Toyota Extended Warranty

Whether your factory warranty is expiring or you are about to purchase a new Toyota, you might be wondering if a Toyota extended warranty is justified to help shield your bank account from unexpected breakdowns. The question really lies in whether you want to handle each repair as it happens or you want more financial security as your odometer ticks upward each year.

While a Toyota extended warranty can be a good choice for coverage, third-party warranty companies can provide comparable protection. This review takes a close look at Toyota vehicle service agreements and third-party warranty companies to determine what will meet your needs. If you’re looking for options at a reasonable price, you’ll usually find a more customizable and affordable deal from one of the best extended auto warranty providers.

When you purchase a new, used, or certified pre-owned (CPO) car from a Toyota dealership, you are eligible to buy a vehicle service agreement (VSA). Toyota offers three extended service plans to choose from: Platinum, Gold, or Powertrain protection.

You will have to use the Toyota dealer for all repairs, just like you do with the factory warranty. Deductibles are $100 per visit, with a disappearing deductible if repairs are made at the dealership that originally sold the service agreement. In addition, the extended warranty plan comes with 24/7 roadside assistance, travel protection, and a one-time warranty transfer.

Below are the coverage options for new and used cars. Certified Used Toyotas have just one protection plan option available, which we’ll get into later on.

Toyota Extended Warranty Coverage

Toyota vehicles are eligible for a new car extended warranty if they are still within their Basic Coverage factory warranty. That means any new Toyota within 3 years/36,000 miles is eligible for a vehicle service contract.

Toyota provides three levels of extended coverage for you to choose from:

• Platinum Warranty: Toyota’s platinum extended warranty is the most inclusive of the Vehicle Service Agreements. Comparable to a bumper-to-bumper warranty, the platinum warranty offers flexible coverage terms, which range from 3 years/50,000 miles to 10 years/125,000 miles.
• Gold Warranty: The gold warranty is not quite as inclusive as Toyota’s platinum warranty and offers coverage for a large number of parts listed in the contract. The flexible coverage terms range from 3 years/50,000 total vehicle miles to 8 years/125,000 miles.
• Powertrain Warranty: The powertrain warranty is the most basic of the warranties offered through Toyota’s vehicle service agreements and covers most of the major components of the car, like the engine, transmission, and axle components. This extended warranty offers flexible coverage terms for 6 years/100,000 miles.

With these plans, you get to choose the coverage terms. Toyota provides terms lasting from 3 to 10 years and 50,000 to 125,000 miles. In addition, the Toyota vehicle service agreement comes with 24/7 roadside assistance, travel protection, and a one-time warranty transfer.

Certified Used Toyota Vehicle Service Agreement

Unlike new and used agreement options, Toyota offers only one vehicle service agreement for Certified Used Toyota vehicles. Your Certified Used Toyota is eligible for extended warranty coverage if it has a Toyota Certified Used Vehicle Limited Powertrain Warranty and is less than six model years old with a total of up to 85,000 miles.

You can only purchase a Certified Used Vehicle extended warranty for the first 12 months or 12,000 miles. Vehicle protection plans for Certified Vehicles must be bought from your Toyota dealer.

The Certified Used Toyota Vehicle Service Agreement offers protection for most of your Toyota’s components after the Basic Coverage warranty expires. You’ll need to talk with your dealer to learn more about possible coverage terms and mileage limits.

There is no deductible for covered repairs and the plan can be transferred once at no extra cost.

Toyota Used Vehicle Service Agreement

Toyota offers the same extended protection for used cars as it does new cars, with much shorter coverage terms. As with the New Vehicle Service Agreements, you can transfer your plan to a new owner once without additional costs.

All used vehicle plans offer deductible options of $0 or $100. You may also receive a disappearing deductible if your car is repaired at the same Toyota dealer that sold you the contract. This is up to the dealer, and the dealership doesn’t have to participate in the disappearing deductible program. Used Vehicle Service Agreements must be purchased at the same time as the sale of the car.

To qualify for coverage, the vehicle must be within the last 10 model years, including the current year, and have fewer than 150,000 total vehicle miles.

• Platinum Protection terms: Up to 5 years or 60,000 miles
• Gold Protection terms: Up to 5 years or 60,000 miles
• Powertrain Protection terms: Up to 2 years or 24,000 miles

Like most manufacturer warranties, Toyota’s extended warranty can range in price depending on the model and trim of your vehicle and where you get your warranty. Models with more expensive and complicated parts can cost more to repair. You can purchase protection from the Toyota dealership when you buy your car or use a third-party provider instead.

Estimates suggest that a Toyota extended warranty costs between $1,000 and $1,500 when purchased from a dealer, which is a fair price in the industry for what you get. The price generally gets wrapped up in your financing, so you end up paying interest on it.

With a third-party provider, the absence of interest will help to lower your cost. On top of that, the most significant benefit you have with third-party providers is the option to comparison shop. 

After all, Toyota isn’t going to offer you vehicle service agreements from other warranty administrators.

The reality is that the cost of a Toyota extended warranty isn’t enormous. You can get comprehensive coverage for a fraction of what you may have thought. In 2018, CARCHEX estimated that the average cost of coverage for a 2007 to 2014 Toyota was only $56 a month. That’s not just affordable, but it also allows you complete peace of mind.

Factors That Affect Extended Car Warranty Costs

When you shop for a third-party extended auto warranty, keep in mind that these factors will affect the price:

• Toyota model
• Year of your Toyota vehicle
• Coverage level selected
• Amount of deductible
• Condition of your car

Toyotas are known for being highly reliable and durable vehicles. Whether you drive a practical Camry or an off-roading Tacoma, you’re probably not expecting a lot of mechanical issues. For the most part, you’d be correct. Toyota holds the fifth spot in the 2022 J.D. Power Vehicle Dependability StudySM for mass-market vehicles and was recently ranked third in Consumer Reports’ reliability rankings.

However, even the most reliable vehicles break down sometimes. The longer you keep your car, the more likely you are to experience a breakdown. If you’re a driver who never plans for mechanical breakdowns, you’ll probably be out a lot of money to cover repair costs.

Common Toyota Repair Costs

Cars are large machines with tons of moving parts. It’s no surprise that even a reliable brand like Toyota has some commonly needed repairs. RepairPal lists some of the costs associated with common Toyota repairs and services:

While one of these costs might not drain your bank account, it’s possible that Murphy’s Law will go into effect as soon as one thing breaks. With mounting repair bills, you may quickly find yourself strapped for cash. Don’t forget that the major components cost much more than what is shown above. If you need a new engine or transmission, you might start scrambling just to get back on the road.

With the breadth of available vehicle service contracts, there’s no reason to put yourself in this position. Repairs don’t need to dictate your life when you can actually save money by making a monthly payment toward your Toyota extended warranty cost. Then, when something breaks, you won’t have to put out any money other than your agreed-upon deductible.

Drivers of new Toyotas can receive the same benefits as those who just purchased used or certified pre-owned models in many cases. Emergency roadside assistance, for example, is common among providers. If you run out of gas or break down along the road, you can call for help right away, and the expenses will be at least partially covered.

What Warranty Coverage Do You Already Have?

When deciding if an extended warranty is worth it, it’s best to consider what coverage your already have, like the Toyota factory warranty. A manufacturer’s warranty is limited coverage for your vehicle offered by the manufacturer at no extra charge. A factory warranty only covers parts that are defective or faulty workmanship. It won’t cover the cost of repairs for a breakdown due to normal wear and tear.

Toyota offers one of the worst factory warranties of any automaker, partially because the brand is known for reliability. See the chart below to find out what’s covered by the original warranty for new Toyota models.

Toyota’s factory warranty includes the following coverage:

If you purchase a certified pre-owned Toyota, there are some additional coverage plans you should know about:

• Limited comprehensive warranty (1 year/12,000 miles): This plan comes with every Toyota certified used vehicle, including hybrid models, from the date of used vehicle purchase.
• Limited powertrain warranty (7 years/100,000 miles): You are covered for major engine components, transmission components, and all internally lubricated parts from the date of used vehicle purchase.

Instead of buying an extended warranty through Toyota, you can purchase vehicle protection through a third-party warranty provider. While a Toyota vehicle service contract might come with limitations, third-party extended warranty companies generally offer similar coverage to the Toyota extended warranty but often cover high-mileage cars that are not covered by Toyota. These extended warranties can be purchased at any point in time.

Third-party extended auto warranties also generally include additional perks such as roadside assistance, towing, and rental car reimbursement. Some additional reasons you might want to choose a third-party warranty over a Toyota extended warranty include:

• Flexibility: You can find reputable third-party warranty providers with options for almost any car and coverage level. If you decide a vehicle service contract isn’t right for you yet, you can wait and purchase a contract when you’re ready. There’s no pressure to buy right away when you purchase your car.
• Repair Shop Options: With a Toyota vehicle service contract, you’re limited to getting repairs done at a Toyota dealership. Third-party companies usually allow you to use any licensed repair shop. This is especially important if you move to an area without a Toyota dealer nearby or if your car breaks down while traveling.
• Lower Prices: Dealerships such as Toyota tend to mark up the cost, and you may even pay interest on the price of your vehicle service contract if you roll it into your financing. Many reputable extended car warranty companies give you options for monthly payments or payment plans without added costs.

Overall, Toyota offers a fairly affordable extended warranty for new vehicles. However, you can only purchase it before the factory warranty expires. Also, if you want to cover your vehicle beyond 150,000 miles, you’ll need to look elsewhere. We recommend comparing third-party plans with Toyota’s VSA to find the best option.

Toyota Extended Warranties vs. Third-Party

Here’s a quick comparison of the Toyota extended warranty compared to some of our favorite third-party extended warranty providers.

In reviewing the industry’s best extended warranty brands, we found the most versatile options are offered by Endurance. The company’s customizable coverage options span six plans. You can choose comprehensive, bumper-to-bumper coverage or just opt for a powertrain plan, based on what your needs are.

Extended Car Warranty Toyota: FAQ

Below are frequently asked questions about the extended car warranty from Toyota.