Make an informed decision on an extended car warranty using our helpful guide


Every year, millions of people consider the pros and cons of extended car warranties. According to IBISWorld, almost 18 billion dollars last year in the United States was spent on extended car warranties.

The decision to purchase an extended car warranty is an important one, so it’s wise to review the pros and cons of owning an extended car warranty first.

When shopping for extended warranties, the best thing to do is call around and get quotes customized to your specific vehicle. That way, you can compare each company’s prices and get a feel for customer service. Get free quotes from our top three providers below:


We’ll help you make an informed decision by providing the top pros and cons of extended car warranties below.

In this Article:


There are more pros than cons to buying an extended warranty if you can’t afford costly repairs and you want to keep your car for several more years. If you’re in such a situation, consider contacting Endurance for a free, customized quote. You can reach the company at 877-374-1840.

There are more cons than pros to buying an extended warranty if you’re able to afford costly repairs and you plan to purchase a different car in the next several years.



car repair costsPros of Extended Car Warranties

Pro: Save a significant amount of money on costly repairs

While the reliability of automobiles has improved over time, they are still very expensive to maintain. According to AAA, even new vehicle owners spend about $1,186 yearly to maintain and repair their vehicle. 

For example, a common timing belt replacement can cost up to $900 according to Angie’s List. In addition, a broken timing belt replacement may cost up to $2,000 or more if it causes damage to a vehicle’s pistons, water pump, or valves. 

If you own an extended car warranty from a reputable provider such as CARCHEX, you would pay a relatively small deductible when your timing belt needs replacement, ranging from $0 to $100.

Pro: Keep your vehicle instead of feeling pressure to sell it

If your car needs a costly repair in order to be safely driven, you may feel that it’s necessary to sell your vehicle, even if you would love to keep it.

According to AAA, one out of three U.S. consumers cannot afford an unexpected car repair bill between $500 to $600.

If you would like to keep your vehicle and cannot afford a costly repair but could afford a monthly car warranty payment, then buying an extended car warranty is a smart decision.

Pro: Customize protection

Car warranty providers often allow you to make a partial or fully customizable plan depending on your needs. For example, modern vehicles come with complex technological systems, and it is common for these technological systems to fail or need repair.

For an automobile owner who can’t live without their Bluetooth or navigation system functioning correctly, purchasing an extended warranty for their vehicle’s technological systems makes sense.



Cons of Extended Car Warranties

Con: It’s not always worth it financially

Though extended car warranties can save you significant amounts of money for expensive repairs, they can sometimes cost you more money in the long-term.

If you’re paying $60 a month for an extended car warranty, that is $720 a year out of your pocket. In addition, there is often a deductible whenever you make a claim for warranty coverage.

For someone with a very reliable vehicle who can afford a costly repair, an extended car warranty may not be worth it.

Con: You may feel tied down to your current vehicle

If you invest in an extended car warranty for years, you may feel hesitant to purchase a different vehicle because of the additional money invested in your vehicle.

For automobile owners without an extended car warranty, purchasing a different vehicle may be an easier decision. 

Con: Extended warranty plans don’t cover everything

Some consumers buy an extended warranty plan without reading the details of the plan and are caught off-guard when a needed repair is not covered by their extended car warranty.

Reputable warranty providers will provide you a transparent list of exclusions on their policy. It is wise to read that list carefully before purchasing an extended car warranty.



Our Recommendations for Extended Car Warranties

We recommend that you shop around for the best coverage for your car from top auto warranty providers like our recommended providers below.

Use the tool below to get free quotes from our top three picks:


Best Coverage: Endurance

Endurance offers direct-to-consumer extended warranties, which means that warranty services and claims are handled directly by Endurance.

With Endurance, you don’t have to worry about a middleman or underwritten provider, and Endurance is also known for its excellent customer service during the quote and claims process.


Additionally, Endurance warranty plans allow car owners to choose from any repair shop certified by Automotive Service Excellence (ASE) to complete the covered repairs.

Best Service: CARCHEX

If after reviewing our pros and cons you’ve decided to purchase an extended car warranty, we recommend reaching out to CARCHEX for a free, customized quote by calling 877-253-0058 or filling out this form.

CARCHEX maintains an A+ rating and accreditation from the BBB, and it has received endorsements from industry leaders like CARFAX, Kelley Blue Book, and Our review team gave the company a 5 star rating.


CARCHEX offers a total of five extended warranty plans, each of which can be customized. All plans include 24/7 emergency roadside assistance, gas delivery, trip interruption services, and lockout services.

Having trouble deciding between Endurance and CARCHEX? Read our Endurance vs. CARCHEX review.



Frequently Asked Questions

Are car extended warranties worth it?

It depends on your individual situation. To learn more, we recommend reading our article on whether extended car warranties are worth it.

What is a good price for an extended car warranty?

There are many different factors that determine the cost of an extended vehicle warranty, including the age and mileage of your vehicle. We think that CARCHEX and Endurance both provide strong service at a reasonable cost for consumers.

Who has the best extended car warranty?

We recommend Endurance as our Best Overall Provider because of its excellent coverage, reviews, and direct services. However, if you’re looking for top-notch customer care, our review team found that CARCHEX is also a great choice.

Read our guides to other warranty providers: