Extended auto warranties help pay for mechanical breakdowns and other repair issues that aren’t from an accident or wear and tear. It’s an optional coverage you can use as needed. Most plans also include roadside assistance and rental car assistance or offer it for an extra fee.1
The cost of car repair parts has increased by more than 6% since 2021.2 With inflation still on the rise, budget-friendly extended warranties are one way to ensure you can afford expensive repairs.
But not every plan is the same or offers equal coverage. Let’s take a look at the cheapest warranty plans, coverage levels, and how to save money.
The best extended auto warranty depends on your car’s features, including age, make, model, and mileage. The following warranty companies have some of the best repair prices for budget-conscious drivers.
Cheapest plan cost: $113
Endurance is a top pick for drivers with older cars. The company extends warranty coverage options for vehicles up to 20 years old, which is more generous than most companies. You can also take advantage of unique sign-up perks, including a free year of Elite benefits and coverage transfers if you sell your car.
But the waiting period is longer than average. Even though most customer feedback is positive, some drivers on the Better Business Bureau (BBB) website find the claims process to be complicated and the communication from the company lacking.
Cheapest plan cost: $160
CARCHEX stands out with an impressive variety of coverage options. You can choose from five different plans, including powertrain components. Most companies offer only two or three component coverage options, so CARCHEX is a solid pick if you want more. If you want warranty prices from the company, you’ll need to talk to an agent over the phone.
The company is BBB-accredited and earns an A+ rating, but customer reviews are below average. Some car owners complain about insufficient repair cost payment from CARCHEX when filing a claim. You also won’t find a month-to-month option, so canceling the plan might be complicated.
Cheapest plan cost: $68
Olive is the best option if you want an entirely digital experience and no waiting period. You can get an online quote in less than two minutes — no phone calls, emails, or in-person visits necessary. Coverage starts the next day, so you don’t have to wait one month for protection.
But the vehicle age and mileage limits are lower than some other companies. Plus, you can set up coverage only for cars that are 10 model years old and with up to 140,000 miles.
Cheapest plan cost: $170
CarShield is a well-known company with an extensive list of protection plans and solid customer service. You can choose from seven options, much more than most companies offer. Every plan includes free roadside assistance, towing, and rental car reimbursement.
But not every plan is available for cars with more than 100,000 miles. You also can’t get a quote online, and most communication requires a phone call, which might be a dealbreaker for some drivers.
Cheapest plan cost: $112
With no mileage limit, Autopom! is the best option for high-mileage cars. The company earns solid customer reviews for reliability and a straightforward claims process. You can sign up for one of the company’s interest-free payment plans if you don’t want to pay up front.
But regardless of how you pay, you won’t get a full refund unless you cancel during the waiting period. You also have to call to get detailed information about coverage options and request a quote, so it’s more of a hassle if you prefer a digital sign-up process. Additionally, the company doesn’t offer month-to-month coverage and has only yearly plans.
Our editorial team analyzed national extended car warranty companies that sell vehicle service contracts to evaluate which offer the best coverage options, customer service, and accessibility. We prioritized plan customization, extra benefits, claims support, customer reviews, repair shop networks, and discounts for new customers.
Quotes were calculated using an Ohio address and a 2019 Nissan Altima with 65,000 miles. We chose the cheapest month-to-month or yearly plan offered.
Buying an extended warranty, or auto service contract, is only the first step. It’s essential to understand how it works so you can get repair help when you need it.
Here’s a step-by-step explanation of how your extended warranty works if something breaks.
Extended warranties usually cost between $1,000 and $4,000 per year. The good news is that you can take the following steps to lower the cost:3
Increase the deductible. The deductible is the amount you have to pay for a claim. When you have a higher deductible, the extended warranty is usually cheaper. But you’ll have to pay more out of pocket for any work.
Consider month-to-month options. Some companies, like Olive, have month-to-month extended warranties that you can cancel anytime. It’s a different model than a multi-year contract, and it might be cheaper in the long term, especially if you ever need to cancel.
Understand your existing warranty. Double-check whether your car has a current manufacturer warranty and what its exclusions are. If it does, you might not need an extended warranty.
Ask about discounts. Some companies offer discounts, coupon codes, or one-time sign-up bonuses. Ask about ways to reduce the rate before you finalize the contract.
Compare at least three quotes. Shopping around for quotes from various warranty companies can help you understand your options and find the cheapest rates.
Even though an extended car warranty is an extra expense, it can be worth it for some drivers. Here’s what you need to know about auto warranty basics.
The cheapest car warranty depends on your car’s make, model, mileage, age, and location. But we found that Olive had the cheapest rate for its base policy, at $68 per month.
Another option is a vehicle protection plan. These plans are often much cheaper, starting at $12 per month. The coverage isn’t as comprehensive, but it’s a helpful option if extended warranties are too expensive.
CarShield advertises that its rates start at $99 per month, but you might spend more depending on your vehicle’s age and mileage. For example, we got a quote for $170 per month.
Endurance is slightly cheaper than CarShield, according to the rates we received. Monthly costs start around $100 for the cheapest plans. But pricing is personalized, so you might find that one company is more affordable based on your specific car.
Car warranties usually cost around $1,000 to $4,000 per year. The exact cost depends on your vehicle’s age, location, mileage, and make. Your annual costs might be less or more than the average, so it’s important to compare plans.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
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