Used car warranty companies promise to cover repairs as cars age, but not all deliver on that promise. That’s why our team spent hundreds of hours researching dozens of companies through secret shopping, surveying customers, analyzing reviews, and comparing quotes. The result? Our distilled recommendations for the best used car warranty companies you can shop from today. These extended warranty companies have reputations for covering legitimate claims and offer a wide variety of plans.

Why You Can Trust Motor1.com At Motor1.com, we are dedicated to supplying car owners with the well-researched, fact-checked information they need to make sound decisions about auto warranties. Our team analyzes provider offerings and customer insights so you can feel empowered to make the best choice.
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Methodology: How We Rate Used Car Warranty Companies

Our team collected over 1,800 data points on 46 extended warranty companies to find the best providers. We interacted with customer service agents and got quotes for different warranty plans and terms. We also conducted multiple consumer surveys to see what people want in an extended warranty company and what they’ve experienced. Throughout the year, we refresh our data and update our ratings to keep our recommendations current.

Our overall rating combines five different categories: industry standing, coverage, cost, transparency, and customer service. 

Industry Standing

If you buy an extended warranty, you need to trust the company will cover claims for repairs under contract. Our team looks at a company’s established reputation in the industry, its endorsements from experts, and overall business practices. We also note if the company has received business or consumer awards in recent years.

Coverage

Companies that offer more than three extended warranty plans, a variety of term lengths, and useful added benefits score high in this category. When you have more plans to choose from, you can customize coverage to better suit your needs. Added benefits we look for include roadside assistance, rental car coverage, and trip interruption coverage. This rating is based on types of extended warranty plans available, coverage terms, and added benefits like roadside assistance.

Cost

Our research team reviews quotes for a variety of plans and vehicles. We consider the length and mileage of the plan, what it covers, the monthly cost, deductible options, total cost, and average cost per year of coverage. Companies with lower prices per year of coverage receive the best scores. For our 2023 cost ratings, we received over 140 prices on individual plans from a range of warranty providers.

Transparency

This score takes into account contract transparency and the availability of a money-back guarantee. Some companies make it difficult to get sample contracts online and see exactly what a plan covers, while others make this information easily available. We recommend you read and understand the contract thoroughly before signing up for a warranty. If you come across a company that doesn’t offer contracts to view before purchase, consider shopping elsewhere.

Customer Service

We comb through customer reviews and perform our own shopper analysis to get a sense of the responsiveness and helpfulness of each warranty company. Our team notes patterns in positive and negative reviews to see what a company is known for. Does a company make it hard to get a claim covered or does it walk customers through the entire process? 

What To Know About Used Car Warranties

Before we dive into our list of best used car warranty companies, it’s helpful to understand how the industry works.

Who Provides Used Car Warranties

Manufacturers offer extended warranties for used cars, but they are usually only available for purchase for a limited time – until the factory warranty runs out, for example. Another option is to use a third-party vehicle service contract provider, like Endurance or CarShield. These are the companies we’ve reviewed for used car warranties. 

If you’ve bought a used car before, you were probably offered extended coverage at the dealership. There are many third-party warranty companies that only sell plans directly through used car dealers. We recommend steering clear of these companies because the dealership isn’t the best place to compare your options. It can be challenging to get a good feel for the warranty company when the salesperson wants to get you out the door.

How Coverage Works

Used car warranty companies offer multiple plans that cover different lists of vehicle components. Below are the three main types you’ll find:

  • Bumper-to-bumper: A bumper-to-bumper warranty is most similar to the manufacturer’s new vehicle warranty and covers any part except for a list of exclusions. Because of this, it’s also known as an exclusionary warranty.
  • Mid-tier: These plans protect most major components such as the air conditioning and electrical systems, but they aren’t as comprehensive as bumper-to-bumper plans. They only cover exactly what’s written in the contract and are called stated-component coverage.
  • Powertrain: A powertrain warranty covers the most essential systems the car needs to function, including the engine, transmission, and related components. These are also stated-component contracts.

Just because you have a used car doesn’t mean you need to get a mid-level or powertrain warranty. You may be able to get a bumper-to-bumper plan depending on the age and mileage of your vehicle. 

For example, our team received bumper-to-bumper quotes for a 2017 Honda CR-V in 2023. In other words, the car was six years old and we could still get factory-level coverage for it. The car did have 45,000 miles on the odometer, which was low. If it had more miles, it might not have been eligible for bumper-to-bumper coverage.

What Is The Best Used Car Warranty Plan?

The best warranty plan depends on your situation. A bumper-to-bumper contract covers the most parts, so it may be the best option if you want to make sure everything is covered. But if you have an older vehicle, you may want to save money and get a powertrain plan instead.

Exclusions

It’s important to note that warranties are intended to pay for repairs when car parts fail or break as a result of normal use. This means a used car warranty doesn’t pay for damages resulting from an accident or improper maintenance. Providers generally exclude damage that would be covered under car insurance or normal wear-and-tear parts such as brake pads, wiper blades, and tires. Vehicle protection plans don’t cover any of the following:

  • Regular maintenance
  • Unauthorized vehicle repairs
  • Repairs that upgrade the car
  • Aftermarket parts
  • Cosmetic items such as paint, glass, and fabric
  • Parts covered by the car’s manufacturer

Added Benefits To Look For

Most extended warranty plans also come with extra benefits beyond the repair contract. These usually include roadside assistance, rental car coverage, and trip interruption. In most cases, you’ll need to cover these costs yourself and then submit receipts for reimbursement.

  • Roadside assistance: This covers towing, fuel delivery, lockout assistance, spare tire change, jump-starts, and more up to a set amount depending on the company.
  • Rental car coverage: This covers rental car costs while your car is in the shop after a covered repair. Plans limit coverage to an amount per day and a maximum number of days. 
  • Trip interruption: This covers food and lodging costs if your car breaks down away from home (over 50 or 100 miles depending on the company). It covers up to a certain limit per day and total per occurrence. 

In our experience, most companies offer the three benefits above on mid-tier and bumper-to-bumper contracts. Some offer all three with powertrain plans, while other companies may offer just roadside assistance. You may come across a plan that doesn’t offer any benefits besides stated repair coverage, as well.

How Much Does A Used Car Warranty Cost?

A four-year bumper-to-bumper warranty can cost anywhere from $1,500 to $4,500 depending on the provider. Some warranty providers require you to pay the entire cost up front, while others allow you to make monthly payments of about $100 to $200 per month. In addition to your monthly payment, some companies require down payments of up to $300, depending on the warranty plan.

In our industry cost analysis, we found the total average cost of an extended warranty to be $2,345. We also found the average monthly payment is $93. Looked at another way, drivers pay about $638 per year of warranty coverage on average. However, these prices can vary greatly depending on your vehicle and the plan you select.

In the sections below, we’ll provide sample quotes for each of our top used car warranty picks.

Our Car Warranty Survey

Our research team recently polled 1,000 consumers who have purchased or considered purchasing extended car warranties. We also found in our survey that cost is the most important factor to consumers contemplating buying extended warranties. The length of the warranty and covered components ranked similarly for importance among potential customers.

 Here are some of the takeaways:

  • Satisfaction: Over 41 percent of respondents said they were satisfied with their extended warranty because it covered needed repairs. Nearly 24 percent said they were satisfied with their provider despite never filing a claim.
  • Value: Our survey found that 40.5 percent of those polled thought buying an extended warranty was worth it, and 44.6 percent said “it depends.” That leaves 14.9 percent of consumers who felt an extended warranty isn’t worth the investment. 

Compare Top Used Car Warranty Companies

The best used car warranty companies offer several coverage options, affordable pricing, and a good customer experience. See how the top used car warranty providers compare in the table below:

Best Used Car Warranty CompaniesAwardOur RatingCoverage Levels
#1 CARCHEXBest for Used Cars4.45
#2 EnduranceBest Coverage4.66
#3 ForeverCarBest Value4.54
#4 OliveBest Online Warranty4.53
#5 CarShieldBest Monthly Payments4.56
#6 Protect My CarBest Customer Experience4.43
#7 Omega Auto Care4.43

*All of our top picks offer 30-day money-back guarantees.

7 Best Used Car Warranties

Below, we take a detailed look at each company’s reputation, coverage, and cost.

#1 CARCHEX: Best For Used Cars

CARCHEX received an A+ rating from the Better Business Bureau (BBB) and has been in business since 1999. CARCHEX partners with experts such as Edmunds.com and Kelley Blue Book. With coverage for vehicles with up to 250,000 miles, CARCHEX is one of the best choices among used car warranty companies.

CARCHEX Pros And Cons

Pros Respected company with a long history Most plans come with added benefits Affordable coverage 30-day money-back guarantee
Cons Service varies by administrator Limited luxury vehicle coverage $50 cancellation fee

CARCHEX Plans

Maximum mileage covered: 250,000

CARCHEX works with highly rated administrators such as American Auto Shield to offer various plan options. There are five extended warranty plans available with CARCHEX:

  • Titanium: Exclusionary protection similar to a bumper-to-bumper factory warranty
  • Platinum: The highest level of stated-component coverage
  • Gold: Protection for all major systems and a good choice for vehicles with over 90,000 miles
  • Silver: Enhanced powertrain coverage for major components
  • Bronze: Basic powertrain coverage for high-mileage vehicles

CARCHEX Extras

Here are the extra benefits CARCHEX offers: 

  • Roadside assistance: Yes
  • Towing: Yes
  • Rental car coverage: Yes
  • Trip interruption: Yes

CARCHEX Cost

Average cost per year of coverage: $646

In our experience, CARCHEX offers affordable plans that can cover a long period of time and mileage. The average cost of a CARCHEX warranty is about $646 per year of coverage, which is more affordable than many other companies. CARCHEX plans don’t require an additional down payment – coverage starts with your first month’s standard payment.

TypePlan NameTermMonthly CostTotal Cost
ExclusionaryTitanium6 years/125,000 miles$182 for 18 months$3,281
Mid-levelPlatinum6 years/100,000 miles$212 for 18 months$3,824
PowertrainBronze5 years/100,000 miles$177 for 18 months$3,191

*These quotes have a $100 deductible and apply to a 2017 CR-V with 45,000 miles.

When we called for quotes, the agents were helpful and walked our team through all the options. CARCHEX doesn’t advertise discounts online, but we were offered a few discounts:

  • First-time buyer discount
  • Military discount
  • Friends and family discount

Learn more in our CARCHEX review.

#2 Endurance: Best Coverage

Endurance stands out for its comprehensive coverage options. You can choose between five standard warranty plans or a sixth plan that covers regular maintenance items as well. Endurance is also a direct warranty provider, which means it handles the claims process itself. (Other providers on our list are brokers and use third-party claims administrators.)

Endurance Warranty Pros And Cons

Pros Many coverage options Can cover regular maintenance items Direct warranty provider 4.0-star Trustpilot customer rating
Cons Not rated on the BBB Some perks are only free for one year

Endurance Warranty Coverage Plans

Maximum mileage covered: 200,000+

Endurance offers used car extended warranty plans in 49 states, excluding California. An Endurance extended car warranty covers 200,000+ miles, and you have access to six plans with varying levels of coverage:

  • Supreme: Bumper-to-bumper exclusionary warranty that covers most components of your car
  • Superior: Stated-component coverage for hundreds of parts
  • Secure Plus: Enhanced powertrain plan that covers steering, electrical, and braking systems
  • Secure: Most affordable plan focused on protecting essential components
  • Select Premier: Protection for high-mileage vehicles
  • EnduranceAdvantage™: Covers mechanical breakdowns plus maintenance such as oil changes and engine diagnostics

Endurance Highline Add-On

Endurance’s Highline add-on (for the Supreme plan) covers a variety of luxury and performance models. You can get coverage for most Mercedes AMG models, BMW M and 8 models, Porsche, Audi, and more.

Endurance Extras

Endurance offers the standard extras below: 

  • Roadside assistance: Yes
  • Towing: Yes
  • Rental car coverage: Yes
  • Trip interruption: Yes

Every Endurance auto warranty comes with 24/7 roadside assistance, rental car reimbursement, trip interruption coverage, and towing. Plans also come with one free year of Endurance Elite Benefits. This includes perks such as:

  • Tire repair or replacement
  • Key fob repair or replacement
  • Collision discount
  • Total loss protection

Learn more about the provider in our complete Endurance warranty review.

Endurance Cost

Average cost per year of coverage: $685

Like CARCHEX, Endurance offers fairly affordable plans considering the time and mileage covered. The Endurance quotes below require a larger down payment of between $150 and $300. However, Endurance agents offered to waive the down payment if we signed up for coverage on the same day. 

TypePlan NameTermMonthly CostTotal Cost
ExclusionarySupreme5 years/100,000 miles$114 for 30 months$3,420
Mid-levelSuperior5 years/100,000 miles$134 for 24 months$3,224
PowertrainSecure5 years/54,000 miles$133 for 24 months$3,199

*These quotes have a $100 deductible and apply to a 2017 CR-V with 45,000 miles.

#3 ForeverCar: Best Value

ForeverCar has great ratings across review sites. On Trustpilot, the company scores 4.8 stars out of 5.0 from over 4,700 reviews. On the BBB, ForeverCar has an A+ rating and accreditation. While it has a lower customer rating of 1.5 stars on the BBB, that score is the average of fewer than 10 reviews.

Founded in 2011, ForeverCar is another newer used car warranty company. ForeverCar offers short and medium-length contracts with no mileage restrictions. By offering shorter contracts, it can keep prices low.

ForeverCar Pros And Cons

Pros Direct payment to repair facilities Unlimited mileage contracts High customer review scores
Cons Three-year maximum for plans No coverage for vehicles over 150,000 miles Doesn't cover vehicles older than 2010

ForeverCar Plans

Maximum mileage covered: Unlimited

ForeverCar customers have four plans to choose from. Each plan comes with unlimited mileage but is limited to three years. That means you’d have to purchase a second plan if you want to cover your car beyond three years. Like many other providers, ForeverCar includes roadside assistance, rental car reimbursement, and trip interruption coverage with its used car warranties.

  • Platinum Plus: Comprehensive coverage plus coverage for some wear items such as brake pads and headlights
  • Platinum: Comprehensive coverage for mechanical breakdowns
  • Gold: Mid-level plan for major systems including some high-tech parts
  • Silver: Covers the powertrain plus some other important systems such as steering and suspension

ForeverCar Extras

ForeverCar offers all standard extras: 

  • Roadside assistance: Yes
  • Towing: Yes
  • Rental car coverage: Yes
  • Trip interruption: Yes

ForeverCar Cost

Average cost per year of coverage: $700

If you want a shorter used car warranty, ForeverCar is a great option to check out. Instead of paying over $3,000 for a long plan, you can find three-year plans from ForeverCar for under $2,000 total. Monthly payments are about $50 according to the quotes we received, which makes ForeverCar a good option for budget-conscious drivers.

TypePlan NameTermMonthly CostTotal Cost
ExclusionaryPlatinum3 years/unlimited miles$53 for 36 months$1,890
Mid-levelGold3 years/unlimited miles$50 for 36 months$1,798
PowertrainSilver3 years/unlimited miles$48 for 36 months$1,744

*These quotes have a $250 deductible and apply to a 2017 CR-V with 45,000 miles.

Learn more in our full ForeverCar review.

#4 Olive: Best Online Warranty

Olive is a digital used car warranty company that allows customers to buy and manage their warranties entirely online. The company was founded in 2020 and the owners have been in the car warranty business since 2000. Repair Ventures, LLC, which owns the Olive trademark, has an A+ rating from the BBB. 

Customers are pleased with the easy signup process and low costs. We named Olive Best Online Warranty for 2023.

Olive Pros And Cons

Pros RepairPal Certified shops partner Low monthly payments and overall cost No waiting period or inspection required
Cons Only three years of coverage at a time No coverage for rideshare vehicles

Olive Car Warranty Coverage Plans

Maximum mileage covered: 185,000

Olive offers three levels of coverage. Contracts are only available for three-year periods but cover vehicles with up to 185,000 miles. All plans include a towing benefit and rental car reimbursement. While Olive warranties are shorter than most, they cover high-mileage vehicles and can be less expensive than many competitor options.

  • Complete Care: A bumper-to-bumper warranty that covers most vehicle components minus a short list of exclusions
  • Powertrain Plus: Covers powertrain components and a few other critical systems such as steering, suspension, air conditioning, and electrical parts
  • Powertrain: Basic powertrain coverage for the engine, transmission, drive axle, and fuel system.

Olive Extras

Olive’s plans only come with a couple of additional benefits: 

  • Roadside assistance: No
  • Towing: Yes
  • Rental car coverage: Yes
  • Trip interruption: No

Olive Cost

Average cost per year of coverage: $317

While Olive doesn’t offer roadside assistance or trip interruption, it makes up for that with affordability. We found Olive plans cost about $317 per year of coverage if you choose a high deductible. The quotes we received came with a $500 deductible, meaning the plan kicks in if a covered breakdown costs more than $500. If you choose a lower deductible, you may find more expensive quotes from Olive.

TypePlan NameTermMonthly CostTotal Cost
ExclusionaryComplete Care3 years/unlimited miles$26 for 36 months$929
Mid-levelPowertrain Plus3 years/unlimited miles$25 for 36 months$899
PowertrainPowertrain3 years/unlimited miles$25 for 36 months$899

*These quotes have a $500 deductible and apply to a 2017 CR-V with 45,000 miles.

Read our full Olive warranty review to learn more.

#5 CarShield: Best Monthly Payments

CarShield has a 4.0-star rating on Trustpilot from over 34,000 customers. The most popular used car warranty company, CarShield is known for comprehensive coverage and flexible contracts. It’s the only provider to offer month-to-month plans, which gives drivers more options than signing a contract for a three- or five-year warranty.

CarShield Pros And Cons

Pros 24/7 emergency roadside assistance Contracts available for high-tech car features and ATVs Coverage vehicles with up to 300,000 miles on the odometer
Cons Negative reviews from customers Not all contracts are transferable

CarShield Coverage Plans

Maximum mileage covered: 300,000

CarShield offers six plans ranging from basic component coverage to comprehensive coverage for the whole car. All CarShield plans come with roadside assistance, rental car reimbursement, and trip interruption coverage. Take a look at Carshield’s used car warranty plan details described in the table below:

  • Diamond: Bumper-to-bumper warranty offering comprehensive coverage
  • Platinum: Stated-component plan that covers the engine, transmission, electrical system, air conditioning, and more
  • Gold: Mid-level plan covering a variety of essential systems
  • Silver: Basic powertrain coverage for your engine, transmission, and drivetrain
  • Aluminum: Coverage for high-tech electronics

CarShield Extras

CarShield offers the full suite of extras: 

  • Roadside assistance: Yes
  • Towing: Yes
  • Rental car coverage: Yes
  • Trip interruption: Yes

One unique feature of CarShield is that its rental car coverage also covers rideshare services up to a specific limit. So, instead of renting a car, you could use Uber or Lyft to get to work and receive some reimbursement.

CarShield Cost

Average cost per year of coverage: $1,580

CarShield is a bit different from other companies because it offers unlimited contracts. The company charges a cost per month that lasts however long you have the contract. You could have coverage for as little as a few months or for many years as long as your car is eligible. 

With a powertrain Silver plan of $110 per month, you’d pay $1,320 for one year or $5,280 for four years. CarShield offers multiple deductible options. You’ll get a lower price if you choose a higher deductible.

TypePlan NameTermMonthly CostTotal Cost
ExclusionaryDiamondUnlimited$140Varies
Mid-levelPlatinumUnlimited$120Varies
PowertrainSilverUnlimited$110Varies

*These quotes have a $100 deductible and apply to a 2017 CR-V with 45,000 miles.

See more about the provider in our CarShield review.

#6 Protect My Car: Best Customer Experience

Protect My Car has been in business since 2005 and has a solid industry reputation. The company stands out for its positive customer reviews, with a 4.4-star rating from over 3,300 reviewers on Trustpilot and a 4.1-star rating from over 600 reviews on the BBB. It’s known for having a smooth claims process and helpful customer service representatives.

Protect My Car Pros And Cons

Pros Plans cover vehicles of all ages Offers repayment terms up to 48 months Benefits include tire rotation and oil changes
Cons Only available in select states Low mileage limits on regular plans

Protect My Car Coverage Plans

Maximum mileage covered: 200,000+

Protect My Car offers three extended warranty options that can cover your vehicle for up to 125,000 miles. It offers a range of mid-tier coverage plans rather than the most basic powertrain plans or comprehensive bumper-to-bumper warranties. These plans cover specific repairs after your deductible. 

  • Supreme: Coverage for most vehicle systems
  • Select: Coverage for major vehicle systems and a good choice for vehicles with over 50,000 miles
  • Driveline: Enhanced powertrain coverage for essential systems

Protect My Car Extras

Protect My Car 

  • Roadside assistance: Yes
  • Towing: Yes
  • Rental car coverage: Yes
  • Trip interruption: Yes

Protect My Car Cost

Average cost per year of coverage: $1,365

Protect My Car generally costs a bit more than some other providers, but it can still be a good option depending on your situation. The quotes we received offered extended coverage up to 75,000 miles with no time limit. When we interacted with Protect My Car’s team, we found the agents to be helpful and to offer quick service.

TypePlan NameTermMonthly CostTotal Cost
ExclusionarySupremeUp to 75,000 miles$108 for 48 months$5,184
Mid-levelSelectUp to 75,000 miles$98 for 48 months$4,704
PowertrainDrivelineUp to 175,000 miles$133 for 36 months$4,788

*The Supreme and Select plans apply to a 2017 Honda CR-V with 45,000 miles and the Driveline plan applies to a 2013 Toyota Camry with 80,000 miles.


Read more in our Protect My Car review.

#7 Omega Auto Care

Omega Auto Care has been in business since 1968 and has offered vehicle service contracts for nearly two decades. The company has an A+ rating from the BBB and a 4.2-star rating from customers on the site, which is high for the extended warranty industry. Omega Auto Care also has a 3.8-star rating from over 1,000 reviews on Trustpilot.

Omega Auto Care Pros And Cons

Omega Auto Care Pros & Cons

Pros Covers up to 250,000 miles Positive customer reviews Offers maintenance coverage add-on
Cons Only three coverage options Only one deductible option

Omega Auto Care Plans

Maximum mileage covered: 250,000

Omega Auto Care offers three extended warranty options. While other companies may offer more plans, Omega Auto Care offers some good extra benefits and upgrades. Plus, the company can cover vehicles up to 250,000 miles, which means many vehicles are eligible for coverage. Here are Omega’s three plans: 

  • New Exclusionary: This covers almost all breakdowns except for a list of exclusions. It’s available for vehicles with fewer than 100,000 miles and that are up to 7 years old.
  • Used Stated Coverage: This mid-tier plan covers many important systems and is available for vehicles up to 10 years old with fewer than 150,000 miles. 
  • Powertrain Protection: This basic powertrain plan covers the most crucial systems and is available for vehicles up to 15 years old with less than 250,000 miles. The plan also offers two coverage upgrades to protect a few additional systems.

Omega Auto Care Extras

Omega Auto Care provides the following benefits with each plan:

  • Roadside assistance: Yes
  • Towing: Yes
  • Rental car coverage: Yes
  • Trip interruption: Yes

In addition to these benefits, you can add maintenance coverage and tire hazard protection.

  • Maintenance add-on: This covers oil changes, brake pads, brake shoes, battery replacement, cooling system maintenance, and a free safety inspection. Limits are outlined in the contract.
  • Tire hazard protection add-on: This covers tire repair up to $20 per tire and tire replacement up to $100 per tire. Only non-repairable tires are eligible for replacement.

Omega Auto Care Cost

Average cost per year of coverage: $583

Omega Auto Care is another affordable extended warranty company. According to quotes we received, a year of coverage costs about $583 per year on average. However, with 24-month payment terms, monthly payments are about $120. Omega Auto Care also only provided one deductible option of $100 to our secret shoppers. 

One unique feature of Omega Auto Care is that the company will waive your deductible if you go to a mechanic certified by RepairPal. To find one, you can contact Omega Auto Care or use RepairPal’s website.

TypePlan NameTermMonthly CostTotal Cost
ExclusionaryNew Exclusionary5 years/100,000 miles$125 for 24 months$3,000
Mid-levelUsed Stated Coverage5 years/106,000 miles$121 for 24 months$2,904
PowertrainPowertrain Enhanced Protection5 years/96,000 miles$118 for 24 months$2,832

*These quotes have a $100 deductible and apply to a 2017 CR-V with 45,000 miles. The deductible is $0 if the repair is performed by a RepairPal-certified mechanic.

Should I Buy An Extended Warranty On A Used Car?

Whether you should get an extended warranty on a used car depends on your needs and your budget. Some drivers may prefer to pay for car repairs as they arise, while others may not be able to afford unexpected expenses out of pocket.

If your car doesn’t experience any major issues, you may spend more money on the extended warranty than on auto repairs. However, if you purchase a used car no longer protected under the car’s original factory warranty, an extended car warranty can offer peace of mind and offset repair costs. 

Are Used Car Warranties Worth It?

To determine whether a used car warranty is worth it, research common issues for your car’s make and model (and the associated repair costs) when warranty shopping. You can use resources like RepairPal.com or Edmunds.com to estimate what you’d pay in repair costs over the next few years. If these costs exceed what you feel comfortable spending on your vehicle, an affordable monthly payment for a used car warranty could be a good option.

Pros And Cons Of Extended Warranties On Used Cars

Below we discuss several reasons an extended warranty may or may not be worth it for you:

Used Car Warranty Pros

Below are good reasons to consider purchasing a used car warranty:

  1. You don’t have to pay for costly repairs out of pocket. There is always the possibility that your car could suddenly require an expensive repair. The chances of a breakdown only increases as your vehicle ages. If you aren’t able to pay a $1,000 or $2,000 repair bill out of pocket, a reputable used car extended warranty provider will foot covered repair bills on your behalf, excluding a small deductible. Most extended warranties will even cover the cost of towing your car to a repair shop, as well as roadside assistance and rental car reimbursement.
  2. You get peace of mind on the road. With an extended warranty, you can anticipate that the cost of your warranty minus your deductible is all that you will have to pay to keep your car on the road. In this way, a warranty acts as a sort of insurance for car repairs, protecting you against bank-breaking bills. For some car owners, extended warranties on used cars are worth the extra money just to have that security.
  3. You can keep your used car for many years knowing it is protected. If you love your used car and want to keep it for many years, an extended warranty will help you do that by covering repair costs that might otherwise encourage you to sell your vehicle. The sooner you purchase an extended warranty, the sooner you can lock in a low rate.

Used Car Warranty Cons

Below are reasons why to consider abstaining from purchasing an extended warranty if your expenses are tight:

  1. Extended warranties don’t cover everything. An extended warranty is not a promise to pay for every repair that your car may need. After your car breaks down, you will need approval from your claims administrator before repairs are made. Your claim could be denied if your contract doesn’t cover the part or breakdown, so make sure to read any contract carefully before signing up for coverage.
  2. They can be expensive if you don’t end up using the coverage. If you have thousands of dollars in savings that you could use to cover car repairs, it is probably not worth it to purchase an extended warranty for your used car. While it would still be unfortunate to foot a $1,000 to $3,000 repair bill, you could potentially save more money in the long term by not purchasing an extended warranty for a used car.
  3. You may not keep your used car for very long. If you plan to purchase a different car in the near future, then purchasing an extended warranty for your used car may not be worth it because there is a good chance that you will not use the warranty. Most extended warranties are transferable and can make your car more appealing to potential.

Buying A Used Car Warranty

The used car warranty market can be overwhelming to consumers, with hundreds of providers and plans available, varying payment and claim structures, and confusing fine print. Before contacting used car warranty companies for quotes, it’s important to understand the landscape and reflect on your needs.

How To Buy A Warranty For A Used Car

Along with big-picture questions such as the level of vehicle protection you want and how much you’re willing to pay, here’s a short list of questions to ask during your search:

  • Is the used car warranty company known for reliable and fast customer service?
  • Does the company have high ratings from expert sources?
  • What are consumers saying in online reviews?
  • Can you file claims on the weekend?
  • How many years has the company been in business?
  • Do the customer service representatives seem more eager to make a sale than meet your needs?
  • Are warranty plans transferable?
  • Are there restrictions, limitations, or inconveniences outlined in the fine print of the provider’s contracts?

What To Look For In Used Car Warranty Companies

From warranty plans to what customers have to say, there’s a lot to consider when comparing used car warranty companies.The best extended car warranty companies for used car owners are known for reliably paying out claims on repairs and parts that are under contract. For this reason, buying from the most dependable used car warranty companies can help you get the best value out of a plan.

If you are thinking about purchasing a used car warranty, here are some tips that can help you identify the right provider:

    • Reputation: The used car warranty company’s reputation is key. Much of your satisfaction with the warranty plan will depend on how helpful customer service representatives are throughout the entire process, from choosing your plan to submitting a claim.
    • Industry reviews: Trusted review websites, such as the BBB and Trustpilot, can provide insight into customers’ experiences and help you find the best used car warranty.
    • Transparency: Make sure you can locate sample contracts on the company’s website easily. Also, see if there is a 30-day money-back guarantee.
    • Coverage terms: Consider how much longer you plan to keep the vehicle, what parts you need to have covered, and what it would cost to cancel or transfer coverage.
    • Price: The used car warranty company should be able to provide a coverage level at a price you’re comfortable with, and the plan should be as flexible as possible, with $0 deductible options and your choice of repair shop.

Best Extended Warranty For Used Cars: Conclusion

In this piece we rated the top 7 used car warranty companies based on the following criteria: industry standing, coverage, cost, transparency, and customer service. 

Based on that criteria, we determined CARCHEX is the best used car warranty company. 

Best Used Car Warranty: FAQ

Below are several common frequently asked questions regarding used car warranty companies:

*Data accurate at time of publication.