Quick answer: For most drivers, the best extended warranty is the automaker’s own plan (such as Toyota Extra Care, Honda Care, Ford Protect or GM Protection), bought at a negotiated price, because claims are handled directly at dealers. Among third-party companies, Endurance (a direct provider) and CARCHEX (a broker) are frequently recommended by personal finance sites, and Toco Warranty is often mentioned for older, high-mileage cars. Whatever you choose, read the full contract before paying.
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Types of extended warranty providers
| Type | Who pays claims | Pros | Cons |
|---|---|---|---|
| Automaker plan (sold by dealers) | The manufacturer or its finance arm | Easy claims at brand dealers, genuine parts | Price varies widely by dealer; usually must buy before the factory warranty ends |
| Direct provider | The same company that sells the plan | One company to deal with | Fewer plan choices |
| Broker / marketer | A separate administrator and insurer | Many plan options | More parties involved; check who actually pays claims |
| Mechanical breakdown insurance | Your car insurer | Often cheap, regulated as insurance | Only for newer, low-mileage cars |
The main options compared
Automaker plans
Most brands sell their own vehicle service contracts. They usually offer the smoothest claims process because the dealer deals directly with the manufacturer, and many can be bought from any dealer of the brand, often online, at a lower price than the first offer. They’re usually the best choice if your car is still under (or just out of) the factory warranty.
Endurance
Endurance sells and administers its own contracts (a direct provider), with levels ranging from powertrain-only to “exclusionary” coverage, which lists what is *not* covered. It is often ranked as a top pick by personal finance publications. As with any provider, check customer complaints and the exact contract.
CARCHEX
CARCHEX is a broker that sells plans from several administrators. Its advantage is choice; the trade-off is that you need to check which company will actually handle your claims.
Toco Warranty
Toco Warranty is a newer provider that is often mentioned for coverage of older and higher-mileage vehicles, which many companies refuse. Confirm the mileage limits and waiting period for your car.
CarShield
CarShield is one of the most heavily advertised brands and sells month-to-month plans administered by a separate company. In July 2024, CarShield and its administrator agreed to a $10 million settlement with the U.S. Federal Trade Commission over allegations of deceptive advertising about what its plans covered. The company disputed many of the allegations. If you consider it, read the contract carefully.
How to compare quotes
- Coverage level: powertrain only, named-component (“stated”) or exclusionary (“bumper-to-bumper” style).
- Price and payment: total cost for the full term, not just the monthly payment.
- Deductible: per visit or per repair, and how much.
- Waiting period: often 30 days and 1,000 miles for third-party plans.
- Repair shop choice: any licensed shop, or only a network?
- Claims process: does the company pay the shop directly?
- Cancellation: pro-rated refund and any fees.
- Who’s behind it: the administrator and the insurance company backing the contract.
Typical prices
Expect roughly $1,500–$4,000 for 3–5 years of coverage, or $80–$150 per month for monthly plans. Luxury cars, high mileage and exclusionary coverage cost more.
Is it worth buying at all?
Often it isn’t. Read our breakdown with real repair costs: Is an Extended Car Warranty Worth It? And see how insurer-backed coverage compares in Mechanical Breakdown Insurance vs Extended Warranty.
Avoid warranty scams
- Ignore unsolicited calls or letters claiming your “factory warranty is expiring”.
- Never pay before you have the complete written contract.
- Check the company with the Better Business Bureau and your state attorney general or insurance department.
Frequently asked questions
Which extended warranty is the most reliable?
Automaker-backed plans usually have the fewest claim disputes. For third-party plans, look at complaint patterns, not just star ratings.
Can I buy an extended warranty from a different dealer?
For most automaker plans, yes. Prices can differ by hundreds or thousands of dollars between dealers.
Sources
- Federal Trade Commission: Auto Warranties and Auto Service Contracts
- ABC News / AP: CarShield to pay $10M to settle deceptive advertising charges
- Money: Best Extended Car Warranties