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What Is An Extended Car Warranty?

"in Plain English” 

An extended car warranty is a vehicle service contract offered for an extra cost by a car dealership, a car manufacturer, or an independent brokerAuto warranties help you pay to replace or repair certain parts of your vehicle and usually lasts for a specific period or once your car has been driven a certain number of miles.

How Do Car Warranties Work?

The way a car warranty works is that the car owner submits a claim to the car warranty company. If approved by the company, they will pay for all or part of everything that needs to be fixed on your vehicle. If not approved, then it's up to you to find someone else with an extended warranty plan who will take care of it.

Can You Buy A Used Car Warranty?

Yes, you can buy an extended warranty on a used car.  As long as you have your vehicle inspected and it's deemed to be in good condition, you may be offered the opportunity to buy an extended service contract. This covers certain expenses and repairs that would otherwise fall on the owner.

What Would Void A Car Warranty?

Taking your car to a third-party repair shop or using aftermarket parts will not void your warranty; however, a few things will like: 

  • Changing the engine or transmission without authorization
  • Taking your car to an unauthorized mechanic.
  • Driving it for commercial purposes, such as Uber or Lyft.
  • Modifying your car's appearance with accessories that affect its performance. 
  • Poor Car Maintenance 

While you probably won't ever run into any of these issues, it's essential to know the difference between what your extended warranty covers and what it doesn't so you can decide if this is a good investment.


Car Warranties made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But, we are here if you need us. 

Unbiased, expert advice.

Get unbiased warranty education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get auto warranty coverage within minutes of getting your quotes and applying.

Types Of Extended Car Warranties

There are two primary types of extended car warranties: standard extended car warranties and powertrain extended car warranties. However, there are several different car warranty options available that we discuss below: 

What Is A Bumper To Bumper Warranty?

Bumper-to-bumper coverage is a warranty purchased from the car manufacturer and is not a form of car insurance. Bumper-to-bumper coverage usually pays for mechanical failings or equipment flaws, defects with certain car parts, and labor costs.

A car manufacturer's bumper-to-bumper warranty only covers the vehicle's mechanical parts. It does not cover any accidents or issues with glass, tires, air conditioning systems, brakes, and other potential problems that may arise over time.

The extended auto warranty rates will be much more expensive than regular vehicle insurance.

What Is A Powertrain Warranty?

A powertrain warranty guarantees the significant components that make your car operate, such as the engine, drivetrain, air conditioning system, electrical system, and many of your vehicle's mechanical components. Powertrain warranties often include conditions about mileage and car age as well.

What Is A Corrosion Warranty?

Corrosion warranties cover the corrosion or rust that can occur on the surface of your vehicle after an accident or due to natural exposure. Corrosion is a massive issue in the car industry and can cause your vehicle's paint to peel off, which means it will be more expensive for you to repaint.

What is A Drivetrain Warranty?

A drivetrain extended warranty will cover your transmission, axles, wheels, and driveshaft but doesn't cover the engine. Drivetrain warranties are much less common than engine or powertrain extended car warranties. 

Drivetrains often include more complicated components, which makes them difficult to repair in the event of an issue that arises. This also means they're usually covered for a shorter amount of time as well. 

What Is Stated or Named component coverage? 

A Stated Component warranty will cover all components listed explicitly in the contract, such as transmissions or brakes. The downside to this is that if other parts are damaged during a repair, they won't be covered by your warranty.

What Does A Car Warranty Cover?

You can purchase an extended car warranty to cover various automotive systems, including air conditioning, brakes, fuel systems, and more. A car warranty will cover many of the mechanical components on a vehicle, but not all of them, so it's crucial that you read over your warranty.

A car warranty will typically cover the following systems: 

  • Brakes (front and back) 
  • Fuel system components, such as Fuel filter(s) or fuel pump(s)
  • Air conditioning refrigerant compressor/condenser
  • Exhaust gas recirculation valve assembly

An extended auto warranty can also be purchased to provide coverage for a vehicle's engine oil seal leaks, limited-time powertrain protection plans, or even new car replacement. 

Benefits Of An Extended Auto Warranty

The benefits of an extended car warranty are that it can protect you from unexpected repair costs and offer coverage that your factory warranty may not have.

You might not think you need an extended car warranty, but when your factory warranty expires, you'll be left paying for expensive repairs on one of your most high-value possessions.

The extended car warranty can provide you with a low monthly payment and help protect your investment for years to come. Another benefit of the extended vehicle warranty is that it allows for coverage even if you have an older or high-mileage car. 

How Much Does An Extended Car Warranty Cost?

According to Endurance, the average extended car warranty cost ranges from $350 - $700 per year or $30 - $60 per month for a used car. This coverage isn't super expensive, but when your vehicle needs repairs, and you don't have coverage, the mechanic will require payment in full, and to make matters worse, they will also charge you for their labor costs! 

Extended Warranty Comparison Quotes

Below is a comparison list of the best car warranty companies according to their reputation, customer service ratings, and the warranty coverage they offer.

  • Endurance - $350-$700 per year (or $30-$60 per month)
  • Allianz - $400-$650 per year or $33.00-$58.00 per month for a used car 
  • National Auto Protection - $450-$925 per year for used cars


Car Warranties made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But, we are here if you need us. 

Unbiased, expert advice.

Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get auto warranty coverage within minutes of getting your quotes and applying.

What Is The Best Extended Car Warranty Company?

The best extended car warranty company is Endurance because they offer six levels of coverage and have excellent customer reviews for its coverage and customer service. Endurance also has some of the most affordable rates in the industry. 

Who Are The Most Reputable Extended Car Warranty Companies?

According to The Balance, the most reputable extended car warranty companies are Endurance, CARCHEX, and autopom!. These companies have excellent customer reviews and offer a variety of comprehensive car warranty packages.

  • Endurance - Six levels of coverage, excellent customer reviews for the level of coverage and their customer service
  • CARCHEX - 30-day money back guarantee if not satisfied with purchase; also offers great deals on new cars that come bundled with an extended vehicle protection package!
  • autopom! - Free lifetime membership for one year when you sign up today as well as bargain rates from $399-$599 per year depending on your credit score and length of contract

Is An Extended Car Warranty Worth It On A New Or Used Car?

No matter the type of coverage, extended warranties are an investment in peace of mind. And while these benefits are undoubtedly worth it for some people, there are a few things to watch out for.

A survey conducted by Consumer Reports found that nearly half (48%) of participants paid more into their policy than they received in benefits when signing up for coverage on a new vehicle.

Purchasing warranty protection is not only beneficial in case something goes wrong with your current car.

It could also come in handy if you're looking at purchasing from someone who has already taken advantage of their warranty period and would like some extra assurance about what they're selling.

How To Buy An Extended Car Warranty Online

Buying an extended car warranty online has never been easier; regardless of whether you are getting a warranty on a used car or adding more time to an expiring manufacturer's warranty on your current car. 

There are only a few simple steps you need to get an extended warranty:

How To Get An Extended Warranty On A Used Car?

  • Gather Your Personal Info - You will want to have information about yourself and your car "on-hand" so that you can get the most accurate quote.  Things like your drivers license number, the make, model, year, and vin number of the car, how you plan to use the car (personal or business) and even the color of the car.
  • Get An Instant Quote - Once you have the information on your car together it's time to get a fast quote.  Most companies will show you a "Good, Better, Best" layout with the ability to customize your policy.
  • Choose Your Policy Options - After reviewing the quotes, you should look over the coverage amounts and policy deductibles to make sure you have the options you need for your policy. 
  • Complete An Online Application - Once you have viewed your quotes and picked out your policy options it's time to complete your application.  You can usually do this in one sitting (less than 15 minutes)
  • Pay For Your Policy (You’re Covered) - Upon submitting your application your next step will be to pay for your policy so that it goes "in-force," and then You're covered!  


Car Warranties made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But, we are here if you need us. 

Unbiased, expert advice.

Get unbiased warranty education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get auto warranty coverage within minutes of getting your quotes and applying.

Frequently Asked Questions

What is a fair price for an extended car warranty?

A fair price for an extended car warranty varies by company but typically ranges from $75-$250 per year. It also will depend on what types of services they provide like roadside assistance or theft protection.

Can you negotiate the price of an extended car warranty?

Yes, you can negotiate extended car warranty prices because the dealerships usually mark up their costs. Some dealers have been known to mark the price up as much as 200%, so it’s best to do your research, get a few quotes, and come prepared to negotiate the best rate for your auto warranty.

What does a 3 month car warranty cover?

A 3 month car warranty covers the major components of the car. Such as the engine, transmission, brakes and suspension. A car warranty also includes the cooling system, fuel tank and exhaust pipe.

What is the minimum warranty on a used car?

The minimum warranty on a used car is typically the same as a new car's warranty, around one year or 12,000 miles. However, you should check with your individual state law for exact specifics.

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