An extended car warranty, also known as a vehicle service contract (VSC), can help cover repair costs after your original manufacturer’s warranty expires. Choosing the right one can be challenging, but BW’s editorial team has done the work for you. We have compared quotes, read sample contracts, and listened to sales pitches from leading providers to evaluate factors like coverage options, cost, customer experience, and transparency. Our top picks, along with a guide to extended car warranty coverage types and costs, are listed below. Power.
Repair facilities: Choose your own ASE-certified repair facility or use a recommended facility.
Claims process: Endurance pays repair facilities directly.
At the time of the vehicle repair, the company had an A rating from BBB and offered various plan options including Supreme, Superior, Secure, Secure Plus, Select Premier, Advantage, and Supreme for Highline Vehicles. Some plans could be customized to include coverage for hybrids and Tesla EVs. Included benefits were the first year of Elite Benefits for free with a $29 activation fee, 24-hour roadside assistance, rental car, and trip interruption coverage. Olive offers immediate coverage without any waiting period. Olive offers only three different plans. Compared to other providers, Carshield offers quotes for newer models that are among the lowest, but their per-repair deductible is higher. Carshield’s month-to-month plan for newer cars is cost-effective per mile, and their sample contract covers teardown costs for diagnosis, which not all extended warranty companies do. However, the lack of online quotes and potential additional costs like high deductibles and limited emergency repair coverage are drawbacks of Carshield. In all instances, Carshield heavily promoted its month-to-month plan, with the caveat that payments could potentially increase over time. However, our final rating for Carshield was diminished due to a 2024 Federal Trade Commission charge of deceptive advertising and telemarketing practices. The charge alleged that many repairs promised by Carshield were not actually covered, leading to a settlement of $10 million. Additionally, Carshield imposes a waiting period for coverage of either 30 days and 1,000 miles or 90 days and 200 miles, depending on which condition is met first. The deductible for most repairs is $250, except for engine or transmission replacement or rebuild, which carries a $500 deductible. We received a quote for a luxury sedan with a straight $500 deductible. The aggregate limit cannot exceed the average retail value of the vehicle or $15,000, whichever is greater per monthly term. The company has a BBB standing of accredited since 2024 with an A+ rating. They offer various plan options including Diamond, Platinum, Gold Select, Silver, Aluminum, and Electric Vehicle coverage. Included benefits are 24-hour roadside assistance, rental car coverage, and trip interruption coverage. However, there is no aggregate limit specified in the agreement. The contract specifies that the liability limit per claim will not be lower than the actual cash value of the vehicle or the cost of repair based on a national labor and parts manual. CARCHEX offers lower quotes for newer vehicles compared to competitors, but deductible costs per repair are higher. Quotes are based on per-mile and per-month costs. CARCHEX also provides sample contracts for all plan options on their website, including an optional luxury electronics package. However, they do not offer online quotes, so you must call to get one, and they do not handle their own claims as they are a broker for third-party administrators. The quote we received was for month-to-month coverage from American Auto Shield, which was similar to the coverage provided by Carshield. It was no surprise that the coverage offered by CARCHEX and Carshield was almost identical, but the quotes we received from CARCHEX were slightly higher than Carshield. If you prefer, you can also purchase a Vehicle Service Contract (VSC) directly from a third-party provider, which is the main focus of our editorial team for this particular comparison.
Extended car warranty costs can vary from around $40 to over $100 per month. Most providers offer the option to pay monthly or in a lump sum, with potential discounts for upfront payments. Additionally, a down payment may be required, typically equal to one monthly payment, along with a deductible throughout the contract.
When considering whether an extended car warranty is worth it, it ultimately depends on your vehicle and your financial readiness for unexpected repairs. If you drive a high-mileage or luxury vehicle with advanced features, or simply desire protection against major repair expenses, a vehicle service contract could be a valuable investment. However, if you anticipate spending less on repairs than on warranty payments, saving that money in an emergency fund might be a more practical choice.
Most extended car warranties cover essential components of a vehicle’s powertrain system, such as the engine, transmission, drive axles, and transfer unit. Higher-tier plans typically extend coverage to include additional systems like air conditioning, steering, cooling, and fuel systems, as well as key electrical components. Exclusions often encompass items such as tires, paint, upholstery, and filters, so it’s crucial to carefully review your contract for specific details.
Mechanical breakdown insurance (MBI) is akin to an extended warranty but is offered through insurance companies rather than warranty providers. MBI usually provides comprehensive repair coverage and may have different regulations compared to vehicle service contracts. It can be obtained through your auto insurance provider as an optional addition to your policy.
While some extended car warranty companies now offer coverage for electric and hybrid vehicles, it is typically limited in scope. Certain plans specifically cater to EVs, while others incorporate electric or hybrid components into traditional coverage options. These plans generally protect major electrical and mechanical systems, with potential exclusions or limitations on components like the battery, depending on the plan’s specifics. sentence: Please make sure to lock the door before you leave. phrase in a different way.
