Best Extended Warranty Prices

[AndySpill]

* I think you fully appreciate this Anthony @brandofamily but will point it out in case you or those out there don't get this: warranty coverage cost has to be compared to that covered (and how much/deductibles) in order to not simply fit your budget, but most wisely spend your money. What I say below is for the masses, not simply you sir.

* Virtually all extended warranty programs on average pay out, adjusted for interest and inflation, remarkably less for repairs than they take in in premiums. The only ones that don't fire their actuaries. Yes, some programs are better than others, but the winning play here, and this is math not subject to opinion, is to invest the money you'd spend on a policy and use those monies as your rainy day fund for repairs. Not only will you statistically come out ahead, but when you most likely do, that money's yours to keep. Sure, every so often someone comes along who really gets their money's worth from a warranty. They, unlike the masses who loose money on the warranty, seem to be attracted to internet forums to profess their case.

* In my next life I am seeking legislation be written that forces extended warranty providers to not simply be licensed, but disclose how much they pay in sales commissions (which reduces the pool out of which to pay claims), and how much the pay out in claims and for what, including their "decline rate "and customer ratings. Competition among them does not seem enough to bring our costs down to fair amounts as they pray on people's fear of huge repair expense, and such fear often leads to poor decision making.

* I'm a huge supporter of insurance that shields from life's catastrophic expense, it too being statistically not worth it. Property, liability, medical: all worth it. And commercial insurance: what major capital project's risk would be incurred without it? But hard pill I know, if you don't have the money set aside for the average cost of vehicle service and buy an extended warranty as a hedge, you may be driving too expensive a vehicle, and such a warranty is more likely to have more financially vulnerable people go separate ways with their hard earned savings.

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[brandofamily]

* I think you fully appreciate this Anthony @brandofamily but will point it out in case you or those out there don't get this: warranty coverage cost has to be compared to that covered (and how much/deductibles) in order to not simply fit your budget, but most wisely spend your money. What I say below is for the masses, not simply you sir.

* Virtually all extended warranty programs on average pay out, adjusted for interest and inflation, remarkably less for repairs than they take in in premiums. The only ones that don't fire their actuaries. Yes, some programs are better than others, but the winning play here, and this is math not subject to opinion, is to invest the money you'd spend on a policy and use those monies as your rainy day fund for repairs. Not only will you statistically come out ahead, but when you most likely do, that money's yours to keep. Sure, every so often someone comes along who really gets their money's worth from a warranty. They, unlike the masses who loose money on the warranty, seem to be attracted to internet forums to profess their case.

* In my next life I am seeking legislation be written that forces extended warranty providers to not simply be licensed, but disclose how much they pay in sales commissions (which reduces the pool out of which to pay claims), and how much the pay out in claims and for what, including their "decline rate "and customer ratings. Competition among them does not seem enough to bring our costs down to fair amounts as they pray on people's fear of huge repair expense, and such fear often leads to poor decision making.

* I'm a huge supporter of insurance that shields from life's catastrophic expense, it too being statistically not worth it. Property, liability, medical: all worth it. And commercial insurance: what major capital project's risk would be incurred without it? But hard pill I know, if you don't have the money set aside for the average cost of vehicle service and buy an extended warranty as a hedge, you may be driving too expensive a vehicle, and such a warranty is more likely to have more financially vulnerable people go separate ways with their hard earned savings.

While I do understand exactly everything that you wrote I will also say I have the max care lifetime warranty on both of our JKU wranglers. And I can say for a fact that the warranty company has lost money on both of those policies.
statistically, I know that our policies are the outliers and that the warranty companies would not be in business if they continued to lose money. I believe the lifetime warranties were discontinue by Mopar because more often than not they were money losers.
Will I buy an extended warranty for my new JL Rubicon I don’t know. But I am weighing my options. If Mopar still offered the lifetime warranty, I would definitely buy it as I tend to keep my vehicles for a long time.

 

[AndySpill]

While I do understand exactly everything that you wrote I will also say I have the max care lifetime warranty on both of our JKU wranglers. And I can say for a fact that the warranty company has lost money on both of those policies.
statistically, I know that our policies are the outliers and that the warranty companies would not be in business if they continued to lose money. I believe the lifetime warranties were discontinue by Mopar because more often than not they were money losers.
Will I buy an extended warranty for my new JL Rubicon I don’t know. But I am weighing my options. If Mopar still offered the lifetime warranty, I would definitely buy it as I tend to keep my vehicles for a long time.

Thanks for not taking my personally or being offended.

Thanks for being one of the warranty purchasers who understands their limited benefit but chooses to underwrite a policy anyway based on personal experience. Perhaps there is something about some driver's experiences that brings out more warranty covered serviceable items than the average owner, and makes them more likely to get their money's worth out of such a policy.

Perhaps this is (or isn't) your history.

 

[2nd 392]

There were major price jumps between the '21-'23 model years. I used to pay $800 for 5/75 and it's now $1400 for the same thing.

Out of curiosity- $1250 in 21 inflation adjusted for 26 = $1500. … yet quoted $2200 , jeeez.

My 15 GC didn’t have a single problem until after the extended warranty, at 9 years a $1200 TC repair, just recently at 11 a $1400 new radio/hvac repair. But already ahead ~$400 at ~4 1/2 years for the Wrangler. It’s a crapshoot.

 

[James Westfall]

While I do understand exactly everything that you wrote I will also say I have the max care lifetime warranty on both of our JKU wranglers. And I can say for a fact that the warranty company has lost money on both of those policies.

Yeah i'm almost $7000 ahead on four policies on JLs alone. Don't put too much stock in Andy's overly-wordy posts on warranties. He's a lot like a computer that doesn't understand that math alone isn't sufficient for these kinds of questions. Plus i'm not convinced he even has the right formula.

I strongly recommend keeping any JL under warranty for the length you plan to own it.

 

[rickinAZ]

Thanks for not taking my personally or being offended.

Thanks for being one of the warranty purchasers who understands their limited benefit but chooses to underwrite a policy anyway based on personal experience. Perhaps there is something about some driver's experiences that brings out more warranty covered serviceable items than the average owner, and makes them more likely to get their money's worth out of such a policy.

Perhaps this is (or isn't) your history.

From a purely financial perspective, you’re spot on. Insurance and service contracts only stay solvent by paying out less than they collect. Once you factor in a 10% profit margin plus G&A and marketing—and getting Ice-T to lie for you isn't cheap—that only leaves about 70 cents on the dollar to actually pay out claims.

That said, I finally joined the dark side with my new 2026 Jeep Moab. My 2021 EcoDiesel hit me with $3K out-of-pocket to fix the A/C at just 20,000 miles, which was a major wake-up call. This January, I paid $1,175 for the Mopar Extended Care (8 years/60K miles with a $200 deductible). It feels less like a poor investment and more like a necessary hedge against unexpected repair costs. That's five extra years of bumper-to-bumper coverage. A lot can go wrong with a Jeep in five years.

Still, I don't get it. How can they make money at $1,175? And...they've got to give a few bucks to the dealer who sells it. FWIW, my dealer quoted $4,000. When I told them I was going with an online dealer, they caved and matched the price. For those poor souls who bite at $4,000, and I'm sure some buyers do, the dealer makes more on the policy than they do on the vehicle sale itself.

 

[James Westfall]

Still, I don't get it. How can they make money at $1,175? And...they've got to give a few bucks to the dealer who sells it. FWIW, my dealer quoted $4,000. When I told them I was going with an online dealer, they caved and matched the price. For those poor souls who bite at $4,000, and I'm sure some buyers do, the dealer makes more on the policy than they do on the vehicle sale itself.

"Those" buyers are probably part of it. But I remember reading on one of these forums that modern extended warranties don't work like traditional insurance anymore, that they are priced based on the expected buyer and not the expected repair cost, and that made a lot of sense to me. It certainly would explain why the policies for my (former) 4R and IS350 were like 2-3 times more expensive than for my JLs, despite those vehicles having FAR lower expected lifetime repair costs.

 

[MikeinMD]

I paid $2700 in 2018 for my Lifetime MaxCare $100 deductible which translates to about $3500 in today's dollars. It was a great insurance policy at the time IMHO and I believe is now paying for itself on my first repair. I am quite certain that FCA discontinued the lifetime policy as the vehicles have gotten more complex and more expensive to repair and therefore they were beginning to lose money on them. I would struggle to pay for a third party extended warranty, but I don't really know what's out there right now, just that CarShield has a terrible reputation. I'd be curious what experiences people are having with Granger and what the approval process looks like.

 

[AndySpill]

From a purely financial perspective, you’re spot on. Insurance and service contracts only stay solvent by paying out less than they collect.

It's worse, as you refer to further down your post. The providers of such contracts only stay solvent by paying out less than they collect, minus sales commissions, which can be up to 50%, plus the interest they make on the money.

"But my dealer sold me the policy at their cost...." some people write.

...Only if they were incentivized to do so. Maybe it closes a vehicle sale, maybe they get some kickback. This is like saying that I bought my JL at dealer cost..which by the way I did. But I bought it from a large volume discount dealer who gets sales bonuses from Stellantis for meeting certain sales quotas.

That said, I finally joined the dark side with my new 2026 Jeep Moab. My 2021 EcoDiesel hit me with $3K out-of-pocket to fix the A/C at just 20,000 miles, which was a major wake-up call.

I don't know whether to wish you luck with the policy--which would mean you had the hassle of expensive repairs hopefully in large part covered by the policy, or luck with your JL, which would mean the policy, in hindsight wasn't worth it.

Still, I don't get it. How can they make money at $1,175?

Lets even assume the insurer honest, standing by their promises. The answer to your question lies in the infrequency of claims like yours.

Rick, an analogy, I have a sick relative in the hospital. No joke, I'd say their bill so far, and they have a long road ahead of them, is $100K for just 2 weeks of care so far. How can the insurance company afford this given what they charge for the policy: the infrequency of such claims.

"Those" buyers are probably part of it. But I remember reading on one of these forums that modern extended warranties don't work like traditional insurance anymore

You're right but you probably don't know why.

By calling it a warranty, providers bypass the stringent financial solvency requirements and regulatory scrutiny applied to traditional insurance products.

That they are priced based on the expected buyer and not the expected repair cost, and that made a lot of sense to me.

It's true. But the sense this should lead you to is that it is all the more reason these policies are not worth it.

Many vehilcle service contracts are priced based more on the consumer's perceived risk rather than actuarial data, leading not only to significant price discrimination, but risks with insurers that are more incompetent than greedy (stupidity being perhaps the only thing that can trump selfishness) that adequate funds will exist to honor claims.

It's fine to factor in consumer demand. Like competition it's a valid metric. But it cannot take center stage to actuarial data.

 

[rickinAZ]

I paid $2700 in 2018 for my Lifetime MaxCare $100 deductible which translates to about $3500 in today's dollars. It was a great insurance policy at the time IMHO and I believe is now paying for itself on my first repair. I am quite certain that FCA discontinued the lifetime policy as the vehicles have gotten more complex and more expensive to repair and therefore they were beginning to lose money on them. I would struggle to pay for a third party extended warranty, but I don't really know what's out there right now, just that CarShield has a terrible reputation. I'd be curious what experiences people are having with Granger and what the approval process looks like.

To clarify, Granger isn’t an insurer; they are a CDJR dealer that offers deep discounts on the official MOPAR extended warranty—the same one you had. Another comparable online dealer is Zeigler. When I was shopping for my policy in February, Zeigler actually had the best price by a slim margin of about $25 to $50.

@AndySpill has been a consistent voice of financial reason on this forum regarding extended warranties, and I’ve often echoed his stance. Mathematically it is CLEAR, these warranties payout less than they collect; any other model would be a "going-out-of-business" strategy. The only logical reason to purchase one is for "peace of mind" because the fiscal argument simply doesn't hold water. As @MikeinMD implied, the true MVPs of any insurance company are the actuaries, and they have the data to back that up. ON AVERAGE YOU WILL LOSE. If a warranty paid off for you in the past, that was down to luck rather than sound financial planning.

This time around, I decided that $1,175 was a small price to pay for the certainty of being covered bumper-to-bumper for eight years. The fact that MOPAR is generally reliable with their coverage sealed the deal for me, though they do have a reputation for being ruthless when it comes to denying claims involving vehicle modifications—even when the connection to the breakdown is tenuous.

Ultimately, for me, it came down to peace of mind at a relatively insignificant cost. I suspect it will turn out to be a stupid financial decision, and for $1,175 that's okay.

 

[croppz]

To clarify, Granger isn’t an insurer; they are a CDJR dealer that offers deep discounts on the official MOPAR extended warranty—the same one you had. Another comparable online dealer is Zeigler. When I was shopping for my policy in February, Zeigler actually had the best price by a slim margin of about $25 to $50.

@AndySpill has been a consistent voice of financial reason on this forum regarding extended warranties, and I’ve often echoed his stance. Mathematically it is CLEAR, these warranties payout less than they collect; any other model would be a "going-out-of-business" strategy. The only logical reason to purchase one is for "peace of mind" because the fiscal argument simply doesn't hold water. As @MikeinMD implied, the true MVPs of any insurance company are the actuaries, and they have the data to back that up. ON AVERAGE YOU WILL LOSE. If a warranty paid off for you in the past, that was down to luck rather than sound financial planning.

This time around, I decided that $1,175 was a small price to pay for the certainty of being covered bumper-to-bumper for eight years. The fact that MOPAR is generally reliable with their coverage sealed the deal for me, though they do have a reputation for being ruthless when it comes to denying claims involving vehicle modifications—even when the connection to the breakdown is tenuous.

Ultimately, for me, it came down to peace of mind at a relatively insignificant cost. I suspect it will turn out to be a stupid financial decision, and for $1,175 that's okay.

1175 is a drop in the bucket for 8 years of coverage. I paid 1300 for 7 additional years and 100k additional miles for powertrain on my 21 JLUR. I wanted this Italian tractor engine, expensive transmission/transfer case and Dana44s covered. Everything else I can handle myself. I work in auto salvage and can get pretty much anything I want fairly cheap but I’m not touching drivetrain lol.

 

[Deen]

One thing to keep in mind is that you can't buy an "extended warranty" for a Jeep. This is per Federal Law. Everything being sold, even the Mopar ones is a service policy that is written by attorneys to make money for the seller.

 

[eastern]

Any opinion/knowledge on buymoparwaranty.com ? They were the 1st thing that came up in google search.
Mopar web shows some sort of Flex Care, but tells me to go see dealer in person.

Overall im diy guy, so most thing i take care of myself, its the electrical issues and ongoing problems with engine head gasket that keep me worried.

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