Batteries are the most expensive part of an electric car (EV), typically costing $5,000 to $20,000 to replace, according to AAA. Most EVs come with a promise from the manufacturer that the battery will last for eight to 10 years, or 100,000 miles, whichever comes first. That guarantee means that the manufacturer will replace the battery if it fails.
If your battery fails after that time period, though, an extended warranty can help cover the cost of a pricey replacement. Extended warranties can also cover other common EV parts, such as drive motors, screens and chargers.
Here’s what to know about warranties for EVs and whether extended coverage is worth it.
What do manufacturer warranties cover for EVs?
All new cars come with some kind of factory warranty. This is a guarantee from the manufacturer that the car will work as expected for a certain period of time or mileage. Common EV warranties last eight to 10 years and range from 100,000 to 175,000 miles. Coverage can vary by car model.
Factory warranties also cover “capacity loss,” which is the battery’s ability to reach a full charge. Manufacturers typically cover capacity loss over 30%, which means that the battery is guaranteed to function at least at 70% of its original capacity. Otherwise, the manufacturer promises to replace the battery.
Other covered aspects can include the car’s restraint system, drive unit and transmission, and screens and sensors.
What do extended warranties cover for EVs?
Extended warranties cover the cost of included parts and repairs after your factory warranty expires. You can buy an extended warranty from your original manufacturer or dealership. You can also purchase one from a third-party warranty provider.
🤓 Nerdy Tip
Federal law requires EV companies to cover batteries for at least eight years or 100,000 miles. Because of this, most extended warranties don’t cover the battery unless you pay for premium battery coverage. Expect extended warranties to focus on other electronic parts.
Manufacturer extended warranty
Car manufacturers may offer their own extended warranties to stretch your coverage.
For example, Tesla offers its own “extended service agreement.” This is a monthly subscription that starts after the original basic warranty ends. This agreement doesn’t cover the battery, though. The plan covers “most” other replacement parts and repairs, plus roadside assistance.
Third-party extended warranty
Extended warranty providers may not offer coverage for all electric vehicles. Coverage can also vary depending on the make and model. For example, Endurance covers only Tesla models, but that does include their batteries. CarShield generally excludes lithium batteries, unless you have a specific “battery coverage endorsement” added to your contract.
Here are common extended warranty plans and what they can cover for your EV:
Exclusionary or “bumper-to-bumper” plans cover most electrical and mechanical components. These include things like your EV’s “infotainment” system and electric drive units. These plans usually don’t cover wear-and-tear items or battery degradation.
Powertrain plans only cover the parts of your vehicle that make it go. For an EV, this includes the electric motor and high-voltage components. It usually excludes HVAC, suspension and infotainment systems.
Component coverage handles the cost of specific parts. Items can vary depending on the company and car, but you can use it to cover smaller parts like cables and controls.
Wrap coverage adds items to a powertrain warranty to make a plan more comprehensive. If your battery is still covered under its eight-year warranty, you can buy wrap coverage for other electronic parts that are no longer covered under the bumper-to-bumper factory warranty.
Is an extended warranty worth it for my EV?
Electric vehicles can be pricier to repair than other cars, because of the battery and other electronic components. An extended warranty might be worth it for an EV to help cover those high repair costs, which may be higher than the cost of the warranty.
Whether you need an extended warranty for your electric car depends on a few factors:
If your car is under its initial warranty, you don’t need to duplicate coverage with an extended warranty.
If you plan to keep your EV for longer than 10 years, an extended warranty might be helpful. The older your car and the higher the mileage, the more likely the battery and other parts are to degrade or fail.
If you bought a used EV, it might still be covered under the initial factory window. Check if that coverage transfers to you as the new owner. If not, an extended warranty can extend your protection. If you aren’t sure how much time is left on the manufacturer warranty, you can call your dealership to verify it. You’ll ask for the “in-service date,” which is when it was sold for the first time and the factory warranty officially started.
🤓 Nerdy Tip
There’s no guarantee that an extended warranty will cover the cost of your specific repair. Extended warranty companies, like insurance providers, may try to minimize the amount that they pay.
What Reddit users say about extended warranties for EVs
Reddit is an online forum where users share their thoughts in “threads” on various topics. We sifted through Reddit forums to get a pulse check on how users feel about extended warranties for EVs. People post anonymously, so we cannot confirm their individual experiences or circumstances.
Many Reddit users are skeptical of extended warranties for electric vehicles. Some users say they’re not worth it because EVs have fewer moving parts and already come with long, mandatory battery warranties. While some owners say extended warranties give them peace of mind, others think you should put that money into a savings account instead. One user said that extended warranties were resistant to covering repairs in their experience, so don’t rely on an extended warranty to guarantee coverage.
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About the author
Dalia Ramirez writes about home and car services for NerdWallet. She has previously written about estate planning, cryptocurrencies, small business software and other personal finance topics. Dalia has a B.A. in science and technology studies from Wesleyan University. Her work has appeared in publications including The Washington Post, the Los Angeles Times, Bloomberg and The Associated Press. She is based in San Francisco.
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