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Everything You Need to Know About Auto Warranties

By Robin McKenzieAugust 30, 2024Auto

Are you fully aware of what your auto warranty covers? An auto warranty is an agreement that protects you from bearing the full cost of repairs if your vehicle encounters mechanical issues. From bumper-to-bumper coverage to powertrain plans and extended warranties, understanding the different auto warranties is key to saving money and avoiding unexpected repair costs.

What is an Auto Warranty?

There are different types of auto warranties, and each serves a specific purpose.

1. Manufacturer’s Warranty

This is the most common warranty, provided by the car manufacturer when you purchase a new vehicle. It generally covers most major components, such as the engine and transmission, for a set number of miles or years. For example, a manufacturer might offer a 3-year/36,000-mile bumper-to-bumper warranty, which covers nearly everything in your vehicle except wear-and-tear items like tires and brake pads.

2. Powertrain Warranty

A powertrain warranty covers the vehicle’s essential components, such as the engine, transmission, and drivetrain. This type of warranty tends to last longer than a standard manufacturer’s warranty. Many automakers offer powertrain warranties that extend up to 5 years or 60,000 miles. However, it’s important to note that this warranty doesn’t include parts like air conditioning, electronics, or suspension components.

3. Extended Warranty

An extended warranty, also known as a vehicle service contract, kicks in after the manufacturer’s warranty expires. You can purchase this warranty from either the car dealership or a third-party provider. Extended warranties can vary in coverage, so it’s crucial to read the fine print to understand what repairs are covered and for how long. Some may cover nearly everything, while others might exclude specific components, such as the electrical system.

4. Corrosion/Perforation Warranty

This warranty protects against rust damage that causes holes in your vehicle’s body. Most corrosion warranties last around 5 to 7 years. However, this type of warranty often comes with certain conditions, such as regular maintenance requirements, to ensure that the warranty remains valid.

5. Emissions Warranty

This warranty covers components that help your vehicle meet emission standards, such as the catalytic converter and oxygen sensors. Federally mandated, emissions warranties typically last for 8 years or 80,000 miles. It’s a necessary warranty to help keep your car environmentally compliant.

What’s Not Covered?

While auto warranties provide peace of mind, they don’t cover everything. Routine maintenance items, like oil changes, tire rotations, and brake pads, are usually excluded. Additionally, damages resulting from accidents, neglect, or misuse often aren’t covered.

Should You Get an Extended Warranty?

The decision to purchase an extended warranty depends on various factors, such as the vehicle’s reliability, how long you plan to keep it, and your personal risk tolerance. If you own a reliable vehicle and perform regular maintenance, you may never need to use an extended warranty. On the other hand, if you have a history of keeping cars for long periods or owning vehicles known for expensive repairs, an extended warranty could provide valuable protection.

Understanding the ins and outs of auto warranties helps ensure that you’re well-prepared for potential repairs and that you can choose the right warranty coverage for your needs. It’s worth taking the time to carefully evaluate your options before making a decision.

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