Speed Reads
- The best used car warranty companies accept vehicles with high mileage and provide quality coverage regardless of age.
- We recommend CARCHEX, Endurance, Olive, CarShield, and Protect My Car if you’re searching for a used car warranty.
- Used vehicle coverage can be worth it for owners of unreliable older models who don’t want to deal with unexpected repair costs.
Used car warranty companies promise to cover repairs as cars age, but not all deliver on that promise equally. That’s why our review team spent over 1,475 hours researching dozens of companies through secret shopping, surveying customers, analyzing reviews, and comparing car warranty quotes.
In this article, we’ll reveal our recommendations for the best used car warranty companies. These providers have the best extended car warranties due to strong claims reputations and a wide variety of coverage plans.
8 Best Used Car Warranties
The best used car warranty companies offer several coverage options, affordable pricing, and a good customer experience. See how the top used car warranty providers compare in the table below:
| Best Used Car Warranty Companies | Longest Coverage Term | Maximum Mileage | Coverage Levels |
|---|---|---|---|
| #1 CARCHEX | 10 years | 250,000 | 5.0 |
| #2 CarShield | 7 years | 300,000 | 6 |
| #3 Omega Auto Care | Not listed | 250,000 | 5 |
| #4 Endurance | 8 years | 200,000+ | 6 |
| #5 Toco | Not listed | 250,000 | 4 |
| #6 Protect My Car | 4 years | 200,000+ | 3 |
| #7 Olive | 3 years | 185,000 | 3 |
| #8 Concord Auto Protecy | Not listed | Not Listed | 3 |
*All of our top picks offer 30-day money-back guarantees.
#1 CARCHEX
Longest coverage term: 10 years
Mileage limit: 250,000 miles
Choice of repair shop: You can choose any licensed mechanic including dealerships
Maintenance plan availability: No maintenance plan
CARCHEX has been in business since 1999, holds an A+ rating from the Better Business Bureau (BBB), and partners with industry leaders like Edmunds.com and Kelley Blue Book. With coverage for vehicles up to 250,000 miles, CARCHEX is one of the best choices among used car warranty companies.
CARCHEX Coverage Plans
CARCHEX works with highly rated administrators such as American Auto Shield to offer plan options that last for up to 250,000 miles. The following extended warranty plans are available from CARCHEX:
- Titanium: Exclusionary protection similar to a bumper-to-bumper factory warranty
- Platinum: The highest level of stated-component coverage
- Powertrain Plus: Enhanced powertrain coverage for major components
- Powertrain: Basic powertrain coverage for high-mileage vehicles
- Extra Care: Covers nearly everything but powertrain components
Each of these coverage plans comes with perks such as 24/7 roadside assistance, towing services, rental car reimbursement, and trip interruption benefits.
CARCHEX Warranty Cost
In our experience, CARCHEX offers affordable plans that can a long time and plenty of miles. The average cost of a warranty from CARCHEX is about $638 per year, which is more affordable than many other companies. The company’s plans don’t require a down payment, so coverage starts with your first month’s standard charge.
| Type | Plan Name | Term | Monthly Cost | Total Cost |
|---|---|---|---|---|
| Exclusionary | Titanium | 6 years/125,000 miles | $182 for 18 months | $3,281 |
| Mid-level | Platinum | 6 years/100,000 miles | $212 for 18 months | $3,824 |
| Powertrain | Bronze | 5 years/100,000 miles | $177 for 18 months | $3,191 |
*These quotes have a $100 deductible and apply to a 2017 Honda CR-V with 45,000 miles.
When we called for quotes, the CARCHEX agents were helpful and walked our team through all possible options. While discounts aren’t advertised online, we were offered a few:
- First-time buyer discount
- Military discount
- Friends and family discount
Read more: CARCHEX review
#2 CarShield
Longest coverage term: 7 years
Mileage limit: 300,000 miles
Choice of repair shop: You can choose any licensed mechanic including dealerships
Maintenance plan availability: No maintenance plan
CarShield earns a 4.0-star rating on Trustpilot from over 39,000 customer reviews. As the most popular used car warranty company on the market, CarShield is known for its comprehensive coverage and flexible contracts. It’s the only major provider to offer month-to-month plans, giving drivers more options than if they signed up for a long-term contract.
CarShield Coverage Plans
CarShield offers six plans ranging from basic component coverage up to comprehensive coverage for the whole car. The company’s plans, which can last for up to 300,000 miles, come with roadside assistance, rental car reimbursement, and trip interruption coverage.
Take a look at CarShield’s used car warranty plans in the table below:
- Diamond: Bumper-to-bumper warranty offering comprehensive coverage
- Platinum: Stated-component plan that covers the engine, transmission, electrical system, and air conditioning
- Gold: Mid-level plan covering a variety of essential systems
- Silver: Basic powertrain coverage for your engine, transmission, and drivetrain
- Aluminum: Coverage for high-tech electronics
- Motorcycle & ATV: Protection for alternative vehicles like motorcycles and all-terrain vehicles
One unique feature of CarShield is that its rental car coverage also covers rideshare services up to a specific limit. Instead of getting a rental car, you could use Uber or Lyft to get to work and still receive reimbursement from CarShield.
CarShield Warranty Cost
CarShield is somewhat different from other used car warranty companies because it offers unlimited contracts. The company charges a certain cost per month that lasts however long you continue the contract, whether that’s for a few months or a few years. Because each driver’s coverage term varies so much, it’s difficult to predict the total price you could pay.
| Type | Plan Name | Term | Monthly Cost | Total Cost |
|---|---|---|---|---|
| Exclusionary | Diamond | Unlimited | $140 | Varies |
| Mid-level | Platinum | Unlimited | $120 | Varies |
| Powertrain | Silver | Unlimited | $110 | Varies |
*These quotes have a $100 deductible and apply to a 2017 Honda CR-V with 45,000 miles.
Read more: CarShield review
#3 Omega Auto Care
Longest coverage term: Not listed
Mileage limit: 250,000 miles
Choice of repair shop: You can choose any licensed mechanic including dealerships
Maintenance plan availability: Omega Maintenance add-on option
Omega Auto Care has been in business since 1968 and offers various types of vehicle service contracts. The company holds an A+ rating and accreditation from the BBB along with a 3.9-star rating. Omega Auto Care covers vehicles with up to 250,000 miles on them, making it a compelling choice for the best used car warranty.
Omega Auto Care Coverage Plans
Omega Auto Care offers five extended car warranty options which each come with strong coverage benefits. The company can cover vehicles with up to 250,000 miles on them, meaning that most vehicles are eligible for coverage. Here are Omega Auto Care’s plans:
- Exclusionary: Covers nearly every part of your vehicle and acts similar to a bumper-to-bumper warranty on a new car.
- Used Stated: You’ll receive protection for the vast majority of car parts, though this plan lists out specifically excluded components.
- Powertrain Enhanced: Receive coverage for your car’s powertrain, along with the air conditioning, heating and cooling systems, and fuel system.
- Powertrain Plus: Get slightly slimmed-down protection for the same systems as those in the Powertrain Enhanced plan.
- Powertrain: Gain protection for only the most valuable and pricey-to-repair parts like the engine, transmission, and drive axles.
Omega Auto Care also provides 24/7 roadside assistance, towing, rental car reimbursement, and trip interruption benefits with each plan. Car owners can add the Enhanced Electronics Package if they’d like up to $750 of repair and replacement costs for their car’s radio, audio system, touch screens, and navigation system.
Omega Auto Care Cost
Omega Auto Care is yet another affordable used car warranty company. According to the quotes we received, a year of coverage costs an average of $583 per year. Omega Auto Care only provided one deductible option of $100 to our secret shoppers.
One unique feature of Omega Auto Care is that the company will waive your deductible if you go to a mechanic certified by RepairPal. To find one, you can contact Omega Auto Care or use the RepairPal website.
| Type | Plan Name | Term | Monthly Cost | Total Cost |
|---|---|---|---|---|
| Exclusionary | New Exclusionary | 5 years/100,000 miles | $125 for 24 months | $3,008 |
| Mid-level | Used Stated | 5 years/106,000 miles | $121 for 24 months | $2,904 |
| Powertrain | Powertrain Enhanced | 5 years/96,000 miles | $118 for 24 months | $2,832 |
*These quotes have a $100 deductible and apply to a 2017 Honda CR-V with 45,000 miles. The deductible is $0 if the repair is performed by a RepairPal-certified mechanic.
Read more: Omega Auto Care review
#4 Endurance
Longest coverage term: 8 years
Mileage limit: 200,000 miles for standard plans, additional mileage on Advantage maintenance plan
Choice of repair shop: Licensed mechanic is available
Maintenance plan availability: Advantage maintenance plan option
Endurance stands out for its comprehensive extended coverage options. You can choose between five standard warranty plans or a sixth plan that covers regular maintenance items as well. Endurance is also a direct warranty provider, which means it handles the warranty claims process itself instead of using a third-party administrator.
Endurance Warranty Coverage Plans
Endurance offers used car extended warranty plans in every state except for California. An Endurance extended car warranty covers can cover up to 200,000 miles, and you have access to six plans with varying levels of coverage:
- Supreme: Bumper-to-bumper exclusionary warranty that covers most components of your car
- Superior: Stated-component coverage for hundreds of parts
- Secure Plus: Enhanced powertrain plan that covers steering, electrical, and braking systems
- Secure: Most affordable plan focused on protecting essential components
- Select Premier: Protection for high-mileage vehicles
- EnduranceAdvantage™: Covers mechanical breakdowns plus maintenance such as oil changes and engine diagnostics
Additionally, the Highline add-on for Supreme coverage offers protection to a variety of luxury and high-performance cars. The Mercedes AMG line, BMW M and 8 models, and various Porsche and Audi vehicles are a few that qualify for Highline coverage.
Endurance offers standard warranty perks such as roadside assistance, towing services, rental car coverage, and trip interruption benefits. However, all plans also come with one free year of Endurance Elite Benefits like tire repairs and replacements, key fob replacements, collision discounts, and total loss protection.
Endurance Warranty Cost
Like CARCHEX, Endurance offers fairly affordable plans with an average cost of $640 per year. While the quotes we received required a down payment of between $150 and $300, Endurance agents offered to waive it if we signed up for coverage that day.
| Type | Plan Name | Term | Monthly Cost | Total Cost |
|---|---|---|---|---|
| Exclusionary | Supreme | 5 years/100,000 miles | $114 for 30 months | $3,420 |
| Mid-level | Superior | 5 years/100,000 miles | $134 for 24 months | $3,224 |
| Powertrain | Secure | 5 years/54,000 miles | $133 for 24 months | $3,199 |
*These quotes have a $100 deductible and apply to a 2017 Honda CR-V with 45,000 miles.
Read more: Endurance warranty review
#5 Toco
Longest coverage term: Not stated
Mileage limit: 250,000 miles
Choice of repair shop: You choose any licensed mechanic
Maintenance plan availability: No maintenance plan
Toco is another great option for a used car warranty. Founded in 2012, the company has a track record for customer service with a 4.5-star rating on Trustpilot. Toco is also very transparent about what its plans cover. The website doesn’t just list sample contracts with fine print, it breaks down those contracts in easy-to-read explanations.
Toco Coverage Plans
Toco offers four plans from bumper-to-bumper to powertrain coverage. The powertrain plan can cover vehicles with up to 250,000 miles, which makes it a good option for a used car warranty. The four plans are called Orange, Yellow, Blue, and Green. While there are four plans, you may only have one to choose from at the time. This is because Toco separates the plans by mileage: 0 to 100,000, 100,000 to 150,000, 150,000 to 200,000, and 200,000 to 250,000.
- Orange (0 to 100,000 miles): Comprehensive coverage for any breakdown except for a list of exclusions
- Yellow (100,000 to 150,000 miles): Extensive coverage for a variety of systems including technology, electrical, air conditioning, and more
- Blue (150,000 to 200,000 miles): Mid-tier coverage for important vehicle systems including the engine, fuel system, electrical, and more
- Green (200,000 to 250,000 miles): Basic coverage for crucial components in the engine, transmission, drivetrain, and hybrid components (if selected)
All Toco warranty plans come with 24/7 roadside assistance, towing, rental car reimbursement, and trip interruption coverage. They also include 5 percent cash back on hotel bookings through partners.
Toco Warranty Cost
Overall, Toco warranty costs are about average for the industry. You pay the monthly price for the duration of the warranty and can cancel whenever you want during the term. Plans have a $100 deductible unless you go to Pep Boys, where it’s $50.
| Type | Plan Name | Term | Monthly Cost | Total Cost |
|---|---|---|---|---|
| Exclusionary | Orange | 3 years/75,000 miles | $68 | $2,448 (for 3 years) |
| Mid-level | Yellow | 3 years/36,000 miles | $72 | $2,592 (for 3 years) |
| Powertrain | Blue | 3 years/250,000 miles | $100 | $3,600 (for 3 years) |
The exclusionary plan applies to a 2017 Honda CRV with 45,000 miles, the mid-level plan applies to a 2017 Toyota Camry with 75,000 miles, and the powertrain plan applies to a 2013 Toyota Camry with 100,000 miles.
#6 Protect My Car
Longest coverage term: 4 years
Mileage limit: 200,000+ miles
Choice of repair shop: Any licensed mechanic you choose
Maintenance plan availability: Ultimate plan comes with maintenance, others have optional maintenance upgrade
Protect My Car has been in business since 2005 and has a solid industry reputation. The company stands out for its consistently positive customer reviews, with an impressive 4.2-star rating from over 3,500 reviewers on Trustpilot. Protect My Car is also known for having a smooth claims process and helpful customer service representatives.
Protect My Car Coverage Plans
Protect My Car offers three extended warranty options that can cover your vehicle for up to 125,000 miles. It delivers three different coverage plans that can cover the needs of nearly anyone looking for a high-quality used car warranty.
- Ultimate: Coverage for most vehicle systems that mirrors a factory warranty
- Deluxe: Protection for low-mileage cars that covers the powertrain, air conditioning, steering, suspension, and seals and gaskets
- Essential: Enhanced powertrain coverage for only critical components
Each Protect My Car coverage plan includes 24-hour roadside assistance, towing, rental car reimbursement, trip interruption benefits, and enrollment into the PMC Rewards program.
Protect My Car Cost
Protect My Car generally costs a bit more than some other providers, but it can still be a good option depending on your situation. The quotes we received offered extended coverage up to 75,000 miles with no time limit. When we interacted with Protect My Car’s team, we found the agents to be helpful and to offer quick service.
| Type | Plan Name | Term | Monthly Cost | Total Cost |
|---|---|---|---|---|
| Exclusionary | Supreme | Up to 75,000 miles | $108 for 48 months | $5,184 |
| Mid-level | Select | Up to 75,000 miles | $98 for 48 months | $4,704 |
| Powertrain | Driveline | Up to 175,000 miles | $133 for 36 months | $4,788 |
*The Supreme and Select plans apply to a 2017 Honda CR-V with 45,000 miles and the Driveline plan applies to a 2013 Toyota Camry with 80,000 miles.
Read more: Protect My Car review
#7 Olive
Longest coverage term: 3 years
Mileage limit: 185,000 miles
Choice of repair shop: You choose any licensed repair facility
Maintenance plan availability: No maintenance option
Olive is a digital-focused used car warranty company that allows customers to buy and manage their warranties entirely online. Though the company was only founded in 2020, its owners have been in the car warranty business for two decades. The Olive brand’s owner, Repair Ventures, holds an A+ rating and accreditation from the BBB.
Customers are generally pleased with Olive’s easy sign-up process and low overall costs, leading to it being named the Best Online Warranty of 2023.
Olive Coverage Plans
Olive offers three levels of extended warranty coverage. Contracts are only available for three-year periods but cover vehicles for up to 185,000 miles. Plans include a towing benefit and rental car reimbursement but leave out all other roadside assistance services. While Olive warranties are shorter than most, they cover high-mileage vehicles and can be less expensive than from many competitors.
- Complete Care: A bumper-to-bumper warranty that covers most vehicle components minus a short list of exclusions
- Powertrain Plus: Covers powertrain components and a few other critical systems such as steering, suspension, air conditioning, and electrical parts
- Powertrain: Basic powertrain coverage for the engine, transmission, drive axle, and fuel system
One main downside of Olive’s plans is that they don’t come with roadside assistance or trip interruption benefits. These are usually included in other companies’ used car warranties.
Olive Warranty Cost
Olive is known for the extreme affordability of its used car warranty options, with plans only costing an average of $437 per year. The quotes we received came with a $500 deductible, meaning the plan kicks in if a covered breakdown costs more than $500. If you choose a lower deductible, you may receive slightly more expensive quotes from Olive.
| Type | Plan Name | Term | Monthly Cost | Total Cost |
|---|---|---|---|---|
| Exclusionary | Complete Care | 3 years/unlimited miles | $26 for 36 months | $929 |
| Mid-level | Powertrain Plus | 3 years/unlimited miles | $25 for 36 months | $898 |
| Powertrain | Powertrain | 3 years/unlimited miles | $25 for 36 months | $898 |
*These quotes have a $500 deductible and apply to a 2017 Honda CR-V with 45,000 miles.
Read more: Olive warranty review
#8 Concord Auto Protect
Longest coverage term: Not listed
Mileage limit: Not listed
Choice of repair shop: You choose any licensed repair facility
Maintenance plan availability: No maintenance option
Concord Auto Protect is a well-regarded auto warranty company that is an affordable option for drivers. We award it as the best for luxury cars due to its high customer service ratings, affordable rates, and the fact that it’s a direct provider.
Concord Auto Protect Coverage Plans
Concord Auto Protect offers three levels of coverage ranging from a powertrain plan to a premium plan (similar to a bumper-to-bumper). Below is a further breakdown of each plan and what is covered.
- Premium: We recommend this plan for comprehensive coverage, as it is Concord Auto Protect’s closest offering to a bumper-to-bumper warranty. It covers the engine, transmission, drive axles, suspension, fuel system, air conditioning, and more.
- Advanced: Concord Auto Protect’s mid-level protection plan, covers key engine, transmission, and drivetrain components. Steering, brakes, and the cooling system are also protected.
- Powertrain: Similar to a typical powertrain warranty, covers the basic components that make the vehicle go.
With every plan that it sells, Concord Auto Protect includes the following benefits:
- 24-hour roadside assistance
- Full transferability
- Towing to nearest repair facility
- Lockout service
Concord Auto Protect Cost
Concord Auto Protect offers prices that are typically below the industry average. Extended warranties typically fall in the total cost range of $1,500 to $4,000, however, our team has found that quotes from the company tend to be on the lower side. We received a few quotes from Concord Auto Protect, all for 5 years/60,000 miles shown in the table below. Each quote comes with a $100 deductible.
| Type | Plan Name | Vehicle | Mileage | Monthly Cost |
|---|---|---|---|---|
| Exclusionary | Premium | 2017 Honda CR-V | 45,000.0 | $44 for 36 months |
| Exclusionary | Premium | 2017 Chevrolet Silverado | 50,000 | $53 for 36 months |
| Mid-Level | Advanced | 2017 Honda CR-V | 100,000 | $48.60 for 36 months |
| Powertrain | Powertrain | 2017 Honda CR-V | 120,000 | $48.60 for 36 months |
Keep reading: Concord Auto Protect Review.
Used Car Warranty Buyer's Guide
With so many options, it can be difficult to make a decision on a used car warranty. Next, we’ll go over what to know when shopping for an extended warranty on your used car.
What’s The Process For Buying A Used Car Warranty?
When you’re shopping for a used car warranty, consider getting multiple quotes from different companies. You may find out your car is eligible for different types of coverage from various providers.
It can often be helpful to call a company representative and have them walk you through the different plans. But hold your ground if you want to take time to consider your options. You can always call them back to make the purchase as quotes are often good for 30 days.
After you find out the type of coverage you can get and the price, you’ll sign a contract electronically with the company to purchase a used car warranty. At that point, the waiting period starts. Usually, you need to wait 30 days and a few hundred miles before using warranty coverage. This is so the company doesn’t pay for preexisting issues.
The way you pay for the used car warranty will depend on what the company offers. You might want to pay for the whole plan upfront to save a bit on the total cost, or you could make monthly payments. Some companies charge payments for the duration of the plan while others lump payments into the first one, two, or three years.
Can You Buy Extended Warranty After Purchase?
Yes, you can buy a used car warranty after you purchase the vehicle. In fact, this is a common scenario. Some auto manufacturers may only sell extended warranties when you buy the vehicle, but third-party providers offer more flexibility. You can purchase a used car warranty if your factory warranty has expired, and you can also get it beforehand (though coverage would overlap).
How Long Are Most Used Car Warranties?
Generally, the sweet spot for a used car warranty is three to six years long. Most people know they’d own a car for this long and want to have protection on it during that time. You can always buy a used car warranty and cancel it though if you sell the car. Most companies also let you transfer the warranty to a secondary owner once you have it paid off (or if the owner wants to take over payments).
When Is It Too Late To Buy An Extended Car Warranty?
If your car has more than 200,000 miles, it may be too late to purchase a used car warranty from some companies. Most companies limit coverage to 200,000 or 250,000 miles (Carshield covers up to 300,000). Besides eligibility, the warranty cost will increase as your car ages. That’s because the company expects to cover more repairs on an older car. On the flip side, it’s cheaper to get a used car warranty early in your car’s life.
Can You Negotiate An Extended Warranty On A Used Car?
You might be able to negotiate a used car warranty depending on where you get it. This is more likely if you shop from a used car dealer and can haggle in person. We’ve also found some online providers are open to negotiating a little bit if you are shopping around and have competing prices to show them. Companies may also have special discounts if you ask for them.
Who Offers Used Car Warranties?
Automakers offer extended warranties for used cars, but they can usually only be purchased before the factory warranty runs out. Another option is to consider a reputable third-party vehicle service contract provider like Endurance, CARCHEX, or CarShield.
If you’ve bought a used car before, you were probably offered extended coverage at the dealership. There are many independent coverage providers that partner with car dealers to sell used car warranty plans. We recommend steering clear of these companies because the dealership is typically a difficult place to compare your coverage options.
Used Car Warranty Coverage Details
Used car warranty companies offer multiple plans that cover different lists of vehicle components. Below are the three main coverage types you’ll find:
- Bumper-to-bumper: A bumper-to-bumper warranty is most similar to the new vehicle limited warranty and covers all parts not specifically listed as exclusions. Because of this, it’s commonly known as an exclusionary warranty.
- Stated-component: These plans protect most major components such as the air conditioning and electrical systems, but they’re less comprehensive than bumper-to-bumper plans. Stated-component coverage only protects what’s written in the contract and is often considered best for high-mileage vehicles.
- Powertrain: A powertrain warranty covers the most essential systems the car needs to function like its engine, transmission, and drive axles. Because powertrain coverage is pretty basic, you’ll also find that it’s the cheapest coverage option.
Even with a used car, you’ll likely be eligible for a bumper-to-bumper warranty from most third-party providers. Note, though, that many people searching for used car warranties consider stated-component coverage instead of full bumper-to-bumper protection.
What’s The Best Used Car Coverage?
The best used car warranty for your vehicle hinges on the car model and your budget. A bumper-to-bumper contract covers the most parts, so it may be the best option if you want to make sure everything is covered. However, those with some older vehicles may want to save money and get an affordable powertrain plan instead.
Used Car Warranty Exclusions
Note that warranties are meant to pay for auto repairs when car parts fail or break as a result of normal use. This means a used car warranty won’t pay for damages caused by a car accident, poor weather, or lack of proper maintenance. Providers also exclude damages covered by car insurance companies and wear and tear parts like brake pads, wiper blades, and tires.
Vehicle protection plans generally won’t cover the following:
- Regular maintenance like oil changes and tire rotations
- Unauthorized vehicle repairs
- Repairs that upgrade the car
- Aftermarket parts
- Cosmetic items such as paint, glass, and fabric
- Parts covered by the car’s manufacturer
Used Car Warranty Benefits
Most extended car warranty plans come with extra benefits beyond the repair contract. These usually include roadside assistance, rental car coverage, and trip interruption. In most cases, you’ll need to cover these costs yourself and then submit receipts later on for reimbursement.
- Roadside assistance: This covers towing services, fuel deliveries, lockout assistance, spare tire changes, and battery jump-starts.
- Rental car reimbursement: This covers rental car costs while your own vehicle is in the shop for a covered repair. Warranty plans usually limit coverage to a set amount per day and set a maximum number of days.
- Trip interruption: This covers certain food and lodging costs if your car breaks down far away from home.
In our experience, most used car warranty companies offer all three benefits on stated-component and bumper-to-bumper coverage contracts. Some offer all three with powertrain plans, while other companies may just offer roadside assistance.
How Much Does A Used Car Warranty Cost?
A used car warranty can cost between $1,500 and $4,000 depending on the provider, coverage plan, and term length. Some companies require you to pay the entire cost upfront, while others allow you to make monthly payments of about $100 to $200 per month. On top of your monthly payment, some companies require a down payment of up to $300.
Our Extended Car Warranty Survey
Our research team polled 1,000 consumers who either bought or considered purchasing an extended auto warranty. Warranty cost, term length, and covered components were the most important factors to consumers as they considered buying an extended warranty.
Here are some additional takeaways from the survey:
- Satisfaction: Over 41 percent of respondents said they were satisfied with their extended car warranty because it covered needed repairs. An additional 24 percent said they were satisfied with their provider despite never filing a claim.
- Value: Our survey found that almost 41 percent of respondents think buying an extended warranty is worth it while nearly 45 percent think it depends. In other words, only about 15 percent of respondents feel that an extended car warranty isn’t worth the investment.
Should I Buy A Used Car Warranty?
Whether you should get a used car warranty depends on your needs and budget. Some drivers may prefer to pay for car repairs as they arise, while others may not be able to afford unexpected expenses out of pocket.
If your car doesn’t experience any major issues, you’ll spend more money on the extended warranty than on auto repairs. However, used car warranties offer peace of mind and offset repair costs if you purchase a car no longer under its original factory warranty.
Is A Used Car Warranty Worth It?
To determine whether a used car warranty is worth it, research common issues for your car’s make and model year when warranty shopping. Note that your make and model, as well as the year of your car, will impact your used car warranty cost as well.
Use resources like RepairPal and Edmunds to estimate how much you’d pay in repair costs over the next few years. If these costs exceed what you feel comfortable spending on your vehicle, an affordable monthly payment for a used car warranty could be smart.
Used Car Warranty Pros And Cons
Below, we’ll discuss several reasons a used car warranty may or may not be worth it:
Used Car Warranty Pros
Below are some strong reasons to consider purchasing a used car warranty:
- You won’t pay for repairs out of pocket: The chance of your car suddenly requiring an expensive repair increases as the vehicle ages. If you aren’t able to pay for a $1,000 or $2,000 repair bill out of pocket, a used car warranty provider may be worth considering.
- You’ll gain peace of mind: With an extended car warranty, you’ll have a set monthly budget for auto repairs. In this way, a warranty acts as a sort of insurance for car repairs, protecting you against bank-breaking bills.
- You can keep your car longer: If you love your used vehicle and want to keep it for years to come, a used car warranty will help you do so by covering future repair costs. The sooner you purchase an extended car warranty, the sooner you can lock in a low rate for the long term.
Used Car Warranty Cons
Below are reasons to potentially consider avoiding a used car warranty:
- Extended warranties don’t cover everything: A used car warranty isn’t a promise to pay for every repair that your car may need. After your vehicle breaks down, you’ll need approval from your claims administrator before repairs are made. Your claim could be denied if the contract doesn’t cover a certain part or breakdown.
- Used car warranties can be expensive: If you have thousands in savings to use for car repairs, it’s probably not worth it to purchase a used car warranty. While it’s not fun to foot a pricey repair bill, you could save more money by not purchasing an extended car warranty.
- You may not keep the used car for long: If you plan to buy a different car in the near future, purchasing a used car warranty may not be worth it. However, most extended warranties are transferable and could improve the car’s resale value.
How To Buy A Used Car Warranty
The used car warranty market can be overwhelming due to hundreds of providers and plans, varying payment and claim structures, and confusing fine print. Before contacting used car warranty companies for quotes, it’s important to understand the landscape and reflect on your needs.
Important Used Car Warranty Questions
Along with big-picture questions such as your level of vehicle protection and how much you’re willing to pay, here’s a short list of questions to ask during your search:
- Is the used car warranty company known for reliable and fast customer service?
- Does the company have high ratings from expert sources?
- What are customers saying in online reviews?
- Can you file claims on the weekend?
- How many years has the company been in business?
- Do the customer service representatives seem more eager to make a sale than meet your needs?
- Are warranty plans transferable?
- What other benefits are offered with the provider’s warranty plans?
- Are there restrictions, limitations, or inconveniences outlined in the fine print?
What To Look For In Used Car Warranty Companies
From coverage plans to what customers have to say, there’s lots to consider when comparing the best used car warranties. The best car warranty companies are known for reliably paying out claims on repairs and parts that are under contract. For this reason, buying from dependable used car warranty companies helps you get the best value.
If you’re thinking about purchasing a used car warranty, here are some tips to help you identify the right provider:
-
- Reputation: The used car warranty company’s reputation is key. Much of your satisfaction with the warranty plan will depend on how helpful customer service representatives are throughout the entire process.
- Industry reviews: Review websites like the BBB and Trustpilot can give insight into customers’ experiences and help you find the best used car warranty.
- Transparency: Make sure you can easily locate sample contracts on the company’s website easily. Also, see if there’s a 30-day money-back guarantee.
- Coverage terms: Consider how long you plan to keep the vehicle, what parts need to be covered, and what it would cost to cancel or transfer coverage.
- Price: The best used car warranty companies should be able to provide coverage at a price you’re comfortable with, and the plan should be as flexible as possible. You should have $0 deductible options along with your choice of a repair shop.
It’s important to consider these questions whether you’re looking at an automaker-backed plan, one from a third-party extended warranty company, or coverage in the form of mechanical breakdown insurance.
Best Used Car Extended Warranties: Bottom Line
In this piece we rated the eight best used car warranty companies based industry standing, coverage, cost, transparency, and customer service. Based on that criteria, we found that CARCHEX is the best provider of used car coverage plans. We’d also recommend CarShield, Omega Auto Care, Endurance, Toco, Protect My Car, and Olive.
Best Used Car Warranty: FAQ
Below are several frequently asked questions regarding the best used car warranties:
How We Rank The Best Used Car Warranties
Our team collected over 1,800 data points on 46 extended warranty companies to find the best providers. We interacted with customer service agents and got quotes for various warranty plans and terms. We also conducted multiple consumer surveys to see what people want in an extended warranty company and what they’ve experienced. Throughout the year, we refresh our data and update our ratings to keep recommendations current.
Our overall rating combines five different categories: industry standing, coverage, cost, transparency, and customer service.
Industry Standing
If you buy an extended auto warranty, you need to know that the company will cover claims for covered repairs. Our team looks at a company’s established reputation in the industry, its endorsements from experts, and its overall business practices. We also note if the provider has received business or consumer awards in recent years.
Coverage
Companies that offer more than three extended warranty plans, a variety of term lengths, and useful added benefits score well in this category. When there are more plans to choose from, you can customize coverage to better suit your needs. Added perks we look for include roadside assistance, rental car coverage, and trip interruption benefits.
Cost
Our research team reviews quotes for a variety of coverage plans and vehicles. We consider the length and mileage of the plan, what it covers, the monthly cost, deductible options, total costs, and the average cost per year of coverage. For our 2023 cost ratings, we received over 140 prices on individual plans from a range of extended car warranty providers.
Transparency
This score takes into account contract transparency and the availability of a money-back guarantee. Some companies make it difficult to get sample contracts online and to see what a plan covers, while others make this information easily available. We recommend that you read and understand the contract thoroughly before signing up for a warranty.
Customer Service
We comb through customer reviews and perform secret shopper analyses to get a sense of the responsiveness and helpfulness of each warranty company. Our team notes patterns in positive and negative reviews to see what a company is known for. Does a company make it tough to get a claim covered or does it walk customers through the process?