically comes with every new vehicle. In some cases, it may be transferred to subsequent owners as long as the time limit hasn’t expired or the mileage limit hasn’t been exceeded.
Covers: Manufacturer defects and failures
Cost: Typically included in the cost of a new vehicle purchase
Where to buy: Franchise dealers selling new cars
How long it lasts: Varies by manufacturer and coverage type; may last three to 10 years or 36,000 to 100,000 miles
Extended car warranty
Also known as a vehicle service contract, you can purchase an extended warranty along with a manufacturer’s warranty or after it expires.
Covers: Varies by provider and plan; typically covers mechanical and electrical components not covered by a standard warranty
Cost: $1,000 and $4,000 per year, depending on the plan provider and coverage
Where to buy: Dealers and car warranty companies
How long it lasts: Varies by plan provider; may last between two and 10 years
What extended car warranties don’t cover
What your extended warranty will and won’t cover is largely based on the type of plan you purchase. But extended warranties have some general exclusions to be aware of:
Routine maintenance
This includes things like oil changes, tire changes, and other maintenance needs. But some plan providers may offer some maintenance benefits.
Wear and tear
You won’t get repair coverage for wear and tear from normal use of your vehicle.[2]
Accidents
Your warranty won’t pay for damages related to a collision. For that, you’ll need auto insurance.
Pre-existing conditions
If your car already has a mechanical problem, don’t expect it to be included if it causes a breakdown.
Types of extended car warranties
Generally, you can buy three types of extended warranties for your car:
Bumper to bumper: Bumper-to-bumper coverage is a comprehensive warranty that’ll typically cover repairs for most components of your vehicle.[3]
Powertrain: A powertrain warranty may cover repairs for major mechanical parts, such as the engine, transmission, and axles.
Stated component: This limited warranty will usually cover repairs for specific systems or components, such as your brakes, audio system, air conditioning, or electrical system.
Depending on the extended warranty company you choose, you may get a mix of different coverage options that you can customize based on your needs.
Extended car warranty pros and cons
Before you decide to purchase an extended warranty for your car, consider the following benefits and drawbacks.
Pros
Protection from unexpected repairs: An extended warranty can cover major repair costs after the factory warranty expires, offering peace of mind against surprise breakdowns.
Added resale value: Some warranties are transferable if you sell the vehicle, which can make your car more attractive to potential buyers.
Predictable cost: Instead of facing large, unpredictable repair bills, you can plan for more manageable warranty payments.
Cons
Cost: A warranty might cost more than what you’d pay in repairs, especially if your car is reliable and well-maintained.
Limitations: Many extended warranties don’t cover wear-and-tear items or pre-existing conditions, so you might still pay out of pocket for common issues.
Repair restrictions: Some warranties restrict where you can get your car repaired, which may limit your flexibility and convenience.
Are extended car warranties worth it?
Whether an extended warranty is worth it for your vehicle is ultimately up to you. It’s important to consider your situation and needs, as well as your budget, to decide if buying one makes sense for you.
Here are some general situations where it could make sense to buy one:
The car model is known for costly repairs or low reliability.
You can’t afford large, unexpected repair bills.
You’re getting a competitive price from a reputable plan provider.
On the other hand, here are some scenarios where it might not be a good purchase:
Your car is still under the manufacturer’s warranty.
The car model has a strong reliability rating.
You’re leasing or planning to sell the car within a few years.
The warranty cost outweighs potential repair savings.
You have an emergency fund that covers unexpected repairs.
Car warranty company FAQs
Below, we cover some common questions about extended car warranties.
Which car company has the best warranty?
No single car warranty company offers the best coverage for everyone. You’ll want to assess your needs and preferences and then shop around and compare several options to determine the right fit for you.
Are extended car warranties worth getting?
It depends. An extended warranty may be worth it in some instances. In particular, it can be a good way to protect a car you plan to keep for a long time. It may also be beneficial if you’re concerned about the financial effect of potential repairs or your vehicle has low reliability ratings.
How much does CarShield cost per month?
CarShield offers plans starting with a monthly payment of $99, depending on the type of coverage you want. You can get an online quote from the company to get a better estimate for your needs.
Why do car dealers push a warranty?
A dealer may try to convince you to buy an extended car warranty because it and other add-ons can be very profitable for the dealership. But you’re not required to buy one if you don’t want to.
What are two reasons not to buy an extended warranty?
An extended warranty may not be necessary if you have sufficient savings to cover potential repairs or your vehicle has a high reliability rating.
Kelley Blue Book. "Car Warranty Guide: Everything You Need to Know."
Ben Luthi
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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