Car Repair Warranty: Cost, Coverage & Companies

Vehicle repairs can be very expensive. While new vehicles are typically protected under a factory car repair warranty for 3 years or 36,000 miles, once one of those coverage limits is reached, the financial responsibility of repairs falls to car owners.

This article makes it easier for you to decide whether a car repair warranty is right for you by describing what car repair warranties are, what they cost, and who the most reputable providers in the industry are.

If you’re considering one, we recommend getting a few quotes so you can see personalized pricing side by side. Below are the companies we recommend you get quotes from:

A car repair warranty usually refers to an optional, extended automobile warranty that can be used for repairs after a vehicle’s manufacturer warranty expires.

These extended warranties, also known as vehicle service contracts, are offered by dealerships and third-party providers. Compared to dealership warranties, car repair warranties offered by third-party providers are generally more affordable and better suited for a high-mileage or used car.

When you own a car repair warranty, you make relatively small monthly payments toward your contract and when your car needs a repair, you simply pay a deductible for the service.

Different types of repairs are covered by each provider and plan. There are usually some exclusions to every plan.

It is important to read a sample contract before purchasing an extended auto repair warranty to make sure it covers a breadth of common repairs for your specific vehicle type.

Leading third-party providers, such as Endurance and CARCHEX, provide sample expended auto warranty contracts on their websites for you to review.

A car repair warranty’s cost is determined by the provider with whom you choose to sign your contract and a variety of factors related to your vehicle.

After reviewing several providers, our review team found that both Endurance and CARCHEX provide car repair warranties at reasonable costs to automobile owners.

Here is a list of some of the factors that will determine the cost of your car repair warranty:

• Age of the vehicle
• Mileage of the vehicle
• Buying from a dealership versus a third-party provider
• Vehicle year, make, and model
• Level of warranty coverage
• Number of high-tech components in the vehicle
• Driving habits and routine vehicle maintenance

In general, if you are worried that you can’t afford your repair bill and you would like to keep your car for several more years, it is wise to consider purchasing a car repair warranty to provide peace of mind.

If this is your situation, consider contacting Endurance, our Best Coverage Provider, for a free, customized quote.

If you are able to afford costly repairs or you plan to purchase a different car in the next several years, the cost of the protection plan is probably higher than the value you would receive from it.

We recommend that car owners look for the following qualities when evaluating car repair warranty providers:

Endurance, which offers direct-to-consumer car repair warranties, received a 4.6-star rating from our reviews team. Endurance stands out among its competitors in the following ways:

1. Gold level certification from the Vehicle Protection Association: The Vehicle Protection Association (VPA) is a non-profit organization that ensures that member companies are using the best business practices. Few companies hold a gold level certification from the VPA, so this accomplishment by Endurance is very impressive.
2. Repair options: Endurance allows automobile owners to choose from any repair shop certified by Automotive Service Excellence (ASE) to complete their covered repairs.
3. Covers automobiles with high mileage: Endurance offers car repair warranties to automobiles with 200,000+ miles. This mileage rate is much higher than many other providers.

CARCHEX received a 4.4-star rating from our reviews team. Here are a few reasons why CARCHEX is an outstanding car repair warranty provider.

1. A+ BBB rating: CARCHEX’s A+ BBB rating establishes that the company takes customer service seriously and is responsive to its customers.
2. Industry endorsements: CARCHEX has received industry endorsements from Edmunds.com, Kelley Blue Book, and CARFAX. These endorsements are a strong signal that CARCHEX is a top car repair warranty provider.
3. Variety of car repair warranty options: CARCHEX provides five different plan options, each of which can be customized. In addition, each of their plans comes with 24/7 emergency roadside assistance, trip interruption services, and lockout services.

Having trouble deciding between Endurance and CARCHEX? Read our Endurance vs. CARCHEX review.