As a vehicle owner, you want to be sure that your car is in the best possible shape. Car troubles can be a serious drain on your finances, and if you don’t have an emergency fund in place to take care of unexpected mechanical breakdowns, you might find yourself without transportation. That’s why it is so important to have a vehicle protection plan you can count on.

While new vehicles from a dealership usually come with a warranty provided by the manufacturer, this factory warranty will most likely run out after three to five years. When the manufacturer’s warranty is up, you are solely responsible for any expensive repairs that need to be made on your new car unless you have extended coverage in place.

An extended auto warranty from a third party, which is more accurately called a vehicle service contract (VSC), is a great way to protect your vehicle. For some drivers, though, it doesn’t make sense to have comprehensive coverage if they don’t drive as often as other people do. Pay-per-mile car warranties allow you to pay for coverage based on the miles you drive every month. While this can be helpful for some, it is a good idea to fully understand the benefits and drawbacks.

By knowing what aftermarket coverage options are available to you, you can make the right choice for protection and drive with confidence and peace of mind every time you get behind the wheel.

What Is a Pay-Per-Mile Car Warranty?

Similar to car insurance, when you get a traditional extended warranty for your vehicle, the monthly rate you pay will depend on a few different factors. Generally, the year, make, and model of the car, the miles on the odometer, and the condition of the vehicle will all come into play. Once this is set, you will pay a monthly premium that will cover the car no matter how often you use it.

With a pay-per-mile warranty, the monthly usage of your car is taken into consideration. If you are someone who doesn’t put a lot of miles on your vehicle, this type of coverage may end up working better for you.

How Do Pay-Per-Mile Warranties Work?

Unlike a standard extended car warranty, a pay-per-mile warranty factors your vehicle usage into the price you pay each month. Your mileage can be tracked in a few different ways, but generally, it is done with either a device installed on the vehicle or a smartphone app. This technology tracks all your miles and ensures that you don’t go over the particular limit you have for your plan.

If you go over your allowable miles, there will usually be a fee that you have to pay, so it is important that you know how many miles you tend to drive per month and that you be as conservative with that guess as possible. The overage fees will be much more expensive than the regular miles you are allowed every month. Be sure to track your mileage for at least three months before you make an estimate for a pay-per-mile car warranty.

Who Can Benefit from a Pay-Per-Mile Car Warranty?

For some drivers, a pay-per-mile warranty will be a good option. Anyone who doesn’t rely on their vehicle on a daily basis, for example, may be a good candidate for one of these plans. People like remote workers who don’t have to commute to work, retirees, and urban commuters who have access to good public transportation may benefit from a pay-per-mile plan.

Anyone who puts a relatively low number of miles on their vehicle could potentially save some money by paying for their warranty based on how much they drive. If you are someone who relies on your vehicle, though, it will almost certainly be better to get a traditional warranty with a flat monthly rate that is consistent. This will help you avoid expensive overage fees and higher prices should you end up going over your specific mileage limit.

How Does Pay-Per-Mile Coverage Compare to Traditional Car Warranties?

When you get a traditional car warranty, the monthly payment you will have to make depends on things like the miles on the odometer, the type of car you have, and the known issues that the vehicle has when determining the cost of your coverage. This is to determine the likelihood of your vehicle needing a major repair in the near future, which the provider wants to keep in mind and factor into their liability.

When you get a pay-per-mile plan, the same considerations are made. However, the number of miles you plan to put on the vehicle during the course of the coverage term will also be factored into it.

This means that you might end up paying less than you would with a traditional warranty since you don’t plan on adding too many more miles to the odometer or putting more wear and tear on the car. If you go over your intended mileage limit, though, you can expect to pay a relatively inflated fee. So, it is important to have a good idea of your driving habits and needs in case you run into auto repairs.

Downsides to Pay-Per-Mile Warranties

Perhaps the biggest downside of pay-per-mile warranties is their lack of protection for the months when you might need to drive your used car more.

Life can be unpredictable, and you never know when you might need your vehicle more often than you usually do. Should that happen and you have a pay-per-mile car warranty, you can end up with a rather large bill for your warranty that month due to overage fees beyond your base rate. If there is a possibility that you might need to use your car more often during a particular month, a traditional warranty will be a better option.

Pay-per-mile warranties may also have more stringent restrictions for the vehicles that they cover. Certain makes and models may not be covered and there may also be lower mileage limits for the odometer reading. This means that you might not be eligible for a pay-per-mile warranty with your current vehicle.

How to Choose the Right Provider

When searching for a vehicle protection plan provider, it is essential that you know everything you can about the company and the plans that are offered. Be sure to get a thorough quote with contract terms that you understand and know you can work with long-term. It is also a good idea to know what kind of reputation the provider has and to get a good understanding of the company’s customer service and how customers have felt about the coverage they got. This will ensure that your plan will work for you and that you can get the help you need when you need it.

Endurance is one of the most well-regarded providers of vehicle protection plans on the market. With high-star ratings across consumer review sites and an award-winning customer service team, you can be sure that your vehicle and your wallet will be protected.

Plus, Endurance offers flexible, customizable coverage plans and will cover vehicles that other providers won’t, such as Canadian Gray Market Vehicles, cars with a rebuilt or salvage title, and vehicles used for rideshare or delivery.

Endurance Auto Protection Plans Offer Flexible Coverage

Endurance offers drivers a wide range of auto protection plans with everything from the most basic powertrain coverage to exclusionary protection most similar to the manufacturer warranty that accompanies a new car. Plus, every plan we offer is customizable to meet your specific needs and the needs of your vehicle. This means that you don’t have to pay for anything that you don’t need, and you can rest easy knowing that you won’t be surprised by any extra fees if you have to use your vehicle a little more often.

Endurance also offers protection for high-mileage vehicles, making it a great choice for those with older cars who still want coverage on the road. With a customized auto protection plan, you can use your car as much as you want and save money in the process.

Get the Best Coverage With Endurance

If you want flexible vehicle coverage that you can count on no matter how many miles you drive every month, Endurance Warranty has you covered. With auto protection plans for everything from high-mileage cars to top-of-the-line luxury or exotic vehicles, there is something for nearly every car and every driver.

In addition to top-notch warranty coverage, Endurance customers also get a large suite of standard benefits. These include 24/7 roadside assistance, towing, rental car reimbursement, and travel interruption coverage. Plus, for a small activation fee, Endurance also offers Elite Benefits, which include $2,000 in extra perks — tire repair or replacement, key fob replacement, a collision discount, and more!*

If you are ready for the best protection for your vehicle – and help paying for car repairs – contact our plan advisors at (800) 253-8203 for a FREE quote. You can also shop online to see your price right away and make the right choice.

For more helpful guides like this one, check out the Endurance blog. There, you will find provider comparisons, DIY tricks, auto insurance tips, FAQs, and much more.