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Through our cost analysis, we found Endurance, CARCHEX, autopom!, and CarShield have the cheapest car warranties with the best value.
Cheap Car Warranty Companies
Below are our picks of the most affordable extended car warranties to fit your budget:
Provider | Cost Rating | Overall Rating |
---|---|---|
CarShield | 4.6 | 4.5 |
Endurance | 4.5 | 4.6 |
CARCHEX | 4.0 | 4.4 |
autopom! | 3.9 | 4.3 |
Read below for more details about each provider.
Cheap Auto Warranty Basics
An extended car warranty covers the cost of unexpected repairs in the event of a mechanical breakdown. However, it is important to note that although the extended auto warranty discounts cover repairs for your vehicle, they do not usually cover repairs for the whole vehicle. A car warranty covers only the essential or agreed-upon parts of the car for a certain number of years or miles. Although it may take a while before you finally get to benefit from a cheap extended warranty, it usually comes in handy when you least expect it. In such scenarios, cheap car warranty deals come in handy since you won’t have to worry about footing the repair/service bill if your car has a warranty.
Think through both costs and select the one you feel would serve you best. If you do a thorough job researching your warranty plan and provider before purchasing in order to balance affordable cost with a level of coverage that fits your needs, a cheap car warranty may prove to be worth it. Since used cars have a history of repairs and breakdowns, drivers may not know when or where their vehicle will break down. The cost of repairs may also be on the higher side, depending on what is to be repaired. Therefore, taking out an extended warranty will benefit you as the warranty will alleviate you of the financial risk that comes with vehicle repairs.
Is A Car Warranty Worth It?
A cost-effective aftermarket car warranty should cost less than what you’d pay in out-of-pocket repair costs. For drivers with highly reliable vehicles, mechanical breakdowns may be far and few between, reducing the usefulness of an extended warranty. However, drivers with less reliable vehicles looking to save money may benefit from purchasing an aftermarket car warranty.
Another factor to consider is how long you plan to own your car. If you plan to sell your car before the manufacturer’s warranty expires, buying coverage you won’t use does not make sense. In some cases, a transferable extended warranty can increase the resale value of your used car if you sell to a private owner, though it is unlikely to raise a trade-in offer from a dealership.
Before committing to any cheap auto warranty, it’s a good idea to reach out to multiple providers to get quotes. This allows you to compare not only coverage between companies but also price points. We’ve listed some of the top providers mentioned in this article below. Reach out to receive free, personalized quotes.
Pros And Cons Of Extended Car Warranties
Below are some pros and cons of extended car warranties that you should consider.
Advantages of an extended car warranty.
- The most significant advantage of an extended warranty is that it might help you save money if your vehicle requires an expensive repair that is covered by your contract. Instead of paying the full cost yourself, you’d only be responsible for the deposit, and the remainder would be covered by the warranty provider, as covered in the contract of service.
- If thinking about how you’ll pay for a repair keeps you awake at night, having an extended warranty can help.
Disadvantages of an extended car warranty
- Coverage- An extended warranty doesn’t cover repairs for all issues of a vehicle. They usually only cover the essential or agreed-upon parts. Before signing the papers, be sure to read and understand which parts of your car are covered by the extended warranty.
- You may actually never get to use your extended warranty, and if you do, the cost of repairs will most likely be less than the total cost of the warranty, so you may want to think it through before signing off on one.
How To Get A Good Deal On A Cheap Car Warranty
When shopping for an extended car warranty, there are several steps you can take to ensure that your costs are low. Below are our recommendations for how to shop for a car warranty so you get the lowest price that fits your needs:
- Get Quotes From Multiple Companies: We recommend getting quotes from at least three providers, as this will give you a solid general idea of how much it costs to cover your vehicle and a better chance of getting a cheaper quote.
- Purchase The Warranty Directly From The Provider: Because dealerships tend to mark up prices for commission, you’ll almost always get a lower price if you purchase the warranty directly from a reputable provider.
- Read The Contract: Sometimes the overall cost of your car warranty will be higher than the prices you are quoted. To cut costs, make sure to read the fine print so you are aware of hidden costs like additional fees or deductible policies that aren’t straightforward.
- Ask About Discounts: Most providers have discounts with varying eligibility requirements. Examples that are common include discounts for veterans, police officers, seniors, or those who purchase contracts for multiple vehicles.
- Avoid Financing: Avoid traditional payment plans that include interest. While this may seem like it saves you money in the short term, you’ll end up paying much more for the loan at the end of the day. To avoid this, look for a provider with an interest-free payment plan.
- Choose The Optimal Payment Structure: Generally, longer payment terms mean you’ll pay more overall. To lower the cost of your extended car warranty, choose a shorter payment period and consider options with a higher down payment. If you aim for lower monthly costs and more spread out payments, you should choose a longer payment plan with a lower down payment.
- Don’t Be Afraid To Negotiate: In order to get a lower price, don’t be afraid to haggle with the provider for a cheaper car warranty.
- Don’t Put It Off: The longer you wait to get your vehicle covered, the more you will end up paying because your vehicle will be older and have more miles.
How Much Does A Cheap Car Warranty Cost?
Based on our research, a cheap car warranty can cost anywhere from $1,700 to $4,000, which reflects a three- to seven-year contract length. This depends on a few factors, including:
- Deductible: Usually, a lower deductible results in a higher monthly premium.
- Vehicle make, model and age: Older, high-mileage, luxury and less reliable vehicles are often more expensive to cover.
- Coverage level: Comprehensive aftermarket car warranty plans are typically more costly than a more basic alternative.
- Contract length: Often, a longer contract costs more than a shorter contract.
The provider you choose also affects your extended warranty cost. Our research team reached out for quotes from each of our top four providers and received the following information. The pricing listed is for a 2018 Toyota RAV4 with 30,000 miles under each provider’s most comprehensive plan:
Aftermarket Car Warranty | Coverage Term | Deductible | Monthly Payment | Total Price |
---|---|---|---|---|
Endurance Supreme | 5 years/100,000 miles | $100 | $77.35 for 36 months | $2,951.15 |
CARCHEX Titanium | 7 years/125,000 miles | $100 | $190.00 for 18 months | $3,420.00 |
CarShield Diamond | 5 years/100,000 miles | $100 | $88.78 for 18 months | $1,893.04 |
Protect My Car Supreme | 4 years/100,000 miles | $100 | $96.95 until cancellation or expiration for length of plan | — |
Cheap car warranty companies are also just one piece of the puzzle. Some car manufacturers will let you purchase an extended warranty when your car manufacturer warranty expires. However, these plans tend to be more costly than third-party providers’ plans, but they do offer more specialization.
Manufacturers’ extended warranties usually guarantee factory-trained technicians and authentic parts used in covered repairs, whereas third-party warranties give customers the option to have repairs done either at the dealership with original parts or at an auto repair shop with parts equal to original market value.
Factors That Affect Extended Warranty Cost
The cost of an extended car warranty depends on factors like the level of coverage, length of the coverage period, and the make, model, age and mileage of your vehicle. Generally, coverage for older vehicles is more expensive than coverage for newer vehicles because they are more likely to suffer a mechanical breakdown.
Additionally, premium plans and plans with lengthy coverage periods will also cost more. If you are looking for a cheaper car warranty, it is best to get a warranty sooner before your vehicle continues to rack up more miles and age. Additionally, those who choose cheaper car warranties will likely have to sacrifice some coverage in exchange for a lower price. For those looking to get basic coverage while keeping costs low, a powertrain warranty can be a good option because it covers your vehicles major systems, which breakdown less often but are more costly to repair when they do.
Cheap Auto Warranty: Conclusion
In this article, we provided our list of the most affordable extended car warranties and ways to get a better deal on a car warranty.Taking an extended warranty depends on so many factors, and you should do proper research to select the right one for you. Speak to your car manufacturer or dealership as they will provide useful advice that will enable you to select the best extended car warranty for your vehicle.
Cheapest Car Warranty Companies: FAQ
Below are some frequently asked questions about cheap car warranties:
What is the cheapest monthly rate for an extended car warranty?
Our reviews have found that with discounts and the proper approach, you should easily be able to find a powertrain extended car warranty under $100, provided your vehicle doesn’t have extremely high mileage.
How much does an extended car warranty cost overall?
In our cost reviews, we found that you can get an affordable extended car warranty for around $1,800 from if you do your homework and follow the processes outlined in this review.
Who has the most affordable car warranty?
CarShield is the cheapest provider on the market. This review also identified Endurance, CARCHEX, Protect My Car, and autopom! as companies that have affordable car warranties.
Our Methodology
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best extended auto warranty providers.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team performs ongoing secret shopper analyses for different vehicles, mileages, warranty plans, and locations to give this rating.
- Coverage: Because each consumer has unique needs, it’s essential that a car warranty company offers an array of coverage options. We take into account the number of plans offered by each provider, term limits, exclusions, and additional benefits.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, availability, and years in business when giving this score.
- Customer Service: Reputable extended car warranty companies operate with a certain degree of care for consumers. We take into account customer reviews, BBB complaints, and the responsiveness of the customer service team.