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Auto Extended Warranty Cost

Auto Extended Warranty Cost

Auto Extended Warranty

You can purchase a plan known as an extended warranty, which is often referred to as a vehicle service contract. This plan is designed to assist you in paying the costs of certain repairs that your car may require while you are the vehicle owner. Typically, buying an extended warranty for a car starts when the warranty from the manufacturer runs out; however, there are cases in which the two periods overlap.

History of Extended Warranties

By 1960, the automotive sector had already begun to take on characteristics of the modern market. Detroit was forced to develop brand-new small cars like the Ford Falcon, Plymouth Valiant, and the air-cooled Chevrolet Corvair because imports from Europe and Japan had begun to emerge on the market.

Other trends that emerged during this period included manufacturer cash incentives and, most notably, Ford’s complete 1-year/12,000-mile new-car warranty. This was the longest guarantee provided by a prominent automaker at the time.

 It wasn’t long before it was outdone by the 2-year/24,000-mile coverage, which included “associated labor,” that came standard on the 1961 Lincoln Continental.

Well, that was how the idea of extended auto warranty came and became a trend in the automobile industry. After that, almost every automobile industry tried to provide different extended automobile warranties to their customers.

Average Cost of Auto Extended Warranty

An extended auto warranty price is around $2,550, but this number can range anywhere from $1,000 to $4,500 or even more, depending on the plan.

 Your extended auto warranty’s price is determined not by predetermined rates but by several variables, including the type of vehicle you drive, the amount of coverage you select, and the amount of money you put toward a deductible.

Different Types of Extended Auto Warranties with Their Costs

Bumper To Bumper Extended Auto Warranty

When referring to an extended automobile warranty, the phrase “bumper-to-bumper” refers to the most complete and extensive level of coverage that a supplier of extended car warranties may give. The specifics of the coverage differ according to the provider; nevertheless, the majority of policies cover the primary mechanical and electrical systems of the car.


Extended warranty coverage options that go from bumper to bumper often include protection for the following car components:

  • Systematization of audio, communication, and enjoyment.
  • The heating system and the air conditioner
  • Electrical (power seats, sunroofs, heated seats)
  • Components of the powertrain (engine, transmission, certain driveline parts)
  • The cooling system for the engine
  • Steering system
  • Suspension
  • Fuel injection system

What It Does Not Cover

The following is a list of typical exceptions to the terms of a bumper-to-bumper extended warranty:

  • Items subject to wear and tear, including but not limited to brake pads, rotors, drums, upholstery, and seat belts
  • Normal upkeep consists of having the oil changed, rotating the tires, having the wheels aligned, and any other planned services advised by the manufacturer’s service schedule.
  • Glass components are used in automobiles, including windshields, windows, headlights, and brake lights.
  • Abuse, incorrect usage, negligence, crashes, unsuitable fluids, fuels, or lubricants, acts of nature, and other things can all lead to damage.


The increased degree of coverage that comes with bumper-to-bumper extended warranty plans often results in a higher price tag than the powertrain coverage with powertrain warranties; however, this can vary based on several different circumstances. The following factors will affect the total cost of a bumper-to-bumper warranty:

  • The supplier of the extended warranty that you choose.
  • The extent of protection that you decide to obtain
  • Mileage, year, manufacturer, and transmission type of your car

Its cost varies in between the range of 2000$-3000$.

Power Train Extended Warranty

A vehicle’s engine, gearbox, and drivetrain are all considered its powertrain, and a powertrain warranty will pay for repairing or replacing any of these components if they become defective. On the other hand, compared to a powertrain warranty, a bumper-to-bumper warranty is valid for a shorter time. Still, it covers a greater number of components and systems.


Following are the components that are covered under the power train extended warranty

  • The engine is mainly the combustion system in your vehicle’s center and is responsible for propulsion.
  • The component of your car is responsible for shifting gears either automatically or manually.
  • The transfer case component of the vehicle transfers power from the transmission to the rear axles and then to the wheels.
  • Driveshafts are revolving shafts within an engine that are responsible for transmitting torque.
  • The drive box consists of two components that transmit rotation and momentum (one is behind the transmission, and the other connects a front axle differential to the transfer case).

Things That Affect the Cost of Extended Auto Warranty

The price of an extended auto warranty may vary depending on the make, model, year, and mileage of your vehicle. Your total cost might go up or down based not just on the company that provides the extended warranty coverage but also on the coverage level you select and your deductible amount. 

A greater deductible will result in lower monthly payments in most cases, and the opposite is also true. If your vehicle is still protected under the original new car warranty from the time of purchase, you will also save money on the contract.

Things to Consider While Deciding The Coverage of Car

When comparing the prices of extended auto warranties, it can be not easy to keep everything straight, especially when one supplier offers coverage for three years and another offers coverage for six years. The following is a list of the most significant numerical considerations:

  • Total price
  • Cost deducted per month
  • Payment in advance
  • Deductible: There is a deductible associated with every extended warranty package. When you utilize your warranty for one of the covered repairs on your vehicle, you will be responsible for paying this sum. If you have a $100 deductible and the cost of your repair is $800, your warranty provider will pay $700 to the car repair shop, and you will be responsible for the remaining $100.
  • The cost of coverage on an annual basis

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