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The Best Extended Warranties

Find protection for your car from trustworthy companies.

Best Overall
Toco Logo

With an A+ rating from the Better Business Bureau (BBB) and 24/7 roadside assistance, Toco is a reliable extended warranty provider for vehicles with up to 250,000 miles.

Best for New Cars
Omega Logo

Omega offers gas delivery, parts and labor, rental car coverage, towing, and other services for any car up to 15 years old.

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You probably already know that most car insurance policies don’t cover electrical or mechanical parts. That’s why it’s a good idea to purchase an extended warranty for a used or new car. But which company is the best warranty provider for your vehicle?

We surveyed the top companies and found the best options for a number of situations. Keep reading to find out which extended warranty you should consider purchasing for your car.

The Best Extended Warranties

  1. 1.

    Best Extended Warranty Overall: Toco

  2. 2.

    Best Extended Warranty for New Cars: Omega

  3. 3.

    Best Extended Warranty for Used Cars: Concord

  4. 4.

    Best Extended Warranty Coverage for High Mileage: Protect My Car

  5. 5.

    Best Extended Warranty for RVs: autopom!

Comparison of the Best Extended Warranties of 2024

Company Best for Minimum monthly cost 24/7 roadside assistance BBB rating BBB customer review score (out of 5) Trustpilot rating (out of 5)
Toco Overall $416 Yes A+ 4.23 4.8
Omega New $430 Yes B 4.34 3.8
Concord Used $385 Yes A+ 4.51 4.3
Protect My Car High mileage $374 Yes, with Elite plan only A+ 4.15 4.5
autopom! RVs $213 Yes A+ 4.56 4.7

Detailed List of the Best Extended Warranties of 2024

1. Best Extended Warranty Overall - Toco
Toco Logo

What We Like Most:

  • BBB rating of A+
  • Trip interruption protection with no deductible
  • Towing available for up to 15 miles away

As far as ratings from the Better Business Bureau and Trustpilot go, Toco is well-regarded, with a 4.23 BBB customer rating and 4.8 out of five stars on Trustpilot. That’s indicative of customer satisfaction with the extended warranty provider’s four levels of coverage, which include 24/7 roadside assistance, towing, and trip interruption protection.

ProsWho It's Best For
  • pro
    Someone who wants an extended warranty with no time limit
  • pro
    Anyone who wants 24/7 roadside assistance
  • pro
    Someone with a vehicle that doesn't have pre-existing conditions
  • pro
    Someone who wants trip interruption protection
ConsWho It's Not Best For
  • con
    Someone who lives in Alaska, Washington, or Missouri
  • con
    An owner of a car with pre-existing conditions
  • con
    A driver who wants mechanical breakdown coverage
  • con
    A person who wants to manage their extended warranty through a mobile app

Choose Your Coverage

You can choose from four levels of coverage from Toco, and they all include the basics like roadside assistance, trip interruption coverage if your car breaks down far away from home, and engine coverage.

Coverage Level 1 2 3 4
24/7 roadside assistance Yes Yes Yes Yes
4×4 transfer case Yes Yes Yes Yes
A/C Yes Yes Yes No
Brakes Yes Yes No No
Cooling system Yes Yes Yes No
Drive axle Yes Yes Yes Yes
Electrical Yes Yes Yes No
Electronic high tech Yes Yes No No
Engine Yes Yes Yes Yes
Fuel system Yes Yes Yes No
Hotel/motel discounts Yes Yes Yes Yes
Hybrid vehicle option Yes Yes Yes Yes
Modern features package Yes Yes No No
Rental car benefit Yes Yes Yes Yes
Steering Yes Yes No No
Suspension Yes Yes No No
Technology package Yes Yes No No
Transmission Yes Yes Yes Yes
Trip interruption coverage Yes Yes Yes Yes
Turbo/supercharger Yes Yes Yes Yes
Seals and gaskets No Yes, if required in conjunction with a covered repair; does not include leaks Yes, if required in conjunction with a covered repair; does not include leaks No
Not covered Limits of liability Limits of liability Limits of liability Limits of liability

Here’s a little bit more information about some of the services offered by Toco.

24/7 Roadside Assistance

Need a jumpstart, tire change, locksmith, fuel delivery, or tow of up to 15 miles? Toco will cover it, even if you had to use a different roadside assistance provider to solve your problem. We recommend coverage for roadside assistance whenever you have a car, especially if you’re the parent of a teen driver or are new behind the wheel.


You’ll have to pay for the cost of fuel if you get it delivered.

Rental Car Coverage

Much like rental car coverage from car insurance, Toco’s service will cover $40 for every four labor hours your car is in the shop under a covered claim for up to $200 per repair visit. The best part? You won’t have to pay a deductible, so you can get a rental car or public transportation covered immediately while your vehicle is unavailable.

Trip Interruption Protection

Events don’t always turn out how we planned them. If you’re more than 100 miles away from home and your car breaks down, Toco will give you up to $100 a day for three days maximum to cover hotels and restaurants, as long as the breakdown itself is covered. Like with rental car coverage, this service doesn’t include a deductible.

2. Best Extended Warranty for New Cars - Omega
Omega Logo

What We Like Most:

  • A+ rating from the Better Business Bureau
  • Company pays repair shops directly except in cases of emergency
  • Coverage for parts and labor

Established in 1994, Omega is a trustworthy extended warranty vendor with an A+ rating from the BBB and a 4.34 rating from customers. With nine years of accreditation, you can trust this company to fill in your new car insurance gaps.

ProsWho It's Best For
  • pro
    Someone with a new car or any car under 15 model years old
  • pro
    Anyone with a car that has less than 250,000 miles on it
  • pro
    Someone who wants coverage for parts and labor
  • pro
    Anyone who wants their warranty company to pay for repairs directly
ConsWho It's Not Best For
  • con
    Someone who wants to shop the market with a broker rather than a vendor
  • con
    Anyone with a vehicle 16 model years or older
  • con
    Anyone with a vehicle with more than 250,000 miles on it
  • con
    A driver looking for the absolute cheapest extended warranty

Plans With Varying Coverages

Omega offers coverage for car models of up to 15 model years old and 250,000 miles. For new cars, you’ll probably want to go with the Exclusionary Plan, which has the most coverage. Here are all the plans you can choose from:

Category Exclusionary Plan Used Stated Plan Powertrain Enhanced Plan Powertrain Plus Plan Powertrain Plan
Maximum model years of car 7 10 15 15 15
Maximum odometer mileage 100,000 150,000 250,000 250,000 250,000
All internally lubricated parts Yes Yes Yes Yes Yes
Belt tensioners Yes Yes Yes Yes Yes
Cam gear bolt Yes Yes No No No
Cylinder block Yes Yes Yes Yes Yes
Cylinder heads Yes Yes Yes Yes Yes
Engine mounts Yes Yes No No No
Exhaust manifold Yes No, only on m2m No No No
Harmonic balancer Yes Yes Yes Yes Yes
Harmonic balancer bolt Yes Yes No No No
Harmonic balancer pulley Yes No No No No
Head bolts Yes Yes No No No
Intake manifold Yes Yes No No No
Oil pan Yes Yes No No No
Seals and gaskets Yes Yes No No No
Timing cover Yes Yes No No No
Timing gear, chain, and belt Yes Yes Yes Yes Yes
Valve covers Yes Yes No No No
Water pump Yes Yes Yes Yes Yes

Pays Repair Shops Directly

Often auto insurance claims require you to pay for the repairs out of pocket, submit a claim to your insurer, and wait for the insurance company to reimburse you, assuming it even approves your claim. But with an extended warranty from Omega, the company will pay the repair shop directly (unless the repair was an emergency, in which case you’d be reimbursed). Just one quick phone call can start the claims process, and the company’s BBB customer rating of 4.34 reflects the easy claims and repair process.

Maintenance Available

With an Omega service agreement, you’ll benefit from the company’s Maintenance Program, which includes the following.

  • Batteries: If your battery fails, this program will contribute $100 to a new one once per agreement.
  • Brake pads and shoes: Omega will cover $100 to $130 of brake pad maintenance on certain cars like SUVs, diesels, and all BMWs, Volvos, Lexuses, and other manufacturers. However, you may have to pay for labor.
  • Cooling system: Omega will pay up to $40 to have your cooling system drained, filled, inspected, and lubed.
  • Oil changes: You can get a maximum of three oil changes of up to five quarts each for $40 per service, a discount of $55.
  • Safety inspection: The company will pay for one safety inspection with a replacement of wiper blades up to 20 inches long.
3. Best Extended Warranty for Used Cars - Concord
Concord Logo

What We Like Most:

  • Covers steering, suspension, towing, transmission, etc.
  • Roadside assistance available 24/7
  • Can take your car to any licensed repair shop or dealer

Buying an extended warranty for a used car makes sense if the vehicle is reliable and the cost of the policy isn’t too high. Given that the average monthly cost of an extended warranty is around $331, Concord’s $385 minimum isn’t far off. Let’s see what it can offer for your used car.

ProsWho It's Best For
  • pro
    Someone who wants comprehensive coverage for all parts of their car
  • pro
    Anyone who wants to save money and low average costs
  • pro
    Someone who appreciates a 30-day money-back guarantee
ConsWho It's Not Best For
  • con
    Someone who wants a mobile app
  • con
    Anyone looking for a BBB rating of A or higher

Three Coverage Plans

No matter which plan you choose, Concord will cover 24/7 roadside assistance, brakes, cooling, electrical, locksmiths, fuel delivery, rental cars, towing, trip interruption, and more. Pay for a higher-priced plan and you’ll get coverage for air conditioning, anti-lock brakes, and other vehicle parts.

Coverage Powertrain Plan Advanced Plan Premium Plan
24-hour roadside assistance Yes Yes Yes
A/C No No Yes
Anti-lock brakes (ABS) No No Yes
AWD/4X4 No Yes Yes
Brakes Yes Yes Yes
Cooling Yes Yes Yes
Dead battery Yes Yes Yes
Drive axle Yes Yes Yes
Electrical Yes Yes Yes
Engine Yes Yes Yes
Front suspension No No Yes
Fuel system No No Yes
Heating No No Yes
Hi-tech electronics No No Yes
Locksmith Yes Yes Yes
Out of gas Yes Yes Yes
Parts and labor Yes Yes Yes
Rear suspension No No Yes
Rental car Yes Yes Yes
Steering, manual or power No Yes Yes
Towing Yes Yes Yes
Transmission Yes Yes Yes
Trip interruption Yes Yes Yes
Turbo/supercharger No No Yes

Low Average Cost

Expect to spend a minimum of $385 a month on an extended warranty with Concord, a total of about $5,838 a year. While these numbers may seem high, keep in mind that the average annual cost is $5,195, so Concord is just above the norm. Plus, when you consider the potential average costs of repairing your used vehicle out of pocket, Concord’s pricing makes more sense.

  • ABS: $1,329
  • Suspension: $936
  • Engine: $4,563
  • Transmission: $4,265
  • Air conditioning: $1,747

Furthermore, the company has a 30-day money-back guarantee, so if you’re not satisfied with the service, you’ll be able to cancel and get your money refunded.

Roadside Assistance

24/7 roadside assistance is built into every Concord plan, which is especially important for someone driving a used car. Call for help any day of the year, any hour of the day, and Concord can tow your vehicle, pay for a rental car, and send you to a certified mechanic or car dealer.

And because Concord is a vendor and not a broker, you’ll only have to deal with Concord and not any third-party roadside assistance companies or extended warranty providers. It’s no wonder Concord has a 4.51 customer rating from the BBB and a 4.3 rating from Trustpilot.

4. Best Extended Warranty Coverage for High Mileage - Protect My Car
Protect My Car Logo

What We Like Most:

  • 24/7 roadside assistance available with Elite plan
  • No pre-inspection required
  • Network partners include Take5, Jiffy Lube, Pep Boys, Enterprise, etc.

Do you drive a used car that keeps on trucking? If so, you can protect it with an extended warranty from Protect My Car, which offers coverage for cars with mileages up to 299,999. As long as the vehicle doesn’t have a powertrain or powertrain component, Protect My Car is a great option for used cars with high mileage.

ProsWho It's Best For
  • pro
    Someone with a mileage of up to 299,999
  • pro
    Anyone looking for relatively low monthly costs
  • pro
    Students and members of the military who want discounts
  • pro
    A person who wants discounts at hotels, stores, restaurants, and more
ConsWho It's Not Best For
  • con
    Someone who lives in Hawaii, Alaska, Oklahoma, Washington, and Mississippi
  • con
    A driver with a vehicle that has powertrain or powertrain components
  • con
    A person who wants a mobile app

Plans for High-Mileage Vehicles

Because Protect My Car’s mileage limits range from 75,000 to 299,999, there are plans to fit most used or new vehicles. Keep in mind that for the higher mileage plans, your deductible isn’t a fixed amount and instead will be half of your repair costs. Additionally, only the Ambassador Elite Plan includes roadside assistance, so we recommend that option for your high-mileage vehicle.

Category Supreme Plan Select Plan Driveline Plan Ambassador Elite Plan Ambassador Pro Plan
Age of vehicle Newer Newer Newer Older Older
Maximum mileage 75,000 89,999 200,000 299,999 299,999
Percentage of covered repairs paid for 100% 100% 100% 100% 100%
Deductible $100 $100 $200 50% of repair costs 50% of repair costs
Roadside assistance No No No Yes No
Free oil changes and tire rotations Yes Yes Yes No Yes

High Average Savings

In 2022, the average total cost of owning and operating a car in the U.S. over the course of a year, assuming you drove 15,000 miles, was $10,729.1 If you need repairs, which is more likely with a high-mileage vehicle, that cost could balloon even higher. Fortunately, with Protect My Car, you can expect average savings of $300 to $6,000 on repairs.

Car part Average savings
A/C and heating $1,000-$2,000
Brakes $300-$700
Cooling system $700-$1,000
Drive axle/differential $1,000-$2,000
Electrical $800-$1,500
Engine $4,000-$6,000
Front and rear suspension $300-$700
Fuel system $700-$1,000
Hi-tech electrical $500-$1,000
Steering $1,000-$1,500
Transmission/transfer case $3,000-$5,000
Turbocharger or supercharger $500-$1,000

Large Repair Network

If your car needs repairs, you can take it to any of Protect My Car’s licensed repair facilities or network partners, which include the following.

  • Enterprise
  • Jiffy Lube
  • Meineke
  • Pep Boys
  • Take5
  • Valvoline

If you bring your car to any of the above partners, Protect My Car will pay for the repairs directly, so you won’t have to pay out of pocket and wait to get reimbursed. If you choose to go to a non-partner, you’ll need to pay them and be reimbursed later, so we recommend going in-network. Depending on your plan, you’ll pay a deductible of either $100, $200, or half of your repair costs.

5. Best Extended Warranty for RVs - autopom!
autopom Logo

What We Like Most:

  • No mileage maximum
  • 24/7 roadside assistance
  • Covers rental cars while your car is being repaired

From 2001 to 2021, RV ownership in the U.S. increased by 62 percent. The latest data indicates more than 11 million households own RVs, and another 9.6 million plan to buy an RV within the next five years.2 Given the added costs that come with RV ownership (more fuel, hitches, camping, storage, and maintenance expenses), you’ll want an extended warranty that takes away the burden if you need any repairs.3 In that case, you should consider autopom! as your extended warranty provider.

ProsWho It's Best For
  • pro
    Someone who wants to shop the market with a broker rather than a vendor
  • pro
    A person with a high-mileage vehicle
  • pro
    Someone who wants coverage for wear and tear
  • pro
    A person who wants a repair network throughout the U.S. and Canada
ConsWho It's Not Best For
  • con
    Someone who drives an exotic or high-performance vehicle
  • con
    Anyone whose vehicle has pre-existing conditions
  • con
    Anyone with a car over 14 model years old
  • con
    A person who wants to manage their extended warranty through a mobile app

Coverage for Every Budget

Although autopom! has three plans to choose from, you’ll most likely want the Exclusionary plan, which ironically offers the most coverage.

Exclusionary Plan Mid-Level Plan Powertrain Plus Plan
Coverage All vehicle parts except exclusions Engine, transmission, drive axle, braking, steering, electrical systems, A/C Essential components in engine, drive axle, A/C, transmission, basic electrical items

The Exclusionary plan covers the following:

  • 24/7 roadside assistance
  • Applicable taxes
  • Damage from overheating, as long as it’s not due to negligence
  • Mechanical breakdowns
  • Parts and labor, based on published list prices and labor and established industry guides
  • Rental car coverage
  • Seals and gaskets on a standalone basis
  • Tire repair and replacement against damage from nails, potholes, and other road hazards
  • Trip interruption protection
  • Wear and tear beyond your “manufacturer’s tolerance” that has resulted in a verified and covered mechanical breakdown

However, the repairs listed below are still excluded.

  • Consumable items: Brake pads, rotors, shocks, struts, belts, hoses, batteries, and light bulbs
  • Maintenance items: Oil changes, filter changes, and so on
  • Other items: Catalytic converters, emissions, mufflers, exhaust, airbags, safety restraint systems, and convertible tops


From 2019 to 2020, catalytic converter theft in the U.S. increased by over 300 percent.4 Car insurance covers theft only if you have comprehensive coverage, which no state requires.

Repairs on the Road

You bought an RV because you wanted to travel more easily. In that case, you’ll appreciate autopom!’s repair network, which spans borders. You can take your RV to get repaired at any authorized repair facility across the U.S. and Canada. Autopom! will pay these facilities directly, and you’ll only pay a deductible on a per-visit basis, even if you need multiple repairs. This makes getting repairs quick and simple when you’re on the road.

Low Monthly Cost

Autopom! has the lowest minimum monthly cost of any provider on our list. You can pay as little as $213 a month for your extended warranty, or about $5,180 per year. Plus, with a 30- or 60-day money-back guarantee, there’s no risk in signing up — and you can trust the company’s A+ rating from the BBB.


When testing out and reviewing extended warranty providers, we paid attention to a handful of key factors.

  • Eligibility: We considered who companies cater to in terms of state, vehicle makes, model years, mileage, and pre-existing conditions.
  • Buying process: We like companies that allow customers to get quotes and buy their coverage both online and over the phone. We also prefer companies that don’t require pre-inspections.
  • Coverage: The more coverage, the better. In particular, we prefer companies that offer 24/7 roadside assistance and rental car coverage while your car is being repaired under a covered claim.
  • Claims process: We like companies with a wide network of repair facilities across the country. We also prefer companies that pay the repair shop directly and offer customers a deductible per visit, not per repair. Ideally, deductibles cost around $100 and are not proportional to the repair cost.
  • Pricing: The average minimum monthly cost of extended warranties is $331, while the average annual cost is $5,195. Obviously, we prioritize companies close to or below these averages, with money-back guarantees and no cancellation fees.
  • Customer service: Companies should have customer service, including claim filing, both online and over the phone.
  • Third-party ratings: We consider third-party ratings from the Better Business Bureau (BBB) and Trustpilot. The BBB rating should be a B or higher, while the BBB customer rating should be four stars or higher. The same goes for the Trustpilot score. Additionally, we prefer companies that are BBB-accredited.
  • Mobile app: Lastly, we consider whether a company has a mobile app and we prefer mobile apps with at least three stars on the Apple and Google Play stores.

What Is an Extended Car Warranty?

Extended car warranties help cover car repair costs after your original manufacturer warranty expires. You can buy an extended warranty from a dealership, manufacturer, or independent warranty company. Many extended warranties come with additional perks, like rental car reimbursement and roadside assistance.

How Does an Extended Car Warranty Work?

Paying for extended car warranties works much like paying for auto insurance. You choose a deductible and pay a monthly premium to keep your warranty active — the higher your deductible, the lower your premiums will be. You can also pay annually or with a one-time lump sum.

Unlike the original equipment manufacturer warranty, an extended warranty is an additional contract that dealers and manufacturers do not include in the original price of your vehicle. Extended warranties either cover the cost of repairs directly with a mechanic or reimburse you for any covered repairs that you get done on your own.

Extended warranties are active for a set period of time, usually between one and seven years.

Pros and Cons



  • Provide coverage that your manufacturer’s warranty often does not cover

  • Customizable to fit your unique needs

  • May increase resale value of vehicle



  • Expensive ($1,500 to $2,000 over one to three years, on average)

  • May overlap with existing coverage or warranty

Types of Extended Car Warranties

Original Equipment Manufacturers (OEMs)

You can buy extended warranties from your original manufacturer, like Toyota, Ford, or Dodge. OEM extended warranties extend the length of coverage and allotted mileage of your existing warranty.

Powertrain Warranty

A powertrain warranty covers your engine, transmission, and drive axles. If any covered components of your car fail due to a material or design defect, your provider will cover some or all of the costs.


Otherwise known as limited warranties, bumper-to-bumper warranties cover most parts and systems of your vehicle, including safety equipment, electrical parts, the braking system, engine, and more.

Aftermarket/Third-Party Warranties


Any warranty that isn’t an original manufacturer warranty is considered an aftermarket or third-party warranty, which could be provided by a dealership or independent warranty company.

Some third-party warranties offer more coverage than OEMs, but they may come with less coverage — it depends on your particular plan and your coverage details. One downside to aftermarket warranties is that they do not guarantee OEM part replacement, and the parts you do have access to are often cheaper quality than the OEM parts.5

Types of Aftermarket Auto Warranties

Aftermarket auto warranties usually come in different tiers that vary in cost and level of coverage. Here’s an example of what the different tiers from a provider might look like:

Warranty plan level Term length in years Mileage maximum Monthly cost Best for What it covers
Bronze 4 50,000 $130 Old, used, or inexpensive cars Essential coverage for major parts and systems
Silver 4 100,000 $135 High mileage vehicles Essential coverage for major parts and systems with add-ons
Gold 5 Unlimited $140 Expensive, low mileage vehicles Covers most major systems and parts with more add-ons and more flexible terms
Platinum 6 Unlimited $150 Exclusionary coverage for newer vehicles Bumper-to-bumper, similar to manufacturer’s warranty

How Do Aftermarket Auto Warranties Work?

Aftermarket warranties may provide fewer coverage options than a manufacturer warranty, but they work the same way your original warranty would. Your plan may include select shops or mechanics where you can get your car fixed, and you may not always be able to get OEM parts as replacements.

Most aftermarket warranties finance repairs or repairs through reimbursements. You’ll pay for the repairs out of pocket, file a claim, and get reimbursed (which could take months). You also have to pay your deductible first, which is often hefty.

Do I Need an Aftermarket Auto Warranty?

Here are a few situations in which you would need an aftermarket warranty:

  • You’re not already under a warranty.
  • You’re concerned about your vehicle’s reliability.
  • You have a separate budget for maintenance, as most extended warranties don’t cover maintenance.

What Extended Car Warranties Cover

Coverage options and add-ons differ from provider to provider, so ask about what your provider does or does not include in your plan. However, most extended car warranties cover the following repairs and claims:

  • Assembly
  • Brakes/ABS
  • Damage from overheating
  • Drive axle
  • Electrical system
  • Engine
  • Fuel system
  • Gas delivery
  • GPS/navigation
  • Heating/AC
  • Key fob replacement
  • Mechanical breakdown
  • Parts and labor
  • Rental car coverage
  • Road hazards
  • Seal and gaskets
  • Steering
  • Suspension
  • Tire repair/replacement
  • Towing
  • Transmission
  • Trip interruption

What Extended Warranties Don’t Cover

Most extended warranties don’t include the following:

  • Airbags
  • Catalytic converters
  • Consumable items (brake pads, rotors, shocks, light bulbs, etc.)
  • Convertible tops
  • Emissions
  • Misuse or abuse
  • Muffler and exhaust
  • Routine maintenance
  • Safety restraint systems

The Cost of Extended Car Warranties

Factors That Affect Cost

Extended car warranties for older vehicles and vehicles that are more expensive to repair tend to come with higher premiums than newer ones, but many factors affect cost, including those listed below:

  • Make
  • Model
  • Year
  • Mileage
  • Preexisting conditions
  • Provider

What Is a Good Price?

Warranty prices can be around $1,500 to $1,800 per contract, and deductibles typically range from $0 to $250. Depending on the provider and the contract, you could make your warranty payments over several months or as a one-time payment.

You can buy an extended warranty any time after your initial new car purchase, but keep in mind that the price on your loan may increase the longer you wait to buy it.

Are Extended Car Warranties Worth It?

Extended car warranties are optional, but they provide additional coverage that can save you money in the long run. The average cost of an engine in 2022 was about $4,000, so one engine replacement could save you thousands of dollars.

Here are a few reason to get an extended car warranty:

  • Your car is very unreliable, especially if it’s a used car.
  • It’s an exclusion warranty, meaning the warranty covers everything except for specific items that you don’t need coverage on.
  • The cost is reasonable. Most drivers never need to use their extended warranties, so your cost shouldn’t be too high.6
  • You plan on keeping your vehicle for a long time, as you are more likely to need to repair your car the longer you own it.

It doesn’t make sense to get an extended warranty if any of the following is true:

  • You have coverage under the manufacturer warranty.
  • You have a reliable car.
  • You have an inclusion warranty, which isn’t comprehensive and only covers specific parts of your vehicle.
  • An extended warranty company has poor reviews and ratings. Many extended warranty companies close down, so check the reviews on third-party systems like BBB and Trustpilot.

How to Choose an Extended Car Warranty

Where to Purchase

If you’re going with a third-party warranty provider, you can check how many complaints it has through your state consumer protection office.7 Otherwise, go directly through the manufacturer. Edmunds has a list of major manufacturer warranty providers that you can find here:

When to Purchase

The ideal time to purchase an extended warranty is when you finance your vehicle. That way, you can integrate your warranty costs into your car loan.

Questions to Ask

When working with a provider or manufacturer, ask the following questions:

  • Can I negotiate the price?
  • What is and isn’t covered?
  • How long is the extended warranty?
  • How do I make a claim?
  • Can I transfer the warranty?
  • Can I cancel the warranty?
  • Do I have a separate budget for maintenance?

Using Extended Warranties

Keep these factors in mind when using your extended warranty.


Most extended warranties have networks of approved repair shops. In some cases, you’ll have to go to one of these shops for your provider to cover the claim.


As of 2021, Connecticut had the highest average car repair cost at $418.37, while Maine had the lowest at $349.25.8

Claims Process

Most claims processes follow a few simple steps:

  1. Call your provider and let them know what problem you have with your vehicle.
  2. Take your vehicle to a preapproved or authorized shop to diagnose your vehicle.
  3. Wait for the mechanic to contact your provider with information about what kind of repairs you need.
  4. Wait for your mechanic to make the repairs after your provider approves the claim.
  5. Verify that you are satisfied with repairs, and your provider will process your claim.
  6. If your plan involves an invoice reimbursement, you will have to pay for the repairs and send your provider your receipt for reimbursement.


Some providers will pay the repair shop directly, while others reimburse you after you pay.

Canceling Extended Warranties

Some extended warranties have money-back guarantees within a certain time period, while others may charge a cancellation fee. If you paid in full for your warranty, providers will usually offer a prorated refund.

Extended Warranty vs. Mechanical Breakdown Insurance

The alternative to an extended warranty is mechanical breakdown insurance (MBI), but which one should you choose?

Here are a few major differences between the two:

Features Mechanical breakdown insurance Extended warranty
Where to repair your vehicle Any location Dealership
Interest included? No Yes
Industry regulations? Yes No
Size of deductible Larger Smaller (usually around $50)
Cost Cheaper More expensive
Coverage Mechanical systems and equipment Specified items and parts
Maximum age eligibility 15 months 5-7 years
Maximum mileage eligibility 15,000 100,0009

One of the main differences between the two is the scope of coverage. Mechanical breakdown breakdown insurance covers all mechanical parts and systems, while extended warranties only cover a specific list of items.

Most mechanical breakdown insurance policies will allow you to get repairs from any shop or mechanic.10

Do I Need MBI or a Warranty if My Car Is New?

If you have a new car, it’s probably best to go with mechanical breakdown insurance. Although you’ll have to renew your insurance more frequently, you’ll have more coverage, more choices for repairs, and lower rates.

How to Avoid Car Warranty Scams

There are, unfortunately, a number of auto warranty scams that you should be aware of when entering the car warranty market. The below tips will help you steer clear of scams and find reliable providers.

  • Don’t trust any third-party provider that offers to extend a factory warranty. Only manufacturers can extend a factory warranty. If a third-party provider claims to be able to extend your factory warranty, it’s a scam.
  • Don’t trust callers that use phrases like “motor vehicle notification,” “final warranty notice,” or “notice of interruption.” According to the Department of Commerce and Insurance, scammers often use these phrases to create a sense of urgency.
  • Don’t give out any personal information. Scammers will try to get ahold of your Social Security number, credit card information, driver’s license number, and other key information. Do not give out this information or any personal information online or over the phone.
  • Avoid callers who ask for a “processing fee.” If the caller tries to charge you a fee over the phone, it could be a scam.
  • Be wary of providers who say you need to take immediate action. If someone is rushing you to take action — whether that is providing them with information, completing a payment, or something else — there’s a good chance they could be a scammer.
  • Don’t answer calls from unknown numbers. Calls from unknown numbers are suspicious, and you shouldn’t answer them. If you do answer, hang up immediately.
  • Verify their number. If you have access to their number, type their number into your web browser and see what comes up.
  • Download a call-blocking app. RoboKiller, for example, stops 99 percent of unwanted spam calls and texts and is available on iOS and Android devices.
  • Check your warranty’s expiration dates/terms. If you’re still under warranty, the call might be a scam.
  • Research the company before extending coverage. The BBB is a great resource for reviewing customer complaints.
  • Input your number into the Federal Trade Commission’s (FTC’s) National Do Not Call Registry. Minimize the number of spam calls you receive by registering with the FTC’s registry:

Extended Warranty FAQs

Is there anything better than CarShield?

Yes, there are better extended warranty providers than CarShield. CarShield has an F rating from the Better Business Bureau, along with a 1.38 customer rating. The BBB has accused the company of the following:

  • Misleading sales and advertising practices
  • Not covering repairs
  • Not explaining coverages’ mileage and time components
  • Providing bad customer service
  • Not canceling policies and giving refunds
  • Taking too long to process claims
  • Not helping customers find authorized repair shops

Although CarShield has a low minimum monthly cost of $297 (less than the average of $331), the risk may not be worth it. As detailed above, some better extended warranty companies include Toco, Omega, Concord, Protect My Car, and autopom!

Are extended auto warranties worth it?

Depending on your vehicle, extended auto warranties may or may not be worthwhile. They are only worth it if any of the following applies:

  • Your manufacturer’s warranty doesn’t cover your vehicle.
  • Your car is unreliable.
  • The extended warranty is reasonably priced and from a reputable company.

What are the disadvantages of an extended warranty?

The disadvantages of an extended warranty are that it is expensive (hundreds of dollars per month and thousands of dollars per year) and many repairs are excluded. It’s rare that wear and tear is covered, for example, and your car insurance or manufacturer’s warranty may already cover what the extended warranty covers.

What are two reasons not to buy an extended warranty?

Here are two reasons not to buy an extended warranty:

  1. Your car is reliable.
  2. The extended warranty is prohibitively expensive.


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