Disclosure: This content was produced by an independent editorial party for the purposes of educating our customers, and is not influenced by the other business operations of CARCHEX.

Trying to decide if extended car warranties are worth it? Many motorists appreciate vehicle protection plans for the security they provide after the expiration of your car’s factory warranty.

While purchasing an extended car warranty may not be necessary for all drivers, it’s a smart call for those who want to avoid unexpected repairs and costly car repair bills. Below are five reasons why extended car warranties are worth it for many owners.

Reason 1: Potential Cost Savings

Many people question whether extended car warranty costs are worth it since plans must be purchased separately from your vehicle. Much of the time, car owners save money by buying an extended auto warranty.

If you own a luxury vehicle like a Lexus or a BMW, an extended warranty could save you thousands of dollars on expensive parts. A cylinder head replacement on a BMW 328i typically costs more than $11,000, which is many times the price of an extended warranty.

While vehicles by Ford, Chevrolet, and Toyota may have prices that are easier to swallow, out-of-pocket costs quickly add up as your car’s reliability decreases. Whether you own a new Mazda or an older Toyota model, CARCHEX extended car warranty costs are worth it most of the time.

Reason 2: Peace of Mind

Whether you own a used car or a new car, extended car warranties are worth it if you’re worried about paying for major repairs. Once a new vehicle limited warranty expires after about three years, it could be difficult to pay for auto repairs, aftermarket parts, and labor without extended coverage.

Purchasing a CARCHEX extended auto warranty eliminates this source of anxiety and protects your wallet against expensive repairs. It also removes the pain of lengthy paperwork and eliminates your need to negotiate with mechanics over fair pricing.

Reason 3: Added Benefits

There are multiple reasons that car warranties are worth it that drivers often don’t know about before the purchase. These little-known CARCHEX warranty benefits include roadside assistance, rental car reimbursement, towing services, trip interruption benefits, and affordable monthly payment plans.

Roadside assistance is available 24/7, so car owners don’t have to worry about getting to the mechanic or paying for accommodations in the event of a mechanical breakdown.

Benefits of CARCHEX Warranty Plans

  • Affordable payment plans
  • Rental car reimbursement
  • Meals and accommodations
  • 24/7 roadside assistance
  • Towing needs
  • Transferable plans
  • Trip protection

Reason 4: Unmatched Flexibility

Unlike manufacturer warranties, extended car warranties provide unparalleled flexibility. For instance, CARCHEX allows drivers to take their cars to any authorized repair shop, while a warranty from the automaker usually requires the car be taken to a specific dealership.

Purchasing a warranty from a third-party provider also allows you to shop around to find the most affordable coverage options. CARCHEX makes car warranties worth it by offering five different coverage plans suited for almost anyone’s needs and budget.

Reason 5: Higher Resale Value

CARCHEX extended car warranties are transferable for a small fee, which means you can provide the new owner with comprehensive vehicle protection. Individual buyers often see extra value in cars covered by vehicle service contracts, which could lead to a higher overall selling price.

What Does a CARCHEX Warranty Cover?

Unlike your manufacturer’s warranty, extended warranty plans can provide comprehensive coverage over a long time period. At CARCHEX, we provide five levels of coverage with different auto protection plans in each level, ranging from a powertrain warranty up to bumper-to-bumper coverage.

All plans come with roadside assistance benefits that provide rental car reimbursement, towing services, and even meals and accommodations that you’ll need after breakdowns that occur more than 100 miles from home.

The chart below compares the various CARCHEX extended vehicle protection plans:

CARCHEX Vehicle Protection Plans

Owners who believe that car warranties are worth it can pick up coverage from CARCHEX in all 50 states. Plans are known as mechanical breakdown insurance in California, and this service is almost identical to the extended warranties offered elsewhere.

Titanium: This plan has similar coverage to new car bumper-to-bumper warranties. As an exclusionary plan, Titanium covers almost any mechanical breakdown except for a short list of exclusions. This option protects everything from electrical components and your air conditioning system to essentials like the engine and transmission.

Platinum: This plan covers hundreds of parts spread across 15 different systems. Covered components include your car’s brakes, electrical system, suspension, steering, audio system, and engine.

Gold: A good mid-tier option for cars with high mileage, this plan covers 13 major systems.

Silver: This is an enhanced powertrain plan. Powertrain coverage includes the engine, transmission, and drivetrain, while expanded coverage includes five other integral systems for your vehicle.

Bronze: If you want to cover the most important parts of your car, this is a good option. The Bronze plan covers the powertrain along with the transfer unit, cooling system, and related seals and gaskets.

Extended Car Warranty Exclusions

Third-party warranty plans don’t cover everything, of course. They’re designed to protect against mechanical breakdowns, not to replace wear and tear items like brake pads, windshield wipers, and air filters. Vehicle service contracts also don’t cover damage from accidents, as that’s the purpose of car insurance policies.

Here are a few more things that car warranty companies don’t cover:

  • Routine maintenance including oil changes
  • Scheduled maintenance items like transmission fluid
  • Anything covered by the car’s manufacturer
  • Cosmetic items
  • Normal wear and tear
  • Damage from lack of maintenance or improper use
  • Car accident and environmental damages (often covered by car insurance companies)

What Vehicles Does CARCHEX Cover?

CARCHEX covers both new and used vehicles, depending on the contract and level of coverage. Vehicles with up to 250,000 miles are covered, while warranties from the dealership typically have a limit of 60,000 miles.

One of the reasons that car warranties are worth it is that they make the repair process easier. No matter how much the pricing of parts fluctuates over time or location, car repair costs will be covered upfront.

For covered repairs, customers just ask the repair facility to contact the CARCHEX claims department for authorization and payment. The customer then pays their deductible and has nothing else to worry about.

CARCHEX Warranty Benefits

In addition to our comprehensive warranty coverage, CARCHEX boasts accreditation and an A+ rating from the Better Business Bureau (BBB). This shows our complete commitment to providing top-notch customer service. We also provide:

  • Choice of your own repair facility: We’ve partnered with over 30,000 repair facilities across the United States, so you can choose your own licensed repair shop. Unlike a regular factory warranty, you won’t need to visit a specific dealership.
  • Claims paid directly to the repair shop: With CARCHEX extended vehicle protection plans, we’ll pay your covered claims directly to the repair facility. Because of this, you won’t have to wait for a reimbursement.
  • Additional auto warranty benefits: Our coverage provides perks like emergency roadside assistance, rental car services, towing, and trip interruption benefits.
  • Convenient quote engine: Our instant quoting system allows you to view your quote and coverage options while simultaneously speaking with a CARCHEX customer service representative.
  • 30-day money-back guarantee: We proudly back all of our products and services. If you’re not satisfied with your extended warranty, contact CARCHEX within 30 days to receive a full refund.

What makes car warranties worth it is the benefits that come from your chosen extended warranty provider. The CARCHEX team works to provide the industry’s top coverage plans and is proud of the strong scores it receives in car warranty comparisons and in customer reviews.

Get a Free Quote From CARCHEX

If you’re still wondering whether car warranties are worth it, consult the auto warranty experts at CARCHEX.  We’ll help you find competitively priced and high-quality coverage choices for your vehicle and budget.

We’d also be glad to walk through the fine print of other extended warranty companies’ vehicle service contracts. Call us at 866-261-3457 to learn how CARCHEX can serve your needs.

FAQ: Are Car Warranties Worth It?