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This article reviews the best car warranties in all categories, including new car warranties, CPO warranties, and extended warranties from many providers.
Car Warranty Reviews
Today, more than ever, vehicles are complex machines that require regular maintenance and care. With all their moving parts, things are bound to fail over time. That’s why all manufacturers provide some form of a factory warranty for repairs, and why you can also get extended warranties from a number of companies.
There are many types of car warranties. Basic factory warranties cover new cars, extended warranties cover new or used cars, and CPO warranties only cover certain used vehicles a manufacturer has certified during a proprietary inspection process. For extended warranties, there are many third party providers who offer coverage and extra benefits not offered by the automakers. In the following sections, we review the best car warranties in every category.
Best New Car Warranty
If you are looking for a new car, you probably cant wait to get on the road and enjoy your new ride. Before you make your final decision, you should consider which automakers have the best new car warranty.
While a warranty isn’t the reason you purchase an automobile, they are still an important factor when deciding what car to purchase because they cover issues that are nearly certain to pop up over time. If you want to make a decision based on comprehensive factors, considering the covergage that comes with your vehicle is important. Even if this isn’t as important of a factor, it can help you understand more about how much you should trust an automaker, as a warranty’s details reveal how much a company stands behind the quality of its product.
When you are searching for the best factory warranty providers, you have to discount the actual automaker, as their differences are often too small to make a difference. That said, some clearly stand out above teh rest. To find the best, we’ve looked at many important factors like age/mileage limites, coverage, restrictions, and any other added benefits. Below is our list of the top 5 best factory car warranties.
Best Factory Warranties
Below, we ranked the five best new car warranty manufacturers in 2021.
| Manufacturer | Bumper-to-Bumper Warranty | Powertrain Warranty | Roadside Assistance |
|---|---|---|---|
| 1. Hyundai | 5 years/60,000 miles | 10 years/100,000 miles | 5 years/unlimited miles |
| 2. Kia | 5 years/60,000 miles | 10 years/100,000 miles | 5 years/60,000 miles |
| 3. Mitsubishi | 5 years/60,000 miles | 10 years/100,000 miles | 5 years/unlimited miles |
| 4. Genesis | 5 years/60,000 miles | 10 years/100,000 miles | 5 years/unlimited miles |
| 5. Volkswagen | 6 years/72,000 miles | 6 years/72,000 miles |
Hyundai New Car Warranty
All new Hyundai cars receive five-year or 60,000-mile bumper-to-bumper coverage and 10-year or 100,000-mile powertrain coverage, which are among the longest periods in the industry. Hyundai’s powertrain warranty is almost twice as long as what many other automakers offer. The major separator between Hyundai and other warranties is its unlimited mile corrosion warranty and roadside assistance offering, the limitation of which is seven and 5 years.
Hyundai’s bumper-to-bumper warranty covers most factory-installed parts against defective materials or poor workmanship. The Hyundai powertrain limited warranty covers engine, transmission, and transaxle components. Hyundai’s 5 year, unlimited mile roadside assistance plan offers towing, lockout services, trip interruption benefits, battery services, flat tire coverage, and gas delivery.
While Hyundai doesn’t have the longest or most comprehensive warranty, it ranks the highest on our list because the company provides the most balanced coverage between its bumper to bumper and powertrain warranties, including industry leading added perks that especially make the company stand out. The comprehensive coverage offered by Hyundais is one of the longest in the industry, includes free service adjustments, provides battery protection, and especially stands out for the unlimited mileage limit for its roadside assistance.When this is combined with Hyundai’s reputation for reliability, which rivals more established companies, the Korean automaker should certainly be considered for a great car and excellent car warranty.
Other specs for this warranty includes:
- Oil Changes: 3 years/36,000 miles
- Battery Coverage: 3 Years/36,000 miles
- Service Adjustments: 1 year/36,000 miles
- Paint Warranty: 3 years/36,000 miles
- Rust Warranty: 7 years
- Parts and accessories coverage: 1 year/12,000 miles
Kia New Car Warranty
New Kia vehicles come with a 5 year/60,000 mile bumper to bumper warranty and a 10 year/100,000 mile powertrain warranty. The bumper to bumper warranty provides coverage for nearly every Kia system and component, with the exception of components that are specifically excluded. The powertrain coverage includes protection for the engine, driveline, transaxle, and transmission. The 5 year/60,000 , mile roadside assistance program includes jump start assistance, flat tire services, gas delivery, lockout services, trip interruption benefits and towing.
While Kis the perception of Kia is often that the company is a budtet automarket, this isn’t the case by any means. Kia is quickly becoming one of the worlds top brands and has an excellent selection of budget vehicles. As a result, the company is one of the top value car warranties on our list for best new car warranty. One area where Kia falls short of its sister brand Hyundai is on its roadside assistance and corrosion packages. While Hyundai of
Mitsubishi New Car Warranty
The Mitsubishi warranty includes a five-year or 60,000-mile new vehicle limited warranty for bumper-to-bumper coverage and a 10-year or 100,000-mile powertrain limited warranty for the engine, transaxle or transmission, and transfer case. While the new vehicle limited warranty transfers to a new owner, the powertrain warranty does not.
Mitsubishi warranties include 5 year/60,000 mile new vehicle limited warranties for bumper to bumper coverage and a 10 year/100,000 mile powertrain limited warranty for engine, transaxle, transmission, and the transfer fase. While the new vehicle limited warranty is transferrable, the powertrain warranty is not.
Mitsubishi’s roaadside assistance package includes towing, jump-starts, flat tire assistance, and gasoline delivery. You can use Mitsubishi’s mobile app to access pertinent contact info incase of a breakdown. Extra benefits offered in Mitsubishi warranties make this company stand out compared to the competittion.
Mitsubishi warranties are transferrable, as long as the car is within the mileage and age limit. The anti-perforation warranty for Mitsubishi is generous compared to the competition.
Mitsubishi warranties also include:
- A Free adjustment period of 1 year/12,000 miles
- Restrain system coverage for 5 years/60,000 miles
- Anti-rust coverage for 7 years/100,000 miles.
Genesis New Car Warranty
New Genesis cars come with a 5 year/60,000 mile new vehicle limited warranty and a 10 year/100,000 mile powertrain warranty. The powertrain warranty is only applicable to the original owner. Genesis also provides a three year or 36,000 mile complementary maintenance plan, which is included in the genesis service valet program. The 24-hour enhanced roadside assistance plan offered by Genesis covers flat tire service, alternator transport service, and travel interruption reimbursements for up to 5 years and no mileage limit. Genesis is the luxury brand offered by parent company Hyundai, who offers the best new car warranty on the market. Genesis also has. For its valet program, Genesis will send someone to your home or office to pick up your car and bring you a loaner vehicle whenever you need service covered under the warranty. This service is free for 3 years/36,000 miles. The company also provides three years worth of map updates for its navigation systems. The connected services system can be used to call roadside assistance.
Other Genesis protections include:
- Battery coverage for 3 years/36,000 miles
- Free Adjustment Period: 1 year/12,000 miles
- Paint coverage for 3 years/36,000 miles
- Service Valet for 3 years /36,000 miles
- Coverage for replacement parts: 1 year/12,000 miles
- Accessories Coverage: 1 year/unlimited miles
- Rust-through perforation coverage: 7 years/unlimited miles
Volkswagen New Car Warranty
Volkswagen, a historic and reputable german automaker, offers one of the longest lasting car warranties availalbe, offering a solid balance between reliability and coverage. The standard Volkswagen bumper to bumper warranty is a 6 year/72,000 mile plan that gives the company some of the best-rated coverage in this area. Essentially, you get max coverage for about twice as long as most automakers, only falling short of the above competition that lasts at least 10 years. Additionally, VW is the only automarket that offers basic and powertrain protection on the same terms, both of which provide an impressive 6 year/72,000 miles worth of coverage. Roadside assistance is among the lowest, at three years or 36,000 miles.
Factory Warranties Comparison
The chart below contains coverage data for new car factor warranties from all of the major automakers:
| Brand | Bumper-to-Bumper | Powertrain |
|---|---|---|
| Hyundai | 5 /60,000 | 10/100,000 |
| Genesis | 5/60,000 | 10/100,000 |
| Mitsubishi | 5/60,000 | 10/100,000 |
| Kia | 5/60,000 | 10/100,000 |
| Jaguar | 5/60,000 | 5/60,000 |
| Infiniti | 4/60,000 | 6/70,000 |
| Tesla | 4/50,000 | 8/150,000 |
| Lincoln | 4/50,000 | 6/70,000 |
| Cadillac | 4/50,000 | 6/70,000 |
| Lexus | 4/50,000 | 6/70,000 |
| Acura | 4/50,000 | 6/70,000 |
| Audi | 4/50,000 | 4/50,000 |
| BMW | 4/50,000 | 4/50,000 |
| Volkswagen | 4/50,000 | 4/50,000 |
| Mini | 4/50,000 | 4/50,000 |
| Fiat | 4/50,000 | 4/50,000 |
| Volvo | 4/50,000 | 4/50,000 |
| Porsche | 4/50,000 | 4/50,000 |
| Land Rover | 4/50,000 | 4/50,000 |
| Alfa Romeo | 4/50,000 | 4/50,000 |
| Mercedes | 4/50,000 | 4/50,000 |
| Buick | 3/36,000 | 5/60,000 |
| Chevrolet | 3/36,000 | 5/60,000 |
| GMC | 3/36,000 | 5/60,000 |
| Chrysler | 3/36,000 | 5/60,000 |
| Dodge | 3/36,000 | 5/60,000 |
| Ram | 3/36,000 | 5/60,000 |
| Ford | 3/36,000 | 5/60,000 |
| Jeep | 3/36,000 | 5/60,000 |
| Honda | 3/36,000 | 5/60,000 |
| Mazda | 3/36,000 | 5/60,000 |
| Nissan | 3/36,000 | 5/60,000 |
| Subaru | 3/36,000 | 5/60,000 |
| Toyota | 3/36,000 | 5/60,000 |
Looking at the new car warranties comparison, Hyundai, Genesis, Mitsubishi and Kia have the best new car warranties in 2021. Not only do they have amazing powertrain warranties that last for 10 years/100,000 miles, but also the bumper-to-bumper coverage is the longest, as well. On the other end of the scale, Buick through Toyota all share the same short terms of 3 years/36,000 miles for bumper-to-bumper coverage. But that doesn’t necessarily say anything about reliability. Toyota vehicles are known to last for hundreds of thousands of miles.However, Dodge, Jeep, GMC and Chrysler are less reliable than many other brands according to J.D. Power’s 2020 U.S. Vehicle Dependability StudySM. Some brands can definitely use extended coverage more than others.
Best Used Car Warranty
Most vehicles come with a three-year bumper-to-bumper warranty that is good for 36,000 miles. This warranty usually covers even the smallest repairs, including battery replacement, electronics failures, and other issues. However, the reality is that manufacturers only provide a bumper-to-bumper warranty because they know that mechanical problems are very rare when a vehicle is new. As vehicles get older, mechanical problems become much more frequent. Consequently, there are several options available for used car warranties that drivers should consider.
In this section, we’ll look at all three of the major types of used car warranties, which includes certified pre-owned warranties, manufacturer extended warranties, and third-party extended warranties.
Best Certified Pre-Owned Car Warranties
If you are shopping for a car, you’ll quickly notice that you can often get more bang for your buck with a used vehicle. This is especially true with certified pre-owned (CPO) warranties. A CPO warranties are different from factory warranties becaused extended warranties sold by a dealer are not usually backed by the vehicle manufacturer. CPO warranties are usually more comprehensive than than extended car warranties and they are included in the price of the vehicle.
As is the case when purchasing a new car, you should consider the accompanying warranty’s age limitit, mileage limit, and transferability to future owners, as well as what components are covered in the warranty. For CPO vehicles specifically, you’ll definitely want to consider the inspection that is required, as well as added benefits.
Below is our list for best certified car warranty, based on the same scoring system we used to choose the best aftermarket extended warranties:
- Mitsubishi: Powertrain warranty period of 10 years/100k miles from in service date; bumper to bumper period of 5-years/60k miles; No deductible, includes roadside assistance.
- Kia: 10 year/100k mile powertrain warranty from in-service date; 1 year/12,000 miles from purchase date. Includes roadside assistance, rental car reimbursement, and trip-interruption coverage.
- Hyundai: 10 years/100k mile power-train warranty from in-service date. 5 year or 12,000 miles from purchase date.
- Honda: Powertrain warranty period is 7 years or 100,000 miles from in-service date; bumper-to-bumper period is 1 year or 12,000 miles from purchase date. No deductible, comes with roadside assistance.
- Acura: Bumper-to-bumper warranty lasts 6 years or 100,000 miles from in-service date. No deductible; comes with complimentary maintenance, roadside assistance, and concierge service.
Best Extended Car Warranty
An extended car warranty is an optional form of coverage you can buy to help pay for specified repairs while you own the vehicle. Although extended warranties can sometimes overlap with factory warranties, extended warranty coverage usually takes place after the factory warranty has expired. In addition to purchasing this for of warranty to “extend” the factory coverage for a vehicle one purchased brand-new, extended car warranties are also often purchased to provide coverage for new vehicles.
You can purchase an extended warranty for a third party provider and (sometimes) the manufacturer. In the sections below, we’ll provide our picks for the best extended car warranties for both third-party and aftermarket-backed extended car warranties.
Best Aftermarket Car Warranties
Third-party extended warranty providers offer flexibility to those seeking to extended their factory coverage in several ways, including numerous coverage options, payment plans, and the ability to purchase coverage at any time. Additionally, most aftermarket extended car warranties allow you to choose any mechanic in the country as long as they are ASE certified and come with several additional benefits like roadside assistance, rental reimbursement, and trip interruption benefits. Along with these numerous flexible options, which we’ll in more detail below, third party extended car warranties are often very affordable.
In our review of the best extended car warranty, we picked Endurance, CARCHEX, and CarShield as our top three extended car warranty providers. All of these providers performed well across categories like coverage, reputation, price and customer experience.
While these providers have some differences, they share many of the same features. Each of these companies allow you to go to any licensed repair facility in the U.S. or Canada for repairs. They all pay the repair shop directly. You can cancel any contracts within 30 days for a full refund, and you can transfer them to secondary buyers. Below are more detailed descriptions for the top three aftermarket car warranties in the industry:
Endurance: Best Provider
Endurance is a direct vehicle service contract provider, which means it administers all its contracts. We recognized it for having the Best Provider overall because it offers a good range of car warranties and some great perks.
Endurance Car Warranty Coverage
Endurance car warranties come in six different types:
| Endurance Car Warranty | Coverage Details |
|---|---|
| Supreme | Factory-level bumper-to-bumper coverage for almost all mechanical and electrical parts on the car |
| Superior | Coverage for hundreds of parts on all systems of the car |
| Secure Plus | Coverage for most major systems of the car with a short waiting period |
| Select Premier | Covers the powertrain and a few other systems like air conditioning and electrical |
| Secure | Powertrain warranty covering the engine, transmission, and drivetrain |
| EnduranceAdvantageTM | Warranty coverage and routine maintenance coverage combined |
In addition to this, all Endurance car warranties come with one year of Endurance Elite Benefits, which includes:
- 24/7 roadside assistance for towing, jump-starts, spare tire installation, lockout service and more
- Collision discount
- Total loss protection
- Tire repair or replacement (two tires per year)
- Repair financing up to $5,000
- Key fob replacement
- Endurance Protect app
- ID theft protection
Endurance plans can cover vehicles up to 15 years/200,000 miles.
Endurance Reputation
Endurance has been around for 14 years. As a direct provider, it sells warranty contracts to customers on its own, and it also offers warranty services through agents at dealerships. Car warranties from Endurance are available in any state except California.
Endurance has a C+ rating from the Better Business Bureau (BBB), which is related to advertising practices it used in the past. It has relatively few complaints on the BBB compared to its number of customers.
Endurance Car Warranty Prices
We used two cars to compare quotes between multiple providers: a 2018 Honda Civic with 30,000 miles and a 2012 Subaru Outback with 88,000 miles. These cars apply to the quotes we’ll talk about for CARCHEX and CarShield, as well.
In comparing quotes from multiple providers, we found the average bumper-to-bumper plan was about $489 per year of coverage. An Endurance Supreme plan for the Honda Civic matched up to that average at $475 per year of coverage.
The same Supreme plan rose to $679 per year of coverage for the Subaru Outback. That’s what we’d expect since the Subaru was older and more likely to have repair costs. Overall, car warranty prices from Endurance are about average.
Endurance Customer Experience
Endurance has 3.8 stars from customers on the BBB, which is a high score for companies on the website. Endurance car warranty reviews on Trustpilot give the company a higher 4.3-star rating. Many customers say the sales team is informative and knowledgeable, and that they take the time to explain the differences in coverage options.
CARCHEX: Best for High-Mileage Cars
We think CARCHEX is the best used car warranty option for vehicles with many miles. CARCHEX can cover cars up to 250,000 miles and up to 20 years, which are higher limits than other extended warranty companies.
CARCHEX Car Warranty Coverage
CARCHEX is a warranty broker, so its plans are backed and administered by other companies. This means each coverage option actually has a few different variations depending on the contract. CARCHEX offers five main types of coverage:
| CARCHEX Car Warranty | Coverage Details |
|---|---|
| Titanium | Bumper-to-bumper coverage for almost any component |
| Platinum | Coverage for hundreds of components on all major systems of the car |
| Gold | Best coverage for vehicles over 60,000 miles |
| Silver | Powertrain-plus plan that covers the major systems of the car |
| Bronze | Basic plan for the engine, transmission, and drivetrain |
CARCHEX car warranties come with perks including roadside assistance, rental car reimbursement, and trip interruption reimbursement.
CARCHEX Reputation
CARCHEX has a great reputation on the BBB with an A+ rating and accreditation. The company has fewer than 100 complaints on the BBB, as well. Considering CARCHEX has thousands of customers, that’s a very small number.
CARCHEX Car Warranty Prices
Compared to the average cost per year of coverage we found, which was about $585, our CARCHEX quote was more affordable at about $370 per year of coverage. CARCHEX monthly payments ranged from about $100 to $150, though the quotes we received were for 24-month payment plans. You might find smaller payments with longer terms.
CARCHEX Customer Experience
CARCHEX has a 3.7-star rating from about 1,300 customer reviews on Trustpilot. Positive reviews talk about helpful staff who aren’t pushy. CARCHEX representatives also respond to negative reviews on Trustpilot and try to resolve complaints.
CarShield: Most Affordable
CarShield will show up in any online search for extended car warranties. The company is the most popular provider we’ve researched with over 13,000 reviews between Google, Trustpilot and the BBB. Overall, the quotes we got from CarShield were cheaper than other top providers, so we think it’s the best option for drivers on a budget.
CarShield Car Warranty Coverage
CarShield offers six main plans, though two of them only apply to special situations. Contracts can cover vehicles up to 300,000 miles. Here’s an overview:
| CarShield Car Warranty | Coverage Details |
|---|---|
| New Car Diamond | Bumper-to-bumper exclusionary plan for new vehicles |
| Platinum | High-level coverage for cars with some miles |
| Gold | Mid-tier plan for the powertrain and a few essential systems |
| Silver | Covers the powertrain and cooling system |
| Aluminum | Specialty plan for vehicles with high-tech equipment |
ATV and Motorcycle: Platinum and Silver coverage for all-terrain vehicles (ATVs) and motorcycles
CarShield perks include roadside assistance, rental car coverage and trip interruption. Another neat thing about CarShield is that it offers month-to-month contracts for each plan, which adds more flexibility.
CarShield Reputation
CarShield isn’t accredited by the BBB, but that’s not necessarily a strike against it. However, the company has a negative rating of F from the organization, which is based on CarShield’s marketing practices.
There are a number of complaints as well, but they only account for a small portion of CarShield customers. CarShield has been around for 15 years and has covered over one million vehicles during that time.
CarShield Car Warranty Prices
From the quotes we received, CarShield prices are very affordable. Monthly payments were about $90, and the price per year of coverage was about $340 for both the Honda and Subaru. A 5-year/70,000-mile New Car Diamond plan was $1,700 in total for the Honda Civic, which is a great price.
Remember that used car warranty quotes are affected by the make, model, and mileage of your car. A Mazda extended warranty from CarShield would be a different price than an Acura extended warranty from the company.
CarShield Customer Experience
Over 10,000 reviewers on Trustpilot give CarShield a 4.2-star rating. Many talk about positive experiences with sales staff, and others say CarShield comes through with coverage for repairs. The company also has a 4.1-star rating from almost 3,000 reviewers on Google.
Best Manufacturer Extended Car Warranties
While purchasing an extended car warranty from a third party provider is certainly more convenient and flexible, there are still some high quality manufacturer-backed extended car warranties on the market. Below is our list of the best factory extended warranties:
| Automaker | Maximum Term Length | Deductible | Coverage Levels |
|---|---|---|---|
| Hyundai | 10 years/100k miles | $0 or $100 | 3 |
| Kia | 120k miles | $0, $100, and $250 | 5 |
| Mitsubishi | 7 years or 100k miles | Differs | 4 |
| Genesis | 10 years or 120k miles | Differs | 1 |
| Acura | 6 years or 120k miles | $0 and $100 | 1 |
Car Warranties
So far, we’ve reviewed the best car warranties from the top providers. How do you know which is best for you? Deciding on the best car warrant isn’t a black and white processes, especially if you are focused on searching for a new vehicle and aren’t as well-versed in warranty terminology. That said, it isn’t extremely difficult either if you do your homework. In this section we’ll look at some of the pros and cons of each type of car warranty and things to take into account when shopping for car warranties.
Factory Warranties (New and CPO)
The best new car warranties provide solid coverage for a vehicle’s major systems. Since new car warranties are backed by the manufacturer, their primary purpose is to provide coverage for issues related to mechanical breakdown that come as a result of a factory defect. Because factory warranties come with the vehicle when you purchase them, their price is included in the price of the car.
Standard Factory Warranty Coverage
Factory warranties don’t cover every single possible issue that arises, as they are essentially aimed at addressing manufacturer defects, which are issues typically involving a recall. For example, if a part fails that isn’t due to wear and tear or actions that are restricted in the warranty, there’s a good chance it will be covered.
Types of Factory Warranty Coverage
The two types of factory warranty coverage provided with a new car are powertrain coverage and bumper to bumper coverage. Below are descriptions for these two basic coverage types:
Bumper-To-Bumper Warranties: Bumper to bumper warranties provide basic, comprehensive coverage for nearly all manufacturer approved parts on a vehicle. Since a bumper to bumper car warranty covers most of a vehicle’s components, this is the protection that will most likely take effect when a mechanical breakdown occurs. Also referred to as a “limited warranty”, new car warranties bumper to bumper warranties usually have a much shorter coverage period than powertrain warranties.
Powertrain Warranties: Powertrain warranties cover the most important parts on a vehicle like engine, transmission, and drive axles. The components that are covered in powertrain warranties don’t fail as early or often as most of the systems covered in factory bumper-to-bumper warranties. The more long term powertrain warranties are also beneficial, as these parts are among the most costly to repair.
In addition to these basic warranty types, most automakers offer additional warranties for things like rust/corrosion, emissions components, ascetic parts, etc.
Choosing The Best New Car Factory Warranty
Assessing the best new car factory warranty is a different type of decision making process than choosing an extended warranty. This is because you don’t purchase a vehicle solely because of its coverage. Obviously, people choose vehicles because they meet one’s needs, fit one’s ascetic style, and are within one’s budget. Specific factors that are important when purchasing a vehicle are vehicle type (car, truck, SUV, etc.), automaker brand (Ford, BMW, Toyota etc.), features (blue tooth connectivity, all-wheel drive, fourth row seating etc.), performance specs (gas mileage, torque, horsepower, etc), price, reliability, safety ratings, and financing options.
When viewing the overall decision of purchasing a vehicle from this lens, a cars warranty is just one of these many factors. It may be a factor into the overall decision of some buyers more than others. For example, if someone is looking for an economical, reliable, and safe vehicle that they can purchase at an affordable cost, a vehicle with a comprehensive factory warranty may be appealing because it can factor into lowering the overall cost of vehicle ownership. In decisions such as this, if one has narrowed their choices down to two vehicles, both of which they feel meet these requirements almost equally, a car’s factory warranty could be a factor that helps decide which car to buy.
Also, since covered repairs for factory warranties are usually done at dealerships, you are guaranteed to have a generally higher quality service with reliable OEM parts used for repairs. In addition to the quality, convenience, and potential cost savings provided by top factory warranties, when automakers provide comprehensive factory warranties, its is potentially a signal that you can trust the automaker because they are willing to stand behind the product they sold you.
Choosing The Best CPO Warranty
Because you much purchase a vehicle in order to receive the benefits that come with a certified pre-owned warranty, the how warranty coverage fits into the decision making process of purchasing the vehicle is similar to that of a new car warranty. Like new car warranties, most CPO warranties come with their own limited and powertrain warranties, often which are shorter than factory warranties. Because most CPO vehicles go through an inspection and certification process that is particular to the automaker and each automaker offers different features and terms for their CPO programs, researching the specifics of the automakers CPO program is helpful during this buying process.
Since certified pre-owned vehicles have been driven for thousands of miles by another owner, the quality of the CPO warranty offered may be a more important factor in the buying process for many drivers because older vehicles are more likely to need warranty coverage. Finally, because CPO warranties require purchasing a vehicle in order to receive coverage, which is usually limited to dealerships, they are much less flexible than extended car warranties that you can purchase for a used car. That said, if you find a vehicle you like that fits your budget in a CPO program, it is often a great deal with warranty coverage that has the same level of quality and convenience as a new car factory warranty.
Extended Car Warranties
While they are called “warranties”, an extended warranty is actually a service contract that pays for repairs due to failues in a vehicle’s major components, including the transmission to engine. In addition to covering repairs, many extended warranty companies offer extra benefits like towing service, rental coverage, and travel insurance. You can purchase extended warranties directly from the manufacturer or from third party companies.
Most manufacturers provide an extended warranty for specific parts that break less frequently. Additionally, some extended warranties are sold by manufacturers or dealers when a vehicle is first purchased. For manufacturer backed extended warranties, there are usually limitations on when you are eligible to purchase additional coverage and where you can get your vehicle serviced after purchasing coverage. On the other hand, most extended warranties are sold by third-party providers. Working with a third party enables you to fully customize the warranty that you receive. Many third-party warranties allow you to use your own mechanic, and they provide flexibility so that you can customize your payment terms. In this section, we’ll review the best coverage available from both manufacturer and third party extended warranty providers.
An extended warranty — also known as a vehicle service contract — is an optional plan you can buy to help you pay for the cost of certain repairs your vehicle may need while you own it. It usually begins when the manufacturer’s warranty expires, but sometimes the two overlap.
Manufacturer Versus Third-Party Extended Warranties
Both automakers and third-party companies offer extended car warranty contracts, which are often called vehicle service contracts or vehicle protection plans. There are pros and cons between both decisions, as third party warranties usually have more options and flexibility and manufacturer extended warranties are backed by the auto brand.
Buying an extended warranty from a solid third party provider offers many benefits that you sometimes cannot find from the automakers themselves. These companies often provide more expansive coverage options, cheaper contracts, and a larger list of repair facilities to chose from. Aftermarket auto warranties can protect vehicles for longer terms and give drives extra flexibility around their purchase.
On the other hand, drivers often have a much shorter window to be able to purchase a factory extended warranty, as automakers often require the warranty to be purchased shortly after purchasing the vehicle. Also, unlike third party extended car warranties, which allow drivers to choose their mechanic, covered repairs for manufacturer-backed extended warranties are usually required to be done at dealerships. If you later move to another city, you will usually lose your coverage unless your dealer is part of a warranty network.
While manufacturer-backed extended warranties don’t offer the same level of flexibility as their third party counterparts, they still have their own benefits.Getting an extended warranty when you buy a car usually enables you to finance the cost of the warranty (with added interest). Additionally, some dealers will give you a discount on your vehicle if you get an extended warranty at the time of purchase. While requiring that you vehicle must be serviced at a dealership is less convenient, it also means that the work done on the car will be done to manufacturer specs with factory trained technicians and OEM parts.
Car Warranty Coverage Length
Below are the differences in coverage length between notable manufacturer and third party warranty providers:
| Type of Vehicle Protection Plan | Company | Maximum Term Limit |
|---|---|---|
| Manufacturer Warranty | Toyota | 8 years or 125,000 miles |
| Manufacturer Warranty | Hyundai | 10 years or 100,000 miles |
| Manufacturer Warranty | Ford | 8 years or 150,000 miles |
| Third-Party Warranty | Endurance | 8 years or 200,000+ miles |
| Third-Party Warranty | CARCHEX | 10 years or 250,000 miles |
| Third-Party Warranty | CarShield | 300,000 miles |
Things To Consider When Purchasing A Car Warranty
If you are considering purchasing either type of extended car warranty, you should keep the following in mind:
- Coverage: In order to determine your coverage, look at the list of included components, which lists out all the parts and systems a warranty will fix or replace in the event that defects arise. Powertrain warranties generally use these lists more than bumper-to-bumper warranties.
- Warranty Period Length: Every manufacturer warranty has a limit. Generally, there are two limits on manufacturer warranties for both age and mileage. For example, it has become the industry standard to provide at least a 3 year 36,000 mile warranty. For the most part, longer warranties are better and powertrain warranties tend to last longer than other warranty types.
- Exclusions, Restrictions, and Limitations: Bumper to bumper warranties often only list the parts and systems not covered. Knowing this list, along with restrictions and limitations that a warranty doesn’t cover, is important when assessing a new car warranty.
- Free Services: For many vehicle models, basic maintenance adds up quickly. Complimentary maintenance not only saves you on your annual repair bill. It also ensures the maintenance is done by factory trained technicians, usually at a dealership.
- Extra Perks: While factory warranties can often seem bare in their features and coverage overall, many add additional benefits that are often used as a sales point. These added perks include roadside assistance, rental coverage, trip interruption ocverage, coverage for routine maintenance, and more.
- Battery Protection: Some automakers provide battery coverage in their new car warranties. This can save you over
- $100.
- Mobile Apps: Many manufacturers connect their roadside assistance plan to a mobile app, a feature that can be extremely useful when you need it most.
How To Shop For An Extended Car Warranty
With the considerations above in mind, below are some basic things to keep in mind when shopping for an extended car warranty:
- Research The Company: Researching how reputable an extended warranty provider is, as well as their customer service, is extremely important when looking for the best extended car warranty. The Better Business Bureau is one of the best places to look in this regard.
- Shop Around: We recommend getting quotes from at least three different providers before buying an extended warranty plan, just as you would if you were looking for car insurance. Considering various reputable companies should allow you to get the best deal to fit your needs.
- Consider Your Alternatives: If you’re struggling finding an affordable extended warranty, you should consider purchasing MBI (Mechanical Breakdown Insurance. This type of insurance is offered by several major companies and provides services similar to an extended warranty.
Why Get an Extended Warranty
Extended warranties can enable you to continue having warranty coverage for up to 200,000 miles. As with ordinary warranties, extended warranties are usually transferable. Therefore, having an extended warranty can increase the value of your vehicle. Some extended warranties can also be paid on a monthly basis in a way that is similar to an insurance plan. Therefore, you can avoid having to pay thousands of dollars upfront if you have limited funds.
Some vehicle repairs can cost $10,000 or more. For instance, if your vehicle’s transmission breaks, you could have to pay over $5,000. A new engine can cost over $10,000. As a result, it makes sense to have an extended warranty that covers most of the cost of a major mechanical problem. With an extended warranty, you will usually not have to pay more than a small deductible to get the full cost of even the most expensive repairs covered. Some plans even cover the cost of renting a vehicle while you are getting your car repaired. Consequently, extended warranties are an important lifeline for staying on the road when the worst car problems strike.
Many consumers who get an extended car warranty enjoy having the peace of mind that comes with their investment. Instead of worrying about how car trouble could impact your job or relationships, you can relax knowing that your warranty will cover you if the worst problems happen. By reducing financial stress, you can put more energy into your relationships and your career.
Extended warranties can also be a good way to save money on car repairs. Many extended warranty providers have arrangements with reputable mechanics who can get vehicles repaired at less cost. These providers are able to get repairs done cheaper because they can send a high volume of clients to a mechanic who agrees to work for less money. As a result, the cost of an extended warranty is often significantly less than the cost of getting repairs done on your own over the same period of time.
Should You Get An Extended Car Warranty
It’s no secret that auto repairs really add up. In fact, the average annual cost of owning a car is $8,469, according to AAA, one of the leading roadside assistance companies. We selected a few common car repairs and found what they cost. With a warranty, this save you hundreds of dollars. There is alot of misinformation floating around about car warranties. While some people believe car warranties are scams, others assume they cover everything that can go wrong. Generally, the reality is somewhere in the middle. A warranty can save you 1,000’s of dollars in unforeseen expenses If a $1,500 car repair would add financial strain to your wallet, the cost of a warranty may be easier to manage and provide assurance.
After your factory warranty expires, investing in an extended warranty may be a solid financial decision for some drivers, especially for those who plan on keeping their vehicles a long time, have unreliable vehicles, or don’t have a large repair budget. If you drive a reliable car and feel comfortable paying for repairs, you might be able to skip an extended auto warranty. However, an extended car warranty may provide some peace of mind and create clarity around auto budgeting for those who plan to keep their car for a while.
Extended car warranties cover various benefits, such as roadside assistance, travel interruption reimbursement, rental car reimbursement, and towing. Some extended warranties also cover car parts that are vulnerable to wear and tear, like tires and brake pads. For an older and more unreliable car, an extended warranty’s overall cost often ends up being lower than the cost for out-of-pocket repairs.
Conclusion
In this article, we looked at the best car warranties from every category, including new car factory car warranties, CPO warranties, third party extended car warranties, and manufacturer-backed extended warranties. Additionally, we provided tips and things to consider when factoring a warranty into a new or used vehicle purchase and purchasing an extended car warranty from an automaker or aftermarket provider.
Who offers a 100k mile powertrain warranty?
Hyundai, Kia, Mitsubishi and Genesis.
What is covered in a factory warranty
Bumper to bumper factory warranties cover most issues related to normal use of the vehicle. Powrtrain warranties cover the most important parts needed to make a vehicle run.
Do I have to go to a dealership to use my factory warranty
You don’t always have to. While some brands recommend particular repair shops, going to an independent shop won’t void your warranty. You can’t get work covered for free though.
Can I void my factory warranty
Yes, if you make a restricted modification that the dealership can prove, your warranty can be voided.
Our Methodology
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best extended auto warranty providers.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, availability, and years in business when giving this score.
- Coverage: Because each consumer has unique needs, it’s essential that a car warranty company offers an array of coverage options. We take into account the number of plans offered by each provider, term limits, exclusions, and additional benefits.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team performs ongoing secret shopper analyses for different vehicles, mileages, warranty plans, and locations to give this rating.
- Customer Service: Reputable extended car warranty companies operate with a certain degree of care for consumers. We take into account customer reviews, BBB complaints, and the responsiveness of the customer service team.
*Data accurate at time of publication.
