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How Much Does an Extended Car Warranty Cost?

Don't get surprised by the real cost of an extended car warranty.

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BY Norah Tarichia / LAST UPDATED ON April 30, 2021

Most consumer items have money-back guarantees, but you don’t get the same for your vehicle. What you get instead is the option to extend your vehicle’s factory warranty cover so you can get covered for unexpected repair costs. But how much does an extended warranty cost?

 

Factors such as the make, model, and mileage of the vehicle will determine the price. Also, extended warranty costs vary from provider to provider, depending on the number of parts they are willing to cover and extra perks offered under the cover such as roadside assistance.

 

But, before we dive into that, it’s good to understand what you’re getting into when you choose to invest in an extended warranty for your vehicle. The last thing you want is to end up paying more than your average repair costs, or spending extra on a warranty plan only to enjoy basic perks that you already get from your car insurance policy.

 

To help you decide if this type of warranty is right for you and how much it may cost you, here’s our handy guide on some of the basic economics of extended warranties.

Uproar.car —  Around the Clock Coverage for Your Car

Uproar.car will cover your car for less, protecting you against expensive repairs from bumper to bumper. With a focus on customer care and no middleman to complicate repairs and claims, you’ll get easy coverage you can actually use. The plan even pays for itself — Uproar.car’s warranty coverage gives you exclusive access to discounts, auto concierge service, and a 100 percent online claims process. And with clear, upfront price quotes, you’ll know exactly what to expect when it comes to the cost. It should also be noted, however, that this coverage does not extend to some luxury vehicles, cars over 120,000 miles, and cars more than 10 years old.

EXTENDED WARRANTY COVERAGE MORE … FOR LESS

Endurance

Save $350 on an Endurance warranty plan with coupon code: DRIVE350

Going with a factory extended warranty is a good option for basic protection, but you can get more and save more with Endurance, ranked the top extended warranty provider by Consumer Advocates, Consumer Affairs, and Retirement Living.

Get a Free Quote

Save $350 with coupon code: DRIVE350

EXTENDED WARRANTY COVERAGE MORE … FOR LESS

CarShield

CarShield — USA’s #1 Auto Protection Provider

CarShield pays claims directly to a US or Canadian ASE-Certified® repair facility of your choice. Our contracts have low or no deductibles to prevent stress to your wallet at a critical time. Never worry about being stranded somewhere after a breakdown. All of our vehicle repair contracts include towing services to transport you and your vehicle to a safe repair facility.

Get a Free Quote

What Is an Extended Auto Warranty?

An extended auto warranty, or a vehicle service contract, is an optional cover for the major auto repairs and part replacements for your vehicle. This cover can be purchased at any time, and it usually begins after the manufacturer’s warranty expires, although they may overlap at times. 

An extended warranty is different from your standard warranty in that it covers more parts for a longer period. While your factory warranty may last up to three years or 36,000 miles, extended warranties can increase coverage for seven years or longer, depending on the provider. 

Also, you don’t necessarily have to choose the extended warranty plan offered by your vehicle’s manufacturer. Automaker warranties may guarantee peace of mind, as they are usually fully transferable and can be honored at any dealership nationwide. However, they may not be the most affordable option out there. 

You have the option of comparing the prices offered by the vehicle’s manufacturer to different third-party providers so you can end up with the best deal. However, we have to admit that some providers will fight you for every penny by refusing to pay for parts or disputing the labor costs. Therefore, you shouldn’t just take out a policy with the first third-party provider your car dealership suggests. You need to take your time and look for the best provider with a track record of paying out claims. 

Besides that, each warranty provider will have eligibility requirements that you have to meet to stay within the coverage. Most warranty providers require your vehicle to be under 75,000 miles to be eligible. If you buy a used vehicle that’s a bit over 75,000 miles, you can still get a used vehicle warranty, although your choice of warranty providers will be somewhat limited. 

Another thing to note is that extended warranties usually come in two main parts: inclusionary and exclusionary. An inclusionary protection plan only covers the repair costs for the parts listed in the contract. In contrast, an exclusionary contract will only list the parts that are not covered, so repairs for anything outside those parts are eligible for a claim. Therefore, an exclusionary contract will be more expensive since it’s a more comprehensive plan. 

How Much Does It Cost?

As we noted earlier, several factors ultimately determine the price of your warranty, including the make and condition of your vehicle. So auto warranty providers do not use a universal pricing scheme. However, the costs of the premiums can range from $1,000 to $2,000 and can be even more if you select a comprehensive plan that lasts for several years.  

Also, expect to pay more premiums to cover luxury vehicles such as a Lexus, Jaguar, BMW, or a Mercedes Benz. While service contracts for a Toyota or a Ford with 45,000 miles may go up to $2,000, a similar coverage for a Mercedes-Benz can be as high as $3,000. 

Besides the premium, you have to pay a deductible before the warranty provider pays the remainder of the costs. The general rule of thumb is that if you pay a lower deductible, then you will have to pay a higher premium and vice versa. The cost of deductibles can range from $100 to $500. 

However, there are a few warranty providers that don’t have deductibles, but the cost of the warranty is usually higher.

Most warranty providers give a free quote, so you can understand how they determine their prices, and you get the chance to compare it with other providers before you spend anything. 

The best part is that warranty providers offer different levels of coverage to suit everyone’s budget. Ideally, you can get up to three levels of coverage, but the basic ones are powertrain and bumper-to-bumper coverage. Expect to pay a lower premium if you only select a powertrain cover since it only covers repair costs for basic powertrain components. 

However, you will pay more for a bumper-to-bumper cover for your vehicle, and even more for a comprehensive plan that includes additional perks such as 24/7 roadside assistance, towing services, rental vehicle reimbursement, and more. 

Do some research ahead of time on different providers and get quotes to understand the going rates. Also, don’t shy away from asking for a first-time discount. You may also get a discount if you are a senior or have served in the military. 

Do I Need One?

The choice to buy an extended warranty or not is mostly a personal one. Some people swear off extended warranties like the plague, while others find some value or peace of mind in the extended coverage. To determine if you need an extended warranty or not, there are a few things you should consider before making the final decision.

  • Do you still have a manufacturer’s warranty? If your vehicle is still under the factory warranty, then an extended warranty may be an unnecessary purchase since most of the repair issues may still be covered under the factory warranty. However, if you aren’t on a tight budget, you can save money in the long run by getting an extended warranty; the sooner you get your vehicle protected, the less the premiums will cost since your vehicle will still be relatively new. 
  • How frequently do you experience issues that need to be repaired? Vehicles aren’t meant to last forever so it’s expected that they will experience a few issues, especially as they age. You need to consider how often your vehicle breaks down and estimate if it’s more affordable to pay for the repairs from your pockets instead of buying an extended warranty. An extended warranty can only save you money if your vehicle requires several extensive repairs almost every year. 
  • Is your car getting up there in age? The older your vehicle gets, the more it gets damaged from normal wear and tear. Therefore, you need to spend more on maintenance and replacement of damaged parts. You can save yourself the financial burden of unexpected repair costs by getting an extended warranty. 
  • Do you want to pay for extra perks? Many extended car warranty providers don’t just stop with vehicle protection for some parts repairs and replacements. Roadside assistance and travel assistance are two common perks many extended warranties offer. This can help when emergencies or unexpected automotive issues arise while on the road. Some warranties also offer a free rental car when your vehicle is at a repair shop for long periods for expensive repairs. Read the fine print to make sure you know how the extra perks apply. 

Extended warranties have some pros and cons, just like any other automotive service. In the end, it’s all about saving money. An extended warranty should keep more money in your pocket in the long run than what individual repairs and service costs will take out.

FAQs

Q. Do I need an extended warranty?

You don’t necessarily need an extended warranty right away, especially if your vehicle is still covered under the factory warranty. You can buy it later on when your vehicle becomes unreliable and requires frequent major repairs. 

Q. What’s not covered under an extended warranty? 

Most extended warranty providers typically don’t cover wear items such as windshield wipers, tires, and brake pads. They also don’t cover maintenance items such as timing belt replacements or oil changes. 

Q. Can I cancel an extended warranty?

Although it may be a hassle, you can cancel an extended warranty at any time. You may get a prorated refund for the remainder of your policy. 

Q. What voids an extended warranty? 

Engaging in off-road driving, racing, or other reckless driving activities may void the warranty. The insurer may also refuse coverage if you make major alterations or modifications to your vehicle. 

Final Thoughts

Extended warranties aren’t necessarily for every vehicle and car owner. Instead, they make sense when you need some frequent work done on your vehicle and when you can save money on service costs. The ability to enjoy extra perks may also warrant the cost of a vehicle service contract.

The only way to know the true cost of an extended warranty is through research. After you have gotten some basic quotes from different warranty companies, think about how much maintenance your vehicle needs on average. This is a better way to think about an extended warranty than just being covered for unexpected issues. You can even research or track the costs of average automotive service work when you pay out-of-pocket. 

If the numbers add up, an extended warranty can be perfect.

Get More Protection with Endurance

Want to see what a third-party extended warranty can offer you over what the factory will provide. The best place to start is with Endurance. As the largest third-party provider with a reputation to match its size, Endurance has something for any vehicle and owner. You can get all of the benefits of a factory warranty plus the extra coverage and perks only a true extended warranty can provide. 

To find out more, get a free quote from Endurance today.

More Information

Here are a few more resources you can use to find out about extended warranties:

Uproar.car —  Around the Clock Coverage for Your Car

Uproar.car will cover your car for less, protecting you against expensive repairs from bumper to bumper. With a focus on customer care and no middleman to complicate repairs and claims, you’ll get easy coverage you can actually use. The plan even pays for itself — Uproar.car’s warranty coverage gives you exclusive access to discounts, auto concierge service, and a 100 percent online claims process. And with clear, upfront price quotes, you’ll know exactly what to expect when it comes to the cost. It should also be noted, however, that this coverage does not extend to some luxury vehicles, cars over 120,000 miles, and cars more than 10 years old.

EXTENDED WARRANTY COVERAGE MORE … FOR LESS

Endurance

Save $350 on an Endurance warranty plan with coupon code: DRIVE350

Going with a factory extended warranty is a good option for basic protection, but you can get more and save more with Endurance, ranked the top extended warranty provider by Consumer Advocates, Consumer Affairs, and Retirement Living.

Get a Free Quote

Save $350 with coupon code: DRIVE350

EXTENDED WARRANTY COVERAGE MORE … FOR LESS

CarShield

CarShield — USA’s #1 Auto Protection Provider

CarShield pays claims directly to a US or Canadian ASE-Certified® repair facility of your choice. Our contracts have low or no deductibles to prevent stress to your wallet at a critical time. Never worry about being stranded somewhere after a breakdown. All of our vehicle repair contracts include towing services to transport you and your vehicle to a safe repair facility.

Get a Free Quote