Whether your factory warranty is expiring or you are about to purchase a new Toyota, you might be wondering if the Toyota extended warranty cost is justified. The question really lies in whether you want to handle each repair as it happens or you want more financial security.
This review takes a close look at Toyota vehicle service agreements and third-party warranty companies to determine what will meet your needs. If you’re looking for options at a reasonable price, you’ll usually find a more customizable and affordable deal from one of the best extended auto warranty providers.
Toyota Extended Warranty Cost
There are a lot of factors that go into determining the price of a Toyota extended warranty. First, the cost will depend on where you get the warranty. You can choose to purchase protection from the Toyota dealership when you buy your car or use a third-party provider instead.
Estimates suggest that a Toyota extended warranty will cost between $1,000 and $1,500 when purchased from the dealer. This price generally gets wrapped up in your financing, so you end up paying interest on it.
With a third-party provider, the absence of interest will help to lower your cost. On top of that, the most significant benefit you have with third-party providers is the option to comparison shop. After all, Toyota isn’t going to offer you vehicle service agreements from other warranty administrators.
The reality is that the cost of a Toyota extended warranty isn’t enormous. You can get comprehensive coverage for a fraction of what you may have thought. In 2018, CARCHEX estimated that the average cost of coverage for a 2007 to 2014 Toyota was only $56 a month. That’s not just affordable, but it also allows you complete peace of mind.
When you shop for a third-party extended auto warranty, keep in mind that these factors will affect the price:
- Toyota model
- Year of your Toyota vehicle
- Coverage level selected
- Amount of deductible
- Condition of your car
Toyota Extended Warranty Coverage
When you purchase a new or used car from the dealership, you are eligible for Toyota’s vehicle service agreements. Toyota offers three levels of coverage for you to choose from: Platinum, Gold, or Powertrain protection.
You will have to use the Toyota dealer for all repairs, just like you do with the factory warranty. Deductibles are $100 per repair visit, with a disappearing deductible if repairs are made at the dealership that originally sold the service agreement. In addition, the extended warranty plan comes with 24/7 roadside assistance, travel protection, and a one-time warranty transfer.
|Maximum coverage||10 years / 125,000 miles||8 years / 125,000 miles||6 years / 100,000 miles|
|Computer and electronics||✔||✔|
Toyota Factory Warranty
When deciding if an extended warranty is worth it, you should consider your factory warranty coverage as well as common repair costs. Toyota’s factory warranty includes the following coverage:
- Basic coverage (3 years/36,000 miles): This comprehensive warranty covers all components except for a short list of exclusions. Regular wear-and-tear items and routine maintenance are not covered.
- Powertrain coverage (5 years/60,000 miles): This warranty covers the transmission, engine, air bags, seat belts, and front- and rear-wheel drive systems.
- Rust-through coverage (5 years/unlimited miles): You are covered for any corrosion that perforates the sheet metal from the inside.
- Emission coverage: Emission coverage varies under federal and California regulations.
- Hybrid battery warranty (10 years/150,000 miles): Starting with 2020 model vehicles, the hybrid battery is protected for longer than in previous years.
If you purchase a certified pre-owned Toyota, there are some additional coverage plans you should know about:
- Limited comprehensive warranty (1 year/12,000 miles): This plan comes with every Toyota certified used vehicle, including hybrid models, from the date of used vehicle purchase.
- Limited powertrain warranty (7 years/100,000 miles): You are covered for major engine components, transmission components, and all internally lubricated parts from the date of used vehicle purchase.
- Factory hybrid vehicle battery warranty (8 years/100,000 miles): All certified used hybrid vehicles still under the original factory battery warranty receive this coverage by transfer.
If you’re purchasing a vehicle, you should consider whether the Toyota extended warranty cost is worth it long before the factory and certified pre-owned warranties expire. But should you wish to purchase an extended warranty down the road, that is an option too when you use a third-party provider.
Toyota Repair Costs
What’s interesting about Toyota vehicles is that they are rated to be extremely durable. The J.D. Power 2021 U.S. Vehicle Dependability StudySM lists the brand as the fourth most reliable, behind Lexus (which is a division of Toyota), Porsche, and Kia. Still, vehicles break down, often without any warning.
RepairPal lists some of the costs associated with common Toyota repairs and services:
Common Toyota Repair Costs
|Toyota Celica||Anti-Lock Brake System Inspection||$88 to $111|
|Toyota Tercel||Oxygen Sensor Replacement||$294 to $503|
|Toyota Echo||Brake Booster Replacement||$1,063 to $1,128|
|Toyota Tundra||Drive Belt Idler Pulley Replacement||$187 to 221|
While one of these costs might not drain your bank account, it’s possible that Murphy’s Law will go into effect as soon as one thing breaks. With mounting repair bills, you may quickly find yourself strapped for cash. Don’t forget that the major components cost much more than what is shown above. If you need a new engine or transmission, you might start scrambling just to get back on the road.
With the breadth of available vehicle service contracts, there’s no reason to put yourself in this position. Repairs don’t need to dictate your life when you can actually save money by making a monthly payment toward your Toyota extended warranty cost. Then, when something breaks, you won’t have to put out any money other than your agreed-upon deductible.
Drivers of new Toyotas can receive the same benefits as those who just purchased used or certified pre-owned models in many cases.
Dealer vs. Third-Party Extended Warranty Comparison
Instead of buying an extended warranty through Toyota, you also have the option to purchase vehicle protection through a third-party extended warranty provider. These plans offer very similar coverage to the Toyota extended warranty but often cover high-mileage cars that are not covered by Toyota. These extended warranties can be purchased at any point in time.
Third-party extended auto warranties also generally include additional perks such as roadside assistance, towing, and rental car reimbursement. Third-party vehicle protection plans also let you choose your own repair shop instead of having to go through a Toyota dealership.
In reviewing the industry’s best extended warranty brands, we found the most versatile options are offered by Endurance. The company’s customizable coverage options span six plans. You can choose comprehensive, bumper-to-bumper coverage or just opt for a powertrain plan, based on what your needs are.
|Toyota Extended Warranty||Endurance||CARCHEX||CarShield|
|Start Date||Upon expiration of factory warranty||Anytime||Anytime||Anytime|
|Max Length of Coverage||10 years/125,000 miles||8 years/200,000+ miles||10 years/250,000 miles||300,000 miles|
|# of Plan Options||3||6||5 (16 contracts)||6|
|Deductible||$0 or $100||$0+||$0+||$0+|
|Repair Network||Toyota dealers only||Repair facilities certified by the National Institute for Automotive Service Excellence (ASE®)||> 30,000 facilities nationwide||ASE-Certified repair facilities|
|Cancellation Policy||Refund if within 30 days||Refund if within 30 days||Refund if within 30 days||Refund if within 30 days|
|Availability||From local dealer||Free, instant quote||Free, instant quote||Free, instant quote|
|Contact your Toyota Dealer for Pricing|
Frequently Asked Questions
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of extended auto warranty companies to formulate rankings of the best providers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Warranty providers with a history of strong business practices and endorsements from experts receive the highest scores in this category.
- 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 sample quotes for a variety of plans and vehicles. Companies with lower prices per year of coverage receive the best scores.
- Transparency: This score takes into account contract transparency and the availability of a money-back guarantee.
- 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.