Is the Tesla extended warranty worth it? (2021)

• The Tesla Extended Warranty offers unique powertrain coverage.
• There are no additional benefits in the manufacturer's vehicle maintenance agreement.
• CarShield is a trusted third-party Tesla Extended Warranty provider.

Tesla has pioneered the electric vehicle industry, but its vehicles are far from immune to mechanical problems. Tesla's Extended Warranty helps ensure the longevity of the automaker's innovative vehicles.

In this article, we'll take a look at how Tesla's Extended Warranty is designed to help you save hundreds or even thousands on repairs after a mechanical failure. We will also discuss the benefits of third party plans and how they compare to Tesla coverage.

Our research team studied leading suppliers and found that CarShield offers the best extended warranty on Teslas vehicles. You can get a free quote from CarShield below.

Tesla Extended Warranty Overview

The Tesla Extended Warranty or Extended Service Agreement is a bumper-to-bumper warranty available for Model X and Model S vehicles. It covers the cost of repairing most vehicle parts if they fail due to a defect in materials or workmanship. The agreement does not cover the lithium-ion battery and vehicle drive, which are covered by a separate warranty.

Drivers can choose between 2 years / 25,000 miles or 4 years / 50,000 miles. These periods are calculated from the date of expiration of the factory warranty.

If you already own a Tesla, you can add extended warranty coverage for up to 30 days/1,000 miles after your original limited new vehicle warranty expires, but it will cost less if you purchase coverage sooner rather than later. After 30 days / 1000 miles, you will no longer be eligible for the Tesla Extended Warranty and will have to look for third party alternatives.

Tesla does not currently offer an extended warranty on Model 3 and Model Y vehicles.

Fringe benefits

Tesla's extended warranty includes 24-hour roadside assistance, which is a nice touch. However, most automakers and third-party providers offer many more benefits, including car rental reimbursement and trip interruption insurance.

If you sell your Tesla while it's still under warranty, the coverage can be transferred to the next owner.

The Tesla Extended Warranty is also subject to cancellation. If you cancel the contract within 60 days of purchase without any claim, you will receive a full refund. After 60 days, you can still cancel your subscription at any time and receive a prorated refund.

What is not included in the Tesla Extended Warranty

Like any service agreement, the Tesla Extended Warranty has certain exclusions. Here are some examples of items and causes of damage that are not covered by the Tesla warranty:

• Tires and wheels
• Theft or vandalism
• Abuse or negligence
• Battery and drive
• Accidents or collisions
• Racing or competition
• Use of commercial vehicles
• Environmental damage
• Corrosion or color defects
• Modified or Third Party Parts
• Lack of proper maintenance
• Vehicles with modified odometers
• Wear items such as brake pads
• Routine maintenance such as oil change.
• Repairs performed by unauthorized mechanics

It is important to note that you will need to take your vehicle to a Tesla Authorized Service Center for any covered repairs under the Tesla Extended Warranty.

Do you need an extended warranty?

Whether you need a Tesla Extended Warranty depends on several factors. Here are a few questions to consider when deciding whether additional protection is a good investment for you:

• How reliable is your Tesla? If you have a highly reliable vehicle, an extended warranty may not be worth the investment.
• How long are you going to keep your Tesla? If you're going to trade in your Tesla before the New Vehicle's Limited Warranty expires, there's no point in purchasing additional protection.
• Do you want to increase the resale value of your Tesla in the future? If Tesla's factory warranty has expired, extended warranty coverage can increase your vehicle's resale value if you sell it to a private owner.
• Can you afford the repair costs? Some drivers can afford an unexpected costly repair bill, while others can't. Assess your personal financial situation and see if you benefit from financing repairs over time with the Tesla Extended Warranty.

Teslas are expensive cars to repair, which makes sense given the complex electrical systems that make cars unique. Luxury cars also often require expensive repair costs because the parts and components themselves are expensive. For these reasons, you may need a Tesla Extended Warranty.

What coverage do you already have?

Existing coverage must be taken into account before purchasing a Tesla Extended Warranty. Let's take a look at Tesla's factory warranty on new and certified used vehicles.

All new Tesla vehicles are covered by a 4-year, 50,000-mile New Vehicle Limited Warranty that provides a high level of bumper-to-bumper protection. This plan covers most parts except for items such as normal wear parts.

New vehicles are also covered by the battery and drive warranty, but the duration depends on the Tesla model you own. This is the equivalent of Tesla's powertrain warranty, and it guarantees that your battery will retain at least 70 percent capacity. Here's the lighting breakdown:

• Model S and Model X: 8 years or 150,000 miles
• Model 3 and Model Y, increased range or performance: 8 years or 120,000 miles.
• Model 3 and Model Y Standard or Standard Range Plus: 8 years or 100,000 miles

The Tesla CPO guarantee is pretty simple. Only Model S or Model X vehicles may be sold as CPO Teslas and must be less than 4 years old and have less than 50,000 miles on the odometer.

These vehicles are covered by a Used Vehicle Limited Warranty for 4 years or 50,000 miles from the date your vehicle was delivered to you. Tesla CPO coverage mimics new car limited warranty coverage. However, Tesla excludes the battery and drive warranty from CPO protection plans.

Tesla extended warranty cost

The Tesla Extended Warranty costs between $2,100 and $5,300, depending on your vehicle model, contract term limit, and when coverage is purchased. As mentioned, the later you buy coverage, the prices will go up.

Fortunately, Tesla is very transparent about how much its extended warranty plans cost. Here is the information from the manufacturer:

All Tesla extended warranties include a $200 deductible for a repair shop visit. Unfortunately, the manufacturer does not provide any additional franchise opportunities.

Benefits of an Extended Third Party Warranty

Third-party extended warranties, especially reputable companies' extended warranty plans for cars, may be the best option for Tesla owners. While these plans are more general than a manufacturer's warranty, they offer a lot more flexibility without sacrificing your peace of mind. Here are a few benefits of choosing a third party provider:

• More franchise options
• More repair shops available
• Longer coverage life
• Insurance can be purchased at any time in the life of your vehicle.

Because Teslas are such specialized vehicles, many third party vendors don't cover them. However, one of our top providers, CarShield, offers Tesla coverage.

CarShield offers coverage that can extend up to 200,000 miles and was named the most affordable company in our industry survey. CarShield also provides additional benefits not covered by the Tesla Extended Warranty, including car rental reimbursement and trip interruption coverage.

For a full supplier rundown, read our comprehensive CarShield review. You can also find out how much the CarShield warranty will cost for your Tesla by clicking below.