How much is a warranty on a used car?

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

• Engine
• Transmission
• A/C & Heating
• Drive Axle
• Cooling System
• Fuel System
• Electrical
• Suspension
• Brakes
• Steering
• Convenience Tech

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.

Extended car warranties are worth it if a driver doesn’t carry sufficient savings to pay for vehicle system repairs or is worried about their car’s reliability. But for most drivers, extended car warranties go unused, so the potential benefits are not enough to justify the upfront cost.

When An Extended Car Warranty Is Worth It ... read full answer

A good time to consider the value of an extended warranty is when the manufacturer’s warranty on your vehicle has expired or will expire soon. This typically happens after three years or 36,000 miles, depending on which comes first. If you plan on keeping your car beyond the manufacturer warranty’s expiration, then purchasing an extended warranty might give you peace of mind moving forward.

An extended warranty might also be worth it if you’re concerned about your ability to pay for major mechanical repairs in the future. Car repairs cost about $400 on average, which is less than the $1,500 average for an extended warranty. On the other hand, the least common and most catastrophic mechanical failures can often cost several thousands of dollars to repair.

If your car isn’t very reliable and you’re not in the financial position to risk either paying for repairs or replacing the car yourself, it might be worth it to pay a higher upfront cost for protection through an extended warranty.

When An Extended Car Warranty Isn’t Worth It

• Your car is reliable
• Your car is not worth very much
• Your car is still covered by the manufacturer’s warranty
• You have a large enough emergency fund to pay for major vehicle repairs

Bear in mind that you don’t have to purchase an extended warranty when you buy your car. It’s likely a smart move for you to wait until the manufacturer’s warranty is about to expire to evaluate your situation and determine whether you want to pay for an extended warranty. To learn more, check out WalletHub’s guide to the best extended car warranties.

CarShield costs $99 per month and up, though prices may vary by state, driver, and specific vehicle. CarShield sells vehicle service plans, which are similar to extended warranties and will cover the cost of repairs to the car’s systems and mechanical parts.

Key Things to Know About CarShield Plans

• CarShield plans cover your vehicle’s engine, transmission, transfer case, drive axle, water pump.... read full answer
• Six different plans are available from CarShield, giving drivers options in terms of coverage and cost.
• To qualify for a CarShield plan, cars must fulfill certain eligibility requirements, though the company does not disclose the exact requirements. Eligibility can also vary by plan.

Specific details may vary based on which CarShield plan drivers purchase, 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.