No, it is not worth buying a warranty on a used car in most cases. It’s only worth buying an extended warranty for a used car if the vehicle is particularly unreliable and the owner cannot afford to pay out of pocket for expensive repairs. For drivers with reliable cars and the ability to pay for repairs, used car warranties generally do not provide much value compared to the expense.
Car warranties, also known as vehicle service contracts, are plans designed to pay for repairs to a car’s major parts and systems. However, used car warranties usually require costly up-front or monthly payments to keep you from paying for repairs that you may never need. For instance, most drivers end up paying more for the warranty than they receive in claim payouts.
On the other hand, an extended warranty might be worth it for you if you’re worried about the possibility of unaffordable car problems. But in most cases, it’s better to save the money you’d spend on a used car warranty and then use it to cover any repair expenses that arise.
Yes, AAA offers a type of extended warranty. The AAA extended warranty program is called the AAA Vehicle Protection Plan, and it covers the cost of repairs to the engine, transmission, suspension, steering, and brakes, among other things.
The cost of AAA's Vehicle Protection Plan varies depending on the vehicle, but it averages about around $2,400 for a 4 year plan, though vehicles with expensive parts can cost twice that.… read full answer
In general, extended warranties are meant to keep drivers from paying out of pocket for sudden repairs, since mechanical problems are not covered by other types of auto insurance.
What AAA Extended Car Warranties Cover
A/C & Heating
Coverage details can vary depending on which AAA plan you choose. Additionally, since the AAA Vehicle Protection Plan is designed to supplement the original manufacturer’s warranty, cars must meet certain requirements to qualify.
AAA Extended Warranty Eligibility Requirements
The vehicle is less than 15 years old
The vehicle has less than 150,000 miles
Coverage and eligibility details can vary by state. It’s also worth noting that the AAA Vehicle Protection Plan is technically a vehicle service plan, which provides the same coverage as an extended warranty. However, vehicle service plans are offered by car insurance companies, whereas extended warranties are generally sold by dealerships or third-party companies. For more information, check out WalletHub’s guide to extended car warranties.
CarShield costs $99 per month and up, though prices vary by state, driver, and specific vehicle. CarShield sells vehicle service plans, which are similar to extended warranties, and a plan from CarShield covers the cost of repairs to the car's systems and mechanical parts. Six different plans are available from CarShield, so drivers can choose between several levels of coverage.… read full answer
To qualify for a CarShield plan, cars must fulfill certain eligibility requirements, though the company does not disclose the exact requirements.
CarShield Plans Cover:
Plans may cover slightly different things, but this list provides a good example of CarShield coverage.
CarShield vs. Extended Warranties From Major Insurers
Although exact coverage may differ for the providers above, all of them cover the main parts or systems. These include the engine, transmission, brakes, suspension, and steering.
It’s also worth noting that mechanical breakdown insurance from a car insurance company is often a cheaper alternative to a third-party vehicle service plan or extended warranty. For more information, check out WalletHub’s guides to mechanical breakdown insurance and extended warranties.
A warranty on a used car costs anywhere from $1,000 to $5,000, depending on factors like the car’s condition and mileage. In general, used car warranties cost more than regular extended warranties because used cars have more miles than new cars and are more likely to experience mechanical problems.
A … read full answerused car warranty pays for repairs to a car’s major systems if they break down. In most cases, used cars only qualify for extended warranties that cover the vehicle’s basic components, like the engine and transmission, rather than all of the parts and systems. But coverage options usually depend on the car’s mileage. Some extended warranty providers will cover vehicles with as many as 250,000 miles, while others have lower mileage caps.
When you’re shopping for a used car warranty, you should get quotes from multiple companies in order to make sure that you’re getting the best deal. If you’re struggling to find an affordable plan, you should see if your car insurance company offers mechanical breakdown insurance (MBI), which provides similar coverage to an extended warranty but only costs an average of $100 per year. However, keep in mind that you may not be able to purchase MBI if your car is too old or has too many miles.
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