Most Popular
Most Popular
Best Comprehensive Coverage
4.6/5
Selected by 74% of readers shopping for a warrantyCoverage: 6 plan options, from routine maintenance to full coverageCost: Several discounts available Reputation: Smooth claims experience as a direct provider
844-830-9923
Check Price On Endurance’s Website
Best Value
4.0/5
Coverage: 3 plan options availableCost: 3 extra months of coverage with same-day signupReputation: Received a 4.8 rating on Trustpilot
833-735-1390
Check Price On American Dream’s Website
*Based on data from our users; 7/1/2023-9/30/2023
Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated the top auto warranty providers
41
Providers ReviewedOur team looked at dozens of auto warranty providers on the market, including top choices such as Endurance, Olive, CarShield and autopom!
2215
Data Points AnalyzedWe evaluate thousands of data points including plan costs, warranty plan inclusions and exclusions, customer reviews and more to determine the best car warranty companies.
2000
Customers SurveyedWe surveyed thousands of customers about their auto warranty experiences in order to get a deeper understanding of how customers feel about each company, what’s most important in the purchasing process and more.
505
Research HoursOur team spent hundreds of hours getting warranty quotes, reading customer reviews and reviewing the fine print of warranty contracts to help customers make informed decisions.
Learn more about our methodology and editorial guidelines.
Best Used Car Warranty Companies
In our research into the best used car warranty companies, we found five providers that offer exceptional vehicle protection plans. Carchex, Endurance, CarShield, Olive and Omega Auto Care all offer comprehensive coverage with long term lengths for used vehicles.
Best Extended Warranty For Used Cars
Let’s take a closer look at some of the used car warranty coverage options from these top-rated providers.
Used Car Warranty Company | Mileage Limit | Term Length | Maintenance Plans? |
1. Carchex | 250,000 miles | 10 years | No |
2. Endurance | 200,000+ miles | 8 years | Yes |
3. CarShield | 300,000 miles | 710 years | No |
4. Olive | 185,000 miles | 3 years | No |
5. Omega Auto Care | 25 | Yes |
The sections below will provide you with an in-depth understanding of each of the best used car warranty companies and what they provide.
1. Carchex: Great Industry Reputation
Overview
Longest coverage available: 10 years
Term length: 250,000 miles
Maintenance plan: No maintenance plans available
Keep reading: Carchex review
Why we picked Carchex
With over 20 years of experience in the industry, Carchex ranks as one of the best car warranty companies for used cars. It brokers vehicle service contracts from providers and has highly customizable coverage for cars of varying ages.
Coverage
The five tiers of Carchex coverage include:
- Titanium: Comprehensive limited coverage similar to a factory warranty
- Platinum: High-level coverage that spans hundreds of parts across the vehicle
- Powertrain Plus: This car warranty covers powertrain components and other major parts
- Powertrain: Powertrain protection for high-mileage vehicles
Carchex sells vehicle warranties with term lengths that range from monthly plans to 10 years of coverage. Customers in all 50 states can purchase vehicle protection plans for cars with up to 250,000 miles.
Extra Care: Covers components outside of the powertrain including those from the electrical system, steering, suspension and brake systems
Reputation
Carchex has an A+ rating from the BBB, but it only earns 2.6 out of 5 stars from over 1,500 reviews on Trustpilot.
1. Carchex: Great Industry Reputation
9.1/10
Overview
Longest coverage available: 10 years
Term length: 250,000 miles
Maintenance plan: No maintenance plans available
Keep reading: Carchex review
Why we picked Carchex
With over 20 years of experience in the industry, Carchex ranks as one of the best car warranty companies for used cars. It brokers vehicle service contracts from providers and has highly customizable coverage for cars of varying ages.
Coverage
The five tiers of Carchex coverage include:
- Titanium: Comprehensive limited coverage similar to a factory warranty
- Platinum: High-level coverage that spans hundreds of parts across the vehicle
- Powertrain Plus: This car warranty covers powertrain components and other major parts
- Powertrain: Powertrain protection for high-mileage vehicles
Carchex sells vehicle warranties with term lengths that range from monthly plans to 10 years of coverage. Customers in all 50 states can purchase vehicle protection plans for cars with up to 250,000 miles.
Reputation
Carchex has an A+ rating and accreditation from the Better Business Bureau (BBB), but it only earns 2.2 out of 5 stars from over 1,500 reviews on Trustpilot.
2. Endurance: Most Comprehensive Coverage
Call Endurance at844-830-9923
Overview
Longest coverage available: Eight years
Term length: 200,000 miles for most plans
Maintenance plan: EnduranceAdvantage™
Keep reading: Endurance warranty review
Why we picked Endurance
Our choice for the title of Most Comprehensive Coverage is Endurance. The company’s direct-to-consumer model is highly regarded by its customers and means that Endurance pays its own claims rather than working with a middleman.
Coverage
Endurance offers six levels of coverage, all of which include roadside assistance, towing, collision discounts and up to $1,000 in total loss replacement benefits. Endurance is now available in all 50 states, with mechanical breakdown insurance (MBI) in California. The company’s plans can last up to eight years or 200,000 miles, making it a solid option for your used vehicle.
Here’s an overview of Endurance’s extended warranty plans:
- Supreme: Bumper-to-bumper coverage for most parts of the vehicle
- Superior: Limited coverage for hundreds of vehicle components
- Secure Plus: Coverage for steering, braking systems, electrical systems and the powertrain
- Secure: Basic powertrain coverage
- Select Premier: Extensive protection geared toward high-mileage cars
EnduranceAdvantage™: Includes mechanical breakdown coverage, regular maintenance, oil changes and engine diagnostics
Reputation
Many reviews mention Endurance’s excellent customer service, though the provider isn’t currently ranked by the Better Business Bureau (BBB). Endurance is available to customers in every state and is the best used car warranty provider for a smooth claims process.
Overview
Longest coverage available: Eight years
Term length: 200,000 miles for most plans
Maintenance plan: EnduranceAdvantage™
Keep reading: Endurance warranty review
Why we picked Endurance
Our choice for the title of Most Comprehensive Coverage is Endurance. The company’s direct-to-consumer model is highly regarded by its customers and means that Endurance pays its own claims rather than working with a middleman.
Coverage
Endurance offers six levels of coverage, all of which include roadside assistance, towing, collision discounts and up to $1,000 in total loss replacement benefits. Endurance is now available in all 50 states, with mechanical breakdown insurance (MBI) in California. The company’s plans can last up to eight years or 200,000 miles, making it a solid option for your used vehicle.
Here’s an overview of Endurance’s extended warranty plans:
- Supreme: Bumper-to-bumper coverage for most parts of the vehicle
- Superior: Limited coverage for hundreds of vehicle components
- Secure Plus: Coverage for steering, braking systems, electrical systems and the powertrain
- Secure: Basic powertrain coverage
- Select Premier: Extensive protection geared toward high-mileage cars
EnduranceAdvantage™: Includes mechanical breakdown coverage, regular maintenance, oil changes and engine diagnostics
Reputation
Many reviews mention Endurance’s excellent customer service, though the provider is currently not ranked by the BBB. Endurance is available to customers in every state and is the best used car warranty provider for a smooth claims process.
3. CarShield: Affordable Monthly Payments
Overview
Longest coverage available: Seven years
Term length: 300,000 miles
Maintenance plan: No maintenance plans available
Keep reading: CarShield review
Why we picked CarShield
CarShield has a reputation for keeping car warranty costs low. The company also comes with month-to-month payment plans, giving drivers the flexibility of a low-commitment used car warranty plan. In addition to coverage for auto repairs, CarShield warranties include benefits like rental car reimbursement, roadside assistance and fuel delivery.
Coverage
CarShield has five warranty options for automobiles:
- Diamond: Extensive component coverage similar to the manufacturer’s warranty
- Platinum: This plan covers the powertrain, electrical systems, climate control and suspension
- Gold: Backs the powertrain along with limited electrical components and the fuel system
- Silver: Covered repairs include the engine, transmission, cooling system, drive axle and other powertrain components
- Aluminum: Limited coverage for electrical parts, steering, air conditioning, sensors and seals and gaskets
Reputation
CarShield holds a D rating from the BBB due to numerous complaints. Our review team reached out to CarShield for a comment on this rating and received the following response: “In the last three years we have 2,210 BBB complaints, but we sold 1,118,296 contracts. So only 0.21% of our customers complained.”
By contrast, the company receives an average of 4 out of 5 stars from customer reviews on Trustpilot. If customer service is important to you, these mixed experiences may mean another extended warranty provider may be a better fit. CarShield’s affordable rates and high mileage limits, however, are difficult to beat.
3. CarShield: Affordable Monthly Payments
8.9/10
Overview
Longest coverage available: 10 years
Term length: 300,000 miles
Maintenance plan: No maintenance plans available
Keep reading: CarShield review
Why we picked Carshield
CarShield has a reputation for keeping car warranty costs low. The company also comes with month-to-month payment plans, giving drivers the flexibility of a low-commitment used car warranty plan. In addition to coverage for auto repairs, CarShield warranties include benefits like rental car reimbursement, roadside assistance and fuel delivery.
Coverage
CarShield has five warranty options for automobiles:
- Diamond: Extensive component coverage similar to the manufacturer’s warranty
- Platinum: Covers the powertrain, electrical systems, climate control and suspension
- Gold: Backs the powertrain along with limited electrical components and the fuel system
- Silver: Covers the engine, transmission, cooling system, drive axle and other powertrain components
- Aluminum: Limited coverage for electrical parts, steering, air conditioning, sensors and seals and gaskets
Reputation
CarShield holds an A rating from the BBB despite a high number of customer complaints. Our review team reached out to CarShield for comment regarding its volume of complaints on the platform and received the following response:
“In the last three years we have 2,210 BBB complaints, but we sold 1,118,296 contracts. So only 0.21% of our customers complained.”
By contrast, the company receives an average of 4.2 out of 5.0 stars from customer reviews on Trustpilot. If customer service is important to you, these mixed experiences may mean another extended warranty provider may be a better fit. CarShield’s affordable rates and high–mileage limits, however, are difficult to beat.
4. Olive: Convenient Online Process
Overview
Longest coverage available: Three years
Term length: 185,000 miles
Maintenance plan: No maintenance plans available
Why we picked Olive
Olive makes the extended warranty buying process simple since it can be done entirely online. The warranty provider doesn’t require waiting periods or inspections, making things smoother than with many other companies for used vehicles.
Coverage
Here’s an overview of Olive’s extended auto warranty options:
- Powertrain Plus: Covers everything from the Powertrain plan as well as front suspension, power steering, brakes and air conditioning
- Complete Care: Covers all electrical, mechanical and high-tech components apart from specific exclusions
- Powertrain: This plan is the most basic, covering lubricated components of the engine and transmission
Some perks that Olive customers receive include up to $100 of towing reimbursement and rental car coverage of up to $35 per day for five days. Note that Olive’s plans lack any forms of roadside assistance beyond basic towing coverage.
4. Olive: Convenient Online Process
8.2/10
Overview
Longest coverage available: Three years
Term length: 185,000 miles
Maintenance plan: No maintenance plans available
Why we picked Olive
Olive makes the extended warranty buying process simple since it can be done entirely online. The warranty provider doesn’t require waiting periods or inspections, making the transition smoother than many other companies for used vehicles.
Coverage
Here’s an overview of Olive’s extended auto warranty options:
- Powertrain Plus: Covers everything from the Powertrain plan as well as front suspension, power steering, brakes and air conditioning
- Complete Care: Covers all electrical, mechanical and high-tech components apart from specific exclusions
- Powertrain: This plan is the most basic, covering lubricated components of the engine and transmission
Some perks that Olive customers receive include up to $100 of towing reimbursement and rental car coverage of up to $35 per day for five days. Note that Olive’s plans lack any form of roadside assistance beyond basic towing coverage.
5. Omega Auto Care: Best Maintenance Benefits
Overview
Year established: 2013
Company headquarters: Jacksonville, Fla.
Availability: 50 states
Read more: Omega Auto Care warranty review
Why we picked Omega Auto Care
Review Category | Ratings Score |
---|---|
Reputation | 8.9 |
Coverage | 9.5 |
Cost | 8.2 |
Transparency | 7.5 |
Customer Experience | 8.8 |
Overall Rating | 8.7 |
Omega Auto Care is a reputable warranty company that provides transparent, detailed coverage information and sample contracts for its plans. Like Protect My Car, each extended warranty plan comes with maintenance benefits, including changes for oil, replacements for brake pads, shoes and batteries plus maintenance for lube and cooling systems.
Reputation
In addition to sticking out for its transparency, Omega Auto Care has a largely positive reputation, according to customer reviews. The company holds an A+ rating and 3.9 out of 5.0 stars from the BBB. Similarly, on Trustpilot, Omega Auto Care has a Great rating and 4.0 stars out of 5.0.
Reviews across these sites highlight helpful customer service representatives and a smooth claims and repairs process. However, some reviews mention difficulty canceling contracts, getting robocalls or being denied coverage for repairs. However, it’s worth noting that Omega Auto Care did respond to all complaints filed on the BBB.
Pros & Cons
Pros
- Overall positive customer reviews
- Offers maintenance coverage with its plans
- Sample contracts readily available
Cons
- Only one deductible option
- Reports of issues with canceling coverage
Omega Auto Care Cost
Omega Auto Care offers average rates for its extended auto warranty plans. The average price range for a vehicle service contract is $2,880 to $3,720, depending on the level of coverage you choose.
Omega Auto Care Coverage Levels
Omega Auto Care provides three main coverage options for drivers, with one plan offering two upgrade options. The table below provides details on each of the plans available:
Omega Auto Care Warranty Plan | What It Covers |
---|---|
Exclusionary | Exclusionary is most similar to a bumper-to-bumper warranty or a factory warranty. However, it only covers vehicles up to seven years old and with less than 100,000 miles on the odometer when purchased. |
Used Stated | The Used Stated plan covers vehicles up to 10 years old and with less than 150,000 miles. It protects the major systems of the car, along with the:HeatingCoolingFuelSteeringSuspensionBrakeElectrical systems |
Powertrain Enhanced | The Powertrain Enhanced plan is the highest powertrain plan upgrade and protects the main components of your vehicle in addition to the cooling system and fuel system parts. |
Powertrain Plus | Powertrain Plus is an upgrade to the basic powertrain plan and covers additional parts for the air conditioning, heating and electrical systems. |
Powertrain | The Powertrain plan only covers components related to the engine, forced induction, transmission, transfer case and drive axle. |
Powertrain plans are for car models less than 15 years old and with less than 250,000 miles. Sample contracts can be found on Omega Auto Care’s website for transparency on what is and isn’t covered under warranty. On top of that, all vehicle service contracts have a 30-day money-back guarantee if you decide your plan isn’t right for you.
5. Omega Auto Care: Best Maintenance Benefits
8.7/10
Overview
Longest coverage available: 15 years
Term length: 250,000 miles
Maintenance plan: Yes, Maintenance Program
Why we picked Olive
Omega Auto Care boasts decades of experience serving automotive customers and has an outstanding industry reputation, with an A+ rating and accreditation from BBB. It offers the standard levels of coverage, including two stated component options and one bumper-to-bumper plan.
To back up its industry reputation, Omega Auto Care customers give the company solid reviews. It holds a score of 3.9 out of 5.0 stars on Trustpilot, with 75% of reviews being 4.0-star or above.
Coverage
- New Exclusionary: This plan is limited to vehicles no more than seven model years old with less than 100,000 miles on the odometer. It covers most parts and repairs except a small list of excluded damages.
- Used Stated Coverage: Designed for vehicles up to 10 model years old with less than 150,000 miles. This plan isn’t as comprehensive as Omega’s New Exclusionary coverage, but still covers many critical systems and parts.
- Powertrain Protection: This plan is limited to vehicles up to 15 model years old with less than 250,000 miles. It covers essential systems like the engine, transmission and drive axles.
Omega’s Maintenance Program includes oil changes, brake pads or shoes, battery replacement and cooling system maintenance.
Keep reading: Omega Auto Care review
Best Warranty for Used Cars With High Mileage
Based on research from our editorial team, CarShield and Omega Auto Care offer some of the best extended warranty coverage for cars over 100,000 miles. The table below shows further details on these two warranty providers, including maximum coverage limits and the best plan offered for high-mileage vehicles.
Extended Warranty Company | Highest Mileage Limits | Best Plan for Cars Over 100K Miles |
---|---|---|
CarShield | 7 years/300,000 miles | Silver |
Omega Auto Care | 15 years/250,000 miles | Powertrain Enhanced |
Read more: Extended warranty for cars over 100K miles
CarShield: High Mileage Limits
We like CarShield because the company offers both month-to-month and long-term warranty contracts with high mileage limits. The company covers vehicles with up to 300,000 miles for a maximum of seven years. That’s about 50,000 more miles on the odometer than most other warranty companies will allow.
CarShield offers sample contracts on its website, meaning you know what to expect before you even talk to a representative. Select plans come with roadside assistance, rental car reimbursement, and trip interruption coverage.
Keep reading: CarShield review
Omega Auto Care: Solid Maintenance Offerings
Omega Auto Care can be a solid option if you are looking for an extended warranty to cover your vehicle with over 100,000 miles on the odometer. The company’s vehicle service contracts can last up to 15 years or 250,000 miles, depending on the plan you purchase.
The company provides three main coverage options to drivers, one of which has two upgrade options. We found that the Powertrain Enhanced warranty tends to be the best for high-mileage vehicles, as it protects powertrain components in addition to providing protection for the cooling and fuel system parts.
Each contract comes with roadside assistance, road hazard coverage, rental car reimbursement and maintenance benefits, including oil changes, brake pads, shoe and battery replacement and cooling system and lube maintenance.
Keep reading: Omega Auto Care reviews
Best Certified Used Car Warranties
Certified pre-owned (CPO) warranties help protect your vehicle from any possible defects. Overall, we found that Mitsubishi, Hyundai and Kia offer the best CPO warranties in the industry, presenting a combination of benefits and high mileage limits. Below are the requirements to qualify for a CPO warranty from the following manufacturers:
Manufacturer | Vehicle Age | Mileage Limits | Additional Benefits |
---|---|---|---|
Mitsubishi | Under 5 years old | Less than 60,000 miles | Roadside assistance |
Hyundai | Under 5 years old | Less than 60,000 miles | Roadside assistance and rental car coverage |
Kia | Under 5 years old | Less than 60,000 miles | Roadside assistance, travel breakdown coverage and rental car coverage |
1. Mitsubishi: Top CPO Warranty
We found that Mitsubishi has the best CPO warranty overall. Drivers can get a 10-year/100,000-mile powertrain warranty or 5-year/60,000-mile warranty from the vehicle’s original in-service date for all other parts.
The Mitsubishi CPO warranty comes with 24/7 roadside assistance and includes features like flat tire changes, gas delivery and battery jump-starts. Deductibles are not included with CPO warranties.
2. Hyundai: Long Term Limits
Hyundai also offers dependable CPO warranty coverage. Drivers can purchase a powertrain CPO warranty for 10 years or 100,000 miles or the remainder of the 5-year/60,000-mile bumper-to-bumper warranty on CPO vehicles.
Hyundai CPO warranties come with a 10-year/unlimited mile roadside assistance plan as well as a 10-year/100,000-mile hybrid or electric vehicle (EV) battery warranty for electric models.
3. Kia: CPO Warranty Benefits
We found that Kia’s CPO warranty lasts up to 10 years/100,000 miles on the powertrain or 1 year/12,000 miles for Platinum coverage, which protects all other parts and begins on the vehicle purchase date.
Similar to other CPO warranty programs, Kia provides a 10-year/unlimited miles roadside assistance plan, along with travel breakdown coverage and rental car coverage.
Used Car Warranty Buyer’s Guide
A used car warranty offers covered repair and replacement services for a list of parts until the vehicle reaches a certain age or mileage. Items covered under the best used car warranty plan depend on the level of coverage you purchase and what level of protection the car already has.
Read more: Should I buy an extended warranty on a used car?
Used Car Warranty Plans
Finding the best used car warranty depends on the needs of the car owner, but there are several types of warranties that service different parts of the vehicle. Here are some common coverage levels offered by independent providers:
- Bumper-to-bumper warranty: An exclusionary warranty that covers a vast array of parts that aren’t subject to normal wear and tear, like the air conditioning system
- Stated-component warranty: Provides a detailed list of everything backed by the warranty contract
- Powertrain warranty: Replaces or repairs only essential components like the engine, transmission, driveshafts and axles
- Drivetrain warranty: Similar to powertrain coverage, minus the service for the engine
- Anti-perforation warranty: Repairs or replaces body panels that are affected by rust or corrosion from the inside out
- Wrap warranty: An add-on that extends coverage to the rest of a car for those who already have a powertrain warranty
Used Car Warranty Costs
Our March 2022 extended car warranty survey, which polled 1,000 respondents, found that around 50% paid between $1,600 and $3,200 in total for their extended car warranties. The price you pay for your used car warranty will depend heavily on factors such as:
- Vehicle make, model, model year and mileage
- Chosen coverage level
- Contract length
- Deductible
Used Car Warranty Quotes
To give you a better idea of used car warranty costs, we collected information from the best used car warranty companies. The following table shows quotes we received for powertrain plans for a 2017 Chevrolet Equinox with 90,000 miles. All plans include a $100 deductible.
Used Car Warranty Company | Term Length | Financing | Total Cost |
Carchex | Unlimited/Month-to-Month | $139.99 monthly | Varies |
Endurance | 4 years/60,000 miles | $135 for 30 months | $4,205 |
CarShield | Unlimited years/unlimited miles | $119.99 monthly | Varies |
autopom! | 5 years/50,000 miles | $124 for 24 months | $3,933 |
Do I Need a Used Car Warranty?
While purchasing one of the best used car warranties could seem like a smart choice, you may not actually need one. This could be because your car already has warranty coverage or the cost of the policy outweighs your vehicle’s maintenance needs.
Check for Existing Coverage
Before you begin a search for the best extended warranty plan, check to see if your vehicle has any pre-existing coverage. When a new car leaves the dealership, it comes with an original warranty that provides bumper-to-bumper and powertrain coverage for a predetermined amount of time or number of miles.
The length of coverage varies by carmaker. For instance, the Toyota warranty and the Honda warranty each offer bumper-to-bumper coverage for 3 years/36,000 miles and powertrain protection for 5 years/60,000 miles. Most factory warranties can also be transferred to subsequent owners, so ask the seller or read the fine print when you’re making a purchase.
Many automakers also operate certified pre-owned (CPO) programs for cars that meet certain criteria and quality specifications. These usually add more time to the factory warranty or provide similar coverage up to a certain limit.
If the car you’re buying isn’t under a factory warranty or lacks CPO coverage, the owner may have purchased an extended auto warranty from the dealership or manufacturer. While this usually doesn’t cover repair bills to the same extent as a factory warranty, it guarantees vehicle owners access to genuine parts and authorized technicians. Similar to other warranties offered by carmakers, these can be transferred to subsequent owners either at no cost or for a small fee.
Consider Breakdown Costs
For most vehicle owners, buying one of the best used car warranties is a matter of price. The car repair estimation site, RepairPal, reports that the industry average for vehicle repairs and routine maintenance is $652 per year. While a used car warranty can cover surprise repair costs for covered parts on your vehicle, there’s no guarantee you’ll pay less for the service contract than you’d pay a repair shop out of pocket.
You should also consider your car’s dependability when making your decision. Some vehicles are more expensive to maintain year-over-year than others, so you need to be able to budget for potential repairs as the car ages.
Should You Buy an Extended Warranty on a Used Car at the Dealer?
In general, it’s not the best idea to buy an extended warranty or vehicle service contract at a used car dealership when you get your car. Here are a few reasons why:
- Used car dealers may sell only one or two warranty options — third party providers will often offer many more choices.
- Warranty plans may be marked up significantly because the dealer knows you don’t have time to compare other options.
- Including an extended warranty into an auto loan means that you will be paying interest on both your car loan as well as your extended warranty.
- Dealership warranties often require you to go back to the selling dealer for repairs.
Manufacturer Extended Warranties
If you’re buying a certified pre-owned (CPO) car or have access to a manufacturer’s plan, it could be worth it to get an extended warranty through the manufacturer. This is because the plan is backed by the manufacturer and it should include original equipment manufacturer (OEM) parts and service by factory-trained technicians.
However, there are downsides to this. The automaker usually requires you to go to one of its dealerships for service. You also may not be able to get the plan if the new car warranty has expired. Finally, our research shows manufacturer warranty plans can be more expensive than third-party options.
Third-Party Extended Warranty Companies
After you purchase your used vehicle, you have time to shop around and compare aftermarket warranty plans from third-party providers like Endurance and Carchex. These companies specialize in vehicle protection products and offer many different plan levels and monthly payment options.
Going with a third-party provider gives you the time to look over the fine print and exclusions at your leisure instead of in a high-pressure dealership negotiation. Additionally, third party warranties typically allow you to visit any licensed repair facility.
Warranties from manufacturers will also have stricter mileage limits than protection plans at independent companies. Warranties from third-party providers can often cover cars with over 150,000 existing miles on its odometer.
When You Should Buy an Extended Warranty on a Used Car
There are some situations where it’s worth getting an extended warranty on a used car (from the right provider). For example, if your car has high average repair costs according to industry resources, you’re more likely to actually make use of the extended warranty.
Other reasons include lowering out-of-pocket costs or having peace of mind that certain car repairs would be handled in the event of a mechanical breakdown.
Your Car Has High Average Repair Costs
Not all vehicles have the same average repair costs. Some cars are known for going 200,000 miles on basic routine maintenance, while others need all kinds of work after 100,000 miles. The good news is that you don’t have to be a car expert to get this knowledge.
Sites like RepairPal, Edmunds and YourMechanic can provide average repair costs for different makes and models. These are great resources if you’re shopping for a used car or considering a warranty on your own vehicle. For example, RepairPal ranks the top eight most-reliable brands and their annual repair costs as follows:
Car Manufacturer | Average Annual Repair Cost |
---|---|
#1 Honda | $428 |
#2 Acura | $501 |
#3 Kia | $474 |
#4 Hyundai | $468 |
#5 Mazda | $462 |
#6 Lexus | $551 |
#7 Toyota | $441 |
#8 Nissan | $500 |
With sites like these, you can see average costs for models, model years and even specific repairs. Use these resources to research the model you’re considering getting a warranty for to see if it’s worth it. If a particular warranty costs $600 per year of coverage and your model has an average repair cost of $1,000 per year, having a warranty could be a good idea.
You Want To Pay Less Out of Pocket
It’s possible that an extended warranty doesn’t cover as much in repairs as you paid for it during the life of the plan. However, if a warranty covers a major repair that you wouldn’t have been able to pay for otherwise, that can make it worth it.
Would you be able to cover an unexpected repair of $1,000 without taking out debt? This is something to consider when deciding if you should buy an extended warranty on a used car.
You Want Peace of Mind That Repairs Are Handled
Maybe the security of knowing you’ll have repairs covered is more important to you than the total cost. In other words, when your car breaks down, you don’t have to wonder where to take it or how to get it there.
Many used car extended warranties come with perks like towing and roadside assistance. They typically cover repairs at any repair shop licensed by the National Institute of Automotive Service Excellence (ASE) as well. You just need to connect the shop with the warranty provider and have it authorize the repair.
When You Shouldn’t Buy an Extended Warranty on a Used Car
There are also some situations where it wouldn’t be worth it for you to buy an extended warranty on a used car. For example, if the car has low average repair costs or you have a budget set aside for repairs, then a warranty wouldn’t be worth it.
Your Car Has Low Average Repair Costs
If you use resources like RepairPal or Edmunds and notice the used car has affordable average repair costs, it might not be worth it to get an extended warranty. Some vehicles are known for performing well even after hundreds of thousands of miles. You’d save more money in the long run by covering maintenance and occasional repairs yourself with a vehicle like this.
You Have a Budget for Auto Repairs
Consider your financial situation. If you have a budget set aside for costly repairs, why should you buy an extended warranty on a used car? One of the main benefits is avoiding out-of-pocket expensive repair costs, but that doesn’t apply if you’re already prepared.
You Have Mechanical Breakdown Insurance
Some car insurance companies like Geico offer mechanical breakdown insurance (MBI), which is similar to an extended warranty. If you already have MBI with your company, a used car warranty is not necessary since it doubles up on coverage.
Keep in mind, though, that MBI has stricter limitations than standard extended warranties. Unlike extended coverage from an independent warranty company, with MBI, there will likely be fewer repair centers you can choose from. Additionally, MBI isn’t always as comprehensive in what it covers compared to a car warranty from other companies.
How To Buy a Used Car Warranty
Some used cars still come with a warranty attached. In most cases, however, you’ll need to purchase a used vehicle warranty from your car’s manufacturer or from a third-party company. When looking for an extended coverage plan, there are a few steps you should take.
1. Find Out if Your Used Car Is Already Covered
Many new cars come with a 3-year/36,000-mile bumper-to-bumper warranty and a 5-year/60,000-mile powertrain warranty. Before buying an extended coverage plan, make sure that your vehicle’s original warranty has already expired. If you’re buying a used car from a dealership, find out whether it’s being sold “as is” or with remaining warranty coverage.
2. Research Extended Warranty Providers
When investigating third-party extended warranty companies, look at customer reviews on sites like the Better Business Bureau (BBB) and Trustpilot. Also, be sure to read the fine print when looking over vehicle service contracts so you’ll know exactly which components will receive extended coverage.
In our 2022 survey of 1,000 extended warranty customers, 51% bought a comprehensive or bumper-to-bumper plan. The remainder of survey respondents purchased either mid-level or powertrain protection.
3. Compare Different Coverage Options and Pricing
Before selecting a warranty plan, reach out to various coverage providers for free quotes. That way, you’ll figure out whether you’ll be paying a reasonable amount for the desired level of coverage. Resources like Edmunds and RepairPal are also helpful in this stage to determine which level of coverage is most worth it for you.
Best Used Car Warranties: The Bottom Line
From our research, we found that some of the strongest vehicle service contracts come from Endurance, Olive, CarShield, Carchex and Omega Auto Protect. While you may find that these are your best options as well, it’s smart to compare car warranty quotes online before buying.
Most Popular
Most Popular
Best Comprehensive Coverage
4.6/5
Selected by 74% of readers shopping for a warrantyCoverage: 6 plan options, from routine maintenance to full coverageCost: Several discounts available Reputation: Smooth claims experience as a direct provider
844-830-9923
Check Price On Endurance’s Website
Best Value
4.0/5
Coverage: 3 plan options availableCost: 3 extra months of coverage with same-day signupReputation: Received a 4.8 rating on Trustpilot
833-735-1390
Check Price On American Dream’s Website
*Based on data from our users; 7/1/2023-9/30/2023
Used Car Warranty Companies: FAQ
Here are some of the most frequently asked questions about used car warranty companies.
Based on our research, we believe the best warranty company for a used car is Carchex. It offers plans that can cover up to 250,000 miles, making it an excellent choice for older or higher-mileage cars. Carchex has some of the lowest rates on the market, so you’re likely to find the coverage you need for a price that fits your budget.
In our review of the extended car warranty industry, we gave Carchex the name for Great Industry Reputation. The company has over 20 years of experience and has earned itself an A+ rating with accreditation from the BBB.
Whether a used car warranty is worth it depends on a few factors. If you have an older vehicle, there’s a higher likelihood of a breakdown, so the warranty protection may be worth the cost. If you have a newer vehicle, you may be spending more on the warranty plan than the average annual cost of repairs.
Both are vehicle protection plans that help cover the cost of repairs and replacement of parts in the event of a mechanical failure. A car warranty, often referred to as a factory warranty, comes standard with all new cars. An extended warranty lengthens the terms of coverage and can be purchased from your car’s manufacturer or a third-party provider. Manufacturer extended warranties typically need to be purchased before the factory warranty expires.
After an in-depth look at the top used car warranty providers, we found that Carchex, Endurance, CarShield, Olive and Omega Auto Protect are the best choices if you need to protect a used vehicle.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best extended car warranty companies. We collected data on dozens of auto warranty providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for warranty coverage, long contract terms and added benefits are more likely to meet consumer needs.
- Cost (30% of total score): Auto warranty companies with affordable rates and multiple deductibles scored highest in this category.
- Transparency (20% of total score): This score is based on contract transparency and the availability of a money-back guarantee.
- Reputation (10% of total score): Our research team considers availability, ratings from industry experts and years in business when conferring this score.
- Customer experience (10% of total score): Based on customer satisfaction ratings and our extensive shopper analysis, we consider the responsiveness, friendliness and helpfulness of each warranty company’s customer service team.
Our credentials:
- 500+ hours researched
- 50 companies reviewed
- 2,000+ consumers surveyed
*Data accurate at time of publication.
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