An extended car warranty — more accurately called a vehicle service contract (VSC) — can help cover repair costs after your original manufacturer’s warranty expires, but choosing one can be tricky.
NerdWallet’s editorial team compared quotes, read sample contracts and listened to sales pitches so you don’t have to. We’ve evaluated leading providers based on factors like coverage options, cost, customer experience and transparency. Here are our top picks, plus a guide to extended car warranty coverage types and costs.
Endurance
What we like about Endurance
Although we used Endurance’s exclusionary plan (covers all components except those listed as exclusions) for comparison, the company stands out for its range of coverage options that are clearly explained in a preview contract. The Endurance website lets you easily get quotes, see sample agreements and pay to start a plan online. Endurance is a direct provider and administrator that handles the majority of its own claims in-house.
What we don’t like about Endurance
Endurance’s per-mile and per-month cost (based on an average of 1,200 miles driven monthly) was higher than some providers (although it wasn’t the highest). Also, Endurance doesn’t cover damage to a non-covered part by a covered part, while some other providers do.
More details about Endurance
Waiting period for coverage: 30 days or 1,000 miles.
Deductible: $100 per repair.
Aggregate limit: No set aggregate dollar limit for exclusionary. All repairs and benefits can’t exceed the average condition trade-in value per J.D. Power at the time of the vehicle repair.
BBB standing: Accredited with an A rating.
Plan options:
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Supreme – exclusionary or bumper-to-bumper.
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Superior – stated components.
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Secure – basic powertrain with lowest payments.
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Secure Plus – powertrain with additional components.
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Select Premier – high-mileage vehicles.
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Advantage – exclusionary, including up to $3,500 in annual maintenance.
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Supreme for Highline Vehicles – specific luxury vehicles.
Some plans can be customized to include limited coverage for hybrids and Tesla EVs.
Included benefits:
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First year of Elite Benefits is free with a $29 activation fee. Includes tire coverage and windshield repair from road hazards; key fob replacement; up to $500 collision discount.
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24-hour roadside assistance.
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Rental car and trip interruption coverage.
Best consumer-friendly terms
Olive’s online quote functionality lets you select higher deductibles for a lower cost and enables you to purchase online. It was the only extended car warranty company we reviewed with no waiting period for coverage to begin. Its terms and conditions document spells out details others don’t, such as the exact national guides used to set labor cost limits. Olive was also the only company that did not try to sell us overlapping coverage on a new car still under the manufacturer’s warranty, instead telling us to check back about six months before the factory warranty ends.
What we don’t like about Olive
For an emergency, unauthorized repair, Olive requires you to report the repair to them the next business day, while other companies allow five business days. Also, Olive’s per-mile and per-month cost for a luxury vehicle was the highest, but it was among the cheapest for non-luxury brands. And, Olive has only three different plans.
More details about Olive
Waiting period for coverage: None.
Deductible: $100, $250 or $500.
Aggregate limit: The total of all claims paid can’t exceed the vehicle’s retail value per NADA at the time of the current claim. Upon reaching this limit, no further claims are paid.
BBB standing: Accredited with an A+ rating.
Plan options:
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Complete Care – exclusionary or bumper-to-bumper.
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Powertrain Plus – powertrain with additional components.
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Powertrain – basic powertrain covering the most expensive parts.
Included benefits:
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Rental car coverage.
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Towing reimbursement.
Best for low cost per mile (new car)
Carshield
What we like about Carshield
Compared to other providers, Carshield’s month-to-month plan for a newer car is one of the cheapest per mile (based on an average of 1,200 miles driven monthly). The sample contract (from American Auto Shield) states that any teardown required to diagnose a problem will be covered, which isn’t the case for all extended car warranty companies. Also, for extras like roadside assistance and rental car reimbursement, Carshield’s per-repair caps are more generous.
What we don’t like about Carshield
Carshield doesn’t offer online quotes, so you must call to get one. Also, some cost factors could negate the savings of a lower monthly premium. For example, the per-repair deductibles quoted to us started at $250. And, emergency repairs without preauthorization are limited to $500 per breakdown. Finally, in all cases, Carshield promoted the month-to-month plan, meaning the payment could increase over time.
Our final Carshield star rating was lowered due to a 2024 Federal Trade Commission charge of deceptive and misleading advertising and telemarketing practices, alleging that many repairs were not covered as promised; Carshield settled the case for $10 million.
More details about Carshield
Waiting period for coverage: 30 days and 1,000 miles or 90 days and 200 miles, whichever combination is met first.
Deductible: $250 except for engine replacement and transmission replacement or rebuild, which is a $500 deductible. For a luxury sedan, we were quoted a straight $500 deductible.
Aggregate limit: Can’t exceed the average retail value of the vehicle as determined by a nationally recognized guide or $15,000, whichever is greater (per monthly term).
BBB standing: Accredited since 2024 with an A+ rating.
Plan options:
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Diamond – exclusionary or bumper-to-bumper.
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Platinum – stated components.
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Gold Select – powertrain with additional components.
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Silver – basic powertrain.
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Aluminum – specialty coverage for electrical and computer-related problems.
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Electric Vehicle – for fully electric vehicles.
Included benefits:
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24-hour roadside assistance (towing, tires, lockout, battery, fuel).
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Rental car coverage.
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Trip interruption.
Best for 24/7 claim filing
Premier Auto Protect
on Premier Auto Protect’s website
What we like about Premier Auto Protect
Even though Premier Auto Protect doesn’t provide quotes 100% online, a representative was responsive via email and quickly sent us quotes and a sample agreement. We also like that Premier offers 24/7 claims submission. Overall, Premier doesn’t really stand out from competitors, but its offerings are fairly typical, and it may be worth a look if available coverage fits your needs.
What we don’t like about Premier Auto Protect
We found Premier’s plan names to be confusing. Plans listed on the Premier website don’t match plan names in the sample contract. Also, the sample agreement isn’t specific in listing sources used to determine coverage maximums, such as vehicle value and labor allowances. It only states that the administrator reserves the right to determine the sources used.
More details about Premier Auto Protect
Waiting period for coverage: 30 days or 1,000 miles.
Deductible: $100 per repair.
Aggregate limit: The agreement doesn’t give an upper limit. It does state that the contract’s liability limit per claim will be no lower than the vehicle’s actual cash value or cost of repair based on a national labor and parts manual.
BBB standing: Accredited with a B rating.
Plan options (per website):
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Exclusionary – bumper-to-bumper.
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EV Exclusionary – includes certain named EV components.
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Premium – essential parts like engine and transmission, plus additional components like high-tech electronics and hybrid systems.
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Essential – basic systems and parts.
Website also lists Premier Repair Assist, Powertrain and Premier Powertrain Enhanced as “nationwide coverage.”
Included benefits:
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24-hour roadside assistance (towing, tires, lockout, battery, fuel).
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Rental car coverage.
Best for low monthly cost (new car)
What we like about CARCHEX
For a newer car, the quotes we received from CARCHEX (based on per-mile and per-month cost) were on the low end compared to other providers. The coverage offered to us included a luxury electronics package, which is spelled out in the sample agreement as either one replacement or one repair of front/rearview cameras and sensors, voice activation systems and similar items. We also like the availability of sample contracts on the CARCHEX website for all five plan options.
What we don’t like about CARCHEX
CARCHEX doesn’t offer online quotes, so you must call to get one. That can be time-consuming when you simply want to compare quotes. As a broker, CARCHEX sells vehicle service contracts provided by third-party administrators, so it doesn’t handle its own claims. The quote we were given was for month-to-month coverage from American Auto Shield — the same as Carshield provided us. Unsurprisingly, the CARCHEX and Carshield coverage is nearly identical, but the CARCHEX quotes we received were slightly higher than Carshield.
More details about CARCHEX
Waiting period for coverage: 30 days and 1,000 miles or 90 days and 200 miles, whichever combination is met first.
Deductible: $250 except for engine replacement and transmission replacement or rebuild which is a $500 deductible. For a luxury sedan, we were quoted a straight $500 deductible.
Aggregate limit: Can’t exceed the average retail value of the vehicle as determined by a nationally recognized guide or $15,000, whichever is greater (per monthly term).
BBB standing: CARCHEX advertises a BBB A+ rating, but the BBB website calls out “inaccurate advertising of BBB affiliation.” We contacted CARCHEX for clarification and received no response. Our final CARCHEX star rating reflects this discrepancy.
Plan options:
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Titanium – exclusionary or bumper-to-bumper.
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Platinum – stated components.
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Powertrain Plus – powertrain with additional components.
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Powertrain – basic powertrain.
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Extra Care Coverage – crucial items outside of the powertrain, such as the electrical system, steering, suspensions and braking system.
Included benefits:
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24-hour roadside assistance (towing, tires, lockout, battery, fuel).
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Rental car coverage.
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Trip interruption.
Other extended auto warranty companies we considered
These companies either scored below three out of five stars overall in our rating system or had red flags to be aware of.
We wanted to love this company and were set to give it a high rating, but some digging revealed that Toco filed for Chapter 11 bankruptcy protection in September 2025. It’s still operating while reorganizing finances under court supervision. We really liked Toco’s easy, online quoting process and simple approach to coverage — one core plan breaks into four mileage ranges (orange, yellow, blue and green). What’s covered depends on where your car’s mileage falls at claim time. The higher the mileage, the more limited the coverage. We were also impressed with the Toco representatives we chatted with. However, Toco’s per-mile cost was higher than other providers we rated, and we unfortunately can’t recommend a company with questionable financial stability.
Our experience when trying to get a quote from Ox Car Care was by far the worst. We had to call (no online quote), and each time we were subjected to high-pressure sales tactics. In one instance, they emailed us a quote with a higher price than they gave us on the phone. We emailed for clarification and received no response, but we’ve continued to receive daily texts, emails and calls. In another instance, they wouldn’t send a quote unless we put money down. Ox’s deductible was also high, set at 30% of the repair cost or a $200 minimum in years one and two of the term.
Select Auto Protect doesn’t offer online quotes, so you have to call or email. Select also doesn’t allow monthly payments. We were told we had to pay the full amount upfront, but after we pushed back, they gave us the option to pay in four monthly installments. Broken down per mile and month, Select’s quote was one of the lowest, but the sample agreement is vague about coverage. One of our biggest concerns is that Select labels its top tier as exclusionary. However, the sample agreement sent to us does the opposite, and lists only covered parts, which is called named-component coverage. This could leave gaps in coverage for anyone thinking they are buying exclusionary coverage. Select is not BBB accredited and has an F rating.
American Dream Auto Protect
When you purchase an extended car warranty, it’s critical to get a sample agreement to verify that anything you’re told verbally is actually spelled out on the declarations page and the remainder of the agreement. Our top-rated companies have sample agreements readily available on their websites. American Dream Auto does not, and reps would not send us one unless we committed to and put money down on a plan first. American Dream is not BBB accredited and has a D rating.
Types of extended car warranty coverage
Extended car warranties or VSCs vary in scope and cost. Here are the main types you will find.
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Exclusionary or bumper-to-bumper: Covers nearly every mechanical and electrical part except a short list of exclusions.
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Named component: Covers only the specific parts listed in the contract. It’s less comprehensive but often more affordable.
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Powertrain: Covers the engine, transmission and drivetrain — essential systems that keep your car running.
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Wrap coverage: Adds protection to a powertrain warranty, “wrapping” around it to cover additional components.
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Specialty plans: Some third-party providers offer separate coverage for high-tech systems, hybrid components or luxury vehicles.
Frequently asked questions
What is an extended car warranty?
You will hear the terms “extended car warranty” and “vehicle service contract” used interchangeably, but the more accurate name is vehicle service contract. A VSC isn’t a true warranty, and it doesn’t automatically have the same federal (and in some cases state) protections that apply to manufacturer’s warranties.
What’s a manufacturer’s warranty vs. an extended car warranty?
Manufacturer warranties come with a new vehicle and cover defects in materials and workmanship for a set time or mileage — typically three years or 36,000 miles, whichever comes first. An extended car warranty is intended to help offset repair costs after the manufacturer’s warranty ends.
Some automakers and dealerships do sell extended warranties backed by the manufacturer, and others offer third-party contracts through independent providers. You can also buy a VSC directly from a third-party provider yourself, which is our editorial team’s focus for this comparison.
🤓 Nerdy Tip
If your manufacturer’s warranty is still active, wait until closer to its expiration to buy an extended car warranty. The factory warranty takes precedence, so if it pays for a repair or replacement, the extended warranty won’t. You would be paying for duplicate coverage you don’t need.
How much does an extended car warranty cost?
Extended car warranty costs range from about $40 to well over $100 monthly. Most providers let you pay monthly or in a lump sum (often with a discount for paying upfront). You may also have to make a down payment (usually equal to a monthly payment) and will pay a deductible throughout the contract.
Pay close attention to the contract’s duration. For example, a plan might cover 60 months or 100,000 miles, whichever comes first. Using your average monthly mileage, estimate which limit you’ll reach first to see how long your coverage will actually last and your true per-mile or per-month cost.
Are extended car warranties worth it?
Whether an extended car warranty makes sense for you depends on your vehicle and your ability to handle unexpected repairs. If you drive a high-mileage or luxury vehicle with many high-tech features, or you simply want peace of mind against major repair bills, a vehicle service contract could be worthwhile. But if you’re likely to spend less on repairs than on warranty payments, saving that money in an emergency fund may make more sense.
What does an extended car warranty cover?
Most extended car warranties cover a vehicle’s powertrain system — the engine, transmission, drive axles and transfer unit — since these are the parts most critical to keeping your car running.
Mid- and upper-tier plans usually expand coverage to include the air conditioning, steering, cooling and fuel systems, and many also protect key electrical components such as the alternator and starter. Brake coverage usually applies to the main components that make the system work, but not everyday wear items like brake pads or rotors. Common exclusions include things like tires, paint, upholstery, glass, filters and wiper blades.
Always read your contract closely for specific details, as coverage varies by provider and plan. Items like high-tech electronics may only be protected under the most comprehensive plans or as an add-on.
What is mechanical breakdown insurance?
Mechanical breakdown insurance (MBI) is similar to an extended warranty but is sold through an insurance company rather than a warranty provider. MBI typically offers comprehensive repair coverage and may be regulated differently from vehicle service contracts. It’s often available through your car insurance company and can be added to your policy for an extra cost.
Do extended car warranties cover electric vehicles and hybrids?
Some extended car warranty companies now offer coverage for electric and hybrid vehicles, but it’s on a limited basis. Some contracts are designed specifically for EVs, while others add electric or hybrid components to traditional exclusionary or stated-component plans.
These plans typically cover the major electrical and mechanical systems, such as the electric motor. Some companies exclude the battery, while others offer it as an optional add-on or within a dedicated EV-specific plan. Even when a battery is included, there may be caps on repair costs or partial reimbursement for replacement, depending on the battery’s age or mileage.