How To Shop for an Extended Car Warranty
Updated March 27, 2024 at 5:30 pm
When you purchase a car, the warranty you receive from either the manufacturer or the dealer only lasts for so long. This might leave you wondering: Once your warranty expires, how can your vehicle remain protected?
If you’re asking this question and are looking for long-term coverage, you may benefit from an extended vehicle warranty.
Extended car warranties can be worth the investment if you anticipate costly repairs, and want to ensure you don’t have to pay for them out of your own pocket. They are also especially helpful if an emergency fix-it need comes up.
Before you make a warranty purchase, however, our experts want to reiterate how important it is to shop around and get several quotes—ensuring that you get the most possible value for your initial investment.
Below, we’ve outlined how to shop for an extended car warranty, what to look for to ensure proper coverage. We also offer insight about the best places to buy an extended vehicle warranty online.
Our Methodology Our research is designed to provide you with a comprehensive understanding of personal finance services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility, and credibility.
Vault’s Viewpoint
- Extended car warranties are a competitive way to reduce the risk of overpayment for fixes—especially if your car has high mileage and you anticipate your potential car repairs will be expensive.
- Third-party car warranty companies offer the most comprehensive coverage compared to manufacturer-level warranties.
- Before you buy, be sure to conduct plenty of research into your third-party company of choice to ensure that they’re reputable.
What Are The Advantages and Disadvantages Of an Extended Car Warranty?
Purchasing an extended car warranty is an optional part of car ownership—however, it’s an important added cost to factor in.
The main benefit of an extended vehicle warranty is the added protection you receive in case of mechanical breakdowns or necessary repairs. However, it does come with an upfront cost, which, depending on the life of your vehicle, may or may not be worth it to you.
Let’s break down the pros and cons of buying an extended car warranty.
Pros
- Long-Term Protection: If you want to extend the life of your car, it’s best to keep your vehicle covered in the case of mechanical or electrical issues. An extended car warranty ensures you can keep your car in working shape without being burdened by expensive repairs.
- Resale Value: An extended warranty can also increase a vehicle’s resale value. It offers potential buyers the assurance that the car is covered against unforeseen mechanical issues.
- Perks: Extended car warranties often come with additional benefits, such as roadside assistance and rental car reimbursement. These small perks can make owning a car a more convenient and stress-free experience overall.
Cons
- Cost: There’s no way around it—an extended car warranty is an added cost to car ownership. The costs can vary depending on the vehicle’s make, model and status; so our experts recommend getting plenty of quotes early on to get an idea of how much you’ll have to spend.
- Limited coverage: Again, your coverage depends on factors like your vehicle’s age and mileage. Your warranty may not cover certain repairs if your car is older or has pre-existing conditions. If your warranty offers limited coverage, it’s important to remember that this means you’ll end up paying out-of-pocket on top of your warranty payment—which likely won’t be worth it for you.
- Unused coverage: If you don’t need any major repairs during the warranty period, you may feel like you wasted money on the extended warranty. This can be especially true if the cost of the warranty was significant.
Where to Buy Extended Car Warranties
Once you know what type of coverage you’re looking for and how much you’re prepared to spend, the next step is to weigh your options from different sources. Here are three places you can buy extended car warranties.
Manufacturers
If you bought your car directly from a manufacturer, there’s a good chance it came with a warranty. However, that warranty only lasts for a certain time period. You might consider calling your manufacturer to assess your options, or to ask about any coverage that might have been secured at the time of your vehicle purchase.
Car Warranty Companies
Outside of manufacturer warranties, there are also plenty of third-party companies that specialize in extended car warranties.
The benefit of using a third-party company instead of going directly to the manufacturer is that providers are typically easy to work with and more accessible. In most cases, you can simply visit their website and fill out an online quote to get started in minutes.
Another benefit of using a third-party company is that the coverage is more comprehensive than options you’ll find with competitors. It can sometimes be more affordable, depending on the type of coverage you’re in the market for.
If you want to go this route, here are a few expert-recommended top extended car warranty providers:
- Endurance: Endurance offers three plans with a range of coverage options for cars up to 20 years old. You can opt for protection for the essentials of your vehicle (like the engine and transmission) or you can choose a premium plan that covers additional features—like electrical parts and the fuel system.
- CarShield: Known for its star-studded TV commercials, CarShield is a popular car warranty company with plans designed for a range of scenarios. Whether your manufacturer warranty has expired or you’re looking to protect an older car, CarShield offers flexible and accessible payment plans to ensure you’re covered.
- Carchex: Carchex is another reliable car warranty company worth considering. With an A+ rating from the Better Business Bureau, the company is reputable and trusted by many drivers.
Dealerships
Even if you purchase a car from a dealership, you can purchase an extended car warranty as an add-on. The process might just look a bit different between new and used car purchases.
If you’re purchasing a new car, you can request the coverage during your finance meeting and contract signature process. If you’re purchasing a used car, you can simply ask your dealer if the manufacturer’s warranty still covers the vehicle, as some warranties are transferable. If the warranty has already expired, you can see if it’s an add-on option available to purchase.
How To Shop for an Extended Car Warranty
Like buying car insurance, selecting an extended car warranty involves extensive research and getting plenty of quotes before deciding. When you’re looking for an extended car warranty, our experts recommend keeping the following factors in mind.
Costs
The costs of an extended warranty can vary widely depending on your vehicle life and the type of coverage you’re seeking. Some factors that affect your extended car warranty cost include:
- Vehicle age
- Vehicle make and model
- Mileage
- Current coverage
- Deductible details
- Provider
Coverage
Next, we recommend taking a look at the different coverage options offered. If you’re shopping for an extended car warranty, it’s likely that your car is already used or has hit a certain age or mileage already. Some warranties might also offer limited coverage depending on your vehicle’s status.
Additionally, our experts want to note that most standard auto warranties offer either bumper-to-bumper or powertrain-level coverage. Bumper-to-bumper covers nearly everything, from front to back (as the name implies). As such, it may be more expensive. This type of warranty is typically best for cars under 10 years old or under 100,000 miles.
A powertrain warranty covers the major—and more expensive to repair—parts, including the engine, transmission and axle. This type of warranty is generally best if your car has over 100,000 miles on it and is more likely to experience issues with these parts.
Customer reviews
Whenever you do any sort of online shopping, it’s always helpful to read customer reviews. The same goes for shopping for your extended car warranty, especially if you’re considering purchasing from a third-party warranty company.
Our experts recommend that you read customer reviews to learn about people’s experiences with the company and their customer service. These are often valuable (and overlooked) tools that can help you to get an idea of whether the company is credible and what your experience will be like.
Frequently Asked Questions
Is It Worth Getting an Extended Car Warranty?
While getting an extended car warranty is not required, it can give you peace of mind knowing your vehicle is protected long-term. If you anticipate car repairs or want to be covered in case of a mechanical breakdown, an extended car warranty may be worth the investment.
Where Is The Best Place to Get an Extended Warranty?
The best place to get an extended car warranty is from a third-party company. These companies offer comprehensive coverage and flexible payment plans for cars up to 20 years old. A few reputable companies include CarShield, Endurance and Carchex. You can also get an extended warranty from your vehicle’s manufacturer or a car dealership.
Can I Purchase an Extended Warranty Later?
Yes, you can purchase an extended car warranty at any point after purchasing a car. However, it’s important to keep in mind that the more mileage you rack up and the older your car gets, the more limited your coverage may be—or the more you may have to pay upfront costs.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
