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How to Choose the Right Warranty for Your Vehicle

The right warranty will protect your investment and save you money. Let’s face it, warranty companies wouldn’t be in business unless they did save people money, and it is in the best interest of the warranty company or warranty broker to select the best warranty coverage that meets your particular needs and budget.

Choosing the right warranty has a lot to do with the make, model, age, and mileage of your vehicle, how many miles you drive a year, and how long you want to keep your vehicle. Another factor to consider, is does the vehicle still have some level of the original manufacturer’s warranty. Other personal factors also weigh heavily on the type of protection to purchase but the most important is how much money you want to pay out of your own pocket for repairs.

The first thing you need to do is determine how many miles you drive a year - the average driver will put about 15,000 miles per year on their vehicle. This is the base line for determining the coverage you will need. For example, if you drive 15,000 per year and want to protect your vehicle for five years you will need a minimum of 75,000 miles of coverage. If you are only going to keep your vehicle for three years then you would need a minimum of 45,000 miles.



These guidelines are offered as a general rule of thumb for different types of vehicles.

Leased Vehicles

If you are leasing a brand new vehicle right off the showroom floor, forget about purchasing an extended warranty. The factory warranty will give you enough coverage during the term of the lease and you won’t be saving any money.

If however you are leasing a pre-owned vehicle that has more than 36,000 miles and less than 50,000 and you don’t want to be paying extra for repairs, consider a bumper-to-bumper program for the length of the lease. To save money, and as minimum protection, look at a power train warranty. Just remember to buy the minimum coverage needed to meet the length of the lease.

If you are going to purchase the vehicle at the end of the lease, consider a wrap program or a bumper-to-bumper. You will save money if you buy it before the vehicle reaches 12,000 miles but you should buy it before it reaches 36,000 miles.

Low Mileage Vehicles — Up to 50,000 Miles

The best value is to purchase a wrap program or bumper-to-bumper policy before the vehicle reaches 12,000 miles. You can purchase a bumper-to-bumper at any time up to around 50,000 miles, but just remember the less miles a vehicle has when purchasing a warranty the less expensive the coverage is, so buy it sooner than later.

Do not consider a stated component policy or a power train policy. For the small additional price of a bumper-to-bumper policy you get much more coverage and benefits.

Mid Mileage Vehicles — Between 50,000 to 100,000 Miles

This is where a stated component policy is best suited. You will get a fair amount of coverage for the major components of your vehicle. Remember that if your vehicle has 75,000 miles and you drive 15,000 miles a year and you want to keep it for another three years look for at least 120,000 miles of coverage.

If you are pushing 100,000 miles, a power train policy is an inexpensive option.

High Mileage Vehicles — Over 100,000 Miles

Here is where it mainly depends on how long you want to keep your vehicle. Your coverage options will be limited, but you can still get a reasonably priced stated component policy, and this is where it really pays off. High mileage vehicles are going to have many more problems, and the more coverage you can get, the better you make out.

Power train policies are also a good bet to get more mileage and years of driving out of your vehicle.

Classics, Exotics, and Collector Cars

Think that 1956 Chevy or 1972 Triumph or your beloved Ferrari can’t be covered, think again. There are warranty companies and warranty brokers who specialize in classics, collectables, and exotics.

These policies typically cover any year, any mileage vehicle with no limitations. You’re not going to get bumper-to-bumper coverage but you will get fairly good coverage for major components like all essential engine, fuel system, transmission/transaxle, and front and rear drive components. Some policies also cover brake systems, suspension assemblies, steering systems, air conditioning, electrical systems, cooling systems, and emission components.
You will pay more than a normal warranty policy but then these cars are worth more.