You know you should protect your Toyota, but it’s important to understand what you’re getting when you purchase extended coverage.
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.
In this article:
- What Are Extended Car Warranties?
- How Much Does A Toyota Extended Warranty Cost?
- Common Toyota Repair Costs
- Toyota’s Factory Warranty
- Toyota’s Extended Warranty
- Dealer vs. Third-Party Extended Warranty Comparison Table
Let’s take a closer look at extended protection plans from both Toyota 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 these third-party providers:
What Are Extended Car Warranties?
An extended warranty covers your vehicle once the original factory warranty from the dealer expires. This service contract is an agreement made between you and the provider that all repairs and replacement expenses will be covered. It’s similar to the factory warranty, with longer terms.
The most significant difference between the two is that your original warranty is given to you when the new vehicle is purchased. In comparison, you buy an extended warranty either at the time of the sale or add it later.
How Much Does A Toyota Extended Warranty Cost?
There are a lot of factors that go into determining the price of a Toyota extended warranty. First, it will depend on where you get the warranty from. You can choose to purchase protection from the Toyota dealer 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 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 also allows you complete peace of mind.
When you shop for a third-party extended 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
Common Toyota Repair Costs
What’s interesting about Toyota vehicles is that they are rated to be extremely durable. J.D. Power lists them as the second most reliable brand, right after Lexus (which is simply a division of Toyota). Still, vehicles break, often without any warning.
RepairPal lists some of the costs associated with common Toyota repairs and services:
Anti-Lock Brake System Inspection
$88 to $111
Oxygen Sensor Replacement
$294 to $503
Brake Booster Replacement
$1,063 to $1,128
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.
Toyota’s Factory Warranty
Before we go any further, it might help to review what’s included with a Toyota factory warranty. The automaker offers several ways to protect your vehicle:
- Basic Coverage (3 years/36,000 miles): This comprehensive warranty covers all components except for a short list of exclusions. Regular wear and tear and routine maintenance are not covered.
- Powertrain Coverage (5 years/60,000 miles): This warranty covers the transmission, engine, airbags, seatbelts, 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: 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 is available 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 these 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’s Extended Warranty
When you purchase a new or used vehicle from the dealer, you are eligible for Toyota’s extended coverage. These plans are also known as vehicle service agreements. Toyota provides three levels of coverage for you to choose from.
You can pick the Platinum, Gold, or Powertrain protection. You will have to use the Toyota dealer for all repairs, just like you did with the factory warranty. With these plans, you do get to choose the coverage terms. Toyota provides terms lasting from three to 10 years and 50,000 to 125,000 miles. In addition, the extended warranty plan comes with 24/7 roadside assistance, travel protection, and a one-time warranty transfer.
If you don’t want to continue using the Toyota dealer for repairs and you are hoping to find a lower price, then it is time to evaluate your options for third-party providers.
Dealer vs. Third-Party Extended Warranty Comparison Table
In reviewing the industry’s top extended warranty brands, we found the most versatile options are through CARCHEX. The company’s customizable coverage options span five tiered plans. You can choose comprehensive, bumper-to-bumper coverage or just opt for a powertrain warranty, based on what your needs are.
|Toyota Extended Warranty||CARCHEX Extended Warranty|
|Must purchase before factory warranty expires||any time|
|Max Years of Coverage||10||10|
|# of Plan Options||3||5 levels of coverage, with 16 plans|
$0 or $100
|Repair Network||Toyota Dealer Only||> 30,000 facilities nationwide|
|Cancellation Policy||$50 fee, prorated refund after 30 days||Refund if within 30 days|
|Availability||Must purchase from local dealer||Free, instant quote online|
|Contact your Toyota Dealer for Pricing||Get Quote|