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Extended warranty

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Third-party Vehicle Service Contracts cost about 40% less than the same plan in the dealer F&I office. Pick your deductible, term, and coverage level — see a real quote in about 2 minutes.

National VSC pricing · 8 vetted providers · Editorially reviewed

Last updated · June 29, 2026

An extended warranty is a bet on your car's reliability. The math works when you keep the vehicle past the factory bumper-to-bumper window, you drove a make/model with documented expensive failures, and — critically — you didn't pay the dealer's F&I markup. We'll show you real plans from the same underwriters dealers use, without the 80–120% upsell.

Dealer F&I markup vs. third-party

The same warranty costs 40–70% less outside the dealership.

Same underwriters. Same coverage levels. Different markup. We secret-shopped 6 dealerships vs. 4 third-party brokers across 8 popular models in Q4 2025 — here's the price gap. Source: CarSavr editorial methodology.

Data last reviewed 2026-06-29 (Q4 2025 secret-shop).

You save with a third-party plan
$1,550(48% less)
At the dealership (F&I office)$3,200
Directly from a third-party$1,650

Why the gap exists: dealer F&I offices earn $800–$1,500 commission per warranty sold. That margin gets added on top of the underwriter's wholesale price. When you buy direct, you skip the commission stack.

Ready to skip the F&I markup? Get 3+ quotes direct from vetted third-party providers.
Compare third-party warranties

Before you compare — the two products you'll see

VSC vs. MBI: same protection, different regulator.

Most “extended warranty” ads are selling one of two products. The difference matters for cancellation rights, regulator recourse, and how you should compare offers.

Most common

Vehicle Service Contract (VSC)

A prepayment contract. You pay an upfront sum (often financed) and the administrator covers specific listed repairs for a fixed term or mileage. Sold by third-party administrators (CARCHEX, Endurance, CarShield, Olive) and by dealer F&I offices. Cancellation under state law allows pro-rated refunds for unused months.

Lesser known

Mechanical Breakdown Insurance (MBI)

A real insurance product, regulated by your state's insurance department. Sold by auto insurers (GEICO is the dominant U.S. carrier, also Mercury, Travelers in some states). Monthly premium model — cancel any time. Lower total cost for drivers who change vehicles every 3-5 years, higher total cost for long-term owners.

Dimension
VSC
MBI
What it is
A repair-cost prepayment plan — pay upfront for covered failures.
An insurance policy — monthly premium for a repair benefit pool.
Regulator
State DMV / Attorney General consumer-affairs office
State insurance department (same regulator as auto/health insurance)
Payment
Lump sum at purchase (or financed into the auto loan)
Monthly premium that adjusts annually with claims history
Cancellation
Pro-rated refund of unused term
Cancel monthly with no penalty (same as any insurance)
Best for
Drivers who keep cars 5+ years past factory coverage
Drivers who change vehicles often or want lower upfront cost

~40% cheaper than dealer F&I

Dealers mark up third-party warranties 80–120% in the F&I office. Buying direct from the underwriter cuts the cost by roughly 40% — same coverage, same claims process.

Pick your deductible & term

Most third-party providers let you tune the deductible ($0 / $100 / $200) and term (3–7 years) so the premium matches what you actually need to cover.

Transferable & cancellable

If you sell the car, the warranty transfers to the next owner (adds resale value). If you change your mind in 30 days, it's a full refund — by law in most states.

Our rubric · 4-factor warranty score

  • Coverage breadth35%
  • Cost vs. repair data25%
  • Claims record20%
  • Terms & flexibility20%
Advertiser disclosure: Offers below are from partners that compensate us when you click or apply. Compensation does not determine our rankings. How we make money.

Top extended warranty providers we've audited

Direct quotes from the providers our editors evaluated for coverage breadth, plan pricing, sign-up flow, and claims handling. No dealer F&I markup.

Comparing 6 audited providers· Prices verified Jun 30

Data last reviewed . Source: CarSavr editorial methodology.

All 6 reviewed within 7 days
Showing 6 matches

Editor's pick · 2-min compare

Endurance

≈2 min · Soft pullAffiliate offer
6 providers shown, sorted by default editor's pick order.

Compare extended warranty providers

See multiple VSC quotes side-by-side

Free quotes · No phone calls · 30-day cancellation guarantee

1
Endurance
Editor's pick
Reviewed today
≈2 min · Soft pullAffiliate offer
2
Toco Warranty
Reviewed today
3
Concord Auto Protect
Reviewed today
CARCHEX
Reviewed today
≈2 min · Soft pullAffiliate offer
Forever Car
Reviewed today
Protect My Car
Reviewed today

Warranty plan costs vary by vehicle make, model, mileage, and coverage tier. Quotes are provided directly by the provider. CarSavr may earn a commission when you purchase a plan through our links — it never affects how we rank providers.

Provider logos and trademarks belong to their respective owners and are used for identification purposes only. Providers shown for comparison and educational purposes — display does not imply partnership unless an active affiliate relationship is stated separately.

How rows are ranked: Editor's pick first, then by overall rating. Promoted placements are flagged with a Sponsored badge. Read the full methodology →

Warranty cost by state

See your state's warranty math.

Extended-warranty pricing varies by state because each state regulates Vehicle Service Contracts (VSCs) differently — some classify them as insurance, others as service contracts. Lemon-law windows, cancellation rules, and reserve-fund requirements all swing the average. Click your state for local pricing + the consumer-protection rules that apply.

Avg annual VSC cost (5-yr midsize SUV)

<$1.47k$1.47–1.55k$1.55–1.63k$1.63–1.74k>$1.74k

Averages from the 2024 Consumer Reports cross-state VSC survey, normalized to a 5-year-old midsize SUV at 60,000 miles. Tap any state for local pricing + state-specific consumer-protection rules.

View 50 states + D.C.
Click a state to see extended-warranty pricing

Click a state · drag to pan · use the controls to zoom

State-by-state

Cheapest & priciest states.

State VSC regulations, lemon-law rigour, and provider density drive a ~25% spread in average annual warranty cost between the cheapest state (Iowa) and the most expensive (Alaska). Click any state to see the lemon-law window and consumer- protection rules that apply there.

Cheapest 5 states

  1. 1Iowa$1,430
  2. 2Nebraska$1,430
  3. 3Delaware$1,480
  4. 4Idaho$1,490
  5. 5Indiana$1,490

Priciest 5 states

  1. 1Alaska$1,820
  2. 2Hawaii$1,820
  3. 3New York$1,740
  4. 4California$1,690
  5. 5District of Columbia$1,690

Top metros

Popular cities for warranty pricing.

25 metros covered

City-level repair labor + parts logistics swing the same warranty plan's effective cost by ±15%. Pick your metro to see the local baseline plus the lemon-law window that applies in your state.

New · Warranty by car model

Is an extended warranty worth it for your car?

We ran the breakeven math on the 50 best-selling US models — expected 5-year repair costs vs. real VSC quotes. Find your make and model for a buy/skip/toss-up verdict.

Browse all 50 models

Should you actually buy one?

Makes sense when

  • You plan to keep the car 5+ years past the factory warranty.
  • The make/model has documented expensive failures (transmission, EV battery, infotainment).
  • You bought used and the bumper-to-bumper is nearly expired.
  • You can't comfortably absorb a $3,500+ repair out of pocket.

Skip it when

  • You plan to sell within the next 2–3 years.
  • The vehicle is a Toyota / Lexus / Honda with documented long-term reliability.
  • The dealer is bundling it into your loan at 80%+ markup. Cancel within 30 days for a refund, then shop direct.
  • The premium exceeds 15% of the car's current resale value.

Frequently asked questions

Frequently asked

Get a warranty quote without the dealer markup.

Same underwriters, same coverage, ~40% lower premium. See your quote in about 2 minutes — no commitment.

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The CarSavr warranty cluster

Extended warranties — every guide we've written

7 min read

Wear and Tear vs. Mechanical Breakdown: The Coverage Distinction That Voids 40% of Extended Warranty Claims

Brake pads, tires, batteries, and clutches typically fail from wear — and most extended warranties DON'T cover wear-and-tear items. Here's how to read the policy, what's actually covered, and the 6 items most denied claims share.

7 min read

The Extended Warranty Rental Car Clause: Why You're Getting $35/Day for a $90/Day Replacement

Extended warranties include rental car reimbursement — but the daily limit, maximum days, and 6 hidden restrictions can leave you out hundreds. Here's how each major warranty handles substitute transportation.

6 min read

Cancelling an Extended Warranty: The Pro-Rata Refund Math and the 6-Step Cancellation Process

An unused extended warranty almost always qualifies for a pro-rated refund — sometimes $800-$2,400 back. But the math + the cancellation forms + the 30-day notice rule trip up most buyers. Here's the cancellation playbook that gets you every penny back.

6 min read

Extended Warranty Mileage Cap vs. Time Cap: Which Hits First (and How to Pick the Right Combo)

Every extended warranty has two cutoffs — months and miles — and whichever you hit FIRST ends coverage. Most buyers pick the wrong combo because they overestimate one and underestimate the other. Here's the data-driven framework.

9 min read

Hybrid Battery Warranty: 8-Year Federal Mandate, State Extensions, and When to Buy More

Federal law requires 8 years / 100,000 miles on hybrid + EV batteries. California and 14 other CARB states extend to 10 years / 150,000 miles. Here's the state-by-state breakdown and when an extended warranty pays off.

6 min read

Warranty Repair Shop Choice: Dealer vs. Independent — Which Saves Money Without Voiding Coverage

Magnuson-Moss says you can use ANY repair shop without voiding your warranty. But warranty administrators often only PAY shops on their approved network — making the choice between dealer + independent more nuanced than it first appears.

7 min read

Pre-Existing Conditions in Extended Warranties: The Inspection Process, the Disclosure Rules, and the 3 Ways Claims Get Denied

An extended warranty bought on a used car with a slowly failing transmission will deny that exact claim 30 days later under the "pre-existing condition" clause. Here’s what counts, how the inspection works, and the disclosure rules that protect you.

7 min read

Extended Warranty Payment: Prepay vs Monthly Financing (The 8% APR Trap)

Most warranties are sold with monthly financing — but at 8-12% APR. Paying in full saves $200-$600 over the warranty life. Here's the math, the cancellation considerations, and when monthly financing is acceptable.

8 min read

Salvage Title Warranty: Which Providers Cover Branded Titles (And Which Won't)

Most VSC providers exclude salvage and rebuilt-title vehicles entirely. Endurance and Concord cover branded titles in specific tiers. Here's the 4 providers that will, the documentation required, and the higher premium math.

10 min read

Extended Warranty on a Used Car: When It's Worth It, When It's a Scam

F&I extended warranties on used cars cost $1,800–$3,500. The same coverage from a direct provider runs $900–$1,800. Here's when the math works — and the 3 scenarios where it's pure markup.

6 min read

Warranty Diagnostic Fees: When You Pay and When You Don't (And How to Get Refunded)

A diagnostic fee — usually $100-$220 — is the cost of FIGURING OUT what's wrong. Most warranties cover it ONLY when the underlying issue turns out to be covered. The math + the timing rules determine whether you eat it or get refunded.

6 min read

Transferable Extended Warranties Add $300-$1,200 to Resale Value — Here's Which Companies Allow It and How

A transferable extended warranty makes your used car easier to sell and worth measurably more to private buyers. But 40%+ of warranties block transfer entirely, and many that allow it charge a fee that eats most of the resale gain. Here's the carrier-by-carrier breakdown.