An extended warranty for cars is essentially an insurance policy that provides financial protection against costly, unforeseen mechanical failures that are not covered by car insurance. Since unexpected mechanical breakdowns can really dig into your budget, you'll want to look into coverage ahead of time. Fortunately, several different companies offer extended warranties for cars.
An independent insurance agent can help you get the car insurance and extended warranty coverage you may need. They'll help you get set up with the right coverage and warranty for your unique vehicle. But for starters, here's a breakdown of extended warranty coverage and where you can find it.
Key Takeaways - Best Extended Car Warranty Companies of 2026
An extended car warranty offers coverage that goes beyond the terms of your manufacturer's warranty.
The average cost of an extended car warranty ranges from $900 to $2,400 per year.
Extended warranties can pay for certain types of repairs your vehicle needs, even years after purchase.
Extended warranties can be purchased from your car dealership or from a third-party provider.
Working with a local independent insurance agent is highly recommended, as they can shop and compare extended car warranties and coverage options from multiple companies for you to find the best deal.
Quick Comparison: Top Extended Car Warranty Companies in 2026
Looking for the best extended car warranties this year? The table below provides a quick extended car warranty comparison by company for 2026.
| Factor | Endurance | CarShield | American Dream Auto Protect | Premier Auto Protect | Carchex |
|---|---|---|---|---|---|
| Trustpilot Rating | 4.1 | 4.2 | 4.4 | 4.6 | 2.2 |
| Number of Plans | 3 | 7 | 3 | 7 | 5 |
| Monthly Cost Range | $113 to $160 | $99 to $170 | $90 to $150 | $80 to $150 | $177 to $218 |
| Vehicle Restriction | 2007 or newer | 1996 or newer | 2005 or newer | 2000 or newer | 2001 or newer |
| Additional Features | Key fob replacement, 24/7 roadside assistance | 24/7 roadside assistance, courtesy towing | 24/7 roadside assistance | 24/7 roadside assistance | 24/7 roadside assistance (with certain plans) |
| Mileage Limit | Unlimited available | 300,000 | None | Varies by plan | Over 100,000 |
An independent insurance agent can help you compare extended warranties from multiple companies and find any other auto coverage types you may need.
What Is an Extended Car Warranty?
Also known as a vehicle service contract, an extended warranty for cars is a protection plan that extends beyond the manufacturer's warranty, covering repairs after the manufacturer's warranty ends. In certain cases, however, an extended warranty's coverage period can overlap with the manufacturer's warranty. But most commonly, extended warranties begin when a manufacturer's warranty ends.
Depending on your financial situation, you may not need an extended warranty. However, for some drivers, they provide great convenience and peace of mind in case of an unexpected expense down the road.
What Does an Extended Car Warranty Cover (and Not Cover)?
An extended warranty can cover many costs related to your vehicle's maintenance past the length of time your manufacturer's warranty would compensate you. An extended warranty can cover:
- Mechanical component repairs
- Engine repairs
- Transmission repairs
- Towing services
- Rental car services
- Travel insurance
The coverage provided by an extended warranty can vary depending on the specific contract and the company that offers it. It's also important to be aware of what isn't covered by extended car warranties.
Common extended warranty exclusions:
- Routine maintenance
- Wear and tear
- Modifications
- Neglect
Your independent insurance agent can also help you determine what's covered and not covered by your vehicle's extended warranty and auto insurance policy.
Types of Extended Car Warranties
There are essentially three tiers of extended car warranties:
- Powertrain extended warranty: This is a form of limited coverage for your vehicle's major parts, such as the transmission, engine, and drive axles. Essentially, it covers the critical components necessary to keep your vehicle running.
- Stated-component extended warranty: This covers specific components or systems in your vehicle, such as the brakes, air conditioning, audio, and electrical systems.
- Bumper-to-bumper extended warranty: This covers most of your vehicle's parts and components. It also covers labor costs for repairs in many cases.
It's also important to understand the difference between an exclusionary vs. an inclusionary auto warranty. Exclusionary auto warranties only list the parts of your vehicle that aren't covered, meaning they cover everything that's not listed. These warranties are more extensive and comprehensive overall. Inclusionary warranties, on the other hand, list what's covered in your vehicle and generally offer less extensive coverage.
How Much Does an Extended Car Warranty Cost in 2026?
The average extended car warranty cost per month is $75 to $200. However, some plans can cost as much as $250 per month. Overall, the average cost of an extended car warranty per year ranges from $900 to $2,400. However, your extended auto warranty price will vary depending on the type of vehicle you own and the terms of your car warranty.
Average monthly and annual costs
Typically, car warranty contracts have terms that span three to five years. The table below breaks down the average extended car warranty monthly payment as well as the annual average.
| Monthly Average Range | Annual Average Range |
|---|---|
| $75–$250 | $900–$2,400 |
What affects extended car warranty pricing?
If you're wondering why extended warranty prices vary, it can be due to a number of different factors. The following are some of the most common extended warranty cost factors that can influence how much you will pay:
- Vehicle type and reliability
- Classification of your vehicle (e.g., luxury)
- Age of your vehicle
- Plan tier
- Payment plan options
Choosing a more basic extended auto warranty is likely to be less expensive, but you'll want to make sure to select the option that provides the amount of coverage you're most comfortable with overall.
The Best Extended Car Warranty Companies of 2026
There's no use wasting time browsing endless car insurance extended warranty companies when you want to find the right coverage fast. We've compiled a list of our top picks for the best extended car warranty companies of 2026 to make your search easier.
- Best overall: Endurance
- Best for plan selection: CarShield
- Best for discounts: American Dream Auto Project
- Best for nontraditional vehicles: Premier Auto Protect
- Best claims process: Carchex
- Best for electric vehicles: CarShield EV Plan
Best overall: Endurance
Our review of Endurance's extended warranty offerings found it to be the best overall extended car warranty company. Endurance has paid over $300,000 million in claims since it was founded in 2006.
The company administers its own claims rather than outsourcing them to a third party, which creates a better overall experience for customers. The company also provides roadside service and has been reviewed by licensed mechanics.
Endurance's RepairPal network is a large network of licensed repair facilities. Even better, Endurance plans are accepted at all dealerships and licensed repair shops in the U.S.
Endurance has a fast, 48-hour approval process for customers. Its warranties are available for cars that are 20 years old or newer. Unlimited mileage plans are available, while other plans come with limits of 150,000 or 200,000. Endurance also offers a user-friendly experience with its online customer service portal and mobile app.
Best for plan selection: CarShield
The best company for extended warranty plan selection is CarShield. CarShield's warranty plans can cover many different types of vehicles, including electric vehicles, motorcycles, and ATVs. The company offers seven different plans in total, and they're all flexible and customizable, allowing customers to choose the coverage they need.
Founded in 2005, CarShield has protected more than 2 million vehicles with its extended warranties. Plans are available for vehicles with up to 300,000 miles. The company allows customers their choice of mechanics, 24/7 roadside assistance services, and courtesy towing. Some plans also offer rental car reimbursement.
Best for discounts: American Dream Auto Project
Our American Dream Auto Protect review found that the company offers the best discounts overall. If you're looking for a cheap extended car warranty, this is the company for you. American Dream Auto Protect even allows customers to receive a full refund if they cancel their coverage during the waiting period.
American Dream Auto Protect offers extended warranties that can cover many types of vehicles, including farm vehicles and rideshare vehicles. The company's plans are also flexible and offer 24/7 roadside assistance and customer service. Reportedly, claims are usually approved within 48 hours. You can also transfer your coverage if you sell your vehicle later on.
Best for nontraditional vehicles: Premier Auto Protect
Our Primer Auto Protect review found that the company offers the best extended car warranties for nontraditional vehicles. The company offers extended warranties for motorcycles, ATVs, scooters, and personal watercraft. This coverage extends to vehicle components such as gauges, engines, and key replacements.
Accredited by the Better Business Bureau (BBB) since 2022, Premier Auto Protect has an "A" (excellent) rating from the organization. Powersports plans are also available from Primer Auto Protect. Further, members of certain organizations, such as AAA or the United Services Automobile Association, can enjoy preferred pricing on their coverage.
Best claims process: Carchex
Our Carchex extended warranty review found that the company is known for an easy extended warranty claims process. The company offers five different levels of coverage.
Carchex also provides different contract terms for customers to choose from, ranging from 12 to 84 months in length. The company began offering extended warranties in 2004 and has an "A+" rating by the BBB.
There are also many other benefits of Carchex's extended warranties, including rental car reimbursement coverage, 24/7 roadside assistance and towing, trip interruption services, and more.
Extended warranties from Carchex are known to offer greater security than many other options available today, thanks to financial backing from American Auto Shield, Allegiance Administrators, and Royal Administration Services. The company's repair network facility spans more than 30,000 shops across the U.S.
Best for electric vehicles: CarShield EV plan
CarShield also earns our top pick for the best extended warranty for electric vehicles. The company's EV extended warranty coverage includes dedicated protection for the battery, electric drive unit, and the overall electrical system.
Customers who own electric vehicles and want the security of extended coverage tailored to their specific components can look to CarShield for the best EV options.
How We Chose Our Top Picks
We reviewed about a dozen extended warranty car insurance companies to narrow it down to only a handful of the best options for you. Our extended warranty review methodology included a careful analysis of several different factors pertaining to each company.
We determined our winners in each category by reviewing the following:
- Customer service
- Better Business Bureau ratings
- Financial strength ratings by AM Best
- Coverage options from each carrier
- Costs of coverage from each carrier
- Additional benefits available from each carrier
- Plans and contract options
- Claims process
- Customer satisfaction ratings
- Financial backing
Still, our top choices may not be what's right for you. Working together with an independent insurance agent is the best way to ensure you'll get matched to the right extended car warranty for your needs.
Extended Warranty vs. Mechanical Breakdown Insurance
Though they both offer similar coverage, the major difference between extended warranties and mechanical breakdown insurance (MBI) is where they're purchased. Extended warranties can be purchased from the dealership, a third-party company, or the car's manufacturer, while mechanical breakdown insurance must typically be purchased from a car insurance company. MBI can cover issues with your vehicle's mechanical systems, which are not included in comprehensive insurance.
Extended car warranties often have better repair shop flexibility than mechanical breakdown insurance, with larger networks to choose from. MBI policies also often come with higher deductibles than extended car warranties. However, MBI policies typically cost about $100 per year, while extended warranties can range from $900 to $2,400 per year.
It's also important to consider that MBI vs. extended warranty options have different eligibility requirements. Mechanical breakdown insurance tends to have more restrictions, particularly regarding mileage. Some MBI policies are only offered for vehicles with fewer than 15,000 miles, for example, while extended warranties are often available for vehicles with up to 300,000 miles, or even with no limit. An independent insurance agent can help you get mechanical breakdown insurance or extended warranty coverage.
Extended Warranty for Used Cars: When to Buy
If you choose to get your vehicle's extended warranty from the dealership, it may only be available on the day of purchase. However, if you want to get an extended warranty for your used car after purchase, you can often obtain coverage from a third-party provider.
Used car extended warranties are typically offered with mileage tiers, such as plans for vehicles with less than 100,000 miles and extended warranties for high-mileage cars. Depending on your vehicle's mileage, your plan options may be restricted more by a dealership's coverage than that from a third-party provider. Further, a dealership's extended warranty may expire after you pass a certain mileage limit.
Third-party extended car warranty plans also often provide more flexibility if you buy a vehicle that has pre-existing conditions, while a dealership's warranty may exclude coverage for such cars.
Dealer vs. Third-Party Extended Warranty
A third-party car warranty is often much cheaper than a dealership warranty. Further, a dealership's extended car warranty may come with inflated interest rates, because the cost is added to your usual monthly car payment. This means you now pay interest on your vehicle and the warranty.
Third-party car warranties offer greater flexibility in many cases. Perhaps you've been wondering how to negotiate an extended car warranty price.
Dealers typically mark up their extended warranties more than third-party providers. Ask for a lower price before you sign your contract with a dealership. It's also helpful to compare multiple third-party extended warranty quotes before you choose. An independent insurance agent can help you.
How to Avoid Extended Car Warranty Scams
Extended warranty robocalls and unsolicited mail warnings are a common scam. Be sure to verify the source of the caller or the mailer before contacting the supposed company and offering any of your information. A quick internet search can usually tell you if something is legitimate or a possible scam.
In 2024, CarShield and American Auto Shield reached a $10 million settlement with the Federal Trade Commission (FTC) for their allegedly false claims that their plans covered "all" repair costs. By the end of last year, the FTC had issued more than $9.6 million in refunds to customers whose claims had been denied. If you suspect you've been a victim of a vehicle warranty scam, such as a fake car warranty call, you can contact the FTC directly to report it.
How to Choose the Right Extended Car Warranty
When looking for the best extended warranty for your car, start by assessing your vehicle's needs. Determine how much coverage you want and the term length, then research your provider options online. You can benefit from comparing quotes from at least three different companies. Be sure to compare deductibles from each plan option and carefully review the contract terms.
Pros and Cons of an Extended Car Warranty
Still wondering if extended warranties are worth it? The following extended car warranty pros and cons list may help you decide.
| Pros: | Cons: |
|---|---|
Offers coverage that extends beyond the manufacturer's warranty
|
May have high upfront costs
|
|
Can help you save money on costly repairs
|
May not cover all repairs
|
|
Some offer additional benefits, such as roadside assistance
|
May not cover older cars with higher mileage
|
FAQs About Extended Car Warranty Coverage
The following answers to commonly asked extended car warranty questions can help provide more clarity about what to expect from this coverage.
Are extended car warranties worth it?
They can be, if your vehicle meets the age and mileage requirements. You'll have to determine on a case-by-case basis whether an extended warranty for your car is worth it. If your car has proven reliable over time, isn't high-value, or is still under the manufacturer's warranty coverage, then getting an extended warranty likely doesn't make sense. Another factor to consider is whether you have enough money set aside in savings to cover vehicle repairs after the manufacturer's warranty ends.
How much does an extended car warranty cost on average?
The cost of an extended car warranty ranges from $75 to $250 per month, or about $900 to $2,400 per year. Per contract, extended warranties can range from $1,000 to $3,000. Overall, the cost of an extended car warranty varies depending on several factors, such as your car's make and model, value, mileage, and condition. In general, the newer your vehicle is, the less mileage it has, and the better its condition, the less you can expect to pay for an extended warranty.
Can you get an extended warranty for a used car after purchase?
Yes, you can get a used car extended warranty after you've purchased it, but typically only if you buy it from a third-party provider and if it meets the mileage restrictions. Extended car warranties are available from many different third-party companies. But if you want to get a dealership's extended car warranty, you'll need to buy it on the same day you purchase the vehicle.
What's the difference between an extended warranty and mechanical breakdown insurance?
Mechanical breakdown insurance is regulated as insurance and sold by carriers, while extended warranties are service contracts.
Can you cancel an extended car warranty?
Usually, yes, if you cancel within 30 to 60 days of purchase, you can get a full refund. After you've passed this window, your extended warranty refund will be a prorated amount.
Can you use any mechanic with an extended warranty?
It depends on your plan. Third-party plans usually allow you to use any ASE-certified shops, while dealer warranties typically require you to use a dealer service shop.
Do extended car warranties cover pre-existing issues?
No, most warranties exclude pre-existing conditions and include waiting periods, typically 30 days or 1,000 miles.
Can you negotiate the price of an extended warranty?
Yes. Dealers often mark up their warranties, so try to negotiate the price before you sign the contract. When choosing a third-party warranty, first compare quotes from multiple companies to find the best deal.
An Independent Insurance Agent Can Help You Choose the Right Extended Car Warranty
Overall, the easiest way to find the best extended warranty for your car is to work with an independent insurance agent. Independent insurance agents know the reputations of many different extended car warranty companies in your area, as well as which coverages they offer. They can shop and compare quotes from several different carriers for you and present you with only the best findings. A local agent can help you with all of your car insurance needs.
Sources
https://wallethub.com/edu/ci/best-car-extended-warranty/11157
https://www.cars.com/car-warranty/money/best-extended-car-warranty-plans/
https://insurify.com/auto-warranty/extended-warranty-cost/
https://www.wsj.com/buyside/personal-finance/car-warranty/inclusionary-vs-exclusionary-warranty
https://www.endurancewarranty.com/learning-center/extended-warranty/extended-warranties-on-used-cars-dealer-vs-third-party/
https://www.consumeraffairs.com/automotive/mechanical-breakdown-insurance-vs-extended-warranty.html