Best Used-Car Warranty Companies (2025)

With skyrocketing new car prices — the average price topped $48,000 in March 2025 — used cars are increasingly appealing. The average price of used cars was about 48% cheaper than the cost of new cars, according to Kelley Blue Book.^[1]

But the lower price tag comes with some risk. While new cars typically come with a manufacturers’ warranty, used cars rarely have that protection. Once the manufacturer’s warranty expires, you’re on the hook to pay for repairs yourself, and some can cost well into the thousands.

With an older car, an extended warranty — also known as a service contract — can come in handy. Depending on the make and model of the car, the value of the vehicle, and repair costs, an extended warranty may be worth the investment.^[2]

Best extended warranty companies for used cars

No single extended warranty company will work for everyone; which is the right fit for you depends on your vehicle’s age and the number of miles on your odometer.

To help you start your search, we researched leading companies and identified the best used-car extended warranty companies based on their cost, customer satisfaction ratings, and available protection plans.

CarShield: Best for customer satisfaction

Endurance: Best for extra benefits

Select Auto Protect: Best for older or high-mileage cars

How used-car warranties work

Two main types of car warranties are available for used vehicles: standard warranties and extended warranties. Here’s what you should know about each type.

Manufacturer’s car warranty

When you buy a new car (or a certified pre-owned vehicle), a manufacturer’s warranty, also known as a standard warranty, backs your purchase. These warranties typically cover your vehicle for a specific period of time or a number of miles.

For example, a manufacturer’s vehicle warranty may cover your car for three years or 36,000 miles, whichever comes first.^[3]

• Cost: Usually included within the purchase price of the vehicle

• Where to buy: Through the manufacturer or dealer at the time of purchase

• How long it lasts: Three years or 36,000 miles

Extended car warranty

An extended warranty is an optional product you can purchase to cover your vehicle when the original manufacturer’s warranty expires. Available through some manufacturers, car dealerships, and third-party companies, these warranties cover major repairs beyond what occurs from normal wear and tear.

• Cost: $100 to $170 per month

• Where to buy: Manufacturers, dealerships, and third-party companies

• How long it lasts: Two to eight years

What used-car extended warranties cover

When you purchase an extended warranty, you can usually choose from several plan options. Basic plans typically cover the following issues related to mechanical defects or faulty workmanship:

• 

  Engine and transmissions

  If your engine or transmission breaks down, the extended warranty will help with the repair or replacement cost.

• 

  Air conditioning and heating systems

  Extended warranty coverage includes the compressors, fans, and other components making up the car’s air conditioning and heating systems.

• 

  Brakes

  If you have issues with your brakes — beyond normal wear and tear — some warranties will pay for repairs to brake system components, like faulty calipers.

• 

  Electrical systems

  Modern cars have complex electrical systems and wiring, and issues can affect your car’s drivability and performance.

• 

  Fuel system

  Extended warranties can protect parts like your vehicle’s fuel pump and injectors.

• 

  Suspension and steering

  Coverage may include your car’s shocks, struts, and hydraulic systems.

Coverage varies by extended warranty plan, so review your contract terms and conditions to determine what the plan covers and excludes.

What used-car extended warranties don’t cover

Although extended warranties can come in handy, they have limitations on what they cover:

• Wear and tear: As you use your car, it will experience regular wear and tear, such as wear to its brake pads and batteries. Warranties don’t cover repairs due to wear and tear.

• Regular maintenance: Routine maintenance and vehicle services, such as oil changes and tire rotations, are excluded; extended warranties are intended only for mechanical breakdowns.

• Cosmetic issues: Extended warranties don’t typically cover cosmetic issues, such as chipped paint or torn upholstery.

• Pre-existing issues: Any issues that exist prior to the purchase of the extended warranty are usually excluded. For example, if your car had transmission issues before you bought the warranty, your contract will exclude transmission-related repairs.

• Accident-related damage: Extended warranties aren’t car insurance, so they don’t cover repairs or damages related to collisions, theft, or weather damage.

Types of extended warranties for used cars

When shopping for a used-car extended warranty, you can choose from several options, from barebones coverage to more extensive plans. Depending on your budget, three main types of service contracts for used cars are available:

• Exclusionary: An exclusionary warranty, also known as a bumper-to-bumper warranty, is the most extensive warranty, and it’s typically the most expensive. It covers most of the mechanical components of your car, including the cost of labor accrued during repairs.

• Stated or named component: A named or stated component warranty is more limited; it protects specific components of the vehicle, such as the electrical system.

• Powertrain: Powertrain warranties are a more limited warranty, covering only critical parts of the car, such as the engine and transmission. As a result, a powertrain warranty is more affordable than other warranties.

Used-car extended warranty pros and cons

Extended warranties can be useful, but they’re not always worth the cost. Before purchasing a service contract, weigh the following pros and cons:

Are extended used-car warranties worth it?

Whether an extended warranty is worth it depends on the make, model, and year of your vehicle, the typical cost of repairs, and your budget.

The average cost of repairs for all cars is about $850 per year, according to Kelley Blue Book, while the average extended warranty can cost anywhere from $1,400 to $2,000 per year.^[4]

An extended warranty can provide some peace of mind and financial protection, but it does come with a relatively high monthly cost. As a result, extended warranties can make sense if you have a more expensive used vehicle, such as a luxury or performance car, that’s expensive to repair and that you intend to keep for several years.

For example, the average repair costs for a BMW 235i Gran Coupe surpass $3,000 per year, so extended warranty coverage could be useful.

By contrast, an extended warranty is unlikely to be worth the expense if you have a less expensive car that’s cheaper to repair. For instance, the average cost of repairs for a Hyundai Venue is under $700 per year, so an extended warranty would be more expensive than paying for the repairs out of your own pocket. In that case, tucking the money you’d spend on a service contract into a dedicated savings account to pay the repair shop in the future may be a better idea.

Used-car warranty company FAQs