Used Car Warranties

With our #1 rated provider,

Alex Carver is a writer and researcher based in Charlotte, N.C. A contributor to major news websites such as Automoblog and USA Today, she’s written content in sectors such as insurance, warranties, shipping, real estate and more.

RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.

RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.

Here’s a breakdown of how we reviewed and rated the top auto warranty providers

Our team looked at dozens of auto warranty providers on the market, including top choices such as Endurance, Olive, CarShield and autopom!

We evaluate thousands of data points including plan costs, warranty plan inclusions and exclusions, customer reviews and more to determine the best car warranty companies.

We surveyed thousands of customers about their auto warranty experiences in order to get a deeper understanding of how customers feel about each company, what's most important in the purchasing process and more.

Our team spent hundreds of hours getting warranty quotes, reading customer reviews and reviewing the fine print of warranty contracts to help customers make informed decisions.

• Used car warranties can help owners of aging vehicles avoid expensive repair bills and manage costs.
• Depending on where you purchased your vehicle, the car could already be covered by a warranty.
• The parts and systems protected by a used car warranty vary by the coverage plan.
• Used vehicles that are sold “as is” are unlikely to be protected by a warranty.

A used car warranty can cover the cost of repairs that keep your aging vehicle in running condition — avoiding having to buy a replacement at elevated prices. The cost of new vehicles in the U.S. has increased by 21.1% since the beginning of 2020, according to the latest consumer price index (CPI) data from the Bureau of Labor Statistics. The cost of used cars, meanwhile, has increased by 31% over the same period.

In this article, we at the MarketWatch Guides team will explain what a used car warranty is and how coverage plans work. We’ll also explain what a used vehicle warranty covers, when is and isn’t the best time to get an extended warranty and share quotes from some of the best extended car warranty companies.

View Plans For Our #1 Provider – Endurance

Out of 41 companies reviewed, Endurance is our top-rated auto warranty provider

• BestComprehensive Coverage
• Mileage Covered: Unlimited mileage
• Longest Warranty Term: Up to 8 years
• Money-Back Guarantee: Up to 30 days
• Coverage Options: 6 different plans to choose from
• Discounts: $300 same-day signup discount, $250 shopping voucher and others

Should You Buy an Extended Warranty on a Used Car?

There are a few things worth considering as you’re deciding whether or not you should purchase an extended warranty on a used car:

• Vehicle reliability: One of the best ways to find out whether or not you purchased a reliable vehicle is to look up your model’s reliability rating and read customer reviews to see what other car owners have said.
• Vehicle mileage: Higher-mileage vehicles have a greater chance of mechanical failure and may benefit from an extended warranty.
• Vehicle transferability: Having an extended warranty on your used vehicle might increase the resale value of your vehicle if you decide to sell it on the open market. However, it won’t increase your trade-in value at the dealership.
• Benefits: If you want roadside benefits, trip interruption coverage, towing, rental car reimbursement and coverage for oil changes, a used car warranty is a great way to get these perks and protection for your vehicle.

What Used Car Warranty Customers Say

We spent time purchasing car warranties to try out coverage for ourselves. While it’s difficult to predict when you’ll need a vehicle repair, our warranty buying experience was quick and straightforward with each provider we tried. Representatives we worked with at Endurance, CarShield, autopom! and Carchex were friendly and prompt, and we were offered various discounts depending on the provider.

In May 2024, we polled drivers to get insight into consumer extended car warranty experiences. Out of 1,000 extended warranty customers, 96% said they were satisfied with their warranty coverage. Many left direct feedback about the peace of mind that came with not needing to pay out of pocket for serious repairs. Companies like Endurance and CarShield received praise for excellent customer service and, of those who needed to file a claim, 98% said their claim was approved.

On July 31, 2024, the Federal Trade Commission announced that CarShield must pay $10 million to settle charges that its advertisements and telemarketing for vehicle service contracts are deceptive and misleading, and that many consumers found that repairs were not covered. The company said in a statement that its marketing now offers consumers more details about the car repairs typically covered and notes that customers can visit its website, where they can look at full plans before buying. The MarketWatch Guides team is reviewing this information and will reevaluate all CarShield rankings.

What Does a Used Car Warranty Cover?

Most companies and manufacturers offer a variety of used car warranty plans that range from comprehensive to bumper-to-bumper coverage and down to basic powertrain plans. Before you opt for a used car warranty, it’s important to decide what level of coverage best fits your needs and budget.

Nearly every warranty excludes regular maintenance needs like tire rotations and oil changes as well as coverage for wear and tear components. You won’t receive protection for damages due to accidents or severe weather either, as that’s the responsibility of your car insurance provider.

Used Car Warranty Plan Types

Most used car warranty companies offer a few different types of extended warranty plans. These include:

• Used car bumper-to-bumper warranty : Covers almost all vehicle components save for a few exclusions
• Used car powertrain warranty : Covers the engine, transmission and drive axles, which are the most essential parts of your vehicle and the priciest to repair
• Used car drivetrain warranty : Covers the car’s transmission and drive axles but excludes its engine
• Anti-perforation warranty : Takes care of repairs to most body panels with holes, though it excludes surface corrosion
• Corrosion coverage : Covers repair costs related to rust and other corrosive damage

Used Car Warranty Costs

Cost is a significant factor in considering whether you should buy an extended warranty on a used car. Some companies offer lower monthly payments than others, and some offer lower total costs than others. Are you looking to keep a tight monthly budget or get the best value overall?

How Much Does a Used Car Warranty Cost?

To give you a better idea of how much a used car warranty costs, we got quotes from five of the top warranty companies. Each quote is for a 2016 Toyota Tacoma with 100,000 miles on it and a deductible of $100 to $250. According to Kelley Blue Book, The Toyota Tacoma is rated the Best Midsize Truck of 2024, occasionally coming in second for the past eight years. Coverage levels range from mid-tier powertrain coverage to bumper-to-bumper warranties.

Remember, the company that’s best for our 2016 Toyota Tacoma may not be an indication of the company that is best for your vehicle. We always recommend gathering your own quotes from at least three different providers.

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