How much does an extended car warranty cost?

Key points

• Extended car warranties cost an average of $108 per month, according to our quote data.

• Vehicle condition and chosen coverage can drastically affect warranty costs.

• Research warranty companies and read sample contracts to determine whether a plan is worth it.

The average extended car warranty costs about $2,845 in total, though costs vary depending on the vehicle and other factors. With some companies offering fixed-term plans and others providing unlimited month-to-month coverage, it can be hard to know what’s worth it.

Our cost averages in this article are based on quotes we received from the best extended car warranty providers. With these averages, you can get an accurate idea of how much extended warranty plans might cost. We used multiple vehicle profiles to get a variety of quotes for different plan levels. These were the vehicles and mileages we used:

• 2020 Hyundai Elantra with 30,000 miles
• 2018 Toyota RAV4 with 50,000 miles
• 2014 Nissan Altima with 85,000 miles
• 2014 Nissan Altima with 90,000 miles

Extended warranty coverage can pay for expensive repairs, but you’ll need to decide if the monthly, yearly or total cost is worth it for you. If your vehicle has low reliability ratings and has frequent repairs with high average costs for those repairs, the cost of an extended warranty might be worth it. However, if you have a reliable vehicle and plenty of cash to pay for repairs upfront, you might not need coverage.

You can get started with a quote from our #1 rated provider, Endurance, here:

How much does an extended car warranty cost?

After getting quotes from the best car warranty companies, we found that extended warranties cost an average of $108 per month with a total average cost of $2,845. Looked at another way, plans cost an average of $848 per year of coverage. 

Extended car warranties also come with deductibles, which you pay to the repair facility in the case of a covered repair. Deductibles usually range from $0 to $250 and lower deductibles increase the overall cost of the plan.

Vehicle service contracts, another name for extended auto warranties, are made up of multiple plan types with varying levels of coverage. We’ll look at a few different coverage options below.

Bumper-to-bumper extended warranty cost

Bumper-to-bumper warranties cover any mechanical breakdown barring explicitly listed exclusions. They’re also called exclusionary or comprehensive coverage plans. Our quote data shows bumper-to-bumper coverage from leading extended warranty companies costs about $106 per month or $2,586 in total on average.

Newer cars qualify for bumper-to-bumper plans while cars with high mileage often don’t. The condition of a car often influences the price more than the coverage plan.

To gather our quote data, we used vehicles with varying mileage for different plan types — low-mileage cars for bumper-to-bumper and high-mileage cars for powertrain plans. This is because our sample vehicles were only eligible for certain plans. But when you get a quote, you’ll see plans that cover more components generally cost the most.

Midlevel extended warranty cost

Midlevel car warranties cover most major systems of the car, including the engine, transmission, drive axles, electrical, steering, brakes and air conditioning. These plans cost about $106 per month or $3,151 in total on average.

Powertrain extended warranty cost

Powertrain warranties cover the basic components that propel your car forward: the engine, transmission and drive axles. Our quote data shows powertrain coverage costs $105 per month or $2,892 in total on average.

Third-party vs. manufacturer extended warranty cost

Up until now, we’ve been talking about third-party warranty costs from companies such as Endurance and CarShield, which are also called aftermarket warranties. You can also get extended warranties directly from your car’s manufacturer, though most manufacturers don’t sell them after the factory warranty that comes with a new car expires.

Generally speaking, manufacturer warranty plans cost more than third-party coverage considering the length of the term. Manufacturers may offer 80,000, 100,000 or even 150,000 miles of coverage in some cases but they rarely exceed that. Third-party companies can cover up to 200,000 or 300,000 miles depending on the provider.

Some manufacturer plans may cost $3,000 or $4,000 in total but only give you a couple more years of coverage beyond the factory warranty. Compared to the average total of $2,845 for aftermarket warranties, it could make more sense to go with a third-party instead of your manufacturer.

That said, manufacturer plans aren’t always more expensive. For example, we found Honda Care extended warranties to be very affordable compared to the industry average. You can get an 8-year/120,000-mile plan for about $1,200 in total based on quotes we received from dealerships. This provides 5 years beyond Honda’s factory warranty, so it costs roughly $240 per year of coverage.

What affects extended car warranty costs?

Extended car warranty costs are customized to your vehicle. Coverage plans cost more for luxury vehicles and brands that have higher average repair costs. Similarly, older vehicles are more likely to break down, so warranties will cost more for those cars. Higher-mileage vehicles are more likely to have breakdowns, so coverage costs slightly more in comparison.

Generally speaking, it’s cheapest to get an extended warranty earlier in the life of your vehicle if you know you want one.

Besides your vehicle, the type and length of coverage also affects the cost. You might find three different plans from one company that apply to your car. The more components they cover, the higher the cost on average. And longer plans will cost more than shorter ones, all else being equal.

Your deductible also affects the total cost. Opting for a higher deductible can decrease the plan cost because you’ll pay more out of pocket for a repair.

How do car warranty costs work?

Most extended warranty providers let you pay in full upfront or in monthly installments. You might care more about the monthly payment than the total cost. In this case, you can look for companies that let you choose longer terms like 48 months to get a lower payment. However, some companies just give one payment term option.

Many companies require down payments to start coverage. In most cases, this is equal to one monthly payment, but it can also be higher.

Certain companies offer unlimited-term month-to-month contracts that act like a subscription. You make the monthly payment as long as you have coverage. These companies can be affordable for short-term plans and convenient because you can end coverage at any time, but they become more expensive as time increases.

As an example, let’s say one company offers a 5-year plan for $100 a month for 36 months. This is $3,600 in total. Now, let’s say another company offers $100 a month for unlimited-term coverage. If you keep that plan for 5 years (60 months), it would cost you $6,000 in total.

It’s important to do the math to see how much a plan would cost in the long-term.

How car warranty deductibles work

One aspect of your car warranty cost is the deductible. This is the amount you pay out of pocket when you need a covered repair. When your repair is approved, you pay the deductible to the repair shop and then your extended warranty provider covers the rest.

As mentioned above, if you choose a higher deductible, your monthly payment will be lower and vice versa.

Are car warranties worth the cost?

Whether the extended car warranty cost is worth it is subjective and can depend on different factors. For example, you might simply want peace of mind that you have a safety net for expensive car repairs but you aren’t too concerned about the total cost of an extended car warranty.

On the other hand, if you want to know how the warranty may pay out, take a close look at resources like RepairPal and Edmunds to see average repair costs for your car model. Certain vehicles are known for higher auto repair bills, and a warranty would be more worth it on those models.

How long you plan to own the car is also something to consider. Do you want to keep it in good shape for many years? Or are you planning on selling the car in the next couple of years? Most extended car warranties are transferable to secondary buyers, but you might not want to pay the cost if you’re going to get a new vehicle in the near future.

Know the fine print

This point is key. You can pay for a comprehensive plan, but if you don’t know what is and isn’t covered, you could be unpleasantly surprised at the repair shop. No salesperson will read every exclusion to you over the phone, so it’s your job to get a sample contract and read all the fine print.

You can also do this within the first 30 days and still get a refund from reputable companies.

How do you choose a reliable warranty company?

When looking for a reliable warranty company, first figure out if the company is a broker or direct provider. If it’s a broker, look into who administers the contracts. If you can’t find that out easily, it’s a red flag.

Working with a direct provider such as Endurance means you talk to the same customer service team whether you have a question about your policy or file a claim. It can also make claims go a bit smoother. That said, as long as a warranty broker uses a good administrator, then the claims process should be smooth.

Consider ratings from industry review sites like the Better Business Bureau, Trustpilot and Google Reviews. Reliable companies work to resolve complaints quickly.

Also consider any specialty coverage you want for your car. If you drive a BMW and want to use your dealership for repairs, make sure the warranty company covers that.

Lastly, look at the extra benefits a company offers. Most reputable providers offer roadside assistance, rental car reimbursement and trip interruption reimbursement. Some might only provide towing or leave out trip interruption, for example. On rare occasions, providers might have routine maintenance coverage add-ons as well.

Who has the cheapest extended car warranty?

Our quote data shows Concord Auto Protect has the cheapest extended car warranty plans. Our team received quotes of $1,725–$1,805 in total for 3-year/50,000-mile plans and $2,165–$2,195 for 5 year/100,000-mile plans. These were all exclusionary plans and monthly payments ranged from $70–$75.

It’s important to remember, however, that your quote will be different because it’s for your vehicle and coverage choices.

Final take: An extended auto warranty can be worth it if you know what’s covered

Extended car warranty cost is just one aspect of deciding if a plan is worth it. While cheap rates are nice, review the company and sample contracts thoroughly so you know what’s covered. Then compare free quotes from the best extended car warranty companies to find the right option.