Are Aftermarket Warranties Worth It – Editor’s Note: This content was researched and produced by an expert review team. Links in this article may result in us earning a commission but do not influence our recommendations or recommendations. Learn more

An aftermarket car warranty is protection you buy for your vehicle after the manufacturer’s warranty runs out to help pay for repairs.

Are Aftermarket Warranties Worth It

Best Coverage 4.6/5 Cost: Some discounts available Coverage: 6 plan options, from routine maintenance to full coverage Reputation: Smooth claims experience as a direct provider

Are Home Appliances Extended Warranties Worth It?

Best Monthly Payments 4.5/5 Cost: Flexible month-to-month contract Coverage: 6 plan options, some with up to 300,000 miles Reputation: Most popular warranty provider

Best for Used Cars 4.4 / 5 Cost: No down payment required Coverage: 6 plan options, the highest equivalent to the manufacturer’s warranty Reputation: Stronger Business Bureau Rating (BBB)

Between monthly payments, car insurance, and car repairs, it’s not cheap to own a vehicle. With a new car, you have protection against mechanical failure with the manufacturer’s warranty, but what if the coverage ends? The best option to cover repairs would be an aftermarket car warranty, also called a vehicle protection plan or vehicle service contract.

With so many options to choose from, you need to do some research to find a provider that fits your needs. We’ve done the work for you by searching for 1,475 hours on everything you need to know about aftermarket car warranties, including the best providers. We have compiled our results to explain the best extended car warranty companies. Compare quotes between some of these top-ranked providers.

Reasons To Avoid Extended Warranties

Why You Can Trust In , we are dedicated to supplying car owners with well-researched, fact-checked information they need to make sound decisions about auto insurance. Our team analyzes supplier offers and customer insights so you can feel empowered to make the best choice.

The aftermarket warranty provides protection when the manufacturer’s coverage expires. You can add it at any time, not just when you buy the vehicle. An aftermarket car warranty can also be called an extended auto warranty, although technically, this is a vehicle service contract that is usually provided by a third-party provider.

These auto protection plans cover the cost of parts and labor repairs, such as the manufacturer’s warranty, and are a common source of vehicle protection, especially for older cars.

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You can get an aftermarket car warranty from a dealership or a third-party company. Our research team reviewed 46 different insurance providers to help find the provider that best suits your needs.

Automotive Extended Warranties: Peace Of Mind Or Waste Of Money

With a dealership, you have access to original equipment manufacturer (OEM) parts and factory-trained technicians. Usually, you have to take your car to that manufacturer’s service center. This can be a perk or very limiting.

Third-party aftermarket auto warranties offer more flexibility. You can go to a licensed repair shop and visit a mechanic of your choice. Obviously, not all of these companies will provide the same level of service. We also cannot guarantee that they will offer the right warranty for your needs. That’s why it’s important to shop around and compare different providers.

Aftermarket car warranty providers have many different elements that determine whether they are right for you. We create an overall review score for each provider based on their ratings in five main areas: industry standing, coverage, cost, transparency, and customer service.

To provide you with the most up-to-date information, we update our review standards several times each year. Below are more details on what we look for in each rating category:

No, Extended Warranties Are Usually Not Worth It

Providers are given high scores in this category based on any awards, ratings, or recognition by reliable collateral evaluators, like Kelley Blue Book, CARFAX, or the Better Business Bureau (BBB). We also consider customer reviews on sites such as BBB and Trustpilot, and how much experience the warranty provider has.

Providers that offer several different coverage options are rewarded with higher scores in this category. If a company offers a plan with long term limits and some benefits, its Coverage score goes up.

Providers that offer affordable coverage plans as well as deductible options can expect to see higher scores in the cost category. If this same provider offers a discount, the score will increase.

When it comes to this category, if a company offers a money-back guarantee and allows customers to view a sample contract on the coverage plan page, it will receive a high score. The website should also be clear and easy to navigate.

Extended Car Warranty: 2023 Guide

Strong online customer reviews bring providers high scores in this category. If a provider has a mobile app and offers online chat options for customers, their score for customer service will increase as well.

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If you’re looking for additional coverage for auto repairs, Endurance, ForeverCar, and™ are extended warranty providers that should be on your shopping list. All of these providers let car owners visit their favorite auto repair facility, choose a discount starting at $0, and enjoy a variety of perks.

Of all the companies reviewed, Endurance tops our list for its six versatile aftermarket warranty plans that offer different levels of protection for drivers with different needs. As a direct provider, Endurance manages all the plans it sells. This simplifies the claims process, as you work with the same company throughout the life of your protection plan.

An extended endurance warranty also comes with a free one-year membership of Endurance Elite benefits – including roadside assistance, key fob replacement, ID theft service, tire replacement, and more. Durability Warranty reviews are primarily positive with excellent customer service reports. Find out why and get a free quote from Endurance below.

Are Extended Warranties Worth It?

A reputable extended car warranty company that offers six levels of coverage and has great customer reviews. It’s our pick for Best Coverage and our top pick for extended warranty providers.

While ForeverCar isn’t as big as industry giants like Endurance or CARCHEX, this aftermarket warranty provider makes up for it by offering more affordable aftermarket warranty plans.

ForeverCar provides a 30-day money-back guarantee for all four different levels of protection. This warranty lasts for 3 years/unlimited miles, and has a sample contract on the plan page of the ForeverCar website, which shows that ForeverCar is transparent and upfront with drivers about what it offers.

Despite being less than 12 years old, ForeverCar has more than 5,000 reviews on Trustpilot, with 97 percent of them overwhelmingly positive. ForeverCar’s record of customer satisfaction combined with its affordable coverage options makes it into our top three for recommended aftermarket warranty providers.

Extended Warranties For Cars Are ‘fraught With Peril For Consumers’

Olive doesn’t offer as many coverage options as ForeverCar or Endurance, but its aftermarket auto warranty provides comprehensive coverage. Olive is our top choice for the best online warranty in the industry. The company is unique in its coverage for customers starting as soon as you purchase your plan online.

It also uses a subscription-based billing model that customers can use to cancel at any time. Olive offers a price-lock guarantee and is one of the best digital experiences in the industry with a website that is easy to navigate and clear about every plan. That’s why in our Olive warranty review, give the company the Best Online Warranty award.

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These are just our top three suggestions, but none of them are guaranteed to give you what you need for yourself and your own vehicle. That’s why when you’re shopping for an aftermarket vehicle warranty, you have to decide what’s most important to you. Maybe you really want to have roadside assistance or a $0 deductible, or maybe you just want the simplest powertrain coverage for some expensive vehicle components.

We conducted a survey in 2022 to find out which companies are buying market bonds. Although 56 percent of respondents chose CarShield, another popular company was CARCHEX, autopom! , and Take Care of My Car. All these companies have pretty long mileage limits on their protection plans as well.

Is Getting An Extended Warranty On Your Car Worth The Money?

Aftermarket auto warranties are available in many different types. Like the factory warranty, the limit is specified by the year and mileage, with the plan expiring when one of the limits is reached. For example, the 5 year / 60,000 mile plan will expire for both of these scenarios: a car that is 5 years old and has 40,000 miles, or a car that is 4 years old but has 60,000 miles.

The best providers allow drivers to choose from several different coverage lengths. It also lets the driver choose any item included in the service plan. Most companies have about five basic coverage options that follow a formula like this:

Aftermarket auto warranties also provide more flexibility compared to factory or dealer warranties. For example, the manufacturer’s extended warranty must usually be purchased before the standard warranty expires. In some cases, you should get an extended warranty when you buy your new car – how will you know if you need one first?

Conversely, aftermarket auto warranties can be added at any time. It can also last longer compared to the factory warranty. For example, Toyota’s longest warranty coverage is up to 125,000 miles, but the plan is from our leading market selection.

Extended Warranties And Prepaid Maintenance—are They Worth It?

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