Transmission failure is one of the most expensive and disruptive vehicle repairs, with average costs exceeding $4,700. Early signs, like slipping gears, delayed shifting, or grinding noises, can escalate quickly if left unchecked. Acting fast can help reduce damage and repair expenses, while extended warranties, also known as vehicle service contracts, offer financial protection when the worst happens.

Learn how to spot the symptoms of a failing transmission, understand the cost breakdown of common repairs, and explore how auto protection plans can help you avoid paying thousands out of pocket.

Recognizing the Warning Signs of a Failing Transmission

While a car’s transmission can be overlooked until something goes wrong, it’s a vital system in vehicles with internal combustion engines. A conventional transmission uses a combination of gears, clutches, and hydraulics to transfer power from the engine to the drive wheels. If there’s any good news with a transmission problem, it’s that there are often warning signs before total failure. Being alert to these red flags and seeking prompt professional help can minimize transmission damage, making repairs quicker and less costly. Here’s what to watch for:

About Continuously Variable Transmission (CVTs)

Unlike traditional transmissions that shift through a set of gears, continuously variable transmissions (CVTs) use a belt-and-pulley system to transfer power. Increasingly, automakers are adopting CVTs because they are more fuel-efficient and less expensive to manufacture. Some CVTs deliver a “rubber band” effect during driving, which is normal but can feel unusual if you’re used to a regular automatic transmission (as opposed to a manual transmission). It’s essential to understand this distinction because a CVT may also show different warning signs if there’s a problem. For instance, there may be high engine revving with little movement, a whining noise during acceleration, or a shuddering sensation at lower speeds.

What to Do When You Suspect Transmission Issues

It’s crucial to address any potential transmission issue promptly. A delay can quickly transform a minor problem into a major one. Not only does this approach protect your wallet, but it also promotes safety. The last thing you want is the transmission to fail on a highway or while turning at an intersection.

Here are some quick-action steps to take when faced with possible transmission problems:

Check the Transmission Fluid Level

• Park on level ground and run the engine for several minutes to get the transmission fluid to operating temperature.
• Locate the transmission fluid dipstick (refer to the owner’s manual) and check the level and condition of the fluid.

What to look for:

• Low fluid may indicate a possible leak requiring immediate attention
• Brown or black fluid (with or without a sludge-like texture) could be a sign of contamination that increases internal friction and causes premature wear (good quality transmission fluid should be red).
• Transmission fluid with metal flakes is a sign of severe internal damage.

What to do:

• If appropriate, add new transmission fluid according to the automaker’s instructions—only use the specified type (don’t use a substitute).
• Consult a professional transmission technician.

Note: Some modern cars have a sealed transmission system without a dipstick. For these vehicles, consult the owner’s manual if you suspect transmission trouble.

Drive Gently

• Avoid jackrabbit acceleration or hard braking
• Carry as few people or as little heavy cargo as possible
• Do not use the vehicle for towing

It’s vital to avoid aggressive driving habits if you think there’s transmission trouble. The less stress you can add to the vehicle, the better.

Schedule a Service Visit

Transmission problems don’t usually go away on their own. The best approach is to schedule a diagnostic appointment with an experienced transmission mechanic as soon as possible. Not all repair shops work on transmissions, and some facilities often outsource the job to a specialist anyway. Find a certified technician or service center experienced in transmissions to speed up the process and potentially save you money.

Take Notes

Document all the symptoms and conditions before visiting a repair shop. The mechanic will want to know when the problem first occurred, the driving conditions under which the problem was first detected, and any worsening of the trouble. This information can be invaluable to the technician.

Get a Tow

Safety is always the priority. If you think transmission functionality is severely affected, then don’t risk driving to the repair shop. Getting a tow is a small price to pay for being safe.

How Much Does Transmission Repair or Replacement Really Cost?

While expensive repairs are eye-opening, used and even new car owners should know that transmission problems don’t always involve replacing the entire unit. Transmissions comprise multiple systems, any of which can go bad and require attention. There are also regular maintenance expenses to consider.

Here’s some real-world pricing from RepairPal and other sources for transmission service work:

Other Pricing Sources: *costhack.com / +AutoNation / ^Endurance

Of course, the price of these repairs is modest compared to the cost of replacing a transmission. Remember that the $4,700 price tag from Endurance mentioned earlier and in the above table is just an average. More expensive vehicles tend to require pricier parts.

In addition, labor costs have a significant impact on the repair bill. AutoZone estimates that replacing an automatic transmission can require up to ten hours. Multiply that by an average hourly rate of $143 for a mechanic, and you can see why transmission work is so costly.

Does Insurance Cover Transmission Repairs?

Some drivers may mistakenly believe that standard car insurance covers mechanical breakdowns. In most situations, this isn’t the case. Coverage usually only applies if the trouble arises from an accident or an external incident, such as a flood, vandalism, or striking an object while driving. And this protection assumes you have collision or comprehensive insurance. In short, outside of a specific set of circumstances, insurance companies consider transmission problems to be maintenance-related.

Some insurance companies offer mechanical breakdown coverage as an add-on to a traditional policy, but this protection is restrictive and usually is only available for newer vehicles. The reality is that experiencing a transmission problem without some type of warranty protection means significant out-of-pocket expenses to get back on the road.

How Endurance Helped Leah Save Thousands

Real car owner experiences demonstrate the value of an Endurance auto protection plan, more commonly known as an extended car warranty. Leah purchased her Endurance plan as preventive protection, not expecting immediate benefits. “About eight months after I signed up with Endurance, almost a $5,000 repair came up for my transmission. Endurance covered it.”

For many households, that expense would be a substantial financial burden. Instead of dipping into savings, using a credit card, or taking out a loan to fix a bad transmission, Leah was able to get the repairs paid for through her Endurance vehicle service contract.

How an Extended Warranty Can Protect Against Transmission Failure

As we’ve covered, repairing transmission trouble can cost thousands, which is why drivers seek the peace of mind that an extended warranty offers. These plans, like those offered by Endurance, can cover parts and labor for eligible repairs. Here’s an overview of what’s involved with an auto protection plan that covers transmission repairs:

• Coverage: Most vehicle protection plans cover internal transmission components and the associated labor. The specifics are detailed in the contract document. Endurance sample contracts are available online.
• Repair Centers: Extended warranty or protection plan providers will specify where covered repairs can be worked on. Endurance customers can choose any licensed facility, including dealership service departments and certified shops in the RepairPal network.
• Deductibles: Deductibles help car owners balance cost and coverage, and are paid directly by the plan holder to the shop performing the covered repairs. Endurance plans offer deductible options of $0, $100, or $200, depending on the specific plan selected.
• Waiting Period/Exclusions/Requirements: Most vehicle service contracts have a waiting period before coverage becomes effective. Often, this is for a 30-day term or a mileage-based period. Pre-existing issues aren’t covered, and there are usually requirements to properly maintain the vehicle.

How to Keep Your Transmission Running Longer

Regular maintenance and being alert to potential problems can go a long way in preventing costly transmission repairs. Here’s what deserves the most attention.

• Change the Fluid: Follow the recommended transmission service interval for your vehicle, usually every 30,000 to 60,000 miles. This ensures effective lubrication of internal components. Consult with a trusted mechanic if you have a “lifetime” transmission that the manufacturer claims doesn’t require servicing. Depending on your usage, these systems may still need periodic servicing.
• Check Fluid Monthly: Low or dirty transmission fluid can signal transmission trouble; regular monitoring can catch problems early.
• Drive Smoothly: Avoid jackrabbit starts, sudden braking, and towing more than your vehicle’s rated capacity.
• Schedule Professional Service: As advised by the manufacturer, periodic fluid flushes and filter changes help remove buildup, keeping the transmission running smoothly.
• Watch for Early Signs: Transmission slipping, rough shifts, or odd noises (like clunking or grinding) can signal trouble. Don’t ignore these potential red flags.

Taking Control of Your Transmission’s Future

Discover how an Endurance Warranty plan can help reduce out-of-pocket costs for your transmission repairs. Request a FREE quote or see your price and recommended plans now. Endurance plan advisors are also available for personalized assistance at (800) 253-8203.

Learn more about DIY automotive repairs, vehicle maintenance, extended warranties, and more at the Endurance blog.