One inescapable fact of automobile ownership is that the older your car gets, the greater the likelihood of a breakdown. And consumers are keeping their cars longer. A 2024 report from S&P Global Mobility reveals that the average vehicle in the U.S. is 12.6 years old, a record.

The data also shows that almost 38% of the cars on the road (110 million) are 6 to 14 years old, which is when service and repair needs increase. S&P forecasts that 40% more vehicles will be in this age range by the end of 2028.

In short, the number of car owners looking to protect themselves against unexpected repairs and wallet-busting mechanic bills will not decline. Outside of getting a new car (which has an average cost of $48,000, says Kelley Blue Book) or not driving, the best option may be adding the protection of an extended warranty. Yet, drivers may wonder if this investment is worthwhile.

We’ll answer these questions by comparing the real prices of major vehicle repairs against average extended warranty costs, as well as what Endurance Warranty offers as an auto protection plan provider. At the end, you’ll be better informed if this is the right option for you.

How Much Do Major Repairs Really Cost?

The first step in determining the value of an extended car warranty is to better understand vehicle repair costs. Endurance Warranty claims data from 2023-2024 reveals the substantial expense of common repairs:

These are average nationwide figures based on claims paid by Endurance and provide a sobering reminder that getting a car repaired today can be expensive. Worse, most Americans aren’t in the financial position to pay for something like a transmission replacement that comes with a $4,500+ repair bill. A recent Bankrate report shows that 59% of Americans can’t afford an emergency expense of $1,000.

Compounding the issue is that car troubles can occur without warning. A vehicle that drives perfectly one day can be on a tow truck the next, making budgeting for service work challenging.

It’s also essential to recognize that different cars have different repair costs. Let’s look at some of the other most expensive and common repairs for some popular models to give you a better idea. Here are the costs based on RepairPal data:

You can see that costly repairs aren’t limited to a specific make or model. For example, replacing the radiator in the Chevrolet Traverse is more expensive than the BMW 328i. However, the situation is reversed when installing a new powertrain control module.

Comparing Average Extended Warranty Costs to Typical Repair Bills

To determine if an extended warranty (also called a vehicle service contract or auto protection plan) makes financial sense, we’ll compare coverage costs against possible repair expenses. According to Consumer Affairs data, the average cost for an extended auto warranty varies by coverage type and warranty provider:

Many extended warranty companies offer more in-between coverage options, but these examples represent the lows and highs regarding protection and cost.

Keep in mind that many variables determine car warranty cost. For instance, as covered earlier, the same repair can cost different amounts depending on the vehicle. Here’s what affects how much you’ll pay:

• Make and model
• Vehicle age
• Mileage
• Coverage type
• Coverage length
• Deductible

Let’s use a three-year comprehensive plan at $1,000 annually as an example and see how the numbers add up for a BMW 328i with two repairs over this period:

*Repair cost based on the highest estimate from RepairPal data.

It’s worth mentioning that the average U.S. driver racks up over 40,000 miles over three years. So, having multiple repairs during this period is not unusual for an older vehicle. These savings calculations reflect just one example using averages; actual savings may be higher or lower.

Nonetheless, many drivers prefer the predictability of a fixed monthly payment ($1,000 per year in this case) versus the surprise of a repair bill that might require an emergency loan or credit card debt.

The numbers are even more favorable when looking at a major repair.

When One Repair Can Cost More Than an Aftermarket Warranty

As the repair data reveals, we live in a time when a single repair can easily exceed the price of an extended warranty. Let’s crunch the numbers again using the average extended warranty cost for a three-year comprehensive plan:

^Average repair cost based on the Endurance claims process in 2023-2024, rounded to the nearest dollar.

Add another repair, like replacing the air conditioning compressor or water pump, and the case for adding extended warranty protection gets even stronger. Again, these are just estimates, but you can see the savings potential versus getting hit with thousands in out-of-pocket costs. Even having a vehicle service contract with a small deductible (such as $100 or $200 per incident) can create savings opportunities.

Regional Differences in Car Repair Costs

An often-overlooked element of vehicle repairs is how costs can vary depending on location. However, while repair expenses can fluctuate, the warranty cost remains the same, regardless of where the repair occurs.

The difference in service work costs can fluctuate significantly based on location. Using RepairPal’s estimate tool, here’s the projected cost of replacing the head gasket in a 2012 Toyota Camry LE:

• Burlington, Vermont: $2,039 to $2,382
• Omaha, Nebraska: $2,973 to $3,574
• Wilmington, Delaware: $3,145 to $3,793
• Columbus, Ohio: $3,248 to $3,924
• Tempe, Arizona: $3,259 to $3,939
• Fort Lauderdale, Florida: $3,660 to $4,450

Getting the work done in Fort Lauderdale, Florida, costs twice as much as in Burlington, Vermont. Given that labor accounts for two-thirds of the cost of replacing a head gasket, the disparity is unsurprising; the cost of living (and everything else) varies by region.

Repair shop software company Identifix reports that mechanic labor rates for 2025 range from $127.15 (Vermont) to $151.67 (Mississippi) per hour. Other factors are also at play, including parts availability, local competition, and regional economic conditions.

An Endurance Warranty contract provides geographic protection. This means that a car owner with a vehicle protection plan is only responsible for any deductible (if applicable) for covered repairs. There’s no worry about local repair rates or other issues. A vehicle service contract is ideal for drivers who:

• Relocate or travel long distances frequently
• Might experience breakdowns far from home
• Live in areas with high repair costs

What’s Included in Endurance Coverage That Adds Value

An Endurance Warranty plan does more than just cover repairs. It includes valuable standard benefits designed to support you during unexpected breakdowns. Plus, every plan comes with a 30-day money-back guarantee for added peace of mind.

Standard Benefits Included with Endurance Plans

• Choice of Coverage Plans: Endurance offers auto protection plan options, ranging from essential powertrain coverage with our Secure Plus plan to Superior for protection for the most common parts that break down, and Supreme with the fewest exclusions. Upgrades are available for select luxury models, commercial-use automobiles, high-mileage vehicles, and modified cars.
• 24/7 Roadside Assistance: All plans include 24/7 roadside assistance with towing, lock-out, fuel delivery, and other services.
• Rental Car Coverage: Endurance customers enjoy rental car reimbursement to minimize transportation hassles during a breakdown.
• Trip Interruption Reimbursement: Every Endurance Warranty contract has trip interruption coverage for support when you’re away from home.
• Choice of Repair Facilities: Choose any licensed repair shop (including the dealership service department and ASE-certified mechanics) for covered repairs. Endurance plan holders can also access the RepairPal network of certified service centers for verified professional help.

The Elite Benefits Add-On

All Endurance customers receive one year of Elite Benefits (just pay a small activation fee), which includes:*

• Key Fob Replacement: This essential service can save up to $400 (or more, for premium vehicles) on a key or key fob, according to Kelley Blue Book (KBB).
• Tire Repair and Replacement: Be protected up to $150 per occurrence for tire repair services or tire replacement.
• Collision Discount: Receive up to $500 towards collision repairs.

Who Should Consider a Vehicle Service Contract

The benefits of an extended warranty are far-reaching, but certain car owners are well-suited to coverage advantages:

• Owners of Vehicles 4 to 15+ Years Old: A car without a bumper-to-bumper factory warranty can be a repair bill waiting to happen. Yet, it may have many useful years ahead. Endurance protects most vehicles up to 20 years old.
• High-Mileage Drivers: Vehicles that accumulate more than 15,000 miles annually have an increased risk of expensive repairs.
• Owners Planning to Keep Vehicles Long-Term: Drivers who like to keep their cars “until the wheels fall off” or want to avoid the cost of replacing a vehicle can minimize the financial uncertainty of repairs with an extended warranty.
• Used Car Buyers: Purchasers of used cars who are uncertain about the routine maintenance (like oil changes) and service history of their vehicles.
• Drivers of Models with Known Reliability Issues: Some cars are inevitably more prone to specific troubles than others. Every mechanic has their list of least reliable cars.
• Owners without Significant Emergency Savings: An automotive protection plan provides financial stability when an expensive car repair would cause hardship.
• Luxury Vehicle Owners: High-end brands like BMW and Mercedes often come with higher repair bills that traditional extended warranties may not cover. Endurance’s Supreme for Highline plan offers comprehensive warranty coverage for select premium models.

Balancing Protection Costs Against Repair Risks

Determining if an extended warranty is the right approach comes down to risk. Are you willing to chance being responsible for a significant repair on your own, or do you prefer the peace of mind of knowing you have a plan and support for covered repairs? You’re the only one who can answer this question.

Thousands of car owners have chosen an Endurance Warranty plan for protection against mechanical breakdowns and surprise repair bills. Learn more by requesting a FREE online quote or speaking with an Endurance plan advisor at (800) 253-8203.

Our online store also offers instant plan and pricing information. You can learn your coverage options in about a minute!

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