Looking for an extended car warranty that fits your car needs can be a long and confusing process. This is because many car companies and warranty providers offer different types of extended car warranties with exclusive coverages included. There are different factors to consider when getting an extended car warranty which may give car owners advantages and disadvantages in the future. In order to understand more about extended car warranties, we’ve compiled a guide that breaks down the coverages of each type of extended car warranties.
What is an Extended Car Warranty?
Before we discuss the different types and coverages of extended car warranties, let us walk you through with what an extended car warranty is. This is a type of vehicle contract that covers car repairs for vehicles that don’t have a manufacturer’s warranty or aren’t already expired. Extended car warranties can be purchased from car dealers or any authorized third-party providers. Car breakdowns are unpredictable which is why many car owners buy extended car warranties to avoid paying costly car repairs.
Here are the different types of extended car warranties and its coverages:
- Bumper-to-Bumper Warranty (Exclusionary car warranty): If you’re looking for the most comprehensive car warranty for your car, then the bumper-to-bumper car warranty, also known as exclusionary car warranty is the right one for you.
How does this warranty work? Since it’s the most comprehensive car warranty coverage, it lists all items that aren’t covered instead of everything that it covers (and it is a lot).
Here are some car components that bumper-to-bumper car warranty covers:
- Major vehicle systems
- Air conditioning and heating systems: condenser, compressor, evaporator
- Electrical car components: power windows, alternator, doors locks, sunroofs
- Steering: power steering pump, rack, and pinion, power steering hoses
- Safety car features; seat belts, airbags
- High-tech gadgets: cameras, GPS
- Hybrid batteries
The average term for a bumper-to-bumper car warranty can go around 3 years and/or 36,000 miles.
- Powertrain Warranty: This extended car warranty is designed to cover any powertrain parts of a vehicle. Compared to the bumper-to-bumper car warranty, a powertrain warranty has a longer-term that can last up to 5 years and/or 60,000 miles.
Here are some parts that the powertrain warranty covers:
- Engine: the average engine rebuild can cost around $2,776
- Transmission: a complete transmission repair can cost around
The average cost for an engine rebuild can cost around $2,776 and a complete transmission repair can cost around $1,865, so it’s very important to have a car warranty that can cover expensive car repairs.
- Stated Component Warranty: Unlike exclusionary warranty that lists all excluded car components, the stated component warranty simply lists all car components that are covered in the policy.
- Wrap Warranty: This type of car warranty can cover almost every component in the car. However, it’s only applicable to cars that have 50,000 mileage or less.
Other perks and coverages included in an extended car warranty:
- Corrosion: One of the benefits of having an extended car warranty is the protection from any car damages caused by rust, where the warranty provider will cover the cost of any corrosion repairs.
- Roadside assistance: Once your car is equipped with an extended car warranty, you can enjoy many perks like roadside assistance that includes towing, trip-interruption services, and many more.
- Normal wear and tear: Some extended car warranties cover repairs from wear and tear.
What’s not covered in an extended car warranty?
In order to understand the coverage of an extended car warranty, it’s highly recommended to review the warranty list to know what’s covered and not. Keep in mind that other warranties have different levels of coverages.
Here are some car components or services that extended car warranties don’t cover:
- Regular maintenance: tire rotations, oil changes
- Exterior or body panel damages: damages caused by scratches or dings are usually not covered by extended car warranties.
- Interior damages: torn car seats, broken door handle.
- Damage from an accident: repairs from any damages caused by an accident will be excluded from the extended car warranty.
- Modifications or installing non-manufacturer parts: Extended car warranties won’t cover any damages caused by installing non-manufacturer parts.
To let you know more about extended car warranties, here are some frequently asked questions.
Q: If I’m still under a car warranty, do I need to pay for the car repairs?
A: It’ll depend on the services you requested for your car. Always check the warranty coverage to know if it’s covered by the policy or not.
Q: Do extended car warranties cover repairs from damages caused by accidents?
A: No, damages from accidents are usually excluded from the extended car warranties coverage. Instead of getting an extended car warranty, you can purchase an auto insurance policy that specifically covers car repairs from collisions or accidents.
Q: What is the difference between a manufacturer’s warranty and an extended car warranty?
A: A manufacturer’s warranty, also known as a factory warranty is a car warranty given by the car’s manufacturer that covers any defects within a specific period of time while an extended car warranty is a vehicle contract that is designed to cover any repairs after the factory warranty expires.
Q: Can I buy an extended car warranty for new cars?
A: Yes, the earlier you get an extended car warranty, the lower the premium rate you can get from car manufacturers or other third-party companies.
Extended car warranties can greatly affect car owners, as each warranty type can protect your savings from unexpected and costly car repairs. We highly recommend consulting your trusted mechanic to gauge the condition of your cars. But before anything else, only purchase extended car warranties from your own car’s manufacturer or any authorized third-party providers to avoid any inconvenience in the future.