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A Guide for Choosing the Best Extended Car Warranty For You

Kurtis Avatar By: Kurtis | Last updated May 8, 2020

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Whenever buying a car, you may stumble upon offers for extended car warranty. It is mostly offered alongside the original factory warranty. The name may spark curiosity for some who might wonder why it is necessary on top of the original one.

What is an extended car warranty?

Simply said, an extended car warranty is just an extension of your car’s original warranty. However, given that a third-party is responsible for supplying it, its coverage and its price may differ.

There are a lot of popular names for these services such as Autopom!, Carchex, and Endurance. These services have varying levels of customer satisfaction. To review each of these before asking for a quota is extremely helpful for future transactions.

Do I need it?

Most of the times, customers aren’t likely to immediately buy an extended car warranty immediately after purchasing a car because of the lack of financial capability. This, along with the desire to put money for upgrades and accessories instead, can make you forget about warranty altogether.

However, extended car warranties are important. Immediately after losing your warranty, you will be asked to pay for all the damaged parts of your vehicle in the case of a mechanical breakdown or accident. Even worse, you may be forced to pay for a rental vehicle just to continue driving in case you need it for daily use.

What are the different types of extended car warranty?

In case you are convinced to purchase an extended warranty for your car, you will instantly be bombarded with lots of contracts and options. Just the sight of multiple pages of coverages and liabilities coupled with forceful dealers may stress out the average buyer.

The following is a list of the types of extended car warranties, to help you in choosing the one that is the most appropriate and suitable for your needs and budget:

  • Standard Coverage/Bumper to Bumper – This kind of warranty, as the name implies, covers all the parts of the car. Most of the times, it is only offered for newer vehicles. In some contracts, transferring the ownership of the contract can also be done as long as the car is still under the basic coverage.

The average coverage for these contracts is 10 years or 100,000 miles, 5 years or 50,000 miles, or 3 years or 36,000 miles. These contracts are recommended for those with newer vehicles, for those who have the budget to buy it, and for those who want a complete coverage

  • Powertrain or Drivetrain Warranty – This warranty gives coverage for the most important parts of the vehicle. Depending on the company, the usual parts of the car covered are the engine, differential, transmission, transaxle parts, and other important parts. This contract is most recommended for those with limited budget (as it is usually the cheapest) and those who only want to cover the necessities of a vehicle
  • Specific Parts Warranty – This type of warranty allows you to add more coverage for other parts of the vehicle not included in the powertrain/drivetrain warranty. This comes with more costs but with better scope in terms of mileage and age of car. This is recommended for those who want to add the accessories of the car for the coverage along with others.

These warranties are recommended to be bought after the statutory warranty given for those buying from a dealership.

Benefits of an extended car warranty

Availing an extended car warranty gives a lot of benefits for you. These include the following:

  • Peace of mind – The best benefit it gives you is the peace of mind that you will be reimbursed for future damages. This is because sudden mechanical failures or damages can make a huge dent in your budget especially if you haven’t allotted money for your car in advance.
  • Rental car coverage – Some extended car warranties can pay for rental cars that you will need in case your car is part of your day-to-day activities. Aside from this, they may also pay for your accommodation costs if you will be stranded in a place far from your home.
  • Variety of choices – Contrary to popular belief, you can purchase an extended car warranty from a company outside of the car manufacturers. This allows you to choose from a variety of contracts that can suit different budgets, car models, and mileages.
  • Longer use of car – Having an extended car warranty ensures that your car can still be used even after experiencing damages because of age and others.

What to look for in an extended car warranty service

Before buying an extended car warranty, you must have a list of priorities to make sure that each of them will be met. Here are some recommendations for things to look for in an extended car warranty service:

  1. Coverage – the most important part is the coverage of the contract. This will determine which parts of the car will be reimbursed in case of a breakdown. The coverage given depends upon the age of your car and its mileage. This is because older vehicles are expected to breakdown more easily and therefore, have a higher cost of insurance.
  2. Price – this is also important as the user must be capable of paying for the insurance while making it fit within his/her budget. This is because opting for an expensive one can result to spending more than you are capable of.
  3. Features and Customer Service – Some companies may offer similar coverages and prices which makes it harder to choose between them. Therefore, it is also important to review the companies' features including towing services, emergency services, and others. Customer service is also important to make sure that the process of reimbursement will be pleasant and fast.


Extended car warranties are most recommended for those whose statutory insurances are expiring. This gives you the peace of mind that future mechanical breakdowns and accidents will be compensated. They also come with additional features such as rental car coverages and accommodation costs.