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Is Toyota's extended warranty worth it? (2021)

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ZTSG 17/11/2021 New energy 303
Car extended warranty is an optional vehicle service contract that guarantees an extended warranty after the factory warranty expires.A Toyota extended warranty can be purchased from a Toyota dealer,...

Car extended warranty is an optional vehicle service contract that guarantees an extended warranty after the factory warranty expires.

A Toyota extended warranty can be purchased from a Toyota dealer, or you can find similar protection from an independent warranty company.

Keep reading to learn more about the pros, cons, costs, and coverages offered by both Toyota dealership and third-party extended warranty providers.

Are you considering buying a Toyota extended warranty for your new or used vehicle? While some people don’t think they need additional coverage, the cost of an extended warranty is often a small price to pay for long-term financial security and overall peace of mind.

To help you make a more informed decision and find the most comprehensive and cost-effective warranty plan for your car, we thoroughly researched both Toyota extended warranty options and third-party plans. In this article, we’ll look at the pros and cons, coverage options, and costs of Toyota’s extended warranties and compare them to what we think are the best extended car warranty companies.

It’s always a good idea to compare quotes between multiple providers. Click below to get free, no-obligation quotes from our top picks.

Featured Extended Warranty Companies

We reviewed the industry’s top extended auto warranty providers, and here are our featured picks.

Best Overall

Best for Used Cars

Low-Cost Plans

Endurance

CARCHEX

Select Auto Protect

Get Quote

Get Quote

Get Quote

(866) 990-3410

(866) 950-7122

(860) 294-4933

Breaking Down Toyota’s Extended Warranty Options

Why Do You Need A Toyota Extended Warranty?

What Coverage Do You Already Have?

Toyota Reliability & Repair Costs

Toyota Extended Warranty Costs & Pricing

5 Things We Like About Third-Party Extended Warranties

FAQ: Toyota Extended Warranty

Breaking Down Toyota’s Extended Warranty Options

Like many automakers, Toyota offers multiple tiers of vehicle service protection, giving you the chance to choose a plan that best suits your long-term budgetary and driving needs. All Toyota extended warranties are also transferable to subsequent owners and can be canceled for a prorated refund.

Below are Toyota’s three main extended warranty options, which are known as Toyota Vehicle Service Agreements (VSA).

Lexus Extended Warranty

Coverage Terms

Platnium

Ranges from 3 years/50,000 miles to 10 years/125,000 miles

Gold

Ranges from 3 years/50,000 miles to 10 years/125,000 miles

Powertrain

Up to 6 years/100,000 miles

Platinum Protection

Platinum Protection is the highest level of extended warranty coverage Toyota currently offers. It delivers comprehensive, bumper-to-bumper vehicle protection, covering all major mechanical and chassis systems, as well as many other non-essential cabin components.

A Platinum Protection VSA can be added to a new Toyota for terms ranging from three years or 50,000 miles to 10 years or 125,000 miles. Used Toyotas can be covered for one year or 12,000 miles up to five years or 60,000 miles.

Gold Protection

Gold Protection is Toyota’s mid-level extended warranty plan, offering wide-ranging parts coverage without the premium cost of Platinum Protection. You can choose terms of three years or 50,000 miles up to eight years or 125,000 miles for a new Toyota. The terms are shorter for used Toyotas, ranging from one year or 12,000 miles up to five years or 60,000 miles.

Powertrain Protection

Toyota’s Powertrain Protection offers key component coverage for your vehicle’s engine and drive systems. New Toyotas can be covered up to six years or 100,000 miles, and used Toyotas can be covered up to two years or 24,000 miles.

Below, we’ve compiled a handy table that compares each of Toyota’s vehicle protection plans head to head.

Platinum Plan Coverage

Gold Plan Coverage

Powertrain Plan Coverage

Engine

Differentials

Drive Wheel System

Transmission System

Axle Assembly

Limited components

Air Conditioning and Heating

Limited components

Hybrid Fuel System

Limited components

Fuel Injection System

Steering System

Cooling System

Limited components

Suspension System

Limited components

Electrical System

Limited components

Brake System

Limited components

CV Boots

Navigation System

Audio System

Fluid and Gases

Unlike competing powertrain warranties, Toyota’s Powertrain Plan also includes coverage for a limited selection of shift control and driveshaft axle assemblies. Nevertheless, the Powertrain Plan is still an entry-level extended warranty, held back by a hefty list of component coverage limits. We’ve listed five potentially expensive component exclusions to keep in mind:

Excluded Toyota Component

Estimated Repair Cost

Master cylinder reservoir (brake engagement)

$211 to $260

Mixture control valve (engine combustion)

$115 to $500

Radial ball bearing (clutch release)

$346 to $500

Exhaust gas recirculation valve (engine cooling)

$147 to $548

Catalytic converter (emission control)

$945 to $2,475

Why Do You Need A Toyota Extended Warranty?

An extended warranty protects you financially in the event of mechanical breakdown after your car’s factory warranty expires. Without an extended warranty, you’re wholly responsible for the costs of maintaining and repairing your vehicle.

Compared to factory coverage, an extended auto warranty is generally easier to customize and tweak for unique coverage and pricing needs. While customization choices will ultimately depend on the warranty provider’s flexibility, it’s not unusual to build your extended warranty plan according to projected driving mileage and the length of time you plan on owning and operating your vehicle.

When you add a Toyota extended warranty to your car, you’ll not only benefit from expanded vehicle coverage, but you’ll also be rewarded with a range of convenient perks, such as:

Contract transferability between private parties

Reimbursement for rental cars or trip interruptions

Access to roadside assistance, towing, and fuel delivery

Access to certified mechanics and Toyota’s nationwide network of factory-trained technicians and dealerships

What Coverage Do You Already Have?

Before you buy an extended car warranty, you need to know if your Toyota is still under its original factory warranty, and if so, what coverage is left. Toyota’s factory warranty is added to your vehicle upon purchase at the dealer. Coverage includes:

Warranty

Coverage

Basic Bumper-to-Bumper Coverage Warranty

36 months or 36,000 miles

Powertrain Coverage Warranty

60 months or 60,000 miles

Rust-Through Coverage Warranty

60 months or unlimited miles

Emission Control Systems Warranty

Varies state to state but usually up to 8 years or 80,000 miles

While new Toyota vehicles will most likely be covered, it can be tough to know with used cars. We recommend calling your local Toyota dealer and asking what warranty information is available. Make sure to have your vehicle identification number (VIN) handy.

A Toyota extended warranty can provide protection after your factory warranty expires.

Toyota Reliability & Repair Costs

In 2019, Toyota vehicles accounted for half of the 38 most reliable new cars in a list compiled by U.S. News & World Report. Still, even with Toyota’s well-founded reputation for reliability, it’s important to remember all cars aren’t immune to mechanical issues.

Not convinced? Here are three of the most common problems affecting three of the most reliable Toyota models and their repair costs:

Toyota Corolla: An engine starter repair costs between $401 and $477

Toyota Tacoma: Fixing a lower ball joint costs between $223 and $519

Toyota Highlander: Repairing a faulty oxygen sensor costs between $817 and $1,799

Toyotas are known for reliability, but that doesn’t mean you’ll never face an expensive repair.

Toyota Extended Warranty Costs & Pricing

The cost of your Toyota extended warranty plan will depend on the following factors:

Extended coverage type: The more comprehensive the coverage, the more expensive it will be.

Deductible amount: The higher your deductible, the lower the cost of your monthly warranty premium or total contract cost.

Vehicle model and age: Historically unreliable vehicle models or older vehicles typically have higher monthly premiums.

Additional warranty perks: In some vehicle service protection plans, selecting optional add-ons will increase your premium rate.

Choice of provider: There is a considerable difference in affordability between major dealerships and third-party warranty providers.

Stacked warranty coverage: If your extended vehicle service plan is stacked with a factory warranty, premiums for the extended warranty will be significantly less expensive.

Another factor that can affect the cost of your extended warranty is whether your warranty is bundled with your car financing. This type of agreement should be avoided if at all possible, as you end up paying interest on your extended warranty as well as on your car.

Upon purchasing a Toyota extended warranty plan from the dealership, you can choose between a $0 deductible or $100 disappearing deductible per visit. When you take your vehicle in for covered repairs following a claim, the deductible is the minimum dollar amount you’re required to pay before the service bill is submitted under warranty coverage. If you have selected a disappearing deductible and your Toyota is repaired at the dealership of origin, the cost of the deductible will be waived.

5 Things We Like About Third-Party Extended Warranties

When you buy a Toyota from a dealership, the dealer may try to pressure you into protecting your new vehicle with a corresponding Toyota extended warranty. However, in many cases, you’ll actually get a better deal on an extended warranty by approaching a third-party provider. Here are a few reasons why you should consider this option:

A third-party warranty provider will generally approve coverage for service work and repairs billed to any mechanic who’s certified by the National Institute for Automotive Service Excellence (ASE

®

).

Third-party extended warranty plans are not geared toward a specific auto brand, encouraging a more transparent and flexible approach to coverage customization.

Third-party warranty providers are competing for attention from all types of vehicle owners, not just Toyota owners. This heightened level of customer competition typically translates to more affordable monthly premiums.

While Toyota offers three good plans, many other extended warranty providers offer more than that. For example, CARCHEX has five levels of coverage, all of which are customizable. Endurance also offers comprehensive coverage plans, with six tiers of plans to choose from.

You can only buy a Toyota VSA while the vehicle is under its factory warranty, or in the first three years or 36,000 miles of its life. Third-party extended car warranty companies allow you to buy coverage at almost any time, whether your car is new, used, or certified pre-owned. Even cars with well over 100,000 miles can be protected, which is likely for a reliable car like a Toyota.

What we want to make clear is that you have plenty of options. By doing a little shopping around and comparing coverage and costs between providers, you’ll end up with the best fit for your Toyota. Feel free to get a quote for a Toyota extended warranty from your local dealer, but also get quotes from the best extended car warranty companies. Our top suggestions are below.

Featured Extended Warranty Companies

We reviewed the industry’s top extended auto warranty providers, and here are our featured picks.

Best Overall

Best for Used Cars

Low-Cost Plans

Endurance

CARCHEX

Select Auto Protect

Get Quote

Get Quote

Get Quote

(866) 990-3410

(866) 950-7122

(860) 294-4933

FAQ: Toyota Extended Warranty

Is it good to buy an extended car warranty?

Yes, in most cases, buying an extended warranty is an excellent way to provide your new or used vehicle with long-term protection. However, they’re not the best choice for every driver, so take your financial situation into account.

What’s covered by Toyota’s extended warranty?

Toyota Platinum Protection covers an exhaustive list of powertrain and cabin systems. The second Toyota extended warranty option, Gold Protection, is a mid-level coverage option with a significant number of component coverage exclusions. Toyota’s entry-level extended warranty tier, Powertrain Protection, only guarantees coverage for essential powertrain components, such as the engine, transmission, and axle-assembly systems.

Is Toyota’s extended warranty refundable?

Yes, Toyota’s extended vehicle service protection plans can be canceled for a full refund if you change your mind within 30 days of purchase. After the initial 30-day period, your extended Toyota warranty will be refunded under a prorated model, minus a $50 administrative processing fee.

The same goes for most third-party extended car warranty companies.