Should You Buy an Extended Used Car Warranty? Your Guide to the Best Providers

Our customers often ask about used car warranties. They can be a mixed bag. And some border on scams. I'll cover all of them and your options.

When you drive off the lot in a used car, you may have mixed feelings of excitement and uncertainty. The reality is that used cars, even well-maintained ones, can develop unexpected issues. That’s where an extended used car warranty can help. But is it worth the cost? And which are the best car warranty providers out there?

In this guide, I'll break down everything you need to know, including how to decide if you should buy an extended warranty, the difference between factory warranties and aftermarket warranties, and what to watch out for when shopping around. We’ll also show you how to easily compare used car warranty offers from top providers.

What’s Your Risk Tolerance Generally?

Your decision to buy a used car warranty often comes down to your personal risk tolerance. I tell customers to buy a warranty if they lay in bed worried about their car breaking. Some owners can handle surprise repair bills without breaking a sweat, while others prefer predictable monthly payments for peace of mind.

• Cost of Repairs vs. Warranty Cost: If you own a vehicle that’s known for expensive repairs—think high-end European brands or diesel trucks —a warranty can save you significant money in the long run. However, the used car warranty cost might be higher for luxury models.
• Vehicle Age and Mileage: Older cars or those with higher mileage may be more likely to need repairs. An extended car warranty could offer an extra layer of protection against sudden breakdowns.
• Your Budget: If a costly engine or transmission issue would be financially stressful, a warranty from one of the best car warranty providers can bring peace of mind.

Difference Between Factory Warranties and Aftermarket Warranties

Used car buyers think extended warranties work like manufacturer's (e.g. Ford, BMW, etc) warranties. Nothing could be further from the truth.

• Factory Warranty (Manufacturer’s Warranty): This coverage typically comes with a new car and lasts for a set term (e.g., 3 years/36,000 miles). When you purchase a pre-owned vehicle, you may or may not have any remaining factory warranty.
• Aftermarket Warranty (Extended or Third-Party Warranty): These warranties step in after (or sometimes alongside) the original factory coverage, or they cover vehicles that are no longer under the manufacturer’s warranty. Companies like Endurance used car warranty, Ox, Zurich, Ally, Olive, Omega, and Fidelity offer these types of plans.

Key differences often include:

• Coverage Scope: Factory warranties can be comprehensive, covering a wide array of repairs. Aftermarket warranties vary; some only cover certain internally lubricated parts (be very careful about this and always ask if the warranty limits to internally lubricated parts!), while others are closer to bumper-to-bumper.
• Claims Process: Factory warranties generally let you visit any dealership for repairs. Some third-party warranties may require you to use specific mechanics or go through their own claims adjustor. Ask if the warranty requires their adjuster. I recommend staying clear of ones that do.
• Aftermarket Part Exclusions: Check carefully if aftermarket or remanufactured parts are excluded from coverage. We've heard crazy stories, like an air conditioning claim being disclaimed for aftermarket tires.

Things to Watch Out For When Buying an Extended Warranty

Before signing on the dotted line for any extended car warranty, keep these important tips in mind:

1. Read the Fine Print: Make sure you understand exactly which components are covered. Terms like “powertrain,” “bumper-to-bumper,” or “comprehensive” can differ significantly from provider to provider.
2. Claims Process Requirements: Some warranties may require their own adjustor to inspect your vehicle before authorizing repairs. This can potentially slow down the claims process.
3. Exclusions and Caps: Keep an eye out for limits on labor costs, coverage for electronic parts, or stipulations that only certain repairs are eligible.
4. Check Reviews & Reddit Forums: A quick Reddit search for major warranty providers such as Endurance, Ox, Zurich, Ally, Olive, Omega, and Fidelity can help you see common customer complaints or issues.

How to Compare Providers Quickly and Easily

In a market crowded with extended warranty options, finding the best car warranty for your needs is rough. We refer our customers to Chaiz. Chaiz is an online platform that aggregates and compares extended car warranty prices and coverage options from multiple providers, including well-known names like Endurance used car warranty, Olive, and more.

Chaiz:

• Groups quotes together in one place to save time.
• Compares plans side by side to easily evaluate coverage details, exclusions, and deductibles.
• See reviews and ratings to gauge each company’s reputation and customer service track record.
• And get the best price by narrowing down your options based on used car warranty cost, ensuring you get the protection you need without breaking the bank.

Final Thoughts

An extended used car warranty can be a great investment—if it aligns with your budget and level of risk tolerance. While some drivers prefer to handle repairs as they come, others value the peace of mind a warranty provides. Whether you’re considering an Endurance used car warranty or exploring other best car warranty providers like Ox, Zurich, Ally, Olive, Omega, or Fidelity, always read the fine print and check real customer reviews.

If you’re ready to compare extended car warranty prices I send our customers to check out Chaiz . It’s a one-stop shop that allows you to compare coverage options from multiple providers, helping you find the plan that fits your vehicle’s needs and your budget.