By Kiah Treece

A car warranty is a type of protection plan that mimics the features of a manufacturer’s warranty, providing repairs and replacements to specific vehicle components. The best car warranty companies for used cars offer various coverage options at competitive prices to keep your car running well past 100,000 miles. 

Read on to learn more about car warranties, how they work and some of the best car warranties for your pre-owned vehicle.

Best Overall: Carchex

HIGHLIGHTS

Why we chose it: Carchex is relatively transparent for the industry and offers plans starting at $99 per month. 

Carchex has been in the business of providing extended vehicle protection since 2004 and has been accredited by the Better Business Bureau (BBB) since 2009, maintaining an A+ rating. In its earlier years, Carchex operated as a mobile vehicle inspection company. In addition to auto warranties, Carchex also offers comprehensive vehicle inspections and auto insurance options.

To make coverage accessible and affordable, Carchex offers flexible payment plans and customizable warranty options. The company also offers additional services, including towing assistance, rental car reimbursement, trip interruption coverage and even gas delivery services.

Carchex offers the following warranty plans:

• Titanium: This is Carchex’s most comprehensive coverage, providing breakdown protection akin to a manufacturer’s warranty, albeit with a few deviations.
• Platinum: The Platinum plan encompasses stated component coverage for all major systems, offering extensive protection.
• Silver: With the Carchex Silver plan, you gain coverage for the major systems of your vehicle beyond just powertrain components. You have the flexibility to pay for this plan on a monthly basis or upfront.
• Bronze: The Carchex Bronze plan offers affordable coverage for the crucial systems of your vehicle, such as the engine and transmission.
• Extra Care: This plan caters to components beyond the powertrain, safeguarding systems like steering, braking, electrical and suspension. 

Read our full Carchex review.

Best Coverage Options: Endurance

HIGHLIGHTS

Why we chose it: Endurance is our warranty company for a variety of coverage options due to its flexible lineup of plan options and the variety of vehicles it will cover. 

Established in 2012, Endurance has an impressive track record, having paid out over $287 million in claims. The company specializes in comprehensive auto protection plans that aim to save customers from costly auto repairs. Endurance ensures efficiency, and the approval process is relatively quick and generally takes just 48 hours. Vehicles covered by an Endurance warranty can be serviced at any licensed repair shop or dealership nationwide. Plans come with no mileage limit, and coverage is available for cars up to 20 years old.

To enhance customer experience, Endurance offers an online customer service portal to easily access coverage details. It also provides a mobile app that allows you to review your policy specifics, request roadside assistance and get in touch with customer service.

Endurance provides the following coverage plans:

• Secure Plus Plan: This plan is designed for cost-conscious drivers and offers coverage for older vehicles, encompassing major components of cars or trucks.
• Superior Plan: With high-level component coverage, including stated components and parts, this plan also covers your vehicle’s electrical system. Additionally, it offers the option to add coverage for high-tech features.
• Supreme Plan: Endurance’s premium offering, the Supreme Plan, provides extensive coverage for almost all systems, parts and components in your vehicle. It even includes seals and gaskets, resembling manufacturer-level coverage.

For California residents, Endurance also offers mechanical breakdown insurance plans for their vehicles, ensuring comprehensive protection.

Read our full Endurance review.

Best Month-to-Month: CarShield

HIGHLIGHTS

Why we chose it: CarShield offers six different warranty plans that are flexible and customizable, so you can design the plan that’s right for you.

Established in 2005, CarShield has safeguarded over 2 million vehicles. The company has a particular focus on providing exceptional service and has successfully processed over 1 billion in administrative claims.

CarShield’s offerings extend beyond coverage alone, as they provide a range of additional benefits. These include the freedom to choose your own mechanic, access to courtesy towing services and round-the-clock roadside assistance. Certain plans also offer rental car reimbursement. Typically, vehicles with under 300,000 miles are eligible for coverage.

CarShield presents the following protection plans:

• Aluminum: This specialty plan addresses most electrical and computer-related issues, offering focused coverage in these areas.
• Silver: This plan covers your vehicle’s vital components, such as lubricated engine parts, water pump and transmission.
• Gold: CarShield’s powertrain plus plan, the Gold option is an excellent choice if you desire coverage for both major and minor parts. This includes components like the engine, transmission and power windows.
• Platinum: Geared toward higher-mileage vehicles, the Platinum plan provides comprehensive coverage, encompassing elements such as the engine, starter, transmission and water pump.
• Diamond: The Diamond plan offers the highest level of coverage — comparable to a manufacturer’s warranty — and encompasses everything from the engine to the fuel pump.
• Motorcycle and ATV: Tailored for motorcycles and ATVs, this specialized plan ensures comprehensive coverage for parts and components specific to these types of vehicles.
• Electric Vehicle: CarShield also offers coverage tailored to fully electric vehicles. These service contracts include specific components within the electric drive unit, electrical system, battery pack and other systems.

Read our full CarShield review.

Best for Immediate Coverage: Olive

HIGHLIGHTS

Why we chose it: Olive offers multiple different extended car warranty plans without a waiting period before coverage starts. 

Originally established as a payment services company in 2006 under a different name, Olive started offering extended car warranties in 2019. Olive sets itself apart by providing a hassle-free experience, allowing you to obtain a quote, buy coverage and file claims seamlessly online.

Olive also doesn’t impose built-in waiting periods or mandatory vehicle inspections. Once you enroll in a plan and make a payment, your coverage takes effect immediately across the U.S. and Canada. Vehicles that are 10 years old or younger, with mileage below 140,000, are eligible. The warranty remains valid until the car reaches 12 years old or hits 185,000 miles, whichever comes first.

Olive offers three different warranty plans, all of which come with monthly payment options:

• Complete Care: This is Olive’s most popular and comprehensive plan, covering a wide range of components, such as the engine, suspension, electric system, A/C, timing belt and more.
• Powertrain Plus: Going beyond major car parts, this plan extends coverage to additional components like the engine, transmission, oil pump and timing belt.
• Powertrain: As Olive’s most affordable plan, the Powertrain warranty focuses on the most crucial and expensive parts of your vehicle, including the engine, transmission and suspension.

Best for Customer Satisfaction: Protect My Car

HIGHLIGHTS

Why we chose it: Protect My Car offers in-house claims processing and dedicated customer support. 

Founded in 2005 in Florida, Protect My Car (PMC) is a reputable extended vehicle warranty company that emphasizes its top-notch customer service and streamlined in-house claims process. With PMC, you’ll be able to deal directly with its dedicated agents, eliminating the need to involve third parties. Moreover, PMC offers a complimentary points-based loyalty program with each warranty plan, allowing you to earn rewards you can redeem at various businesses, including coffee shops, retailers and hotels.

PMC also offers roadside assistance, towing, oil changes, tire rotations and rental car reimbursement, further enhancing the customer experience.

PMC presents the following warranty plans:

• Essential: Designed as a basic plan for higher-mileage vehicles, the Essential plan covers essential systems such as A/C, heating, electrical systems, seals and gaskets.
• Deluxe: Tailored for vehicles with under 100,000 miles, the Deluxe plan covers crucial components like the engine, transmission, A/C, heating, suspension, steering and cooling.
• Ultimate: The Ultimate plan is PMC’s most comprehensive coverage option and provides 95% of factory coverage. It also includes 12 months of maintenance services.

With Protect My Car, you can expect outstanding customer service, hassle-free claims processing and a range of warranty plans to suit your needs.

Read our full Protect My Car review.

Understanding Car Warranties for Used Cars

A car warranty is a contract between the vehicle owner and a warranty provider that covers the cost of specified repairs or replacements for a certain period or mileage. The best extended car warranty plans plans protect against unexpected mechanical or electrical failures after purchasing a vehicle. This can be an essential type of coverage to consider when buying a used car, which might be at a higher risk of breakdowns. 

How car warranties work

Car warranties provide coverage for specified repairs or replacements for a certain period of time or number of vehicle miles. If you purchase a warranty and need a repair later on, your warranty provider will arrange a repair or part replacement through a local provider. Instead of paying for the full cost of service, you’ll pay only a small deductible. 

The exact workings of a car warranty can vary depending on the type of warranty and the terms and conditions outlined in the warranty contract, but usually last between three and five years. Some warranties expire after a specific amount of time or after a certain number of miles have been added to the vehicle’s odometer. 

What extended warranties cover

When shopping for a car warranty, pay attention to the specific components included under coverage and the situations when you’re covered. What an extended warranty covers depends on the plan and provider. No vehicle warranty includes every component of a vehicle, and situations where you need a repair will vary by plan. For example, it’s common for car warranties to exclude damage from collisions, meaning your warranty won’t cover repairs due to an accident. 

Vehicle warranties for used cars aren’t the same thing as a regular manufacturer’s warranty. Instead, they act as extensions after your original warranty expires. Regular car warranties usually cover the major components of the vehicle, such as the engine, transmission, drivetrain and electrical system. Extended warranties can provide similar coverage, but the specific components covered can vary depending on the warranty provider and the plan chosen. 

Vehicle warranties can be a great option if you’re investing in a vehicle that will be sold as is, especially if you’re not experienced in determining vehicle condition. Buying a used car is a major expense for most people, and a breakdown soon after purchase can take a serious toll on household finances. By investing in a used car warranty, you can rest with the peace of mind that comes with knowing you’ll be protected if you need a repair shortly after making a vehicle investment.

Is a Used Car Warranty Worth It?

In most cases, a used car warranty is worth the cost. The COVID-19 pandemic and resulting supply chain issues have caused used car prices to skyrocket. According to a report by Forbes, the average price of a used vehicle increased by a shocking 45% from June 2020 to June 2021. This increased investment means you might need the extra protection a warranty offers in light of your household savings. 

In some circumstances, a used car warranty might not be worth the price. If any of the following apply to you, you may be able to save money on a warranty purchase. 

• Relatively new or low-mileage vehicles: If you’re purchasing a relatively new or low-mileage used car that’s still covered by the original manufacturer’s warranty, it may already provide adequate coverage for any potential repairs or replacements. In such cases, the existing warranty may offer sufficient protection, and an additional warranty would be a waste of money. 
• Financial preparedness: If you have the financial means to cover potential repair costs comfortably, you may choose not to purchase a used car warranty. Some drivers prefer to set aside funds for potential repairs or rely on their ability to handle unexpected expenses rather than paying for the added cost of a warranty. If you keep these funds in a high-yield savings account, you could even earn money on your repair fund. 
• Short ownership plans: The likelihood of experiencing major mechanical issues may be lower if you plan to own your used car for a short period, such as one or two years, and the vehicle is in good condition with a reliable maintenance history. In such cases, the warranty cost may outweigh the potential benefits for the short duration of ownership.

Remember that not all vehicles qualify for warranty coverage. While there are benefits of an extended warranty for high-mileage vehicles, mileage limitations may disqualify many older vehicles from coverage. Write down your vehicle’s mileage and request documentation of any previous repairs or maintenance to ensure you purchase a warranty that fits the specifications of your car. 

How and Where to Get a Used Car Warranty

When purchasing a used car warranty, you have two primary options for where to shop: the dealership where you bought the vehicle and third-party companies. While both policies share the same basic features, where you buy an extended warranty can impact the purchasing process and the claims and repair process down the line. 

Dealership warranties

When you purchase a used car from a dealership, it may offer its own warranty, often referred to as a dealer warranty or dealer-provided warranty. The dealership backs this warranty, and the dealership’s service department typically administers and services it. Repairs and claims are handled directly through the dealership, which may direct you to specific shops within the company’s network. Dealer-provided warranties may provide you with fewer repair facility options but may come with better original parts guarantees.

Third-party warranties

Third-party warranties are available from companies specializing in extended warranties. These companies are separate from the dealership and aren’t affiliated with the manufacturer, so coverage options are usually more flexible. For example, while a dealership might offer a single plan option when you buy your vehicle, it’s common for third parties to offer upwards of three plan choices.

Third-party warranties also usually have their own claims and customer service processes or outsource these operations to larger auto claims servicers. Claims are typically handled directly through the warranty provider or a designated claims administrator. The best car warranty companies third-party warranties also allow you to choose your own repair facility, which can be beneficial if you have a preferred mechanic or other auto professional. Unlike a dealer’s warranty (which you’ll need to buy shortly after purchase), you may be able to purchase a third-party warranty well after buying. Most companies also allow you to shop for a policy online.

Ultimately, each vehicle warranty company chooses its own policy terms and conditions. While these buying processes and plan features are commonly associated with dealership and third-party warranties, individual policies may vary. Read through each policy’s terms and conditions that you’re considering.

How Much Does a Used Car Warranty Cost?

In our review of both dealership and third-party warranty providers, we found that the average warranty holder paid between $110 and $180 per month for coverage. However, the specific price of coverage varies depending on the specifics of your vehicle, including the following: 

• Age and mileage: Your vehicle’s age and mileage can impact the cost of the warranty. Older vehicles or vehicles with higher mileage may be more prone to mechanical issues, leading to higher warranty costs.
• Make and model of your vehicle: The make and model of the vehicle you’re protecting can affect the warranty cost. Some vehicles have higher repair costs due to the availability and price of parts, the complexity of the components or the technology used, which leads to higher repair expenses. 
• Deductibles: Most warranties include deductibles, which are the out-of-pocket expenses you must pay for each repair visit or annually. Higher deductibles can lead to lower warranty costs, while lower deductibles may result in higher costs.

Dealers typically bundle warranties with the purchase of a used car from the dealership. Because they’re offered directly by the dealer, the dealership often factors the warranty cost into the overall vehicle price. As a result, dealer warranties are usually more expensive upfront. 

What to Look for In a Used Car Warranty

The best used car warranty for your needs depends on your circumstances and the car you’re purchasing. Here’s how to choose the best extended car warranty for your vehicle: 

• Components covered: Review the list of components and systems covered by each warranty you’re considering. Ensure that critical and costly parts, such as the engine, transmission, drivetrain, electrical system and major mechanical components, are included.
• Exclusions and limitations: Pay attention to exclusions and limitations specified in the warranty contract. Certain parts or types of repairs may be excluded from coverage, so it’s important to understand what is not covered. 
• Deductibles versus monthly cost: Check if the warranty requires you to pay a deductible for each repair visit. Evaluate the deductible amount and consider how it will impact the overall cost of repairs. If possible, adjust your deductible amount to fit your monthly household budgetary concerns. 
• Financial stability: Consider the financial stability of each warranty provider to ensure it can honor claims and fulfill its financial obligations throughout the warranty period. To do this, look up the company’s claims administrator and research its current AM Best rating. 

Getting a quote from multiple warranty providers before buying coverage takes only a few minutes — but doing so could help you save hundreds of dollars on coverage. We recommend getting a quote from each of our recommended providers before selecting a plan. 

Types of Car Warranties for Used Cars

In addition to the manufacturer’s warranty that covers a vehicle for the first few years, you can choose from multiple types of additional warranties to extend coverage. Some of the most common types of used vehicle warranties you’ll see when you shop include the following. 

• Bumper-to-bumper warranty: Sometimes referred to as “comprehensive warranty coverage,” bumper-to-bumper policies cover almost all vehicle components. They’re most similar to an original manufacturer’s warranty and are usually the most expensive option. 
• Powertrain warranty: A powertrain warranty specifically covers the major components of the powertrain, which include the engine, transmission and drivetrain. It focuses on the essential parts that make the vehicle move and doesn’t cover additional important components like the battery or the electrical system. Powertrain warranties are the most affordable used car warranty option. 
• Drivetrain warranty: Similar to the powertrain warranty, the drivetrain warranty covers components involved in transmitting power to the wheels, such as the transmission, driveshaft and axles. It may exclude the engine components, but you should check coverage details to be sure. 
• Wrap warranty: A wrap warranty extends coverage beyond the powertrain to additional components listed in the warranty contract. It covers specified components, such as the air-conditioning system, electrical system and suspension, among others. The individual items included in a wrap warranty vary widely by company, so read the entire policy before deciding if it’s right for you. 
• Corrosion warranty: A corrosion warranty protects against rust or corrosion on the vehicle’s body panels. It often has a longer duration than other warranties and provides coverage if the car develops holes due to corrosion.

Another benefit of getting quotes from multiple providers is that each warranty coverage option offers unique policy offerings. Collecting quotes gives you access to a diverse range of policy options. For more options, compare the best extended warranties for high-mileage vehicles.

Best Car Warranties for Used Cars FAQ

What’s the best warranty on a used car?

The best warranty on a used car is usually the original manufacturer’s warranty if it’s still in effect. This warranty usually provides some level of coverage for all components of the vehicle, making them the most comprehensive choice. After the manufacturer’s warranty runs out, the next best option may be a warranty from a third-party provider. 

Are car warranties worth it on older cars?

Car warranties can be worth it on older cars if you’re purchasing the vehicle in as-is condition and don’t have a fully fleshed-out household emergency fund. If you’re buying a car with a lower mileage or if you’re qualified to handle DIY vehicle repairs, a vehicle warranty might not be worth the monthly cost. 

Which is the best car warranty company?

The best warranty provider for your needs will vary depending on the specifics of your vehicle. For example, if you’re purchasing a car with higher mileage, Endurance’s lack of mileage caps can make it an appealing choice. We recommend getting a quote from each provider listed above so you can make an informed decision.