5 Basic Types Of Warranties On Cars
The five most common types of warranties on cars are bumper-to-bumper, powertrain, corrosion, emissions control, and accessory warranties. These generally come included with your new vehicle and last for your first few years of ownership. After your car’s original warranty expires, you can purchase an extended warranty to cover these items.
On paper, understanding what’s covered by each of these plans might seem easy. But specifics vary from company to company, so make sure to ask exactly what’s covered when you purchase a vehicle or extended warranty.
Some companies offer unique warranty coverage. For example, Subaru warranties include seat belt coverage that lasts the lifetime of the vehicle. Other unique types of warranties on cars include hybrid and electric vehicle protection, and battery warranties. When it comes to extended warranties, some companies, such as Endurance, even offer plans that combine mechanical breakdown coverage and routine maintenance services.
You might run into some car warranty terminology you’ve never seen before when comparing extended car warranty companies, such as exclusionary and state-component coverage.
Exclusionary coverage is the most comprehensive extended warranty on the market. These types of warranties on cars, also sometimes called bumper-to-bumper warranties, are so comprehensive that the contracts don’t list every part covered. Instead, they only list the parts that aren’t covered.
Stated-component warranties will list all covered vehicle components in the contract. If something isn’t listed, then it isn’t covered. A powertrain warranty is an example of a stated-component plan. All in all, what is covered and what isn’t covered boils down to the warranty agreement itself.
Where Can You Buy An Extended Auto Warranty?
You keep your car protected after your original factory warranty has expired, you have two options: purchase a service contract from your vehicle manufacturer or from an independent warranty company.
If you buy a brand-new car, it will likely come with a limited warranty at no additional cost. For long-term coverage, an extended service agreement can be purchased from your car manufacturer before your limited new-car warranty expires, which is typically before the 3-year/36,000-mile mark.
Extended vehicle service contracts are also available from independent warranty companies. An aftermarket car warranty offers more flexibility in terms of coverage, pricing, and benefits. Plans can also be tailored to your specific needs and budget.
Many independent companies also include a number of perks with their warranties. For example, Toco gives drivers roadside assistance, rental car reimbursements, trip interruption coverage, and hotel discounts. You can get a free quote from the independent provider by visiting TocoWarranty.com.
Factory Vs. Independent Extended Warranty Coverage
There are pros and cons of extended car warranties with either option, and it’s up to your unique needs to decide what you want to get out of coverage. If you’re looking for more inclusive and customizable plans, often at better rates, an independent warranty is a better option for you. But if using OEM parts for repairs is more important, a factory-backed warranty is likely better.
While most automakers and dealers offer extended warranty plans during the sale of a vehicle, there are many reasons to go with a third-party provider.
If you’ve recently purchased a used or certified pre-owned car, you can still qualify for certain types of warranties on cars. Some automakers will guarantee a transfer of the new vehicle warranty to the next car owner when a car is resold on the private market, and you can often get extended used-car coverage through your manufacturer or an independent warranty company.
More often than not, purchasing a warranty from a third-party company is a better choice for your used or CPO car. The higher terms of an aftermarket warranty provide peace of mind no matter the age or condition of your car.
Our Recommended Extended Warranty Companies
We recommend shopping around, comparing quotes, and reading reviews of the types of warranties on cars to get a sense of what a plan would look like for you. If you’re not sure where to start, Endurance, CARCHEX, and Protect My Car are three of our highest-rated providers that are certainly worth a look.