8 Best Extended Car Warranty Companies in 2025

Do you have any advice for someone searching for the best extended car warranty?

Deciding to have an extended car warranty can be an intimidating decision, because of the initial financial cost. However, choosing the extended car warranty that works best for you can end up saving money in the long run.

The first step is to determine your personal needs. Are you buying a brand-new car and thinking about the manufacturer’s extended warranty? Or is it a third party extended warranty for a used vehicle? If that is the case, there are some other questions to consider. How old is the car? Does it have high mileage? How much longer do you plan to keep the car? Are you having any recuring problems?

Your next step will be to do some research on extended warranty providers. Again, if it is a new vehicle, you may want to consider buying it directly from the manufacturer. Newer vehicles have a lot of electronics that are expensive to fix (think the dashboard consoles, touch screens etc). Your best option might then be to buy it directly from the manufacturer. If it is for a used vehicle, you need to use a third party extended warranty company. You will want to make sure that these providers have a solid reputation – don’t just agree to that phone call asking you to extend your car’s warranty!

Here are some companies to consider according to cars.com:

• Endurance — Best Overall
• American Dream Auto Protect — Best for Discounts
• Ox Car Care — Best for Roadside Service
• Complete Car Warranty — Best for Multiple Quotes
• Premier Auto Protect — Best for Nontraditional Vehicles
• Select Auto Protect — Best for Payment Plans
• CarShield — Best for Plan Selection
• Carchex — Best Claims Process

The cost of the extended warranty is obviously something that needs to be considered. Compare the costs of the potential repairs that would be covered by the policy to the cost of the warranty itself. According to Marketwatch, extended warranties can cost between $1500 and $4000, so make sure it is worth it to you personally. But having peace of mind may make it worth it even if it is expensive.

While the cost is important, it is important to review the policy thoroughly. You will want to determine what is covered by the warranty? What is not covered? Where can you take your vehicle to get it repaired under warranty? You don’t want to commit to a policy only to find out that there isn’t any repair shop covered in your area! So, it pays to read the policy and all the details carefully.

Making the decision to buy an extended warranty for your car is dependent on many factors. However, it can definitely be worth the time and money spent if you do the proper research.

What are the biggest mistakes that people make when it comes to extended car warranties?

There are many mistakes that can happen when it comes to buying an extended car warranty. The biggest issue is not doing thorough research and finding the best policy for you and your vehicle. Making sure that you choose a reputable company is an important first step

The next consideration is the cost. Some may choose a warranty based on price alone, and this is not a good reason. If you pick the cheapest policy, it may not cover the things you need. Or you may pay too much for a policy that covers more than you need. So before writing a check for your extended warranty, be sure to read the policy carefully to determine if the price covers what you need and not more.

This brings us to the policy itself. You need to make sure to read all the details about the coverage. You need to make sure that it has coverage at repair shops you can utilize. Some people assume that a warranty covers “everything” on a vehicle, but that is not the case. Review the coverage details and determine exactly what is covered and what is not covered. This will save you money and headaches in the long run!

Another mistake that can happen is falling for the “scam” extended warranty. We have all received the phones, letters or emails about our car’s extended warranty expiring and we need to renew. Many of those are scams. Be sure to do your research and not act quickly and get tricked into a fraudulent policy.

When you have made the decision, you are ready to buy an extended warranty, do not wait too long. There may be a deadline to purchase, and if you miss that window, you may be out of luck. Also, be sure to make the payments in a timely manner, or you could lose your extended warranty coverage.

Finally, if you think you might sell your car in a couple of years, you may want to see if the warranty is transferable. If it is not, it may have an impact on the resale value of the vehicle.

When does paying for an extended car warranty make the most/least sense?

Making the decision to purchase an extended car warranty might be a smart investment. But it could also be a waste of money. It depends on each situation and vehicle.

Here are some of the times when it might make sense to purchase an extended warranty. If you plan to drive a lot of miles, the chances your car may need repairs are higher, therefore a warranty might be a good choice.  If you plan to keep your car for a long period of time (past the factory warranty), an extended warranty might be worthwhile. If the car you are purchasing has a history of mechanical problems, it could help save those repair costs (as long as the warranty covers those items!). Also, many newer cars have expensive electronics that can be costly to fix, and having an extended warranty can help cover those expenses.

There are also times when it does not make sense to purchase the extended warranty. If you are buying a vehicle that is known to be a reliable car with low mechanical issues (do your research!), you probably won’t need to spend the extra money on the extended warranty. Some vehicles come with a solid manufacturer’s warranty, so buying the extended warranty won’t be worth your while. If you only plan on keeping the car for a short period of time (some people like a new car every couple of years!), you won’t need an extended warranty. If the warranty itself is too restrictive (doesn’t cover a lot of repairs), it may not be worth it. Finally, if it is just too expensive, you may want to pass on buying it.

The key to knowing if you need an extended warranty for your car is to do your research. Research the extended warranty companies. Research your vehicle. Understand your purchasing and driving habits. Every situation is unique, so you need to determine what works best for you, your car and your potential extended car warranty purchase.