We ranked Carchex, Endurance, CarShield, Omega Auto Protect and Olive as the best used car warranty companies of 2024 in our most recent industry study.
Find the best car warranty by comparing plans from Endurance.
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We ranked Carchex, Endurance, CarShield, Omega Auto Protect and Olive as the best used car warranty companies of 2024 in our most recent industry study.
Find the best car warranty by comparing plans from Endurance.
With our trusted partner,
Key Takeaways:
Learn more about our methodology and editorial guidelines.
Your used car will need repairs as it ages, but you have many options for extended car warranties that can cover some of the unexpected costs. In our research, we found five of the best used car warranty companies that offer exceptional vehicle protection plans. Carchex, Endurance, CarShield, Omega Auto Care and Olive all have comprehensive coverage with long term lengths for used vehicles.
Below, you can see key takeaways from reviewing the best used car warranty companies. To rank our list, we first reviewed over 40 extended warranty companies in categories of reputation, coverage, cost, transparency and customer experience. We then took a closer look at the top companies and considered details like mileage limit and term length for used cars.
*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.
The sections below will provide you with an in-depth understanding of each of the best used car warranty companies and what they provide.
To help simplify the process of purchasing the best used car warranty, we’ve put together a buyer’s guide that highlights the most important considerations throughout every stage of the process.
Supported by our expensive industry research and first hand experiences with used car warranty companies in the following sections we provide:
Some used cars still come with a warranty attached. However, you’ll need to purchase a used vehicle warranty from your car’s manufacturer or from a third-party company if you want to cover repairs after the factory warranty expires. When looking for an extended coverage plan, there are a few steps you should take.
Though used car warranties are worth it for many, purchasing one doesn’t make sense for everyone. For that reason, the first step in buying a used car warranty is determining whether or not you need one.
In our 2022 customer survey, over half (57%) of respondents said their extended warranties covered repairs. Another 18% said their plans covered some repairs. Every year, warranty providers pay out claims to millions of customers for covered repairs.
Would you be able to cover an unexpected repair of $1,000 without taking out debt? Though we cover all the considerations to account for in later sections, this question is a quick and easy way to help you decide if you should buy an extended warranty on a used car.
If you answered no above and are confident purchasing a warranty is worth it, the next thing to consider is whether or not you actually use the warranty you’ll pay for. The need to consider this is evidenced by the 18% of warranty customers from our 2022 survey who said they hadn’t used their coverage. There’s a better chance you’ll use coverage if you have an older or less reliable vehicle.
Once you’re confident a used car warranty is a good idea for you, the next step is to determine how much you’re willing to pay. Based on our research, used car warranty costs range from $1,500 to $4,000, depending on the coverage level, term length, and provider. Monthly payments typically range from $100 to $200.
Our November 2023 extended car warranty survey, which polled 1,000 respondents, found that around 30% paid between $1,000 and $2,000 in total for their extended car warranties and 22% paid between $2,000 and $3,000.
At this stage, looking at cost estimates like the ones on this page is useful for the shopping process. You won’t know precisely how much you’ll pay for coverage until you get a quote directly from a used car warranty company The price you pay for your used car warranty will depend heavily on factors such as:
We recommend Omega Auto Care if you are looking for an extended warranty to cover your vehicle with over 100,000 miles on the odometer. The company’s vehicle service contracts can last up to 15 years or 250,000 miles, depending on the plan you purchase.
Omega Auto Care also provides three main coverage options to drivers, one of which has two upgrade options. We found that the Powertrain Enhanced warranty tends to be the best for high-mileage vehicles, as it protects powertrain components in addition to providing protection for the cooling and fuel system parts.
Each contract comes with roadside assistance, road hazard coverage, rental car reimbursement and maintenance benefits, including oil changes, brake pads, shoe and battery replacement, cooling system and lube maintenance.
Companies offer multiple plans and each contract specifies what repairs your plan will pay for. If you’re confident that there’s a strong likelihood you’ll use your coverage, determining your coverage needs requires having a basic understanding of available coverage levels. Below are common coverage levels offered by major providers:
All plans besides the bumper-to-bumper warranty above are stated-component contracts. That means the contract lists all covered components.
Bumper-to-bumper plans are popular because they offer the best coverage. In our 2023 survey of 1,000 extended warranty customers, 52% bought a comprehensive or bumper-to-bumper plan. The remainder of survey respondents purchased either mid-level or powertrain protection.
Ultimately, the best coverage for your needs depends on additional factors including your vehicle and its estimated repair costs. Edmunds and RepairPal are helpful in this stage of research.
For example, RepairPal ranks the top eight most-reliable brands and their annual repair costs as follows:
Car Manufacturer | Average Annual Repair Cost |
#1 Honda | $428 |
#2 Acura | $501 |
#3 Kia | $474 |
#4 Hyundai | $468 |
#5 Mazda | $462 |
#6 Lexus | $551 |
#7 Toyota | $441 |
#8 Nissan | $500 |
With sites like these, you can see average costs for models, model years and even specific repairs. Use these resources to research if it’s worth getting a warranty for your specific model. If a particular warranty costs $600 per year of coverage and your model has an average repair cost of $1,000 per year, having a warranty could be a good idea.
If you use resources like RepairPal or Edmunds and notice the used car has affordable average repair costs, it might not be worth it to get an extended warranty. Some vehicles are known for performing well even after 100,000 miles. You’d save more money in the long run by covering maintenance and occasional repairs yourself with a vehicle like this.
Looking at reviews is a good way to get a sense of a company’s customer service and learn about potential issues to be aware of. Common frustrations customers have with extended car warranty companies can involve claims not being paid and a lengthy claims process.
Since most examples of providers not covering a part are related to coverage exclusions, only 7% of respondents in our survey reported situations where a provider refused to cover a repair they thought should be covered.
When asked about the length of the claims process, about 41% of respondents said it took two to three days. Only 12% said the process took a single day.
To reduce the chances of a claim not being covered, research reputable providers and look at customer reviews on platforms like the BBB or Trustpilot. When doing so, look for larger scale issues and pay close attention to how well a company responds to complaints.
At the end of the day, no plan covers 100% of repairs in every situation. That’s why it’s important to read the contract and pay attention to exclusions.
Since used car warranty companies customize prices for each situation, the only way you’ll know exactly how much you’ll pay for a warranty is from a specific plan and provider is to get a quote from the company.
To ensure the ratings and pricing info we provide reflects industry-wide standards, we call warranty companies for direct quotes. Below is a summary table of a Titanium plan we bought from Carchex:
And below is a handy quick reference card Carchex provides with its contracts:
For further accuracy, we received quotes from warranty companies for plans at different coverage levels for multiple vehicles. The Carchex plan above is in line with other quotes we’ve received from the company.
Below, you can see another summary table from the CarShield plan we purchased. This was for the monthly powertrain Silver plan which included a $500 deductible.
Along with collecting accurate pricing information, this research also involves going through the quote process as a customer in order to document the quote experience. Pricing and quote experience data are used to generate ratings in our review methodology.
The data collected during this research includes lengths of hold times, discount offerings, and the level of customer service offered.
Finding the best used car warranty that fits your needs and budget requires getting multiple quotes from different providers. It takes some time, but getting multiple quotes gives you a good idea of your options and provides negotiating power when shopping around.
Our team collected quotes from over a dozen major companies to give you a better idea of what a used car warranty costs. Below, you can see used car warranty rates from 12 providers.
To show the most accurate comparison between companies we gathered quotes for one vehicle, a 2016 Toyota Tacoma with 100,000 miles. Kelley Blue Book (KBB) has ranked this model in the first or second spot for its Best Midsize Trucks category for the past eight years.
Remember, you’ll find different rates based on your specific vehicle, so the company that’s best for a Toyota Tacoma may not reflect the company that’s best for a Toyota Corolla.
One key concern customers have when considering used car warranty companies is whether or not their repairs will be covered. That said, since all warranties come with exclusions, it isn’t realistic to expect every part to be covered. Read the exclusions thoroughly to avoid being surprised when a certain situation or part isn’t covered.
In our warranty survey, we asked the respondents who’s warranty didn’t cover repairs for the reason. Out of 229 respondents, 42% said the specific part was excluded. Another 20% said the damage was considered wear and tear which was not covered. About 13% said the repair shop didn’t accept the plan while 11% said the damage was pre-existing.
As you read the contract, take a look at the cancellation policy. Nearly all reputable extended warranty companies allow you to cancel within 30 days for a full refund. However, cancellation terms can differ. You might be required to send an odometer statement by mail or even have the statement notarized. This is something to be aware of before your initial 30 days are up just in case you want to cancel.
Where you can take the car for repair is a big factor in buying a plan. Even if you’d get peace of mind from a used car warranty, purchasing one may not be worth it if your choice of repair facilities is severely limited.
Reputable companies like the ones we’ve highlighted above allow you to visit any licensed mechanic for repairs. On the other hand, many warranties sold at dealerships require you to go to a specific brand of dealer for repairs.
Be aware that extended warranty companies must authorize repairs before work can be done. Once the company gives the green light, the mechanic can get to work. Afterward, you’ll pay your deductible to the mechanic and the warranty company will cover the rest directly.
Many used car extended warranties also offer the three following perks automatically:
Some companies go the extra mile and provide benefits like road hazard tire repair or maintenance services. These types of benefits add value to a warranty plan.
Once you’ve read the contract and are familiar with the cancellation process, you can purchase the policy. This step is easy to do online or over the phone with a card. Some companies, such as Olive, let you do the entire process online.
Since extended warranties don’t cover pre-existing conditions, almost all plans require a waiting period after purchase before coverage kicks in. A common example is 30 days and 1,000 miles. Both of these limits would have to be met before you can file a claim in this example.
Used car warranties can be purchased from a wide range of providers that most aren’t aware of. Though the how-to process above can be applied to purchase the best coverage from any company, each provider type has pros, cons and limitations to consider when looking for the best used car warranty.
After you purchase your used vehicle, you have time to shop around and compare aftermarket warranty plans from third-party providers like Endurance and Carchex. These companies specialize in vehicle protection products and offer many different plan levels and monthly payment options.
Going with a third-party provider gives you the time to look over the fine print and exclusions at your leisure instead of in a high-pressure dealership negotiation. Additionally, third-party warranties typically allow you to visit any licensed repair facility.
Warranties from manufacturers will also have stricter mileage limits than protection plans at independent companies. Warranties from third-party providers can often cover cars with over 150,000 existing miles on its odometer.
Automakers offer various forms of protection plans that extend coverage beyond the new car factory warranty. Below we break down the most common types.
Many automakers have certified pre-owned (CPO) programs for cars that meet certain criteria and quality specifications. These usually add more time to the factory warranty or provide similar coverage up to a certain limit.
Certified pre-owned (CPO) warranties help protect your vehicle from any possible defects. Overall, we found that Mitsubishi, Hyundai and Kia offer the best CPO warranties in the industry, presenting a combination of benefits and high mileage limits.
Most manufacturers offer warranties that extend your factory coverage. Manufacturer extended warranties appeal to many drivers due to the trust associated with knowing their vehicle is being worked on by factory-trained technicians using OEM parts. Additionally, if you add extended coverage on to the purchase of your vehicle, the cost can be financed. Though it sounds like a good idea, this is actually more expensive because you will be paying interest on both your car loan as well as your extended warranty.
Along with being more expensive than aftermarket options, factory extended warranties also have more limited terms than their aftermarket counterparts. You’ll be required to take your car to a brand dealership for repairs. Most automakers offer only one or two extended warranty options too.
Usually, you can only get a manufacturer extended warranty when your car still has its factory warranty in effect. Some manufacturers only sell plans at the time of original vehicle purchase, which really limits your options.
Used car dealers aren’t usually required to provide coverage for free, but you may have some protection as a consumer depending on your state. All states have lemon laws, but most laws only apply to new or leased vehicles. Lemon laws only apply to used cars in the following states:
Lemon laws vary within these states. Some only apply to used cars that have a portion of the factory warranty remaining. Some states require the used car dealer to provide a warranty for a period of time while others simply allow consumers to return the vehicle.
Beyond that, nearly every used car dealership offers optional warranty protection to its customers during the sales process. Dealerships act as intermediaries that sell coverage from an automaker or aftermarket provider.
Either of these ideas are generally considered a poor option because they are marked up considerably by the dealership due to commission.The only exception to this rule would be the less common instances where major used dealerships like Carmax sell their own extended protection plans.
Some car insurance companies like Geico offer mechanical breakdown insurance (MBI), which is similar to an extended warranty. If you already have MBI with your company, a used car warranty is not necessary since it doubles up on coverage.
Keep in mind, though, that MBI has stricter limitations than standard extended warranties. Unlike extended coverage from an independent warranty company, with MBI, there will likely be fewer repair centers you can choose from. Additionally, MBI isn’t always as comprehensive in what it covers compared to a car warranty from other companies.
Geico’s plan is only available for new or leased cars that are less than 15 months old with fewer than 15,000 miles. So, you basically have to start this plan soon after buying a new vehicle.
Now that you know how to get a used car warranty and where you can purchase one, the final decision is whether one is worth it.
In addition to more straightforward concerns like your car’s eligibility, your existing coverage status and cost, below we’ll look at more intangible factors that make extended warranties worth it for some buyers.
Before deciding on whether or not purchasing a used car warranty is worth it, you should first make sure you can purchase one for your vehicle. Key factors to consider when determining whether or not you are eligible to purchase extended coverage include:
If you have a budget set aside for costly repairs, why should you buy an extended warranty on a used car? One of the main benefits of having an extended warranty is avoiding expensive out-of-pocket repair costs, keeping a more predictable budget and taking advantage of any extra benefits the plan offers.
A used car warranty is objectively worth it if you pay less for the coverage than you would pay out of pocket for repairs. As is the case with auto insurance, the majority of warranty customers pay more for coverage than they receive in claims. If this weren’t the case, the providers wouldn’t be able to make a profit.
That said, while you are most likely to pay more money for extended warranty coverage than you’d have otherwise paid for repairs, purchasing one can still be worth it based on financial considerations like lowering out-of-pocket costs.
Beyond financial concerns, used car warranties are worth it to some drivers for more intangible reasons. Maybe the security of knowing you’ll have repairs covered is more important to you than the total cost. In other words, when your car breaks down, you don’t have to wonder where to take it or how to get it there.
If your vehicle is already covered under an existing warranty, it likely won’t be worth purchasing coverage. If your vehicle isn’t covered by the used car dealership you purchased it from, it still may be covered by the factory warranty because new and CPO coverage can be transferred to subsequent owners.
You can check your car’s warranty status by using the VIN to create an account on the manufacturer’s website. You can also contact a dealership from the automaker for assistance.
When a new car leaves the dealership, it comes with an original warranty that provides bumper-to-bumper and powertrain coverage for a predetermined amount of time or number of miles. Many new cars come with a 3-year/36,000-mile bumper-to-bumper warranty and a 5-year/60,000-mile powertrain warranty.
The length of coverage varies by carmaker. For instance, the Toyota warranty and the Honda warranty each offer bumper-to-bumper coverage for 3 years/36,000 miles and powertrain protection for 5 years/60,000 miles, while the Hyundai warranty has a 5-year/60,000-mile bumper-to-bumper warranty and a 10-year/100,000-mile powertrain warranty.
Though less likely, even if your vehicle isn’t covered under a factory warranty, the owner may have purchased an extended auto warranty from the dealership or manufacturer that is transferable.
If you haven’t bought the vehicle yet, make sure to ask the seller or read the fine print or ask the dealership if the car is being sold “as is” or has remaining warranty coverage. If you already own the vehicle, you can check to see if your vehicle has any pre-existing coverage by doing a VIN search or reaching out to the dealership you purchased the vehicle from.
There are some situations where it’s worth getting an extended warranty on a used car (from the right provider). For example, if your car has high average repair costs according to industry resources, you’re more likely to actually make use of the extended warranty.
You should also consider your car’s dependability when making your decision. Some vehicles are more expensive to maintain year-over-year than others, so you need to be able to budget for potential repairs as the car ages.
The average repair cost can vary by your location and depends on the cost of parts and labor in the market. According to the 2022 CarMD® Vehicle Health Index™, Connecticut has the country’s highest average repair cost of $418. This includes parts and labor for repairs related to the check engine light.
Not all vehicles have the same average repair costs. Some cars are known for going 200,000 miles on basic routine maintenance, while others need all kinds of work after 100,000 miles. The good news is that you don’t have to be a car expert to get this knowledge.
Sites like RepairPal, Edmunds and YourMechanic can provide average repair costs for different makes and models. These are great resources if you’re shopping for a used car or considering a warranty on your own vehicle.
From our research, we found that some of the strongest vehicle service contracts come from Carchex, Endurance, CarShield, Omega Auto Care and Olive. While you may find that these are your best options as well, it’s smart to compare car warranty quotes online before buying.
Here are some of the most frequently asked questions about used car warranty companies.
Based on our research, we believe the best warranty company for a used car is Endurance. It offers plans that can cover unlimited miles, making it an excellent choice for older or higher-mileage cars. Endurance is a direct provider and offers one year of Endurance Elite Benefits with each of its plans, making it a great option for anyone, especially owners of high-mileage cars.
In our review of the extended car warranty industry, we gave Carchex the name for Best Industry Reputation. The company has over 20 years of experience and has earned itself an A+ rating with accreditation from the BBB.
Whether a used car warranty is worth it depends on a few factors. If you have an older vehicle, there’s a higher likelihood of a breakdown, so the warranty protection may be worth the cost. If you have a newer vehicle, you may be spending more on the warranty plan than the average annual cost of repairs.
Both are vehicle protection plans that help cover the cost of repairs and replacement of parts in the event of a mechanical failure. A car warranty, often referred to as a factory warranty, comes standard with all new cars. An extended warranty lengthens the terms of coverage and can be purchased from your car’s manufacturer or a third-party provider. Manufacturer extended warranties typically need to be purchased before the factory warranty expires.
After an in-depth look at the top used car warranty providers, we found that Carchex, Endurance, CarShield, Olive and Omega Auto Protect are the best choices if you need to cover a used vehicle.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best extended car warranty companies. We collected data on dozens of auto warranty providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.
Here are the factors our ratings take into account:
Our credentials:
*Data accurate at time of publication.
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If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.