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Crash Course:
- Used car warranties can help cover auto repair costs for a flat or monthly fee.
- The average cost of a used car warranty is between $1,600 and $3,200, based on results from our most recent warranty survey.
- Third-party warranty providers tend to offer more options and flexibility than manufacturer used car warranties.
- Based on our research, CARCHEX, Endurance, and Olive are the best extended warranty companies overall in 2023.
A used car warranty can help protect owners of older vehicles from surprise bills and expensive repairs. But purchasing one isn’t the right decision for everyone, and some providers are more reputable than others.
Our research experts put together this guide to provide you with the information you need to make an informed decision about buying an extended warranty for your used vehicle. We go over the ins and outs of vehicle service plans and take a look at the best extended auto warranty companies from our 2023 industry-wide study.
Top 6 Used Car Warranty Companies
After conducting thorough research, our team picked the providers listed below as the best used car warranty companies for 2023.
Best Used Car Warranty Companies | Overall Rating | Award | Coverage Levels | Highest Mileage Limit |
---|---|---|---|---|
CARCHEX | 4.4 | Best for Used Cars | 5 coverage levels | 250,000 |
Endurance | 4.6 | Best Overall | 6 coverage levels | 200,000+ miles |
Olive | 4.5 | Best Online Process | 3 coverage levels | Unlimited |
CarShield | 4.5 | Affordable Monthly Payments | 6 coverage levels | 300,000 |
Protect My Car | 4.4 | Best Customer Experience | 3 coverage levels | 200,000+ |
ForeverCar | 4.5 | Most Affordable | 4 coverage levels | Unlimited |
In the following section, we go into further detail about each of these providers. Expand the section to learn more about these companies, the plans they offer, and their advantages and disadvantages.
#1 CARCHEX: Best Used Car Warranty Provider
CARCHEX is one of the oldest and most respected warranty providers in the industry. And when it comes to used car warranties, it’s also the best, according to our 2023 auto warranty study. CARCHEX offers multiple coverage options for vehicles up to 250,000 miles at affordable prices that include benefits like roadside assistance and rental car reimbursement.
#2 Endurance: Best Direct Provider for Used Car Warranties
Endurance earned the top spot in our general auto warranty study, but it also makes a great option for used car warranties. As one of the only direct providers in the industry, Endurance offers high-quality coverage at affordable rates with a simple, straightforward claims process.
#3 Olive: Best Used Car Warranty Subscription Model
Rather than a multiyear plan, Olive allows users to sign up for month-to-month coverage that works on a subscription model, similar to Netflix or other streaming services. This allows drivers to initiate and cancel plans easily using the company’s convenient online platform. That makes it a great option for people who are unsure of whether or not they want extended coverage for their used car.
#4 CarShield: Best Specialty Coverage for Used Vehicles
CarShield is one of the few providers to offer coverage specifically designed to cover electronic components like GPS navigation systems, sensors, and entertainment systems. This makes the provider a strong option for owners of used luxury vehicles especially. With options for vehicles with up to 300,000 miles, CarShield is also worth considering for high-mileage used cars.
#5 Protect My Car: Best Included Benefits for Used Vehicles
Protect My Car offers some of the most flexible payment terms in the industry on highly-rated coverage. But it’s the free tire rotations and oil changes that come with each plan that truly set the provider apart. These services are not usually covered by extended warranty plans but can help extend the life of your used vehicle when performed regularly.
#6 ForeverCar: Most Affordable Used Car Warranties
ForeverCar gave us some of the cheapest quotes for used car warranties in our secret shopper study. The company’s competitive prices and its short-term contract options make it an attractive choice for budget-minded used car owners.
Who Has the Cheapest Used Car Warranty?
ForeverCar and Olive were the cheapest options overall for used car coverage in our 2023 warranty study. Remember that because prices are individualized, these providers may not be the cheapest for you and your vehicle. Getting car warranty quotes from multiple providers can help you find the most affordable plan.
Used Car Warranties: Overview
A car warranty covers the cost of repairing mechanical failures that happen within a certain coverage period. New cars come with factory warranties that average three years or 36,000 miles of coverage, though some last longer. An extended car warranty – also known as a vehicle protection plan or a vehicle service contract – is a plan you can purchase to maintain coverage after your factory warranty expires.
Do Used Cars Have Warranties?
Some used cars come with warranties from the dealership. In many cases, these are packaged with certified pre-owned (CPO) vehicles. These cars have been inspected by the dealership and are typically only a few years removed from their original warranty coverage.
In addition, some extended coverage plans transfer over to the new owner when a vehicle is sold. That means you may find used cars other than CPO vehicles that come with warranty coverage.
Can You Get a Warranty for a Used Car?
You can get a warranty for most used cars. Manufacturer extended warranties often have relatively tight mileage and model-year restrictions. However, many aftermarket warranty providers offer plans for much older vehicles with hundreds of thousands of miles.
Should I Buy an Extended Warranty For a Used Car?
A used car warranty is well worth it for many drivers. But whether or not it’s worth it in your case depends on your vehicle and your personal preferences.
Here are a few points to consider when deciding whether or not a vehicle protection plan is worth it for you:
- Financial value: Some cars are more likely to need repairs than others, and repairs are more expensive for some cars than others. The more likely your used vehicle is to suffer a mechanical breakdown, the more likely it is that you’ll use enough of your warranty coverage to make it worth the cost financially.
- Expense management: For many people, making regular monthly payments is easier than setting aside thousands of dollars for auto repairs. If you prefer regularity with your expenses or have trouble saving, extended car warranties offer additional value.
- Peace of mind: Covering your used vehicle with an extended warranty means not having to worry about whether or not you’ll be able to afford surprise repair bills. Protection plans for used cars can help make owning one a little more worry-free.
How Much Does a Used Car Warranty Cost?
The cost of a used car warranty varies greatly based on your vehicle, they type of coverage you choose, and other factors. In our most recent auto warranty survey, around half of extended warranty customers said they paid between $1,600 and $3,200 in total for their coverage. The survey was part of our annual auto warranty study and collected answers from over 1,000 warranty customers from around the U.S.
In the following sections, we go over the main factors that affect the cost of used car coverage. We also provide sample quotes from our secret shopper study to compare.
How Does a Warranty Work on a Used Car?
An extended warranty works by covering the cost of repairs to items that fall under the coverage terms listed in the contract. Which components are covered depends on the type of warranty plan you purchase. These contracts also come with exclusions that dictate parts and sources of damage that the warranty won’t cover.
Types of Used Car Warranties
Extended car warranty companies offer a variety of coverage plans. However, the majority of these plans fall into three main categories.
Powertrain Warranty
This warranty type, also known as a drivetrain warranty, covers the engine, drive axle, transmission, and related components. Powertrain warranties are normally the least expensive since they don’t include electrical systems, brake parts, or heating and cooling systems.
Powertrain-Plus Warranty
This common type of plan includes powertrain coverage and additional components such as air conditioning, electrical components, and fuel delivery systems. These stated-component plans offer broad protection for many listed parts but don’t offer the same level of coverage as exclusionary warranties.
Bumper-to-Bumper Warranty
Sometimes called exclusionary plans, a bumper-to-bumper warranty comes with a short list of components that are not covered, rather than a list of items that are. Bumper-to-bumper coverage is the closest to the factory warranty plans offered by many manufacturers. Though more expensive, this vehicle protection plan can be the difference between a small deductible and a costly repair.
Used Car Warranty Exclusions
Service contracts can cover a lot, but there are some things they almost never cover. Some of the most common used vehicle warranty exclusions include:
- Wear and tear components such as windshield wiper blades, brake pads, and tires
- Routine maintenance services like oil changes and alignments
- Damage from misuse
- Damage caused by aftermarket parts and modifications
- Pre-existing damage
- Damage caused by a collision
Some providers do include coverage for some of these items. However, they are the exception to the rule. Providing coverage for things like maintenance services and wear and tear parts is uncommon but a major benefit when part of a plan.
How to Shop For a Used Car Warranty
A vehicle service plan is a big financial decision. Like any other major purchase, it pays to be a smart shopper. Learning how to shop strategically for a used car warranty can help ensure you find the best car coverage for your vehicle at the best price.
Where to Buy a Used Car Warranty
If you want to purchase coverage for your pre-owned vehicle, you have a few choices. Which option is best for you depends on both your vehicle and personal preferences.
Used Car Dealership
Many used car dealerships offer warranty plans through partner providers. You may be offered one when you buy your vehicle.
In general, these plans are often marked up to make room for the dealer to make a profit. That doesn’t mean you should always ignore them, however. Many used vehicle dealerships will still sell you a plan at a later time, so you can compare their offers to those from other options before deciding.
Vehicle Manufacturer
Some used vehicles are eligible for an extended warranty from their manufacturer. Depending on the automaker, they can sometimes provide a strong value for the cost.
However, these plans also often come with key limitations. Most automakers require you to purchase a manufacturer’s extended warranty within a certain time frame – typically within the new vehicle factory warranty period. In addition, many of these coverage plans require you to have your car serviced at dealership shops, limiting your options for repair facilities.
Third-Party Provider
You can also purchase an extended warranty for a used vehicle from one of many independent coverage providers. These companies offer a few distinct advantages over other options.
Most third-party providers offer free quotes, allowing you to shop around for the best rates. You can also typically complete the entire process online, making it fast and easy to get coverage. Unlike manufacturer extended warranties, most aftermarket providers allow you to get vehicle repair work done at any shop authorized by National Institute for Automotive Service Excellence (ASE®), including at your local neighborhood mechanic.
What To Look For in a Used Vehicle Warranty
Not all providers and plans offer the same quality of service and value as one another. Many of the plans you find online may look similar. But as always, the difference is in the details.
There are a few things you should be able to expect from an extended warranty provider and contract. These include:
- Useful benefits: Roadside assistance and related services are included in most extended warranty plans. Make sure these perks are parts of your contract.
- Direct pay policy: Find a service contract that pays for car repair bills upfront rather than reimbursing you later. Reimbursement could take months in the worst cases.
- Large repair shop network: Some extended car warranty companies don’t allow you to choose your own repair facility. A good third-party warranty will let you have your covered repairs done by any ASE-certified mechanic.
- Reasonable deductibles: If a deductible is required, your repairs should always cost more than the deductible.
- Strong industry reviews: Search a company’s BBB rating to gauge trustworthiness and find common customer reviews and complaints.
- Few and reasonable limitations: Is there a mileage limit or waiting period on the contract? Some companies don’t actually provide coverage for high-mileage vehicles.
- Reliable underwriters: Service contracts underwritten by car insurance companies are more reliable, so stick to these. Insurance regulations require companies to maintain enough financial reserves to pay for claims.
These are all important factors to consider during your research. Don’t allow price to be your only driving factor when you buy an extended auto warranty.
What To Avoid When Buying Used Car Coverage
Just as there are many features to look out for in a service contract, there are also red flags to avoid. Poor-quality providers can be frustrating to work with or may not even deliver the services you agreed to.
If you notice any of the following signs, you can probably find a better plan or provider:
- Pressure to buy coverage immediately over the phone
- Contracts that don’t explicitly explain the claim process
- Nontransferable warranties
- Lack of roadside assistance, rental reimbursement, trip interruption service, or towing services
- Contracts that don’t allow cancellations or have a 30-day money-back guarantee
- No choice of repair facility or extreme limits when away from home
- Sample contracts that aren’t readily available
- Providers that seem like a scam and don’t have online reviews
- Deceitful coverage
Before you agree to any contract, make sure to read it in its entirety – including the fine print. You may find details that make a used car warranty less useful or less comprehensive than it seems at first glance.
Conclusion: Are Used Car Warranties Worth It?
A used car warranty can be worth the cost even if you don’t use all of the coverage you pay for. They can be a valuable tool for managing the expenses of owning an older vehicle and avoiding the stress and hassle of worrying about unexpected repair bills.
You have several options for where to get an extended warranty for your used vehicle, but third-party providers tend to offer the most flexibility and options. Our editors named CARCHEX and Endurance as the best warranty providers for used cars, but any company that made our top six is worth looking into.
Which provider offers the best price and plan for you depends on your vehicle and your preferences. Comparing multiple offers can help you make the right choice for a used car warranty.
Pre-Owned Car Warranties: Additional Reading
To help car owners make an informed decision about warranty providers, our researchers conducted several head-to-head reviews of top companies in the industry. These include:
If your used vehicle has a lot of miles on it, our team also took an in-depth look at the best extended warranties for cars over 100k miles. You’ll find reviews of plans specifically for high-mileage cars to help you make a better choice.
Used Car Warranty: FAQ
Here are a few frequently asked questions about buying used car warranties.
What are the top-rated extended auto warranty companies?
Our research team named Endurance, ForeverCar, CarShield, and CARCHEX as some of the best auto warranty providers. These companies earned that distinction based on their service, reputations, and cost.
Is it worth getting an extended warranty on a used car?
Cars become more prone to mechanical breakdowns as they age, which means more time spent in the repair shop. An extended warranty on an older vehicle can help offset these out-of-pocket costs, but there’s no guarantee that a protection plan will cover every repair.
How much is an extended warranty on a used car?
An extended warranty on a used car can cost as little as a few hundred dollars to as much as several thousand. It depends on the car, plan provider, length and amount of coverage, and deductible.
Will my extended warranty coverage start right away?
Most extended warranties don’t start until after 30 days or a certain number of miles, usually either 1,000 or 3,000.
What is an aftermarket warranty?
An aftermarket warranty is coverage from a third-party company. These warranties don’t always use original equipment manufacturer (OEM) parts. This shouldn’t have serious effects, but it’s often better to have parts that are specifically made for your car model.
Can you buy an extended warranty on a used car?
You can buy an extended warranty on a used car from a wide variety of sources. Some car manufacturers offer their own extended warranties, but you can also purchase coverage from one of many reputable used car warranty companies on almost any vehicle.
Is there a 30-day warranty on used cars?
Some states, such as California, have laws that require a certain category of car dealerships to have a 30-day warranty on used cars that they sell. However, the vast majority of states and used car dealers don’t fall under these laws.
Can you take a car under warranty to any dealership for repairs?
If you have a manufacturer’s warranty, you’ll most likely need to take your car to the dealership for repairs. However, with most third-party used car warranty companies, you can take your vehicle to the certified repair facility of your choice.
Do car warranties transfer?
In most cases, car warranties transfer when the vehicle changes ownership. A used car warranty is attached to the vehicle identification number (VIN) and will cover repairs for the duration of the warranty period, as long as the premiums are paid for.
Is a used car warranty the same as mechanical breakdown insurance (MBI)?
Used car warranties and MBI policies serve the same purpose in that they cover the cost of unexpected car repairs due to mechanical failure. However, MBI policies are typically add-ons sold by car insurance companies, whereas used car warranties are sold by auto manufacturers and independent providers.
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.
- Transparency: We consider the transparency of each company’s contracts and the availability of a money-back guarantee when determining this score.
- 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.