A car warranty provides financial protection if a car breaks down or one of its parts stops working. It is typically included with new vehicles, but one may also be able to purchase it for used cars as an extended service contract. But a warranty does not cover everything. Understanding what’s included and what’s not will help one choose the right car warranty according to their needs and driving patterns.
What is a car warranty?
A car warranty is a service contract that covers the costs of specific car part repairs and replacements for a predetermined period. So, if a covered component, such as the suspension, ignition, or transmission, fails due to a defect or mechanical issue, the owner is not responsible for it. Instead, the manufacturer or third-party warranty provider will repair or replace the malfunctioning part at no cost.
Typically, the duration of a warranty is expressed in years or miles. For example, a warranty might last for 3 years or 36,000 miles or for 5 years or 60,000 miles. The coverage expires once this limit is reached unless the owner renews the contract.
What does a car warranty cover?
The coverage varies depending on the type of warranty. Most warranties cover defects in materials and workmanship rather than issues caused by regular wear and tear. Before buying a plan, car owners must understand which components and systems are covered. This knowledge will help avoid confusion when certain parts stop working, and one has to raise a warranty claim.
Powertrain components
Powertrain warranties cover essential mechanical systems responsible for movement, such as the engine, transmission, driveshaft, axles, and differentials. Since repairing these parts is expensive, buying a powertrain warranty is a good idea. One can also cover individual parts of the powertrain, such as the engine and transmission. Engine coverage generally includes the cylinder block, internal parts, and the timing belt. On the other hand, the transmission warranty protects the owner against mechanical failures that can cause problems with gear shifts.
Bumper-to-bumper coverage
A comprehensive warranty, sometimes called a bumper-to-bumper warranty, protects most vehicle components from manufacturing defects. These include electrical systems, air conditioning, fuel system components, suspension parts, and high-tech infotainment systems. While a bumper-to-bumper warranty provides coverage against mechanical and electronic issues, it usually excludes wear and tear. Also, a comprehensive warranty is commonly limited to the first few years only.
Corrosion and rust protection
Some car warranties offer corrosion and rust protection, which is particularly beneficial for vehicles in areas with harsh weather conditions or exposure to road salt. The plan usually covers rust that affects the vehicle’s body panels or frame and causes perforation. One may be unable to file a claim if the rust only causes cosmetic damage.
Hybrid and electric vehicle components
Some warranty plans cover battery packs, electric motors, hybrid powertrain systems, and other electric components. Replacing these parts can burn a hole in the owner’s pocket. Warranty plans for hybrid and electric vehicles often have a longer validity period. Some last up to 8 to 10 years or up to 100,000 miles.
Airbags and safety systems
Car warranties also cover defects in airbags, seat belts, and other safety-related components. If an airbag fails to deploy correctly or a seat belt malfunctions due to faulty parts or faulty installation, the manufacturer will be responsible for repairing or replacing it.
Roadside assistance and additional perks
Several manufacturer warranties include roadside assistance services like towing, flat tire changes, battery jump-starts, fuel delivery, and lockout assistance. Some warranties also offer rental car reimbursement if the vehicle needs to stay at the dealership for extended repairs.
What’s not covered under a car warranty?
Even after buying a warranty, car owners will need to take care of their vehicles because not everything will be covered. There are certain car warranty exclusions one should know about to avoid unexpected expenses.
Routine maintenance and wear-and-tear damage
Automobile warranties do not cover parts that wear down over time with regular use, such as tires, brake pads, wiper blades, spark plugs, and air filters. These components require regular maintenance and must be replaced at the owner’s expense. Even routine services like oil changes aren’t covered.
Accidental damage and collision repairs
Manufacturer car warranties also do not cover damages caused by accidents, collisions, vandalism, or theft. Similarly, they do not cover damages from natural disasters like floods, hailstorms, and fires. Any external damage to the car in these scenarios must be addressed through auto insurance policies.
Modifications and aftermarket parts
Installing aftermarket parts or modifying the engine, suspension, exhaust system, or electronic components are a few mistakes that can void a car warranty. This means the manufacturer or third-party provider will not cover issues resulting from said upgrades. These are considered unauthorized modifications. If a car owner installs an aftermarket turbocharger or changes the suspension, the warranty will not cover system failures arising from this change.
Improper maintenance
If someone fails to perform regular maintenance as specified in the owner’s manual, the manufacturer will likely deny claims. This could include things like overlooking scheduled oil changes, skipping scheduled service visits, or using the wrong type of fluids. The manufacturer can also refuse to pay if an engine fails due to low oil levels or contaminated fuel.
