Aftermarket car warranties provide coverage for your vehicle in case it breaks down from a mechanical failure after your factory warranty expires.
Find the best car warranty by comparing plans from Endurance.
Updated:
Jun 25, 2024
Written by:
Alex Carver
Alex Carver
Writer
Edited by:
Rashawn Mitchner
Rashawn Mitchner
Senior Editor
Owning a vehicle comes with its share of costs including payments, insurance, fuel, registration and repairs. If you buy a new vehicle, repairs usually won’t be a concern for a while, as your vehicle’s factory warranty covers them. However, what happens when that factory warranty expires?
This is where an aftermarket car warranty comes in handy. In this article, we at the MarketWatch Guides team outline how aftermarket car warranties work and their pros and cons. We’ll also recommend the best aftermarket car warranty companies to consider.
Key Takeaways:
- An aftermarket warranty is worth it for older vehicles because it covers expensive repairs on cars more likely to break down, saving you money.
- Look for several coverage options and helpful add-ons like emergency roadside assistance and flexible payment terms when shopping for an aftermarket car warranty.
- Endurance is our top-scoring aftermarket car repair provider and we award it as Most Comprehensive Coverage.
Best Aftermarket Car Warranty Providers
We researched aftermarket car warranty companies and reviewed each based on reputation, cost, coverage, transparency and customer experience. From there, we decided the best after warranty providers. Here’s a look at the top-three best providers to consider for an aftermarket vehicle warranty.
Endurance: Most Comprehensive Coverage
Endurance is our top choice because it offers six vehicle protection plans for drivers and is transparent with its coverages and plans on its website. Terms from Endurance last up to 8 years/200,000 miles. You can choose between the following coverage levels:
| Endurance Warranty Plan | What It Covers |
|---|---|
| Supreme | Similar to a manufacturer’s warranty, this covers seals and gaskets, the drive axle, engine, cooling system and transfer case |
| Superior | Covers repairs for critical systems like electrical, engine, high-tech equipment, transmission and air conditioning |
| Secure Plus | Designed for used vehicles, it covers repairs needed for basic components, such as engine, transmission and air conditioning |
| Secure | Powertrain coverage that protects the drivetrain and vital parts |
| Premier | Covers the engine, transmission and drive axles for high-mileage vehicles |
| EnduranceAdvantage™ | Exclusionary contract that covers routine maintenance as well as breakdowns |
When you sign up for any coverage, Endurance offers free roadside assistance. It comes in handy if your vehicle breaks down and you need towing services or fuel, or to fix a flat tire or jump-start a dead battery. All coverages also come with a 30-day money-back guarantee.
And when you need to file a claim, you determine which certified repair shop you want to use. That means if you have a trusted mechanic at your dealership, you’re free to use them.
Read more: Endurance Warranty Review
Carchex: Great Industry Reputation
Carchex offers five levels of coverage with maximum term limits of 10 years/250,000 miles. It also has high transparency and displays sample contracts on its websites. Here are the five plans you can choose from, ranging from bumper-to-bumper warranties to simple powertrain.
| Carchex Plan | What It Covers |
|---|---|
| Titanium | Most closely mirrors what your vehicle’s original manufacturer’s warranty does in terms of coverages, with only a few exclusions |
| Platinum | Offers the most stated components including every major system like cooling, transmission and engine |
| Powertrain Plus | Covers repairs needed to all major components of your motor vehicle and more than a basic powertrain |
| Powertrain | Pays for the most basic and expensive repairs for your major systems |
| Extra Care Coverage | Pays for repairs to components outside of powertrain parts, meaning it works as a supplemental coverage with your existing factory warranty |
Along with these extended warranty plans, Carchex offers its customers 24/7 roadside assistance, towing service, rental car reimbursement, gas delivery and trip interruption coverage.
As an aftermarket warranty, Carchex allows you to choose your repair facility. Rather than just a dealership, you have your choice of mechanics certified by National Association for Automotive Service Excellence®. It also pays repair bills directly to your shop if it’s an approved repair.
Read more: Carchex Review
CarShield: Affordable Monthly Payments
Car owners can get six flexible levels of car coverage at affordable prices from CarShield’s service plans. Its coverage terms go up to 10 years/300,000 miles, which are some of the highest terms on the market. It also has month-to-month plan options at good prices, which is why we award it as the provider with Affordable Monthly Payments.
Here’s a look at what CarShield’s car warranties cover:
| CarShield Plan | What It Covers |
|---|---|
| Diamond | The most extensive coverage, paying for repairs for almost everything mechanical and electrical |
| Platinum | Ideal for high-mileage vehicles, this covers most parts and systems |
| Gold | Covers many of your vehicle’s major and minor parts |
| Silver | Covers only the most expensive repairs needed to critical parts like your automobile’s engine, transmission, drive axle and water pump |
| Aluminum | Covers the electrical and computer components of your car like your electrical system and GPS navigation system |
| Electric Vehicle Coverage | If you have an electric vehicle, this covers its electric system, electric drive unit, battery pack and more |
| Motorcycle & ATV | Coverage levels for your motorcycle and ATV |
CarShield makes it simple to sign up for a policy. All you need is your vehicle’s identification number. Once you receive your free quote, if you accept, you have a waiting period of 30 days before coverage kicks in.
You’ll also have the option to make low monthly payments to pay for the policy. And to minimize out-of-pocket costs for repairs even more, CarShield offers plans with no or lower deductibles. Though keep in mind that a lower deductible usually raises the cost of monthly payments. Like many extended warranty providers, all plans also come with 24/7 roadside assistance.
Read more: CarShield Review
Aftermarket Auto Warranty: Types of Coverage Plans
When shopping for extended car warranty plans, you’ll have your choice in coverage types. Bumper-to-bumper offers the most extensive protection with few excursions and works best for vehicles less than 10 years in age. Comprehensive stated-component is the highest level of coverage aside from bumper-to-bumper, so it’s less expensive.
You can also buy vehicle protection plans that still cover critical components but don’t offer the extensive protection that comprehensive does, such as a powertrain warranty.
Below is a look at what you receive with each type of car warranty:
| Warranty Type | Description |
|---|---|
| Bumper-to-bumper | This covers almost every car component save for a small list of exclusions in the contract. It works best for newer vehicles under 10 years old, but is always the most expensive coverage. |
| Comprehensive stated-component | This outlines the vehicle components in the contract (hence why it’s called “stated”-component coverage). There aren’t many exclusions with comprehensive coverage. |
| Medium stated-component | This covers more expensive components like electrical and air conditioning systems. |
| Powertrain plus | Along with paying for repairs to powertrain components, this usually covers drivetrain components and your vehicle’s fuel system. |
| Powertrain | This covers only your vehicle’s most critical and expensive systems like engine, transmission and drive axles. It’s often the cheapest warranty and is perfect for older cars with high mileages. |
How Long Does an Aftermarket Car Warranty Last?
Extended car warranties last on average from two to seven years, depending on the provider’s plan offerings and mileage restrictions. Higher mileage limits is one of the biggest reasons a vehicle owner might choose a third-party provider over one from their car manufacturer.
For example, Toyota has plans that go until your vehicle reaches 125,000 miles. On the other hand, third-party extended auto warranty companies offer coverage for vehicles that reach 200,000 to 250,000 miles. Some even have plans with unlimited mileage.
Aftermarket Car Warranty Extras
Many of the best extended auto warranty companies offer free perks along with their plans. Some of the most common aftermarket warranty extras are:
- Emergency roadside assistance: Covers basic reasons for breaking down like fixing a flat tire, jump-starting a battery and providing fuel to vehicles that run out
- Rental reimbursement: Covers the cost of your rental car with a daily and maximum benefit limit when your vehicle is in the shop for a covered repair
- Trip interruption coverage: Pays for food and lodging up to a limit when your vehicle needs repairs covered under your extended auto warranty and you’re a certain distance from home, usually 100 miles
Aftermarket Car Warranty Cost
In our 2022 survey that polled 1,000 drivers with extended warranties, we found that most people paid between $1,615 and $3,208 in total for their vehicle service contracts. The median cost for a plan was $2,458. Like anything else, the price you pay for an extended car warranty depends on a few factors.
Some factors that impact the price of a warranty are:
- Vehicle age: The older your vehicle is, the more likely it will need repairs, which can impact costs.
- Vehicle mileage: The more miles your vehicle has, the more likely it will need more than routine maintenance or will have more breakdowns, resulting in a higher cost.
- Vehicle make and model: Some automobiles are more susceptible to certain issues.
- Deductible: The lower your deductible is, the higher your monthly payment can be.
- Provider: Each provider charges its own rates, which is why it’s important to gather multiple quotes ahead of time to see which offers the best prices.
- Coverage level: The more parts a coverage level pays for, the more expensive it can be.
Should You Get an Aftermarket Car Warranty?
An aftermarket car warranty can be beneficial because it provides financial protection in the event your vehicle breaks down. Unless you have the money on hand to pay for a costly repair outright, having extended warranty coverage lets you effectively budget for a trip to the mechanic.
When considering whether an aftermarket car warranty is right for you, here’s a quick summary of the major pros and cons:
Pros
It pays for expensive repairs to your vehicle’s most critical systems.
Many providers offer a fast claims process where you choose your certified mechanic.
Providers typically offer flexible payment plans.
Cons
Some providers have mileage limitations, so older and higher-mileage vehicles might not qualify for coverage.
Some extended warranty plans can be expensive.
You may end up never using your warranty .
Aftermarket Vehicle Warranty: The Bottom Line
Aftermarket vehicle warranty plans provide peace of mind in that they cover repairs needed to your vehicle’s most expensive and critical components. When shopping for warranty coverage, make sure to compare quotes from a few providers and check out sample contracts. That way, you can find which provider offers the right mix of coverage levels and value for you.
Aftermarket Warranty for Cars: FAQ
Below are frequently asked questions about aftermarket warranties for cars:
Yes, an aftermarket car warranty is a good idea because it covers auto repairs needed to your vehicle’s most important parts like its engine, transmission, braking and electrical system. If you don’t have the money to cover the cost of repairs up front, an aftermarket warranty is an affordable way to cover those costs when your car breaks down.
Extended warranties are worth it when you have an unreliable car or an older vehicle that needs frequent repairs. They’re also worth it when you don’t have enough money set aside to cover a major repair, but can more effectively budget for a monthly cost.
In some cases, the most extensive auto warranty plans mirror the factory warranty in what it covers. And you’ll usually gain free perks on top of that like 24/7 roadside assistance.
Our Methodology
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:
- Reputation: Our research team considers availability, ratings from industry experts and years in business when conferring this score.
- Coverage: Companies that offer a variety of choices for warranty coverage, long contract terms and added benefits are more likely to meet consumer needs.
- Cost: Auto warranty companies with affordable rates and multiple deductibles scored highest in this category.
- Transparency: This score is based on contract transparency and the availability of a money-back guarantee.
- Customer experience: Based on customer satisfaction ratings and our extensive shopper analysis, we consider the responsiveness, friendliness and helpfulness of each warranty company’s customer service team.
Our credentials:
- 500+ hours researched
- 50 companies reviewed
- 2,000+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.
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