On average, the cost of an extended car warranty is $2,845 for a total length of coverage. Specific costs can vary depending on your vehicle and other factors. Some companies offer plans with fixed a terms, while others have monthly coverage. It can be difficult to determine which type of coverage is best for your needs.
Is An Extended Warranty Worth It?
This will generally depend on your vehicle and your situation. For example, if your vehicle has a higher-than-average yearly maintenance cost and low reliability scores, it might be worth it to have an extended warranty for emergencies. On the other hand, if you have a vehicle with high reliability scores and average or below average yearly maintenance costs, and you also have cash on hand, an extended warranty may not be worth it.
How Much Do Extended Warranties Cost?
On average, a monthly plan for an extended warranty costs around $108. Yearly plans cost $848 on average. Like insurance plans, extended car warranties have certain deductibles. This means you will pay a certain amount to the repair facility before the warranty pays for the rest. Deductibles usually cost between $0 and $250. The lower the deductible, the more the plan will cost.
How Much Does a Bumper-To-Bumper Extended Warranty Cost?
There are different levels of coverage for extended warranties as well. A bumper-to-bumper warranty covers any repairs to the vehicle, except for anything that’s explicitly listed as an exclusion. These extended warranties typically cost about $106 per month. Usually, these plans are offered for newer cars with lower mileage. The condition of your vehicle is the biggest influence on how much you’ll pay for any extended warranty.
How Much Does a Midlevel Extended Warranty Cost?
A midlevel extended warranty typically covers most of your car’s major system, including parts like the engine, transmission, electrical, steering, AC, and drive axles. The average plan here also starts around $106 per month. Again, the cost of your midlevel plan may vary depending on the condition of your vehicle.
How Much Does a Powertrain Extended Warranty Cost?
A powertrain warranty is a type of warranty that covers only the basic parts that drive your car, so it covers your engine, transmission, and drive axles. The average cost of an extended powertrain warranty is $105 per month.
Third-Party vs Manufacturer Extended Warranties
You can get an extended warranty from a third-party company or you can get one from your car’s manufacturer. The prices listed so far are from third-party sources. Most manufacturers don’t sell extended warranties after the factory warranty expires. On average, manufacturer warranty plans cost more than third-party plans. They also don’t usually cover your vehicle for an extended length of time. However, this isn’t always true. For example, Honda Care will cover your car for five years beyond the factory warranty for roughly $240 per year.
What Affects the Cost of an Extended Car Warranty?
As previously mentioned, the condition, age, and reliability ratings of your vehicle affect warranty costs more than the type of warranty you choose. Coverage typically costs more for luxury cars and brands with high repair costs and low reliability scores. Older vehicles with higher mileage will also cost more than new vehicles with less mileage. If you want an extended warranty, it’s best to invest in one earlier in your vehicle’s life rather than later.
As long as you know exactly what’s covered and have determined that paying out of pocket for big repairs isn’t something you can do, then an extended warranty might be worth it.
This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.