Toyota Extended Warranty: The Cost & If It’s Worth It

 

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Are the proud owner of a Toyota? You are a plurality! According to Motoring Research, the Japanese manufacturer had the highest number of car registrations (the only one to break eight million) in 2018. It also ranked in Fortune Global 500 as the 10th largest company in the world according to revenue last December 2019.

For years, Toyota has been one of the best-selling brands around the world – and for good reason. The company makes affordable, durable and reliable cars. It also gives owners the option to purchase an extended warranty.

To learn more about your extended warranty options, our team has thoroughly researched some of the best extended warranty providers. Compare Toyota’s extended warranty costs and services to the leading third-party companies.

Below are the providers we recommend getting a quote from. That way, you can compare cost side by side for your Toyota and decide which option could be right for you.

Toyota Extended Warranty Overview

 

Every new Toyota comes with a New Vehicle Warranty. The terms are slightly different for hybrid vehicles, and the terms are completely different through Toyota extended warranties.

 

When your factory warranty expires, you’re typically offered the option to purchase an extended warranty.

Extended warranties carry on the coverage for any vehicle repairs and replacements due to mechanical breakdown. Note that a warranty doesn’t cover damages caused by accidents, which should fall under insurance. An extended warranty functions much like a factory warranty, but with longer terms.

Toyota extended warranties can also be purchased at any time before the existing warranty ends. Toyota offers three extended warranty plans, referred to as Toyota Vehicle Service Agreements (VSAs):

 

1) Powertrain Protection

 

The Powertrain VSA is Toyota’s basic extended warranty plan. It’s available for new cars, meaning those less than 3 years old and under 36,000 total miles. Used cars within the current plus 12 model years old and up to 150,000 total miles are also eligible.

The plan lasts for up to 6 years and 100,000 total miles, covering any repairs or replacements of your vehicle’s engine, transmission and other components. In case of major mechanical breakdowns, it will also reimburse car rentals for $35 per day, and meals and lodging for $50 per day, if more than 150 miles from home (for a maximum of four days).

 

2) Gold Protection

 

Toyota’s Gold Protection is a more robust extended warranty plan. Although it requires the same eligibility rules for new cars, the plan is also eligible for used cars within the current plus 9 model years old and up to 150,000 total miles.

Gold Protection also comes with more flexible terms. You can opt to have extended warranty up to 8 years and 125,000 total miles for new cars or 5 years and 60,000 miles for used cars.

The plan provides extensive coverage, with more than 100 more parts than Powertrain Protection. If a breakdown prevents you from using your car, you’re also entitled to reimbursements for rental cars up to $35 per day, and meals and lodging up to $50 per day, if more than 150 miles from home (for a maximum of four days over the warranty).

 

3) Platinum Protection

 

The Platinum Protection plan is Toyota’s highest level of service agreement protection. It has the same eligibility rules as Gold Protection, but can extend as long as 10 years and 125,000 miles for new vehicles.

Nearly all of your vehicle’s parts are covered, from brakes to the power seat computer. We like that you don’t have to worry about submitting any claims – Toyota will pay the dealer directly.

Platinum Protection plan holders also have higher reimbursements for rental cars at $50 per day, and meals and lodging at $100 per day, if more than 150 miles from home (for a maximum of five days).

All Toyota plans come with 24/7 roadside assistance, free towing to the nearest authorized dealer and coverage across the continental U.S. and Canada. 

 

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What Does a Toyota Extended Warranty Cost?

 

Like most manufacturers with extended warranty plans, Toyota doesn’t publish its prices. With so many customizable coverage terms, a plan can go as low as $900 or well above $2,000. Your actual Toyota extended warranty cost depends on several factors:

 

Vehicle Age and Mileage

These are the two key factors that determine which plans are available to you. For example, cars under 3 years old with less than 36,000 total miles on them can be covered by all of Toyota’s extended warranty plans. On the other hand, any vehicle more than 12 model years old prior or 150,000 miles isn’t eligible for coverage.

Once a car has passed its prime, it becomes more expensive to cover. As a result, the car’s age and mileage play a big part in determining its Toyota extended warranty costs and overall eligibility. 

 

Type of Coverage

Extended warranty plans come with a choice of different coverage and prices. Toyota’s Powertrain Protection, for example, is a basic plan that covers only major engine and auto components. Platinum Protection, on the other hand, offers comprehensive coverage and higher reimbursements. Of course, the more coverage and service you opt for, the more your extended warranty plan will cost. 

 

Deductible

No matter which plan you choose, Toyota offers $0 or $100 deductible options. This is the dollar amount you elect to pay for any authorized claims related to a single repair or replacement. Choosing no deductible will usually mean higher monthly premiums, while a higher deductible can lower your premium payments. 

 

Vehicle Model

Toyota is a giant car manufacturer with a range of models, from a $15,650 lightweight Yaris to a $58,500 fuel cell-powered Mirai. If your car requires special parts and services, you can expect higher Toyota extended warranty costs, as well.

 

Warranty Provider

Toyota extended warranty plans aren’t just available through the manufacturer – you can get them from third-party providers, as well. By widening your warranty search, you have the choice of more affordable plans and payment options. Also, you won’t be limited to getting your car serviced only within Toyota’s network.

To learn more about Toyota extended warranty costs, it’s best to contact your nearest Toyota dealer.

 

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Is the Toyota Extended Warranty Cost Worth It? 

 

Studies show people tend to hold onto their Toyotas, with 10 of the 15 cars that people keep the longest being made by the popular car brand.

The average ownership of a Toyota is about 10 years – long after the standard three-to-five-year factory warranty. If you plan to keep your car in the long run, it’s best to get extended warranty to protect you after the initial plan expires. Even if you don’t keep your car, extended warranty plans are easily transferable to the new owner.

A new car requires an average of $1,186 to maintain and repair per year. This cost will likely be higher for older cars, and even the best made vehicles will eventually need some maintenance.

Extended warranties not only cover these costs, but they also provide roadside assistance, rental reimbursements and your choice of service center. Ultimately, having coverage provides peace of mind.

A Toyota VSA is still likely to be at least $1,000, and it’s possible you won’t need a major car repair every year. Though, if one expensive repair would do serious damage to your budget, the Toyota extended warranty cost you pay could be worth it.

 

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What Are the Best Options for Extended Toyota Protection?

 

Toyota dealerships are not the only place you can purchase extended warranties. In fact, there are many third-party companies offering warranty plans that are cheaper and customizable to your needs.

Based on our research, below are three great options where you can get a third-party warranty: 

 

Best Provider: Endurance 

 

Endurance is one of the largest providers of third-party vehicle service contracts. It received an A+ from credit rating agency AM Best, is certified by the Vehicle Protection Association, and recently ranked on the 2019 Inc. 5000, which lists the most successful companies in America.

 

Endurance provides five vehicle protection plans: 

• Select Premier: Designed for vehicles with high mileage, protecting important components like the engine, transmission and drive axle
• Secure: The most affordable coverage option, covering the most vital and most expensive components, including the engine, transmission, transfer case, drive axle, fuel and turbo/supercharger
• Secure Plus: A higher level of coverage that covers steering, electrical and braking systems
• Superior: The highest level of stated component coverage available, providing comprehensive protection for hundreds of car parts
• Supreme: Exclusionary coverage for the maximum protection from any breakdowns (most similar to the original factory warranty) 

Each plan also comes with an Endurance Elite Membership, which includes the benefits of 24/7 roadside assistance, key fob replacement, up to $5,000 in repair loans and more. 

 

Best for High-Mileage Vehicles: CARCHEX

 

With more than 20 years of doing business under its belt, CARCHEX is one of the leading third-party car warranty providers. It boasts a perfect 10 score on ThoroughlyReviewed and gets an A+ from Better Business Bureau (BBB).

 

CARCHEX offers five levels of coverage: 

• Bronze: Coverage for the major systems of your vehicle, including the most common and expensive repairs
• Silver: Popular for vehicles with high mileage, providing coverage for the major systems
• Gold: Comprehensive coverage and flexible terms for vehicles with over 60,000 total miles
• Platinum: Highest level of stated component coverage that protects hundreds of parts in a vehicle’s major systems
• Titanium: Maximum bumper-to-bumper protection and the highest level of coverage, with only a short list of excluded parts

Each coverage plan gives you the freedom to choose your preferred maintenance repair shop and pays the repair shop directly. The company also offers flexible and affordable monthly payments.  According to CARCHEX, you can get Toyota extended coverage for $56 a month.*

 

Most Affordable: CarShield

 

CarShield describes itself as “a company and coverage your budget can count on.” The company offers vehicle service contracts through established suppliers.

 

The company offers six service contracts: 

• Silver: Most affordable policy with coverage for most major parts of your vehicle, from engine to water pump 
• Gold: Greater increased coverage for all major and minor vehicle parts, from engine and transmission to power windows
• Platinum: Intended for vehicles with high mileage, providing comprehensive protection for all the vital car systems
• New Car Diamond: Similar to a manufacturer’s factory warranty
• High Tech: Protects against electrical and computer-related problems
• Specialty: Applies to other motor vehicles, such as motorcycles and ATVs

With so many options available, it can take some time to decide which Toyota extended warranty is the best fit. Some car owners will favor Toyota for its factory-trained technicians and brand certification. Others may prefer the variety and coverage options of other third-party providers. However, it’s always best to do your own research and get quotes specific to your car and needs before you buy an extended warranty.

*Figure accurate as of May 2017. Average monthly coverage cost is based on the average total price of the Vehicle Protection Plan over a four year coverage period. Actual monthly payments will vary per plan’s payment policy. Individual pricing is subject to change based on the combination of make, model, year, and mileage as well as coverage level and term length.

 

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