How Much is an Extended Car Warranty?

As your vehicle ages and it accumulates more mileage, it will be more prone to wear and tear and will be at a greater risk of suffering significant mechanical issues. Add to this the fact that this is also likely to be around the time that the original manufacturer’s warranty is expiring, and you’d be well advised to purchase an extended warranty for your car’s protection. However, extended warranties can be quite expensive, particularly if you don’t know what you’re looking for.

The warranty offering from one company to the next will differ, with some including their own add-ons or even breaking out particular features into separate warranties. As a result, it’s wise to compare the various plans closely, paying particular attention to the detail, since the coverage, cost, and even claims process can differ from one warranty to the next.

We’ve outlined the key items to look for when you’re on the hunt for an extended warranty, so you end up with a policy that adequately covers your vehicle.

How much is an extended car warranty?

You’ll pay for an extended warranty either as a lump sum at the point of purchase, or you’ll be charged a premium that’s paid monthly or annually. In 2024, the average cost of an extended warranty is around $3,000, with monthly payments averaging at $120-135.

What can affect the cost of an extended warranty?

Aside from the type and level of extended warranty you choose, there are a number of other factors that could affect the amount you’ll pay, including:

• The vehicle’s make and model
• The age of the vehicle
• The vehicle’s current mileage and its annual estimated mileage
• Whether you have the vehicle’s requisite documentation and its service history
• How often you plan to use the vehicle
• Whether you plan to pay for the warranty monthly: annually, or in one lump sum

READ NEXT: Should I Buy an Extended Warranty on a Used Car?

What types of extended warranties can I purchase?

There are a variety of extended warranties available in the US, all focusing on specific car components. Their coverage can range from exclusionary (high tier) to mid-level (medium tier) to powertrain (low tier), with the cost reflected. As such, you can mix and match different warranties to obtain the level of coverage you want.

Bumper-to-bumper warranty

Most components of the car are covered by this comprehensive warranty policy, with a small list of exclusionary parts. Bumper-to-bumper warranties can vary in length, but usually last for around three to five years or 36,000 to 60,000 miles.

Bumper-to-bumper warranties are typically the most expensive type of extended warranty available, with the average cost around $3,124 total.

Powertrain warranty

All the components of a car’s powertrain – which includes the engine, transmission, driveshaft, axle and differential – are covered by this type of warranty. Powertrain warranties can last from four years or 50,000 miles, and go up to 10 years or 100,000 miles.

Extended powertrain warranties are usually cheaper than bumper-to-bumper coverage since they cover fewer car parts. In 2024, the cost of a powertrain warranty sits at around $2,893 in total.

Emissions warranty

A slightly different warranty, this is legally mandated by the federal government and covers aspects of a car’s emission control system. In the event that your vehicle fails an emissions test, the warranty will cover the necessary repairs. Emissions warranties run for about eight years or 80,000 miles.

Rust and corrosion warranty

This warranty protects against the rusting through of the car’s body sheet metal, and various corrosions and perforations, making it a useful warranty for those living in rust-prone states. The level and type of damage that’s covered can vary depending on the warranty provider, and the terms are usually between five and 12 years; mileage is unlimited. A rust and corrosion warranty typically costs between $1,200 and $1,500.

How do I know what’s excluded in a warranty?

The bumper-to-bumper warranty is usually the only exclusionary coverage warranty. This basically means that the coverage is so comprehensive that it’s easier to list the parts that aren’t covered by the warranty.

All other warranties are inclusionary warranties, i.e. the included components have to be specifically listed in the warranty’s paperwork to ensure they’re covered.

READ NEXT: How Does a Car Warranty Work?

Is an extended warranty worth it?

Purchasing an extended warranty is a financial choice to protect against the possibility of future issues. It’s a strategic decision, and while it certainly helps ease your mind, it might not end up paying for itself in the long run.

As a result, it’s a good idea to ask some questions about any warranty before you make a purchase. For example, are there limits to the number of times you can claim on the warranty? How easy is the company’s claim process to navigate? Will you have to pay anything out-of-pocket – and if so, how much? Some dealers may require upfront payment of a fee when signing up for an extended warranty, while others will incorporate that upfront fee into the overall cost of your monthly payments. Most warranties will also ask for a deductible prior to repairs being completed, so keeping this amount in mind is also sensible.