What Do Car Warranties Actually Cover?

What’s in a Warranty?

An extended warranty is designed to protect your vehicle after the manufacturer’s warranty expires.

But what exactly does an extended warranty cover?

In this article, we’ll take a closer look at some of the most common things that are covered by extended warranties.

The Kinds of Warranties

The two main kinds of warranties are bumper-to-bumper and powertrain.

Bumper-to-bumper coverage is the more comprehensive of the two and typically covers everything from your car’s paint job to the electrical system.

Powertrain coverage, on the other hand, is more limited and only covers components like your engine, transmission, and drivetrain.

What’s Covered Under a Bumper-To-Bumper Warranty?

Bumper-to-bumper warranties typically cover everything on your car except for a few wear-and-tear items like brakes and tires.

Here are some of the most common things that are covered by bumper-to-bumper warranties:

Paint and rust protection

Bodywork and trim

Interior upholstery and trim

Electrical components

Air conditioning and heating

Fuel system

Engine

Transmission

Drivetrain

Suspension and steering

Wheels and tires

What’s Covered Under a Powertrain Warranty?

Powertrain warranties are more limited in scope than bumper-to-bumper warranties, but they still offer a good amount of coverage.

Here are some of the things that are typically covered by powertrain warranties:

• Engine
• Transmission
• Drivetrain
• Suspension and steering
• Wheels and tires

Special Warranties

The third group of warranties range from vehicle specific to high-end premium warranties that include maintenance plans.

A premium protection plan can include :

Trip interruption protection- This type of protection will reimburse you for lodging and transportation expenses if your vehicle breaks down while you are on a trip.

Rental car reimbursement- If your vehicle needs to be repaired or replaced, this type of coverage will help to cover the cost of a rental car.

Towing and labor coverage- This will cover the cost of towing your vehicle to a nearby service station or garage.

Key fob replacement- If you lose your key fob, this coverage will help to replace it.

Windshield repair or replacement- This type of coverage will help to repair or replace your windshield if it is damaged.

Paintless dent repair- This type of coverage will help to repair dents in your vehicle’s body without having to repaint the entire vehicle.

As you can see, extended warranties can cover a wide range of repairs and maintenance.

Be sure to read the fine print of any warranty before you purchase it so you know exactly what is covered.

What’s Not Covered By an Extended Warranty?

It’s important to know what’s not covered by your extended warranty so that you can plan accordingly.

Here are some of the most common things that are not covered by extended warranties:

Normal wear and tear

Damage from accidents or negligence

Damage from weather or natural disasters

Maintenance items like oil changes and tune-ups

Modifications or aftermarket parts

What to Look for When Shopping for a Warranty

When you are shopping for an extended warranty, there are a few things you should keep in mind.

First, make sure that the warranty is backed by a reputable company.

There are many fly-by-night companies that sell worthless warranties.

Second, read the fine print carefully.

Pay attention to things like the length of the coverage, the deductible, and what is and is not covered.

Third, get quotes from multiple companies.

Don’t just accept the first quote you get.

Finally, make sure you understand the cancellation policy.

Some warranties have very strict cancellation policies that make it difficult to get your money back if you change your mind.

Be Sure to Use Your Warranty when You Need It

Once you have an extended warranty, be sure to use it when you need it.

Don’t be afraid to file a claim if you have a problem with your vehicle.

Remember, you are paying for this coverage, so you might as well use it.

And if you ever have any questions about your warranty, don’t hesitate to contact the company and ask.

They should be more than happy to help you out.

The Prices of Repairs versus The Price of A Warranty

One of the main reasons people get extended warranties is to save money on repairs.

And while it’s true that you can save a lot of money by having a warranty, you need to make sure that the price of the warranty is worth it.

For example, let’s say you have a powertrain warranty that costs $1,000 and has a $100 deductible.

If you use the warranty to get a transmission replacement that would have cost $3,500 without the warranty, then you would save $2,400.

In this case, the warranty more than pays for itself.

But if you only use the warranty to get an oil change, then you probably wouldn’t save enough money to justify the cost.

Consider a Maintenance Plan

Instead of an Extended Warranty

If you are worried about the cost of repairs, you might want to consider a maintenance plan instead of an extended warranty.

Maintenance plans cover the cost of routine maintenance like oil changes and tune-ups.

They usually also include 24/7 roadside assistance.

And best of all, they are often much less expensive than extended warranties.

For example, a three-year maintenance plan for a Honda Civic might cost $500, while an extended warranty for the same car could cost $1,500 or more.

Get an Extended Car Warranty

An extended warranty can be a great way to save money on repairs, but you need to make sure that you are getting a good deal.

As you can see, extended warranties can cover a lot of different things.

But it’s also important to know what’s not covered so that you can plan for those expenses.

When shopping for an extended warranty, be sure to read the fine print so that you know exactly what is and isn’t covered.

That way, you’ll be prepared for anything that comes down the road.

And don’t forget to use your warranty when you need it.

Otherwise, you’re just wasting your money.