Learn more about auto warranties with detailed research, rankings, and guides to protect your vehicle
Car warranties are contracts provided by automakers and third-party companies that give coverage for repairs and maintenance due to mechanical breakdowns
An extended car warranty is an optional vehicle protection plan that covers certain car repair and replacement costs due to a mechanical failure or breakdown
Whether bought from an automaker or a third-party provider, a car warranty covers expensive repair costs caused by defective parts or faulty workmanship
Car warranties are subject to some federal regulations, as well as laws that may vary by state. We cover a few of them below.
Passed in 1975, the Magnuson-Moss Warranty Act is a United States federal law. It allows the Federal Trade Commission (FTC) to establish disclosure laws and other regulations around warranties. It doesn’t require products to carry warranties, but those that do must comply with federal regulations.
This law created the distinction between warranties and service contracts. While warranties affirm the quality of a product, service contracts do not. Service contracts are simply agreements between two parties that one agrees to repair or replace a product or parts of that product. This is why the official terminology for most extended auto warranties is actually VSC.
States have their own regulations about vehicle warranties and product quality. In the used car world, “as-is” refers to a car being sold in its current condition with no agreements to fix anything prior to sale and with no responsibility on the seller to fix anything after the sale.
An “as-is” warranty means that a car either comes with a warranty or it doesn’t, depending on whether it currently has one. In this case, the seller offers no additional warranties or VSCs as part of the sales agreement.
While not a kind of warranty, a lemon law offers protection for consumers who have purchased “lemons,” or vehicles that have major manufacturing defects that result in the frequent need for repairs. These laws typically cover new cars, but in some places they also cover some used cars.
Endurance is our top extended car warranty provider, offering the best coverage plans for drivers looking for great protection and savings.
Owners can pick from eight different CarShield coverage plans that range from bumper-to-bumper extended warranties down to basic powertrain coverage
Our team gave Endurance 9.3 out of 10 for its superb coverage plans, while Carchex earned a 9.1 based on its strong auto industry partnerships
The Audi extended warranty, known as Audi Pure Protection, covers up to 10 years or 120,000 miles and offers Platinum, Gold and Powertrain options
At MarketWatch Guides, we aim to help readers make informed decisions about how to spend and save their money. We spend hundreds of hours researching the products and services we cover and recommend multiple reliable companies in each category, allowing consumers to choose the brand that is right for their situation. Our key principles are below.
ForeverCar used to be a warranty provider with a strong reputation but is no longer in business
The best extended car warranties in California come from Endurance, Olive, Carchex and autopom!, as they offer protection in compliance with state laws.
We give Everything Breaks an 8.7 out of 10 rating and recognize it for having the Best Contract Term Selection in 2024 due to its flexible coverage options
The best CPO warranties come from Mitsubishi, Hyundai, Kia, Lexus and Land Rover because of long term limits, and coverage perks from the different brands.
Owners can pick from eight different CarShield coverage plans that range from bumper-to-bumper extended warranties down to basic powertrain coverage
