How Much Does an Extended Warranty Cost?

Auto repairs can be expensive, and once your manufacturer’s warranty expires, you’re on the hook for the full cost. That’s why many car owners opt for an extended warranty—it helps cover unexpected mechanical failures and keeps surprise repair bills from draining your wallet.

‍

But how much does an extended car warranty cost?

‍

Prices vary based on your car’s age, mileage, coverage level and the provider you choose. In most cases, you can expect to pay anywhere from a few hundred to several thousand dollars per year.

‍

Before you opt in, it’s important to compare coverage details and exclusions to make sure an extended warranty is the right fit for your budget.

‍

Average cost of an extended warranty

‍

The cost of extended car warranties typically start around $1,000 per year, but costs can climb well beyond $4,000 for comprehensive plans—especially for high-mileage or luxury vehicles. More basic coverage may come at a lower price, but the trade-off is often fewer covered repairs.

‍

Your vehicle’s make, model, age and the level of coverage you select impact your total cost.

‍

Some warranties require a single upfront payment, while others let you spread the cost over monthly payments. While monthly payments make warranties more affordable, they may include added fees or interest, increasing your total costs.

‍

What factors impact the cost of an extended warranty?

Your extended car warranty cost will depend on multiple factors, including your vehicle’s condition, coverage type, contract length, deductible and provider. Each of these can affect how much you pay, so understanding them can help you secure the best deal.

‍

Here’s a breakdown of the key cost factors:

‍

Warranty coverage type

‍

The cost of your extended car warranty is largely determined by the type of coverage you select. The two primary options are:

‍

• Bumper-to-bumper warranty: Covers most car components, like electrical systems, air conditioning and advanced features. This comprehensive coverage is more expensive, and can cost up to $4,000 or more per year. 
• Powertrain warranty: Focuses on critical parts like the engine, transmission and drivetrain. Since it excludes non-mechanical components, it’s generally more affordable, typically ranging from $1,000 to $2,500 a year.

‍

Some providers offer specialized coverage for corrosion protection, emissions systems or specific high-tech components. If your car has advanced electronics or specific concerns, it may be worth exploring these add-ons.

‍

Vehicle condition

‍

Your car’s make, model, age, and mileage all play a big role in determining your vehicle’s extended warranty cost. The more risk a provider sees, the higher the price.

• Make and model: More reliable brands often come with lower warranty costs.
• Age: Newer cars typically qualify for lower rates since they’re less likely to have existing issues.
• Mileage: The more miles, the more wear and tear on the vehicle. Higher mileage increases the risk of mechanical failures, which can drive up warranty costs.

‍

Deductible and contract length

‍

Both your deductible amount and contract length impact the overall cost of an extended warranty. Finding the right balance can help you manage both upfront and long-term expenses.

‍

• Deductible amount: This is the out-of-pocket cost you pay before coverage applies. Deductible amounts usually range from $100 to $500. Lower deductibles result in higher upfront warranty costs, while higher deductibles can lower the overall price you pay.
  
  
• Contract length: Extended warranties usually last from 3 to 10 years or cover specific mileage limits — like up to 150,000 miles. Longer contracts provide extended protection but generally come with a higher price tag. 

‍

Warranty provider

‍

Who you buy your extended warranty from can affect both the price and the flexibility of your coverage. The two main options are:

• Dealership warranties: These tend to be more expensive due to brand reputation and comprehensive coverage.
  
  
• Third-party warranties: Often more affordable, these providers offer flexible coverage options but may limit your repair providers.

‍

Dealerships sometimes bundle warranties with financing, while third-party providers may allow more customization based on your needs. Weighing both options can help you find the best value for your situation.

‍

Shop around for the best warranty offers

‍

Getting the best deal on an extended service plan starts with comparing multiple providers and coverage options. Get quotes from both dealerships and third-party providers to see how extended car warranty costs and coverage compare. Be sure to understand what’s included, what’s excluded and other plan details to avoid any surprises. 

‍

Many providers are open to adjusting pricing or offering discounts, especially if you bring a competing quote. Some companies also provide flexible payment plans, which could make your coverage more budget-friendly.

‍

At RefiJet, you can conveniently roll your extended service plan into your auto refinance so your car is covered for the life of your loan.  

‍

FAQs

‍

Read our frequently asked questions about extended car warranty costs.

‍

How much should an extended car warranty cost?

‍

The cost of your extended car warranty will vary based on your vehicle’s age, mileage and coverage type. Prices typically start at around $1,000 per year, though some basic plans may cost less. Comprehensive coverage, especially for luxury or high-mileage vehicles, can exceed $4,000.

‍

Is an extended warranty on a car worth it?

‍

Extended warranties can be worthwhile if you plan to keep your car for the long-term or want predictable repair costs. They can also make sense if your vehicle has high mileage or advanced features that may be expensive to fix. 

‍

What are some reasons to not buy an extended warranty?

‍

An extended warranty may not be necessary if your car has a strong reliability reputation, or you already have savings set aside for potential repairs. If you have an existing manufacturer’s warranty, you may not need the additional coverage.

What is not covered under an extended warranty?

‍

Extended warranties commonly exclude routine maintenance, normal wear and tear, cosmetic damage and repairs due to accidents or misuse. Many plans also exclude pre-existing conditions and wear to items such as brake pads and tires.

‍

What are the differences between car warranties and extended service contracts?

‍

A manufacturer's warranty covers defects in materials or workmanship for a set period. An extended service contract is sold separately and provides additional protection after the original warranty expires and often covers mechanical failures.

‍