What Is the Best New Car Warranty?

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.

An extended car warranty is protection from the vehicle manufacturer against mechanical breakdowns. This term is sometimes incorrectly used to describe coverage from third-party providers, which offer similar protection plans called vehicle service contracts. CARCHEX is a vehicle service contract provider.

New vehicles come with protection against mechanical breakdowns from your car’s manufacturer – however, the length and quality of that coverage differs by automaker. In this article, we’ll cover what you can expect to have covered under a factory warranty, which manufacturers offer the best coverage, and how extended coverage from a third-party vehicle service contract provider can benefit you when your factory coverage expires.

When you buy a new vehicle from a dealership, you’ll likely get factory warranty coverage to help cover the risk of mechanical or workmanship errors. As you select a vehicle, it’s worth considering the factory warranty coverage that comes with the vehicle. After all, it can be a big expense if your car turns out to be less reliable than you.

The Top Car Manufacturer Warranties

Based on warranty terms and additional benefits, we’ve listed out the four best car warranties included with the purchase of a new vehicle.

1. Hyundai Warranty: Best Factory Warranty

The Hyundai powertrain warranty lasts for 10 years or 100,000 miles, and the bumper-to-bumper warranty lasts five years or 60,000 miles. These are some of the longest terms among car manufacturers. In addition, Hyundai’s anti-perforation warranty and roadside assistance program last for seven and five years, respectively. 

The extensive coverage Hyundai offers makes it a top choice for the best car warranty. The manufacturer covers items that include:

• Audio systems: Three years or 36,000 miles
• Paint: Three years or 36,000 miles
• Battery: Up to three years and unlimited miles, or a lifetime warranty for hybrid batteries
• Air conditioner refrigerant charge: One year or unlimited miles
• Adjustments to the vehicle: One year or 12,000 miles
• Wear items: One year or 12,000 miles

2. Lexus Warranty: Top Luxury Warranty

The Lexus warranty covers powertrain components for up to six years or 70,000 miles, far better than the luxury industry’s average plan of four years or 50,000 miles. This allows you to rely on your vehicle’s engine and major systems for longer, saving you money in the end. If you want to maintain your vehicle as it ages, turn to the Lexus extended warranty.

3. Kia Warranty: Longer Coverage Plans

The Kia manufacturer warranty provides much longer protection than many competitors. You’ll have bumper-to-bumper coverage for five years or 60,000 miles and powertrain coverage for 10 years or 100,000 miles. Additional limited warranties are available for service adjustments, paint, audio and entertainment, and other accessories.

Roadside assistance is also included for five years or 60,000 miles. Your car will also be protected from perforation and corrosion for five years or 100,000 miles. Beyond this coverage, you can pick up a Kia extended warranty to keep your car safe over time.

4. BMW Warranty: Top Warranty Benefits

Though the BMW factory warranty only covers powertrain and bumper-to-bumper components for four years or 50,000 miles, its rust-through warranty is the best in the category, at 12 years or unlimited miles. Once your new vehicle warranty runs out, it might be worth checking out BMW extended warranty coverage plans.

BMW also adds convenience to drivers by offering wheel alignment, wheel balancing, and wiper blade inserts. These perks are covered for the first 2,000 miles.

Manufacturer Warranties by Automaker

Here’s a comparison of 2024 factory warranties from other car companies:

The coverage in a manufacturer’s warranty may seem adequate. But it’s important to think through different scenarios, like what to do after the factory warranty expires or what to do if costs aren’t covered under your current warranty plan. 

If your vehicle isn’t protected, you’ll have to pay for car repairs out of pocket, which can be very expensive.

Nearly 63% of Americans don’t have the money to pay for a $500 car repair. As you may know, repair, parts, and labor costs add up fast in the auto shop. Whether big fixes or small, it’s neither smart nor safe to drive an unreliable vehicle. 

After your factory warranty expires, your options for additional coverage include an extended warranty from the manufacturer (which must be purchased before your factory warranty expires) or a vehicle service plan from a third-party company like CARCHEX.

Once your manufacturer’s warranty expires, your wallet is no longer protected from costly repair jobs. Most manufacturers offer an extended warranty to continue coverage for your vehicle’s most vulnerable parts, but these plans rarely come with the competitive prices and flexibility of a CARCHEX vehicle service contract.

As you’re shopping around, here’s what you should find out to purchase the best vehicle protection:

• What parts and systems are covered? More importantly, what’s not covered?
• How long am I covered, and what are the mileage limits?
• What’s the monthly payment, and is a down payment required?
• What’s the deductible?
• Where can the car be taken for service—only to the dealership or to any licensed auto shop that’s convenient?
• What is the plan’s cancellation policy? What about a money-back guarantee?

What Matters Most in a Vehicle Service Plan Provider?

We performed a 2024 survey of 1,000 customers where we asked them what they considered most important in a vehicle protection plan company. Below are the findings:

• Coverage plans: 29%
• Overall cost: 25%
• Coverage benefits: 22%
• Payment options: 8%
• Industry standing: 7%
• Contract length: 4%
• Online reviews: 3%
• Other: 2%

CARCHEX prioritizes all of these factors. We’re proud to offer five customizable plans, competitive pricing, and strong reviews from customers, the Better Business Bureau (BBB), and leaders across the automotive industry.

When selecting a vehicle service contract, take plenty of time to find the best deal that fits your vehicle’s needs. There are plenty of providers available, but they don’t all offer equal levels of customer service, coverage for plans, or benefits.

First, check out online reviews and see how the best aftermarket vehicle protection plan companies stack up against each other. CARCHEX holds an A+ rating from the BBB, countless positive customer reviews, and a transparent claims process.

What To Look For in a Third-Party Vehicle Service Contract Provider

Note that several factors help to separate the best vehicle service contract providers from the pack. When weighing your coverage options, consider these attributes:

• Number of available plans: How many levels of coverage does a vehicle service plan provider offer? If there are only a handful, can they tailor them to a driver’s specific needs? Flexibility and coverage options matter, so the best companies offer both.
• BBB accreditation and rating: Does the BBB believe that the company is committed to its customers, serves them in good faith, and quickly resolves issues? BBB ratings are based on how many complaints a provider gets and information from the business.
• BBB number of complaints: You deserve to know about potential issues other customers may have had with a provider’s customer service or product coverage.
• Industry endorsements: Does the auto coverage company have partners? Are they trusted in the industry? This is a good sign of a strong and reputable provider.
• Years of experience: A company that’s been in business for a while and is experienced at providing coverage that matches drivers’ needs is a good sign.

CARCHEX vs. the Competition

The CARCHEX Vehicle Service Contracts have been around for much longer than most competitors’ contracts, and customers are consistently pleased with CARCHEX vehicle protection plans. Below, we’ll compare the best third-party vehicle protection companies on factors that matter to car owners:

Updated October 2024.

You can see that CARCHEX comes out ahead as the best vehicle service contract.

• We have over two decades of experience in the industry.
• We maintain a great reputation with the BBB, which gives us an A+ score and accreditation.
• We’re proud to hold industry endorsements from CARFAX, MotorWeek’s Pat Goss, Kelley Blue Book, Assurant, Edmunds.com, and RepairPal.
• You can get a free, instant quote online.

Vehicle service contract coverage isn’t only about paying for expensive parts like your car’s alternator, air conditioning system, and transmission. Here are some other benefits of purchasing a vehicle service contract from CARCHEX:

• More coverage and greater savings: CARCHEX offers multiple high-quality, affordable plans to help you get the best coverage for your car.
• Increase your car’s resale value: If you decide to sell your car, having a CARCHEX vehicle service contract could significantly increase your car’s resale value.
• Satisfaction or your money back: If you aren’t satisfied with your plan or want to cancel, get a prorated refund through CARCHEX’s 30-Day Money Back Guarantee.*
• Customer focused: CARCHEX provides full support for customers, so drivers can rest assured that they’re dealing with honest and fair mechanics.
• Extra coverage benefits: A vehicle service plan from CARCHEX provides benefits such as fully transferable terms, a free XM radio trial, and vehicle history reports. You also get access to towing services, rental car options, and trip interruption coverage.

*Refund methods vary by state. See extended service plan for complete details, including refunds, exclusions, and limitations.

Now that you know your options for top vehicle service contracts, speak with the specialists at CARCHEX to find competitive prices and quality warranty options. While CARCHEX ranks as one of the industry’s best extended vehicle service plan companies, we’ll help you search among other options if you’d prefer to shop around.

CARCHEX has affordable, pay-as-you-go plans that don’t skimp on coverage. You’ll gain access to a large network of repair facilities, as well as roadside assistance coverage in the case of a mechanical breakdown. If you’re not satisfied, you’ll get your money back.