Best extended car warranty in 2024: Free quotes
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An extended car warranty in Canada is like extra protection for your car that kicks in after the manufacturer's warranty ends. It helps cover the cost of unexpected repairs. Think of it as a safety net that can save you money on costly fixes down the road.
But how much does extended car warranty cost? What are the coverage options? Do you need it? In this guide, we take you through everything you need to know about extended car warranty, from what it covers, the pros and cons, to its costs and more.
Use our free tool at the top of this page to compare the best extended car warranty in Canada and get personalized quotes.
Extended car warranty: 5 Key takeaways
- Extended car warranty covers major repairs, not routine maintenance.
- They offer peace of mind beyond the manufacturer's warranty.
- Cost varies by coverage level, vehicle type, and age.
- Not all used vehicles are eligible for extended car warranties.
- Extended car warranties can be purchased through dealers or online.
Best extended car warranty in Canada
| Provider | Plan Name | Rating | Coverage Highlights | Special Features |
|---|---|---|---|---|
| GuardTree | A Comprehensive Plan | 4.8 |
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| Ensurall | Powertrain Plus | 4.7 |
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| Obvi | Premium | 4.4 |
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| Ensurall | Essential Components | 4.7 |
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| Obvi | Elite | 4.4 |
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How does extended car warranty work?
Basic used car warranties will cover your engine and transmission, components that need regular maintenance to keep them running smoothly. Depending on the vehicle's condition and mileage, you may see coverage for steering wheel parts, brakes, electrical, or suspension.
A car warranty typically covers the car and accessories concerning reliability and safety. It does not cover cosmetic damage or normal wear and tear.
Here is an example of what an extended vehicle warranty may cover:
- Extended powertrain coverage
- Engine
- Transmission
- Differential
- Transfer case
- Other related parts
- Some providers will also cover roadside assistance
While an extended warranty covers substantial repairs to keep your car running, many important things are not covered. Examples of repairs that may not be covered are:
- Routine maintenance: oil changes, tire rotations
- Wear and tear: brakes, brake pads, clutches, windshield wipers, headlight bulbs
- Appearance and exterior damage: scratches and dings
- Interior damage: tears in the upholstery, holes in the seats, broken plastic
- Damage from an accident: dents in the exterior, broken glass
- Damage from environmental factors: salt, sand, wind, hail, tree sap
- Damage caused by improper car care: skipping regular maintenance, reckless driving, etc.
- Alterations or modifications: installing incorrect parts, tampering with the odometer, etc.
If you have repairs that need to be done to any of the above items, you would be responsible for paying those costs out of pocket.
Is an extended car warranty worth it in Canada?
An extended car warranty in Canada can be worth it for peace of mind against costly, unexpected repairs, especially for vehicles known for expensive maintenance issues. However, it may not be cost-effective for highly reliable cars or if the warranty coverage is limited and excludes common repairs. Ultimately, the decision should weigh the cost of the warranty against potential repair expenses and personal financial flexibility.
Keep in mind that warranty providers may require you to do routine maintenance during the life of the extended warranty. Failure to follow the manufacturer's recommended maintenance schedule may result in a repair claim being rejected.
Don't forget to also consider your car insurance options. Compare car insurance rates and get free quotes with our easy-to-use tool now. This will help you see how an extended warranty can complement your existing car insurance for complete coverage.
Compare Canada's best car insurance plans
Should you buy an extended car warranty on a used vehicle?
Manufacturers' warranties are generally included with new cars. If the car is resold though, they may not transfer. But, is an extended warranty worth it on a used car? Since warranties may be voided when the car is sold to a new owner, used car warranties, or third-party warranties, provide peace of mind for used car repairs.
A warranty from a manufacturer typically covers the first two to five years of a car's life. This is short compared to the amount of time some buyers spend financing their vehicle with a car loan. Some companies now offer car loans that are up to 96 months or 8 years! If you are holding on to your vehicle and financing it for that long, an extended warranty can help you to cover expensive repairs.
Here's an illustration of how long each type of car warranty will cover you:
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10+ |
|---|---|---|---|---|---|---|---|---|---|---|
| Manufacturer's Car Warranty Period | ||||||||||
| Used car extended warranty |
Expert advice
Exceeded the allotted amount of kilometres on your original car warranty? Purchased a used car that does not come with any form of warranty? In both of these cases, an extended car warranty would be a good choice for you.
Make sure to get the best car warranty for your used car or new car by comparing the most reputable offers in Canada through our comparison tool at the top of this page.
Why consider buying an extended warranty for a used car?
Have you ever had that moment of panic when your car does not start or it makes an unfamiliar sound? Many would instantly worry about repair costs straight away. Often that fear is right.
Car repairs can be very expensive and always seem to come at the worst time. A car warranty can provide extra reassurance that you will be able to keep driving and keep your costs low. Instead of risking large expenses when a part wears out, you can plan financially by purchasing a car warranty subscription.
Below we have compiled average costs for typical car repairs. A used car warranty can save you from paying these out of your pocket:
| Part | Estimated cost of a repair |
|---|---|
| Front wiper motor | $500 |
| Fuel pump | $450 to $1,200 |
| Front suspension arm | $520 |
| Alternator Replacement | $605 to $1,200 |
| Radiator | $680 |
| Axle shaft | $750 |
| Air conditioning repair | $770 to $2,000 |
| Ignition module | $1,200 to $3,200 |
| Airbag system | $2,500 |
Some car warranty providers include roadside assistance in their extended warranty packages. For example, GuardTree a popular subscription car warranty provided includes:
- Unlimited number of roadside calls
- Towing, up to $175 reimbursement per event
- Extrication and Winching, up to $175 reimbursement per event
- One emergency fuel delivery claim per year (keep in mind the fuel costs are extra)
- Locksmith, up to $175 reimbursement per event
- Spare tire installation if you get a flat tire
- Jump-start your battery if it dies
Explore the best extended car warranty companies in Canada using our free tool at the top of this page and get results in a few quick steps.
How do you purchase an extended car warranty for a used car in Canada?
In Canada, there are a few different ways to purchase an extended car warranty. You can get it through car dealerships, through some lenders when you get a car loan, or you can purchase it separately online. Some popular providers like GuardTree, Ensurall, CarShield and Obvi, allow you to quickly get a quote and purchase online.
When comparing used car extended warranties, price isn't everything. Weigh up the following:
- What is covered and what is not
- Specific exclusions in the contract
- Cost
- Transferability
- Which repair shops are approved:
- Deductibles
- Cancellation policy
Watch out!
We always recommend reading the fine print before purchasing any type of policy. Make sure to do so when purchasing an extended car warranty. There can be big differences from provider to provider. Compare to make sure you are getting the best coverage for you.
Is an extended warranty worth it on a new car?
To buy or not to buy an extended car warranty? The debate is even stronger when talking about a new car. It's new, right? Why should it need repairs? Well, it all depends on what you find fit, your driving and your vehicle. But here are a few reasons why you might want to buy an extended car warranty on a new car:
- Sometimes, there is simply not much-remaining manufacturer's warranty on the vehicle you're buying.
- Some vehicles are known for having certain problems and requiring systemic repairs. Scour the internet for reviews on the car model to find out about it and see if a car warranty would come in handy.
- An accident can happen anywhere, at any time, whether the vehicle is new or not. A good extended warranty could cover repairs so you wouldn’t have to pay out of pocket.
- In rarer cases, the manufacturer's warranty just does not extend to the vehicle you purchase.
What does an extended car warranty cost in Canada?
The cost of a car warranty in Canada is already worked into the vehicle price, but extended warranties can cost around $1,000 or more. The price depends on the type of warranty and the level of coverage provided. If you purchase the extended warranty as a subscription, anticipate spending between $49.95 and $79.95 each month.
The cost of an extended warranty for a used car will depend on factors such as:
- the make and model of your vehicle
- how old the car is
- the mileage
- any applicable deductibles that have been added.
Good to know
Some providers have you purchase for a specified term length such as 12, 24 or 36 months while others charge monthly instead of locking you in.
Understanding what's covered under an extended warranty is just the first step. The next is ensuring your car insurance meets your needs too. Use our free tool to compare car insurance policies and find the best coverage for your vehicle at the most competitive rates. It's quick, easy, and could save you money.
Compare Canada's best car insurance plans
Is a dealer's original warranty better than a third-party warranty?
When you purchase a new car, most manufacturers give you peace of mind by providing warranty coverage for a specified period which ranges from around two to five years. The downside to the coverage they offer though can be very short-lived. See below for a breakdown of the pros and cons of manufacturer versus 3rd party coverage but also sheds some light on the differences between the two warranties:
Manufacturer's car warranty:
- Covers a wide range of repairs
- Typically included in the sale price
- Short-lived coverage; usually valid for between 2-5 years
- Only offered up to a limited number of kilometres (rarely more than 100,000)
Used car warranty:
- Provides peace of mind for major repairs that may occur
- Easy to budget for
- You must pay the premium out-of-pocket
- Covers a lesser range of wear and tear repairs
Can you cancel extended car warranty?
If your circumstances change and you wish to cancel your used car warranty subscription, there are a few things to keep in mind.
- If you purchased your warranty through a dealership and/or paid all upfront, you may not have the option to cancel coverage after signing the contract.
However, if you purchase an extended warranty using a subscription service like the one offered by GuardTree, you can cancel at any time. When signing up for an extended vehicle warranty, be sure to check your specific provider's cancellation terms before subscribing to an extended warranty.
Here's a free sample of a car warranty cancellation letter to download:
How to check if your car has an extended warranty?
Check the paperwork that came with the purchase of your vehicle. It will say either:
- VSC
- or, Vehicle Service Contract
Expert advice
If you can't find the paperwork, call the dealership where you purchased the vehicle and ask them if you have one.
Before making any decisions on extended car warranties or car insurance, it's important to have a robust car insurance plan. Explore your options and get free car insurance quotes by using our comprehensive comparison tool. Make an informed choice that safeguards both your car and your wallet.
Compare Canada's best car insurance plans
Do you guys cover 2006 cars for warranty?
Alexandre Desoutter Our expert
Hi Riley,
We are not an insurance provider. You can find the best offer for you in the comparative table at the top of the page or directly check out our car insurance comparator for an in-depth look at the different offers on the market.
You can then contact the provider of your choice to get a quote.
Have a nice day,
The HelloSafe team
cost for a used 2019 explorer with 53000 kms on it. Would like maybe a few options. for either 3 years 60 or 5 yrs 100.
Alexandre Desoutter Our expert
Hi Terry,
You can use the comparator at the top of the page to find the best policy for you. You can then contact the insurer of your choice to get a quote.
Have a nice day,
The HelloSafe team