Hyundai Extended Warranty: Is It Worth It?

Hyundai - Manufacturer Extended Warranty Overview

Like most auto manufacturers, Hyundai offers extended vehicle warranties called the Hyundai Protection Plan. Unlike most manufacturers, Hyundai vehicles come with one of the best standard new car warranties in the industry. With Hyundai’s new car limited warranty lasting an unusually-long 5-years or 60,000-miles and its powertrain coverage lasting up to 10-years, or 100,000-miles for original owners, the need for an extended warranty on a Hyundai vehicle is a bit different than most mainstream models.

The Hyundai Protection Plan Vehicle Service Contract (VSC) is offered in three different flavors: Platinum, Gold, and Powertrain. Hyundai tries hard to make it clear which plan covers what breakdown. Like all extended vehicle warranties, the Hyundai VSC plan is exclusionary, meaning it only covers what is spelled out in the VSC contract. As you go up in the tiers of the plan, more is covered.

Hyundai only offers to sell its VSC plans to buyers who have a Hyundai vehicle that has not yet reached the end of the original 5-year, 60,000-mile warranty. Also, there has to be at least one month and 1,000 miles left on the New Vehicle Limited Warranty. The company only sells through its authorized dealers. Finally, there is no plan that exceeds beyond 10-years or 100,000-miles. We confirmed these three things with Hyundai by phone.

This begs the question, “why would anyone buy a Powertrain VSC if the original Hyundai warranty is already 10-years or 100,000-miles?” The reason is that this portion of Hyundai’s new car warranty only applies to the original owner of the Hyundai. If a person purchases a Hyundai used, but it still is within the 5-year / 60,000-mile bumper-to-bumper warranty period, that subsequent owner can purchase an extended warranty from Hyundai. The Hyundai representative we spoke with noted that the VSC products are at their least expensive when purchased on the day the original owner buys the Hyundai vehicle. So subsequent owners and those who wait may pay a bit more for the VSC.

Aside from the three selections of tiers, Hyundai also offers three deductibles. Zero, $50, and $100 per repair.

Specs / Key Features

• Simple plan options
• Administered by Hyundai and its dealer network directly
• Work performed by Hyundai dealers using only new Hyundai parts

What is Covered by a Hyundai Extended Warranty?

Hyundai’s Platinum plan is very similar to the new car comprehensive warranty. It covers pretty much everything a vehicle warranty would cover. The Gold plan seems to hit the traditional worries. The Powertrain warranty includes just the engine, transmission and drive systems.

What is Not Covered by a Hyundai Extended Warranty

This is an “exclusionary coverage” policy, so anything that’s not on the Hyundai VSC contract is not covered. Hyundai’s plans do not include normal wear items like tires. The VSC plan is also not a pre-paid maintenance plan. You will still pay for oil changes, timing belts, and services for other normal wear items.

Additional Hyundai Vehicle Protection Products

Hyundai does offer a product it calls Term Protection Plus that adds coverage for some wear items excluded from the extended warranty plans. They include one set of brake pads, one 12-Volt battery replacement, one wheel alignment, and one set of wiper blades. This plan straddles the line between an extended warranty and a pre-paid maintenance plan.

What Does a Hyundai Extended Warranty Cost?

Given the broad range of prices of new and used Hyundais, the three plans, and three deductibles, there is no single answer. However, our research indicates an extended warranty from Hyundai will cost from the high hundreds to low thousands of dollars.

Average Costs for Hyundai Repairs in 2021

The chart below is taken from CarComplaints.com and reflects owner-reported problems. Read more on Hyundai maintenance and repair costs here.

Third-Party Extended Warranty Providers for Hyundai Vehicles

Third-party warranties are an option for any make or model of vehicle. These plans are offered by companies who profit by selling used vehicle owners a plan that they know will cost them more on average than the cost of any repairs.

Pros and Cons of Third-Party Warranties

Is a Hyundai Extended Warranty Worth It?

If you are the original owner, the short answer is “probably not.” Most of the expensive problems with Hyundai vehicles we found when researching this story were engine and transmission related, and owners reported that they occurred prior to the end of the original powertrain warranty.

If you are a subsequent owner, the answer is “well worth considering.” Although Hyundai offers a fantastic 5-year or 60,000-mile warranty that covers pretty much everything, if you are a second owner, that coverage ends when the car is one day older than five years, or if the mileage ticks past 60K. Our research of owner-reported trouble revealed that Hyundai vehicles had an unusual amount of engine failures and transmission problems.

Ask yourself two questions:

• Is this a vehicle that I’m going to keep past the original warranty? If the answer is “no,” then an extended warranty isn’t much good to you.
• Do I have the money to cover an expensive repair after the vehicle warranty is up? A failed engine can easily run into $4,000, but the likelihood of it happening between the end of the original warranty and 100,000 miles is exceedingly rare. But if you don’t have the money to pay for a repair like that, you’d be much better off folding the cost of the warranty into your original car loan.

Read our full recommendations for the Best Extended Warranty Companies here.