Aditi Patel
Top 10 Car Warranties Editor
Have you ever experienced taking your car to a repair center and then getting a humongous bill because your car warranty policy won’t cover the expenses? Well, a lot of drivers and car owners have been in those shoes. This is why knowing the terms and coverage of your warranty policy is essential before you sign on the dotted line. Your research shouldn’t end with the warranty provider, you should also learn more about the different kinds and levels of coverage they offer. It’s important that you read the fine lines of the contract to avoid misunderstandings and to ensure that you’re paying for coverage that will pay for the bills you expect.
One common issue drivers encounter is they get confused between the manufacturer’s warranty and extended car warranty plans that they get later on. When you purchase a vehicle, you get initial coverage from the manufacturer. For domestic vehicles, the manufacturer’s warranty is usually valid until three years or 36,000 miles. Japan, the United States, and Germany have started to adopt 4-year and 50,000-mile terms. It’s essential to find out how long the warranty lasts so you can plan when to purchase additional coverage.
Save Thousands on Repairs
This type of coverage mainly covers parts that are faulty or defective due to manufacturing processes or workmanship. Manufacturers’ warranty usually provides bumper-to-bumper coverage which means you’ll get coverage for almost all parts of your vehicle. If you experience an oil leak or an engine breakdown, you can get the necessary parts repaired for free under the warranty. This type of warranty also covers internal parts such as air conditioning, heating, electrical, and sound systems. Take note that even a bumper-to-bumper warranty will exclude some parts in their coverage. Bumpers, seating fabric, glass, and interior team are usually not covered by this type of warranty.
Despite not being able to cover every single part of the vehicle, a bumper-to-bumper warranty is more inclusive than an initial warranty plan you’ll get from a dealership often referred to as the powertrain warranty. New vehicles will come with a manufacturer’s warranty valid for three years or until 36,000 miles. A powertrain warranty lasts up to six years or 100,000 miles. This type of coverage will cover driveshaft, engine, wheels, and transmission but typically exclude clutch, battery, and other wear items. Although powertrain warranties have a longer validity period than bumper-to-bumper warranties, it leaves many vehicle parts uncovered.
There are several options for you to protect your vehicle once the manufacturer’s warranty lapses. You might get a call from your dealership offering an extended car warranty plan. But before you sign anything, make sure that you’ve read up on different providers and the various types of coverage they offer. It’s important to know the difference between each level of coverage so that you don’t get surprised when the time comes for you to use it.
As mentioned earlier, this type of warranty covers essential components such as engine and transmission. However, powertrain warranty plans do not cover much aside from the parts necessary to make a vehicle run.
Stated component Warranty
If a powertrain warranty doesn’t quite cut it, you can choose a stated component warranty. It’s a more inclusive coverage that will protect car parts such as electrical systems, brakes, suspension, and others. This type of warranty will list out the specific items that are covered allowing car owners to manage their expectations properly.
Save Thousands on Repairs
If you choose an exclusionary warranty, you’ll have access to some of the highest coverage levels. These types of plans usually include all items covered by a stated component warranty. Unlike a stated warranty policy that lists the items covered, exclusionary warranty plans give you a list of parts that are excluded from coverage. If you don’t see a certain part in the plan that means the part is covered by the warranty.
There are several options for car owners and drivers when it comes to car warranties. Plans range from basic to comprehensive coverage. One thing remains common among these various types of Coverage. You need to understand clearly the details of your policy so that you’re prepared for the next maintenance or repair service you’ll get.