Considering Your Car Warranty Options
As you think about what type of extended auto warranty you want to purchase, ask yourself these questions:
What does the car warranty cover?
Do you want comprehensive coverage with a bumper-to-bumper warranty, or are you most concerned about protecting your powertrain?
Is my car reliable?
If the make and model of your car is known to need several repairs, or if you have a luxury vehicle with expensive parts, an extended warranty can help cover those costs.
How much does the warranty cost?
Is the monthly cost car warranty coverage more affordable than your car’s most commonly reported repair costs after a breakdown?
Who should provide my warranty?
Car manufacturers and third-party providers both offer extended warranties. What are the best third-party auto warranty companies?
Whats Not Included In A Powertrain Warranty
Hereâs where we get into the fine print. Whatâs covered in a powertrain warranty, outside of the basics we listed above, can vary quite a bit from one policy to another, so make sure you closely review the details. Expect to see these common exclusions:
- Engine: While the mechanical parts are covered, the radiator and hoses, starter motor, heater core, some of the sensors and other engine management, emission control and fuel metering systems may not be.
- Transmission: Parts like the transmission or transfer case cooling lines, shift solenoid, wiring harnesses, relays and processors may not be covered.
- Drive system: Things like the axle bearings and wheel bearings may be considered subject to normal wear and not covered.
- Brakes: Brake components like the pads and rotors are normal wear items and arenât covered, while parts like the ABS sensors and pumps, vehicle stability control system, traction control, master cylinder and wheel cylinders usually are.
- Suspension: Shocks or MacPherson struts are usually considered normal wear items.
- Other parts and systems: Things like the air conditioner power windows, locks, mirrors and seats and radio and infotainment are not considered part of the powertrain and are not covered. Seals, gaskets and other internal parts also may not be covered, especially if a gasket is leaking because of age and shrinkage.
Weighing Up The Cost Of Older Cars
Clearly, if you have bought something that is cheap, but not very cheerful, splashing out on warranty cover makes little sense. We think that anything under £1,000 is not really worth covering, depending on the type of vehicle.
What’s more, extended warranty companies have age restrictions on cars. Most companies won’t cover cars that are 10 years old or more or have more than 100,000 miles on the clock.
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What Are The Differences Between Car Warranties And Car Insurance
Understanding the differences between car insurance and a car warranty is important so you can adequately protect your vehicle. The following chart breaks down the key differences between the two:
New car warranty: Typically, 3 years
Extended warranty: Varies
Renewable every 612 months, in most cases
|What it can cover||Car warranty:
Parts that break due to normal wear and tear, extreme heat or cold, mechanical defect, vehicle recalls, or poor maintenance
Property damage or injuries you cause in an accident, as well as damage to your vehicle and your own injuries
|What it doesn’t cover||
Routine maintenance, oil changes, tire rotation, brake pads
Routine wear and tear, mechanical breakdowns, or manufacturer defects
|When you can purchase it||Car warranty:
Your vehicle will come with a warranty that lasts for ~3 years after that, you can buy an extended warranty at any time
You can purchase a policy at any time
|Where to buy it||
Either online or over the phone through an insurance company or agent
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What Does A Car Warranty Cover Exactly
The warranty that comes with your vehicle is typically broken down into individual levels of coverage. The length of each level of coverage depends on the make of your vehicle, as each car brand will have different terms. Lets take a look at the most common types of car warranties and whats covered under each.
Should You Buy An Extended Car Warranty On A New Or Used Car
When you buy a new car, you probably wont need to use an extended warranty right away because the manufacturer warranty which is typically included in the price of the car covers the cost of most repairs for the first few years you own the car.
But if you buy a used car from the dealer, it may not be covered under the manufacturers warranty. To find out, look for the Buyers Guide on the car window. It should let you know whether the car is being sold with a warranty. If it is, you may need to pay a fee to have it transferred to you.
If youre buying a car thats no longer covered by the manufacturer warranty or you want additional coverage after it expires, you may buy an extended warranty for an extra fee.
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What Does A Vehicle Warranty Cover
Its easy enough to say that a vehicle warranty covers exactly what it promises to cover, and usually no more than that. This can be difficult, as these warranties can be notoriously boring to read or quite complex, and there may be huge differences in amount and type of coverage offered. People may receive warranties with a new car and some used car purchases, or they can buy extended warranties to increase the amount of things that will be covered.
There are several types of the vehicle warranty. With new cars, its quite common to get a bumper to bumper warranty that lasts for a certain period of years or until a certain amount of mileage is reached. This might be five years or 60,000 miles and the warranty will usually be null as soon as a person hits 60,001 miles on the car, even if this does not take five years to do. Other time periods and mileage limits can be longer or shorter.
What Is A New Car Warranty
A new car warranty is the guarantee that car manufacturers issue when they sell a new car. Each car maker will have a set warranty that applies to all of the cars that it sells in the UK. The majority of car makers offer a three-year warranty, although the main exceptions to this are Hyundai, Mitsubishi, Renault and Kia .
With an increasing number of buyers now running cars for three years on finance, the three-year warranty has become the industry standard. Manufacturers also add a mileage limit to the warranty to ensure the vehicle is covered for what it determines to be a fair amount of time. So the warranty will last for the time period or the distance quoted, whichever comes first.
The amount of miles you can cover varies according to which manufacturer you choose. Some offer a 36,000-mile limit, while others offer unlimited mileage. As an example of the differences, Mitsubishi’s five-year cover has a 62,500-mile limit, while Hyundai, which also offers a five-year warranty, has unlimited mileage for private buyers. Likewise, Kia’s seven-year warranty has a mileage limit of 100,000 miles, so for some high-mileage drivers, the Hyundai warranty could be more attractive.
If the manufacturer can find the car has been modified, such as the ECU being reprogrammed, a non-standard exhaust system fitted, or if the odometer has been tampered with, then it is unlikely to honour the warranty.
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How Do You Tell A Reputable Extended Car Warranty From A Scam
If you think the peace of mind of an extended car warranty could be worthwhile for you, we highly recommend buying one from a company you already do business with and have reason to trust.
Many car dealerships offer extended warranties. The dealership where you initially bought your car has every reason to treat you fairly to keep your business. Many banks and financial service companies have relationships with warranty providers. Again, your bank benefits less from selling you a sketchy warranty and losing your trust than from selling you a solid one.
If youre looking for a warranty from a reputable company, CARCHEX is one such company with an A+ Better Business Bureau rating.
Whether you choose a warranty from a bank, dealership, or reputable company, we recommend that you select one from a business you know and trust. A company with a reputation to defend, a Better Business Bureau rating, and perhaps even faces in your local community is far more likely to approve warranty repairs than a company you know only from a website.
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What Is The Purpose Of A Car Warranty
Car warranties were created to help ease the minds of drivers everywhere. Repairs and full replacements of vehicle parts can be prohibitively expensive. When you purchase a car warranty, it usually provides you with coverage for a specified number of years or miles, whichever comes first. That means, through the indicated timeframe, if any major parts break, you wont have to pay outrageous amounts to fix them. Before investing in a warranty, whether its through a manufacturer or a third party, make sure you understand exactly what that specific car warranty covers.
There is a big misconception that having car insurance is the same thing as having a car warranty. It is not. In fact, they are two very different forms of protection. Car insurance protects you from vehicle damage caused by an accident, fire, or other disasters. On the other hand, a car warranty protects you from having to cover high out-of-pocket costs due to equipment failures, breakdowns, and overall mechanical issues.
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Faq: Does A Car Warranty Cover Routine Maintenance
If my car is under warranty, do I have to pay for the service?
No, you dont have to pay for services apart from your deductible if the repair or replacement is covered under warranty. If you have a limited or exclusionary warranty, check what it covers before you take your vehicle to the repair shop.
Does a warranty cover preventive maintenance?
Extended warranties and mechanical breakdown car insurance typically dont include preventive maintenance such as oil changes or replacements for wear-and-tear items such as tires and batteries. Warranty companies such as Endurance, Protect My Car, and ForeverCar offer coverage for routine maintenance, but youll have to pay more.
Can you change your own oil under warranty?
You can service your own car and still keep your warranty. Be careful while doing so since you could void the warranty if you cause damage by servicing your vehicle incorrectly.
Is it worth getting your car serviced at a dealership?
Having your vehicle serviced at a car dealership can be convenient, but you dont have to get it done there. The technicians usually perform fast service, but it tends to cost more than at most licensed repair shops.
Are there warranty companies that cover regular maintenance costs?
Types Of Car Warranties
Different car warranties work in different ways.
BMW, for example, offers a basic warranty on all new vehicles. If you bought a new BMW, then this warranty covers you. Many car dealerships also offer extended warranties, bumperto-bumper warranties, and other warranties that provide different coverage. A normal vehicle warranty does not cover tires, although your tire company may offer its own tire warranty.
Confused? Warranties can seem complicated. Well break down specific types of warranty coverage below.
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Whats The Difference Between A Car Warranty And Insurance
Car insurance and car warranty are two different types of protection. A car warranty is designed to cover mechanical issues and labour on your vehicle caused by defects or issues with parts. Car insurance on the other hand, will cover the costs of repairing your vehicle if it is damaged in a collision, natural disaster, fire, or theft.
Car warranty can be negotiated at the manufacturer, while insurance is handled by an insurer. Even though both have specific areas of coverage, one should not be ignored over the other.
Driving without insurance is illegal, but car warranty is by choice. Insurance will not pay for your car breaking down or mechanical issues, but there are various types of premiums to cover your driving habits.
Am I Covered For The Full Amount Of The Repair Under Warranty
That depends on whether the cost of the repair exceeds the maximum claim limit. This is usually set at the value of the car or limited part by part.
A gearbox repair, therefore, may have a £5,000 cap while an air-con fix may have a £1,500 limit. This means that you can make more than one claim as long as the combined cost does not exceed the maximum claim limit.
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Carchex Keeps You Running
As your car ages and its original warranty expires, you may find yourself on the hook for expensive repairs. Thats when its time to call CARCHEX to get the peace of mind you need.
Offering powertrain warranties for Nissan, Subaru, Hyundai, Jeep, and other popular brands, CARCHEX stands at the top of the car warranty industry with over 20 years of superior customer service. Along with a score of 10.0 from ThoroughlyReviewed, we have also earned an A+ customer service rating from the Better Business Bureau and have been accredited since 2009.
In addition, youll enjoy these benefits when you choose CARCHEX to provide your powertrain warranty:
What Does An Emission Control Warranty Cover
In 1995, the U.S. Environmental Protection Agency introduced a series of laws regulating car warranty coverage for components in the emission control system. As a result, emissions control coverage is federally mandated for:
- Two years or 24,000 miles for performance issues.
- Three years or 36,000 miles for design issues.
- Eight years or 80,000 miles for select component defect issues.
If your home state has adopted Californias emissions laws, your vehicle may have slightly different coverage.
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Can I Get A Warranty On A Used Car
You can negotiate a warranty when buying a used vehicle. Depending on the year and mileage, some used vehicles could be under factory warranty still. Check with the dealership to see if they offer any used car warranties such as standard, limited, or service warranty. An extended warranty is another option but is often more expensive.
Hybrid Component Warranty And Ev Component Warranty
Hybrid component warranties and EV component warranties cover repairs to the battery, electric motor, and other unique components found in an electric or hybrid car. Electric motors require much less maintenance and are subject to less wear and tear than gasoline engines. But the battery of an electric or hybrid car can carry much of the cars value, and replacing it is among the costliest repairs in the automotive world. So, these parts are covered separately.
Our hypothetical CH-R has no hybrid or electric components. But, for comparison, a 2021 Toyota Prius Prime plug-in hybrid vehicle on the same lot carries an 8-year, 100,000-mile warranty on its hybrid components and a separate 10-year, 150,000-mile warranty on its battery.
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What Does A Car Warranty Cover
A car warranty covers defects, or damage that occurs during normal use, and cant be considered normal wear and tear. It pays to replace defective parts with new or reconditioned parts at the companys discretion behind the warranty. It also covers labor.
Should your air conditioning stop working while your bumper-to-bumper coverage is active, that warranty will cover the full cost of replacement. Should your transmission fail during normal driving while the powertrain warranty is active, that warranty will cover the full replacement cost.
But many reasons you could end up in a repair shop are not covered by the standard warranty.
Ask Yourself: Do I Need An Extended Warranty
Extended warranties, or aftermarket warranties, are among the many profitable add-ons dealerships try to sell to both new- and used-car buyers. Going above and beyond original manufacturer warranties, this extra coverage effectively protects the buyer for more miles and a longer period of time. Extended warranties are an option for those who rack up miles or trade vehicles infrequently. That said, the devil is in the details, so make sure to get a thorough explanation of what the extended warranty covers and doesnt cover, its applicable deductibles, and any restrictions on where the vehicle needs to be taken for warranty service.
Some relatively new, low-mileage cars will be offered as certified pre-owned vehicles, with an extended warranty backed by the original manufacturer. This is an extension of the factory powertrain warranty, typically spanning seven years or 100,000 miles from the date the car was sold to its original owner. Factory CPO vehicles usually cost a bit more due to this added benefit and can be sold by only franchise dealerships that sell the same brand .
Keep in mind that any dealership can offer its own certification for a vehicle on its lot, but dealer-certified cars are not equivalent to manufacturer-certified cars. If unsure, request documentation and check for mention of the cars certified used-vehicle status on the Carfax or vehicle history report.
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