Top 7 Best Extended Car Warranty Companies of 2024

• Comprehensive coverage plans: Endurance offers a variety of MBI plans to choose from, so you can find one that fits your needs and budget. The plans range from basic coverage to comprehensive plans that include routine maintenance services like oil changes and brake pads.
• Direct provider: Endurance is a direct provider, which means you’ll deal directly with the company when you purchase your MBI plan and file a claim. This can help streamline the process and make it easier to get your car repaired.
• Positive customer reviews: Endurance has a positive reputation among customers. The company has a 4.5-star rating on Trustpilot, and many customers praise the company’s comprehensive coverage, responsive customer service, and easy claims process.

Other honorable extended car warranty companies in California:

• CarShield
• Toco Warranty
• Olive
• CARCHEX

These companies also offer a variety of MBI plans to choose from, and they have an excellent reputation among customers. However, Endurance is our top pick for CA because of its comprehensive coverage plans, direct provider status, and positive customer reviews.

Best Extended Warranty for Luxury Cars (Audi/BMW)

After your new car factory warranty ends, don’t let unexpected Audi or BMW repair bills blindside you. These top extended car warranty providers offer luxury-worthy protection:

• Endurance: Top-rated for extensive coverage options, including high-mileage plans and tech-heavy packages perfect for modern Audis and BMWs.
• CarShield: Affordable monthly payments and a focus on powertrain coverage, ideal for budget-conscious luxury car owners looking for peace of mind.

What are Factory Auto Warranties?

All new cars come with warranties that protect owners against manufacturing defects and premature failures. The length and scope of each warranty differ between automakers, as some offer coverage that extends to ten years and 100,000 miles.

Auto warranties are usually split into coverage for powertrain components and separate coverage for other parts and systems.

New vehicles also typically come with corrosion coverage that protects against perforating rust, and some automakers combine the powertrain and standard vehicle coverage into one warranty.

Electric vehicles, hybrids, plug-in hybrids, and others come with separate battery and drivetrain coverage for their electrified components.

They are required to come with at least eight years and 100,000 miles of coverage, and California requires ten years.

Are Extended Auto Warranties Worth It?

As cars age, repairs are needed.

Do you drive a Ford F-150?

• A headlamp switch replacement could cost $220.
• Window regulator replacements cost over $400.
• Suspension ball joint replacements cost $250.
• A few small car repairs throughout the year can cost you $1200 or more.  

Meanwhile, if you already had an extended car warranty, these few repairs could have cost you only $600, including the monthly payments over 12 months.

Do you drive a used Honda?

• Suspension shock replacements cost $800.
• Windshield wiper motor replacements cost $250. 
• Exhaust manifold replacement repairs cost $1350.
• Airbag occupant sensor replacements cost $850.
• A few costly repairs in any given year could cost you $ 1,500 to $2,000!

If you had a vehicle protection plan, you could have saved hundreds of dollars!

Common repairs on used cars can be costly.

• Transmissions alone can cost $5,000.
• Radiators cost over $1,000.
• Heater cores cost around $1200 on average.
• Brake calipers can cost $700.

With an extended car warranty, these same items can be covered while only having to pay an affordable monthly payment.

Overall, whether or not an extended car warranty is worth it depends on a number of factors, including the age and condition of your vehicle, your driving habits, and your budget. However, an extended car warranty can provide peace of mind if you are concerned about the high cost of unexpected repairs.

Here are some additional things to consider when deciding whether or not to purchase an extended car warranty:

• • Read the fine print carefully. Make sure you understand what is and is not covered by the warranty.
  • Compare plans from multiple companies. This will help you find the best price and coverage for your needs.
  • Check the company’s reputation. Read customer reviews and see what others say about the company’s coverage and customer service.
  • Ask about the deductible. The deductible is the amount you must pay out of pocket before your warranty coverage kicks in.
  • Make sure you can cancel the warranty. Some companies make it difficult to cancel their warranties. Ensure you can cancel without penalty if you are unhappy with the service.

How Do Extended Auto Warranties Work?

As the name implies, extended auto warranties bring longer coverage than factory warranties, which can sometimes reach deep into the six-figure mileage ranges. Unlike factory warranties, extended warranties cost money, though many companies offer flexible payment options or the ability to break up enormous costs over long periods.

Though they’re advertised as covering the same types of components as a factory warranty, extended warranties sometimes have restrictive policies and exclusions that can lead to claims denials. At the same time, most extended warranty companies offer tiers of coverage that range from basic powertrain warranties to more comprehensive options that include vehicle technology features, climate controls, and cosmetic components.

It’s also worth noting that extended warranties are not always known as the most generous with coverage, and many complaints about the industry stem from customers’ inability to have their claims paid. That said, paying for an auto warranty is generally less expensive than paying large sums for engine replacements and other costly repairs.

Where to Buy Extended Auto Warranties

Extended auto warranties can be purchased almost any time, and some dealers work with third-party companies to sell coverage when selling a new or used vehicle. That said, it’s not always the best idea to purchase a warranty at the point of the vehicle sale, as the dealer has you as a captive audience.

That could cause you to pay more than necessary for the warranty, and it’s almost always a good idea to shop around. The most prominent warranty companies in the industry have websites with detailed information on the types of coverage they offer, what is included, and how to sign up. Though making phone calls and filling out forms on the internet are not the most entertaining afternoon activities, the extra time spent shopping can save you loads of money.

It’s also essential to research the type of warranty company you want to work with. You’ll want to buy the company and its reputation as much as you do the coverage itself, meaning you need to trust the company you work with and should have a clear understanding of what you’re getting for the money. Additionally, don’t fall victim to aggressive sales tactics that could leave you feeling like you don’t have an option.

Even if your car is on its last legs, buying an extended warranty you don’t necessarily want or need is not a good deal for anyone but the warranty company.

First, extended car warranties go by various names, often depending on the state in which they are being sold. For example, in California, Endurance markets extended car warranties under the name Mechanical Breakdown Insurance. In Florida, Olive markets them as Vehicle Service Contracts.

Car warranties go by many different names, including:

• Vehicle service contract
• Extended auto warranty
• Aftermarket warranty
• Extended protection plan
• Vehicle protection plan
• Mechanical breakdown insurance
• Vehicle service agreement
• Powertrain warranty
• Bumper-to-bumper warranty
• Exclusionary warranty
• Stated-component warranty

Types of Extended Auto Warranties

Extended auto warranties typically fall into one of a few categories. Exclusionary coverage is the most comprehensive available, and the name comes from the policies’ list of covered items, which generally includes non-covered components since there are so few.

These policies come closest to automakers’ factory warranty coverage and generally include protection for several vehicle components and systems, including electronics, climate control, and safety equipment.

Most extended warranty providers also provide “enhanced” or “supreme” coverage as a middle tier. These plans typically cover the powertrain and added components that include the fuel delivery system, cooling system, and more.

While not comprehensive, these middle-tier plans can offer better coverage for expensive components above and beyond simple powertrain coverage.

At the low end, extended warranty providers offer basic powertrain warranty coverage that may also include a turbo or supercharger (if equipped) and other components. Many companies also include auxiliary benefits with their coverage, including 247 roadside assistance, rental car reimbursement, and additional bonuses.

Average Monthly Cost of Extended Car Warranty?

While costs vary wildly between vehicle types, most of the best 3rd party extended auto warranties and extended service plans cost between $2,000 and $6,000, with many costing on the low end of that range and monthly payments landing between $80 and $250.

• CarChex is an excellent value
• Olive also offers fantastic pricing with flexible payment options.

What Do Extended Auto Warranties Not Cover? (exclusions) 

While some extended warranties can be quite comprehensive, all of them have limits on what is included in the coverage. Warranty companies are incredibly particular about coverage exclusions, though some are stingier than others.

In general, extended auto warranties do not cover:

•     Damage caused by normal vehicle operation
•     Components that fail as a result of abuse or neglect
•     Common wear items like tires, brakes, and fluids
•     Components that fail as a result of a non-covered component failure
•     Failures caused by continuing to drive the vehicle after a problem occurs
•     Stolen or vandalized vehicles
•     Modified components
•     Third-party parts not authorized by the OEM
•     Unauthorized or improperly completed repairs

Common wear items are one of the most common exclusions in extended auto warranties. The list includes tires, engine oil, brake pads and rotors, and other components that are designed to wear during everyday use.

Automakers’ factory warranties do not cover these items, so it’s unsurprising to see extended warranties sidestep covering them, but customer complaints continue to pile up. Many people don’t seem to understand the concept of wear components, and the expectation that they’ll be covered under warranty has caused significant drama for vehicle owners who want the items to be replaced for free.

This is not a comprehensive list, and every warranty company differs in how they approach and communicate claims issues. It’s vital that you carefully read your service contract and understand the steps you need to follow to file a claim and have it paid.

Some providers require you to take the vehicle directly to a shop at the first sign of a problem and will communicate directly with the repair person to determine whether the work will be covered under warranty.

Reasons Not to Buy an Extended Auto Warranty

As nice as it is to have the peace of mind from an extended auto warranty, you don’t always need the coverage.

This is especially true if your vehicle is still under the factory warranty and is new enough to retain that coverage for at least a few years.

Paying the money for an extended warranty while the factory coverage is still active can waste money, as there’s no real benefit or reason to do so.

You may also want to avoid buying a warranty if you’re the type of vehicle owner that likes to frequently switch cars, as you’re less likely to experience a catastrophic breakdown if the vehicle isn’t in your possession that long.