An extended auto warranty is an optional vehicle service contract that guarantees prolonged coverage for your vehicle after the expiration of its factory warranty.
A Toyota extended warranty plan can be acquired through either a Toyota dealership or third-party provider.
Keep reading to learn more about the pros, cons, costs, and coverages offered by both Toyota dealership and third-party extended warranty providers.
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Adding an extended vehicle protection plan to your car’s warranty can save you thousands of dollars in unexpected repair costs and high-maintenance service bills. If you own a Toyota, you might be tempted to overlook an extended warranty and trust in Toyota’s impressive reputation for reliability. However, with prolonged use, even Toyota’s mainstay workhorse models – like the RAV4 and Highlander – will eventually encounter mechanical problems. Keeping this in mind, the cost of an extended warranty is often a small price to pay for long-term financial security and overall peace of mind.
If you want all-inclusive and/or cost-effective protection for your new Toyota, you’re going to need to spend some time familiarizing yourself with both Toyota dealership and third-party extended warranty plans. To make an informed decision, we recommend researching everything from component coverage conditions to warranty expiration clauses and eligible claim events.
If you’re unhappy with the conditions, costs, or exclusions of Toyota dealer extended warranty plans, you might be better off pursuing a vehicle service agreement through a third-party warranty provider. We’ve done our research on alternative third-party extended warranty providers, and we recommend that deliberating Toyota owners check out our top providers below.
To help get your warranty research process started, we’ve put together a comprehensive guide to Toyota extended warranty options, with a specific focus on major costs and coverage variations across different plans and providers.
Why Do You Need An Extended Warranty?
An extended warranty, also known as a vehicle service agreement, protects your car financially in the event of mechanical breakdown after the expiration of its factory warranty. Without an extended warranty, you’re wholly responsible for the costs of maintaining and repairing your vehicle after its factory warranty lapses.
In comparison with factory coverage, an extended warranty is generally easier to customize and tweak for unique coverage and pricing requirements. While customization choices will ultimately depend on the warranty provider’s flexibility, it’s not unusual to build your extended warranty plans according to projected driving mileage and the length of time you plan on owning and operating your vehicle.
When you add Toyota’s extended warranty to your car, you’ll not only benefit from expanded vehicle coverage, but you’ll also be rewarded with a range of convenient perks. We’ve listed four particularly attractive extended warranty perks below:
Transferability between private entities.
Reimbursement for eligible rental car travel, meals, and lodging.
Access to Toyota’s 24/7 roadside assistance, towing, and fuel delivery programs.
Access and support through Toyota’s nationwide network of factory-trained service partners and dealerships.
Varies state to state but usually up to 8 years or 80,000 miles
Remember, whether the claim is honored under the Toyota factory warranty is contingent on evidence that you’ve performed routine general maintenance on your vehicle, such as tire replacement and oil or coolant changes.
Breaking Down Toyota’s Extended Warranty Options
Like many other manufacturer’s warranty providers, Toyota offers multiple tiers of vehicle service protection, giving you the chance to choose a plan that best suits your long-term budgetary and driving objectives. Read on for a brief overview of Toyota’s three main extended warranty options.
Platinum Protection is the highest level of extended warranty coverage Toyota currently offers. Unsurprisingly, the Platinum Plan delivers comprehensive vehicle protection, covering all major mechanical and chassis systems, as well as many other non-essential cabin components. A Platinum Protection vehicle service agreement can be added to your Toyota for 3 years/50,000 miles up to 10 years/125,000 miles.
Gold Protection is Toyota’s mid-level extended warranty plan, offering wide-ranging parts coverage without the premium cost of Platinum Protection. You can choose to cover your Toyota for 3 years/50,000 miles or up to 8 years/125,000 miles.
Toyota’s basic extended warranty offering, the Powertrain Plan, is a standard vehicle service contract, providing key component coverage for your vehicle’s engine and drive systems. Once added to your vehicle, coverage under the Powertrain Plan will remain active for 6 years/100,000 miles.
Unlike competing powertrain warranties, Toyota’s Powertrain Plan also includes coverage for a limited selection of shift control and driveshaft axle assemblies. Nevertheless, the Powertrain Plan is still an entry-level extended warranty, held back by a hefty list of component coverage limits. We’ve listed five potentially expensive component exclusions to keep in mind:
We understand how tiresome warranty research can be, especially if you’re trying to find out how coverages vary between extended warranty tiers. We’ve compiled a handy table to help you quickly discern the major component coverage inclusions and exclusions across Toyota’s three major extended warranty plans.
Platinum Plan Coverage
Gold Plan Coverage
Powertrain Plan Coverage
Drive wheel system
A/C and heating
Hybrid fuel system
Fuel injection system
Fluid and gases
Toyota Reliability & Repair Preparation
In a 2017 ranking of the top 25 most reliable vehicles in the U.S., Toyota models – namely, the Tacoma, Corolla, Highlander, Camry, Prius, Sequoia, RAV4, and Avalon – were awarded 8 distinct spots on the list. In 2019, Toyota vehicles counted for half of the 38 most reliable new cars in a list compiled by U.S. News & World Report. Still, even with Toyota’s well-founded reputation for reliability, it’s important for us to remember all cars aren’t immune from mechanical issues.
Not convinced? Here are three of the most common problems affecting three of the most reliable Toyota models and their repair costs:
Toyota Corolla: An engine starter repair costs between $401 and $477.
Toyota Tacoma: Fixing a lower ball joint costs between $223 and $519.
Toyota Highlander: Repairing a faulty oxygen sensor costs between $817 and $1,799.
Toyota Extended Warranty Costs & Pricing
The cost of your Toyota extended warranty plan depends on the following factors:
Coverage type: More comprehensive coverage tiers are more expensive.
Deductible amount: The higher your deductible, the lower the cost of your monthly warranty premium.
Vehicle model and age: Historically unreliable vehicle models or older vehicles typically have higher monthly premiums.
Additional warranty perks: In some vehicle service protection plans, selecting optional add-ons will increase your premium rate.
Choice of provider: There is considerable difference in affordability between major dealership and third-party warranty providers.
Stacked warranty coverage: If your extended vehicle service plan is stacked with a factory warranty, premiums for the extended warranty will be significantly less expensive.
Another factor that can affect the cost of maintaining your extended warranty is whether your warranty is bundled with your car financing. This type of agreement should be avoided if at all possible, as you end up paying interest on your warranty as well as on your car.
Upon purchasing a Toyota extended warranty plan from the dealership, you can choose between either a $0 deductible or $100 disappearing deductible. When you take your vehicle in for covered repairs following a claim event, the deductible is the minimum dollar amount you’re required to pay before the service bill is submitted under warranty coverage. If you have selected a disappearing deductible and your Toyota is repaired at the dealership of origin, the cost of the deductible will be waived.
3 Things We Like About Third-Party Extended Warranties
When you buy a Toyota from a dealership, the dealer may try to pressure you into protecting your new vehicle with a corresponding Toyota extended warranty. However, in many cases, you’ll actually get a better deal on an extended warranty by approaching a third-party provider.
A third-party warranty provider will generally approve coverage for service work and repairs billed to your local mechanic. Just make sure they can show evidence of Automotive Service Excellence (ASE) accreditation.
Third-party extended warranty plans are not geared toward a specific auto brand, encouraging a more transparent and more flexible approach to coverage customization.
Third-party warranty providers are competing for attention from all types of vehicle owners, not just Toyota owners. This heightened level of customer competition typically translates to more affordable monthly premiums.
CARCHEX Extended Warranty: What’s All The Fuss About?
CARCHEX is a great example of a reputable third-party extended warranty provider. The company offers five different levels of extended warranty coverage, with terms ranging from 5 years to 10 years. We’ve done our research, and we’re confident that purchasing a vehicle protection plan through CARCHEX is one of the most cost-effective ways to cover your Toyota against unexpected defects and repairs.
Here’s four reasons why we think CARCHEX consistently outshines dealership warranty providers:
Flexible repair partners: You won’t pay extra for taking your car to your trusted local mechanic.
Never pay up front: Once a claim is approved, CARCHEX will deal with your mechanic directly. This means you can say goodbye to the lengthy hassle of chasing down reimbursements.
Reputation for customer service: CARCHEX is not only accredited with an A+ customer service rating from the Better Business Bureau, but it also maintains a 99.9% internal customer satisfaction rating.
Affordable monthly premiums: If you own a 2007-2014 Toyota, the average monthly cost for extended warranty coverage under CARCHEX is only $56.*
Remember, if you want to know how much you can save on warranty payments with CARCHEX, you can either call one of their auto warranty experts or fill out the form below.
Yes, in most cases, buying an extended warranty is an excellent way to provide your new or used vehicle with long-term protection.
What is covered by Toyota’s extended warranty?
Toyota Platinum Protection covers an exhaustive list of powertrain and cabin systems. The second Toyota extended warranty option, the Gold Plan, is an adequate mid-level coverage option with a significant number of component coverage exclusions. Toyota’s entry level extended warranty tier, the Powertrain Plan, only guarantees coverage for essential powertrain components, such as engine, transmission, and axle-assembly systems.
Remember, if you’re not happy with the pricing structure or coverage exclusions of Toyota’s extended warranty offerings, you can evaluate alternative extended warranty options by contacting a third-party provider.
Is Toyota’s extended warranty refundable?
Yes, Toyota’s extended vehicle service protection plans can be cancelled for a full refund if you change your mind within 30 days of purchase. After the initial 30 day period, your extended Toyota warranty will be refunded under a prorated warranty model minus a one-off $50 administrative processing fee.
*Figure accurate as of May 2017. Average monthly coverage cost is based on the average total price of the Vehicle Protection Plan over a four year coverage period. Actual monthly payments will vary per plan’s payment policy. Individual pricing is subject to change based on the combination of make, model, year, and mileage as well as coverage level and term length.