How much does an extended car warranty cost?

Average cost of an extended car warranty

Let’s get right to the point — on average, an extended auto warranty costs around $1,000 per year of additional bumper-to-bumper coverage. That figure is based on the 500+ quotes we’ve collected in 2023 for over 100 different vehicles, ranging in age from 1 to 5 years old. Providers include a mix of car manufacturers (like Honda Care) and third-party warranty companies (like olive and Endurance).

» MORE: What to know about manufacturers’ extended warranties

You can save money by going with less coverage, but bumper-to-bumper plans are often the better value because of how much more protection you get.

Keep in mind that $1,000 per year is just the average, though. The lowest comparable quote we received recently was $280 per year for coverage on a 2023 Honda Civic, courtesy of Curry Honda Care. The highest quote we received was $2,727 per year for coverage on a 2023 Land Rover Discovery, courtesy of our local Land Rover dealership.

That massive price range is accurate, but it isn’t exactly helpful. The truth is that warranty prices vary so much that it’s important to get multiple quotes so you have context for what you’re being offered.

(We like looking at the cost per year of coverage because it makes plans easier to compare if they have different term lengths or start dates. A “six-year” plan for $3,000 might look like a better deal than a three-year plan for the same price, but if that “six-year” term is counting your existing three-year factory warranty, there’s no real difference.)

Can you finance an extended auto warranty?

Most extended warranty providers offer some sort of alternative payment option to help you spread out the cost. Some providers offer financing, while others offer month-to-month contract terms.

For example, Endurance charges a $29 activation fee plus a fixed monthly fee for as long as you want warranty coverage. olive does something similar. Both providers allow you to cancel at any time by submitting a written request, and in some cases, you might even be entitled to a partial refund for the coverage period you’ve already paid for but haven’t used.

Meanwhile, Zeigler Auto Group, an online wholesaler of factory-backed extended warranties for Stellantis vehicles, offers three payment options:

• One lump-sum payment upfront
• Six months of 0% APR financing
• 12 months of 0% APR financing

“If you go with the six- or twelve-month financing option, it’ll be the same payment each month, interest-free,” a Zeigler rep told us. “I’d say that 60% of our customers pay in full upfront, while the other 40% finance. There’s also no penalty if you want to pay off the rest of your warranty early.”

» LEARN: What is APR?

Finally, if you purchase an extended warranty from the local dealership when you buy your vehicle, you’ll typically have just two options:

• One lump-sum payment upfront
• Include the cost of the warranty in the total amount financed on the vehicle

“If you purchase an extended warranty for $2,000, you have the option to finance all of it, some of it or none of it,” a finance manager at a local Acura dealership told us. “The lender doesn’t distinguish between the cost of the vehicle and the warranty. So, if you buy a $30,000 car with a $2,000 warranty, the lender will just see it as a $32,000 loan minus whatever down payment you made.”

That finance manager also pointed out that if you choose to finance your car and warranty together, the same interest rate will apply to both. That can make a big difference in cost. A $2,000 warranty financed at 8% APR for 60 months will end up costing over $2,400 total. In contrast, financing at 0% for 12 months might result in higher monthly payments ($166.66 versus $40.55), but you’ll save $433.17 in interest.

What affects the price of an extended auto warranty?

Here are some of the main factors that can influence the overall cost of your extended auto warranty.

Your vehicle’s make and model

Some vehicles are more expensive to keep running than others, which means that warranty companies tend to charge more for those vehicles. “Make and model will absolutely be No. 1,” a protection specialist with Endurance told us.

As a loose rule of thumb, expect to spend more for a warranty if you drive a more expensive car. “The more expensive the vehicle, the more expensive the replacement parts,” said Daryl Killian with AutoNsider. “So the market value of the vehicle plays a major role in the cost of an extended warranty.”

Check out our series of articles on different manufacturers’ extended warranty programs to get a better idea of what a warranty might cost for your vehicle:

• Acura
• Alfa Romeo
• Audi
• BMW
• Buick
• Cadillac
• Chevrolet
• Chrysler
• Dodge
• Ford
• Genesis
• GMC
• Honda
• Hyundai
• Infiniti
• Jaguar
• Jeep
• Kia
• Land Rover
• Lexus
• Lincoln
• Maserati
• Mazda
• Mercedes-Benz
• Mini
• Mitsubishi
• Nissan
• Porsche
• Ram
• Subaru
• Tesla
• Toyota
• Volkswagen
• Volvo

Your vehicle’s age and mileage

The age and mileage of your car will heavily factor into the cost of warranty protection, too.

In the vast majority of cases, a 2018 model with 50,000 miles on it will cost more to protect than a 2023 model with 50 miles on it. This is simply because the newer model is expected to go much longer without needing its first major repair.

The amount you drive may also play a role, too. “How many miles do you intend to drive each year? Extended auto warranty providers may also look at this number when calculating your quote,” Killian said.

» MORE: Extended warranties for cars with over 100K miles

Your vehicle’s reliability

The expected reliability of your vehicle — namely, the anticipated cost and frequency of repairs — can also play a role in what you’ll pay for an extended auto warranty.

According to J.D. Power, the most reliable brands in 2023 were Lexus, Genesis and Kia, while the least reliable were Audi, Lincoln and Land Rover. In our extended warranty breakdowns for each of these brands, we discovered that the median cost of warranties for the most reliable brands was roughly 15% lower than for the least reliable brands.

Differences in reliability can create a gap even for vehicles with roughly the same sticker prices. We were quoted just $442 per year for a plan on a $40,000 Kia Telluride, while a similar plan for a $40,000 Land Rover Discovery Sport would’ve cost us $2,146 per year.

In total, our data was consistent enough to suggest that if you own a vehicle from a brand with below-average reliability (according to sites like J.D. Power, Consumer Reports and RepairPal), you can reasonably expect to pay more for an extended auto warranty.

Current labor rates

According to the protection specialist we spoke with at Endurance, dealership labor rates are a lesser-known factor driving the cost of extended auto warranties.

This makes sense from the warranty provider’s perspective. Extended auto warranties typically cover the cost of both parts and labor, so when the cost of labor rises, they raise the price of warranties to compensate.

On average, car dealers charged between $75 and $130 per hour for labor in 2022, according to MotorBiscuit. That said, we called a Mercedes-Benz dealer in Atlanta and were quoted $245 per hour for labor, so the final cost may vary based on your brand of vehicle and location.

You can’t get around this by promising to take your car to a local independent shop for cheaper labor, either. Your warranty company is going to price your plan based on the normal costs for your vehicle.

Your choice of warranty provider

It’s incredibly rare for two warranty providers to have the same price for similar plans.

The handful of quotes we collected for our writeup on Genesis extended warranties do a good job of illustrating just how unpredictable extended auto warranty quotes can be between providers.

The Genesis dealership offered the cheapest plan by far for the 2023 GV80 — Endurance quoted almost double the cost, and olive wouldn’t even cover it. But, for the 2021 G80 sedan, the narrative flipped, and olive became the far more affordable option.

That’s why the best way to save on an extended auto warranty is to get quotes from the dealership and several top-rated warranty companies. If a 2021 G80 owner only got one quote, they’d potentially be missing out on $843 in savings.

Your coverage level

More coverage almost always costs more.

Most extended warranty providers offer at least three tiers of coverage:

• Platinum, which covers about 90% of the parts on your car (similar to a factory bumper-to-bumper warranty)
• Gold/Silver, which cover about 10% of the parts on your car
• Powertrain/Powertrain Plus, which cover your engine, transmission and the rest of your drivetrain (similar to a factory powertrain warranty)

Platinum plans are generally the most expensive, but they also provide the best value in most cases. Think of it this way: Platinum plans may cost 10% to 30% more than Gold plans, but you get nearly 10 times the parts coverage in return.

After quoting us $3,600 for Gold and $4,000 for Platinum, a representative at our local Lexus dealer actually pleaded with us not to buy Gold once. We also asked a third-party extended warranty provider whether Gold and Powertrain plans solely exist to make Platinum plans look like a better deal, to which they responded, “Yep! Pretty much!”

Your deductible

If you’re able, choosing a higher deductible for your extended auto warranty coverage should lower the cost of your plan. Conversely, a lower deductible may raise the cost of your warranty.

The most common deductible we’ve seen is $100, but some providers offer multiple options, including $0, $100, $200, $250 and $500. For certain high-end luxury or performance vehicles, some providers may only offer a $500 deductible.

In general, it’s best to go with the deductible that you’re comfortable with. If you want to spend as little as possible at the mechanic, a $0 or $100 deductible may be worth the extra cost. But if you only want a cheap warranty to protect yourself from catastrophic repairs, a Powertrain plan with a $500 deductible might be the best fit for your needs.

Your term length

The longer the warranty, the higher the overall cost. (As we mentioned earlier, this is why it’s smart to compare plans based on their price per year of coverage.)

The relationship between term length and cost isn’t always linear, either. While a two-year/24,000-mile warranty might cost $2,000 ($1,000 per year), our data suggests that a four-year/50,000-mile warranty for the same vehicle might cost $3,400 ($850 per year). Basically, you may get discounted coverage if you sign up for a longer plan.

While you’re checking out different warranty companies, consider getting quotes for multiple terms as well to see which length is truly the best value for your needs.

Bottom line

Extended auto warranties generally cost around $1,000 per year of coverage, but your actual cost may vary all the way from $280 to $2,800 per year, depending on factors ranging from your make, model and mileage to your chosen plan and deductible.

The best way to find out how much your extended auto warranty should cost — and to find the best possible price — is to collect multiple quotes from several top-rated extended auto warranty providers.