73 Interesting Car Warranty Statistics & Trends [2024 Edition]
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Curious about car warranties in 2024? You're exactly where you need to be.
Dive into the most relevant and up-to-date information about car warranties this year. Learn about the latest coverage options, what car owners are choosing, and how warranties are evolving in the automotive industry.
For more stats, check out our list of 80 Car Buying Statistics & Trends for 2024 >>
Table of Contents
The Industry of Car Extended Warranties
- The global extended warranty market attained a value of nearly USD $128.74 billion in 2023. (Expert Market Research)
- The automobile segment accounts for approximately 40% of the global extended warranty market. (Allied Market Research)
- The automobile extended warranty market is forecast to reach $60.82 billion by 2030. (Allied Market Research)
- Measured in revenue, the market size is $18.5 billion in 2022. (IBISWorld)
- There are 342 extended warranty providers in 2023. (Consumer Affairs)
- Some of the major providers include Asurion, CarShield, SquareTrade, CARCHEX, and Endurance. (Allied Market Research)
- Assurant Solutions has the highest market share. (IBISWorld)
- The industry employs over 15,467 people. (IBISWorld)
- The average extended warranty provider has 17.5 employees. (IBISWorld)
- Florida has the most warranty businesses in the country, with 69. (IBISWorld)
11. Who Are the Top Extended Warranty Providers?
Looking at several reliable sources can give you an idea of who consumers trust. Providers who usually outshine their competitors include:
- autopom! (4.53 out of 5 customer rating)
- Concord Auto Protect (4.7 out of 5 customer rating)
- Omega Auto Care (4.46 out of 5 customer rating)
- Protect My Car (4.21 out of 5 customer rating)
- Toco (4.41 out of 5 customer rating)
(CarTalk, Investopedia, MarketWatch, Better Business Bureau)
12. Are Extended Warranty Prices Increasing?
Although prices vary from driver to driver, pricing for extended warranties is trending upwards. The average price paid for coverage in 2014 was just over $1,200. In 2022, it doubled to over $2,400. Today, the average price for an extended warranty is $2,458. (Consumer Report, MarketWatch)
13. How Big Is the Car Extended Warranty Market?
The global auto extended warranty market size was valued at $34.19 billion in 2020. The market size is expected to increase by 1% in 2022. (Allied Market Research, IBISWorld)
Extended Car Warranty Demographics
Demographics demonstrate a general understanding of the different characteristics of a consumer base. Warranty providers can use this information when developing services and marketing campaigns.
- Approximately 92% of people who request a car warranty quote are male. (PRNewswire)
- 5% of people older than 55 have an extended warranty. (PEGA)
- 75% of car warranty customers are married. (PRNewswire)
- 86% bought their extended warranties when they bought their cars. (Consumer Reports)
- 48% of consumers understand their existing manufacturer’s warranty. (PEGA)
- 7% do not understand their warranty at all. (PEGA)
20. Who Buys Extended Warranties?
Young consumers comprise the majority of extended warranty owners. 54% are between the ages of 16 and 24. (PEGA)
21. How Many People Get an Extended Warranty?
In 2018, 37% of car owners had active extended warranties. One report suggests that 1 in 10 warranty owners actually use their coverage. (PEGA, NerdWallet)
22. Why Do People Not Get an Extended Warranty?
35% of consumers do not own an extended warranty because it is too expensive. 32% said they skip additional coverage because they do not think they will ever use it. (PEGA)
Extended Warranty Purchase Behavior
Observing how consumers value their warranties can help determine if it is worth investing in coverage. Their purchase behavior can also influence how warranty providers price their products and services.
- Extended warranties usually provide coverage for 2 to 7 years. (National Education Association)
- There is usually only about a $100 difference between factory and third-party warranties. (Consumer Reports)
- Mercedes-Benz owners have the most expensive extended warranties, paying an average of $2,200. (Consumer Reports)
- 71% of BMW owners were more likely to have used their coverage than other brands. (Consumer Reports)
- Almost 25% of people would buy an extended warranty again. (Consumer Reports)
- In a 2022 survey, 54% owned a dealership extended warranty. 23% owned a third-party extended warranty. (MarketWatch)
- 53% of people who bought their warranties through a dealership were satisfied. (Consumer Reports)
- 41% of people who bought third-party coverage were happy. (Consumer Reports)
- 63% said their coverage gave them peace of mind. (AmTrust)
- In 2020, the Better Business Bureau received approximately 6,700 complaints about companies offering warranties, up 21% from the previous year. (The Seattle Times)
- Mechanical breakdown insurance policies cost approximately $100 per year. (WalletHub)
34. What Is the Most Popular Level of Coverage for Extended Warranties?
Over 60% percent of consumers purchased bumper-to-bumper coverage, which is closest to the manufacturer's basic factory warranty. (Consumer Reports)
35. What Is the Average Cost of an Extended Warranty?
On average, extended car warranties can cost anywhere from $1,000 to $3,000. Luxury models tend to be closer to the high-end of that price range. (WalletHub)
36. How Often Do People Use Their Extended Warranty?
Less than half of consumers who purchase an extended warranty for their car end up using it. One survey found that 55% of consumers who purchased an extended warranty never used it. (Consumer Reports)
Car Extended Warranty Claims
A warranty’s worth is partially defined by its coverage and how fast claims are processed. Some warranty providers automatically pay for repairs and some reimburse policy owners. Each provider has different procedures.
- An extended warranty provider should take 3 to 5 days to authorize repairs after a claim is filed. (Motor1)
- The average warranty repair takes around 12 days to complete. (Motor1)
- Of 1,000 surveyed consumers, 56% said their warranty covered repairs after a mechanical breakdown. (MarketWatch)
- 18% of warranty owners said their warranty provider did not cover the damaged part. (MarketWatch)
- Some extended warranties require customers to wait 30 days and 1,000 miles before making a claim. (Motor1)
- Extended warranty provider, AAA, states its typical claim payout is $850. (Consumer Reports)
- The average claim for interior and exterior repairs pays out $293. (AmTrust)
- Windshield repair claims average $438. (AmTrust)
- Tire and wheel repair claims pay, on average, $280. (AmTrust)
- The average payout has increased by nearly 15% since 2015. (AmTrust)
- In 2022, Ford paid $4.17 billion in claims. (Warranty Week)
48. What Is the Average Car Warranty Claims Rate?
The average claims rate was 2.7% in 2020. (Warranty Week)
49. How Long Does It Take To Get Paid for a Claim?
Most companies that issue warranty refunds usually do so within four to six weeks from the request. (Do Not Pay)
Current Impact on Extended Warranties
COVID-19 affected vehicle inventories, car travel, and extended warranties. Lockdowns and shutdowns resulted in lower demand for new vehicles across the globe. As the public health emergency passes and the economy recovers, warranty industry revenue is forecast to increase.
- The market size of the Auto Extended Warranty Providers industry declined -0.1% in 2023.(IBISWorld)
- 15.5 million new vehicles were sold in 2023, a 12.4% increase from the prior year, according to an estimate from research firm Wards Intelligence. (Wall Street Journal)
- The market size of the Auto Extended Warranty Providers industry in the US has declined 1.0% per year on average between 2018 and 2023.(IBISWorld)
- The average price for new non-luxury vehicles in January 2024 is $45,283. (CarEdge)
- A 2021 survey found that 94% of people intend to purchase new and used cars, up 7% from September 2020. (McKinsey & Company)
Car Repair Costs
Certain studies show that a sizable portion of car owners can not afford sudden repair bills – bills that might be higher depending on the car brand, broken part, and where the repairs take place.
- The National Association of Automobile Dealers reports total dealer ad spending in 2022 was $8.57 billion, a five percent increase from 2021. (Inside Radio)
- Dealerships wrote nearly 135 million repair orders in 2023, with cost for service and parts exceeding $73 billion. (National Automobile Dealers Association)
- Annual operating costs (fuel and maintenance) for a vehicle were $3,864 on average in 2023. (Money.com)
- New cars can cost an average of $947 to repair. (AmTrust)
- Used cars can cost an average of $1,169 to repair. (AmTrust)
- Ohio residents pay the least for car repairs in the country, averaging around $341. (Kelley Blue Book)
- Californians pay the most to repair their vehicles, averaging $410. (Kelley Blue Book)
- 61% of people can not afford an unexpected $1,000 vehicle repair bill. (Bankrate)
- 60 billion Americans can not pay for a car repair bill totaling $600 or more. (Allied Market Research)
- 4 in 10 adults can not cover unexpected repair bills of $400 unless they sell something or go into debt. (Ally)
- People aged 18 to 34 paid almost $700 more in car repairs than those 55 and older. (Ally)
- Households with children under 18 paid $347 more in car repairs than those without children. (Ally)
- Approximately 30 billion people postpone or ignore routine car maintenance. (Allied Market Research)
- Porsche, Land Rover and Jaguar, are the most expensive brands to repair and maintain according to RepairPal. As of Jan 4, 2024. (RepairPal)
- Ford is the least expensive to repair, averaging $309. (Instamotor)
- Car maintenance and repair costs are 926.69% higher in 2022 than in 1968. (Officialdata.org)
71. What Is the Average Repair Cost for a Car?
The average car repair bill is around $600. However, some repairs go beyond that price point. A fuel pump can cost upwards of $2,000 to fix. Transmission repairs can total $5,000. (Allied Market Research)
72. What Is the Most Expensive Car Part to Repair?
A car engine can cost between $7,000 to $10,000 to repair. Some people tend to buy a new car rather than pay a hefty bill. (PMC)
73. What Is the Most Common Car Problem?
Faulty batteries are the most common reason cars break down. New batteries usually cost between $50 to $120. Mechanics can charge $10 to $100 for installation. Other common car problems include:
- Brake Issues: $300 to $800
- Low Coolant: <$20 to refill
- Exterior Scratches and Dents: $75 to $2,500
- Worn Shocks and Struts: $450 and $900 for one pair
- Worn Tires: $300 to $400 per axle
- Windshield Damage: $100 to $400
(The Automobile Association, MotorBiscuit, CARFAX)
Car Warranty Statistics & Trends Summary
The auto extended warranty industry continues to grow in the face of recent setbacks. As the economy rebounds and demand picks back up, warranty providers might see a surge in policy sales, especially since it seems that repair costs continue to rise.
Show Sources
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