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Auto Warranty Guide: Everything You Need to Know
An auto warranty takes your financial protection on the road to the next level, but how does it work?
What is an Auto Warranty?
Unlike normal car insurance, which covers the costs of damages in accidents and is legally required in the vast majority of US states, an auto warranty offers you financial protection against the failure of your vehicle’s systems and appliances.
Every new car that’s sold in the US comes with a warranty but, eventually, these warranties expire; leaving the owner vulnerable to expensive repairs should they be required. Luckily, this is where extended warranties come in.
These types of warranties continue to offer the benefits that a new auto warranty does; including financial protection for when things go wrong, and peace of mind that, if your car does need repairing, it’ll be handled properly.Â
How Does an Auto Warranty Work?
An auto warranty is essentially a contract between you and a warranty provider. The warranty outlines what kind of issues you’re covered for, for how long, and under what conditions; much like any other type of insurance. When something goes wrong with your car, the warranty helps cover the cost of repairs for the specific issues you are covered for.
Depending on the type of auto warranty you choose, having one in place can mean you are covered in the event of a mechanical issue or fault. This includes problems with the engine or steering, as well as other breakages. Should something like this break, you’d be free from paying for expensive repair costs.
Other auto warranty plans offer more basic coverage, while others protect your car against things like rust and corrosion. In a nutshell, an auto warranty plan protects your car against unexpected problems, giving you peace of mind about your most crucial mode of transport.
Types of Auto Warranty
As you’ve read above, an auto warranty provides coverage for specific vehicle repairs and replacements when things go wrong with your vehicle. If you buy a car brand new, an extended warranty can be purchased directly from the vehicle manufacturer or, if you get a second-hand car, you can get it from a dealership or third-party provider. Such warranties are designed to help car owners manage the costs of unexpected mechanical breakdowns and, importantly, they can be taken out at any time you like.
Because there’s such a range of different requirements for drivers across the country, there’s a range of warranty types to match. The right type of warranty for you will depend on your car, how often you drive it, how old it is, how many miles it has done, and its general condition. Below, we’ve broken down a few of the most common types of auto warranties for you to explore. Whatever your circumstances are, there is an auto warranty to cover you.
Bumper-to-Bumper Warranty
A bumper-to-bumper warranty offers a more comprehensive type of coverage for your car. It covers most components of your vehicle, but typically excludes regular wear-and-tear issues that may crop up with things like tires and brake pads.
What a bumper-to-bumper warranty does cover is defects in materials and workmanship, so things like broken electric windows, loose bumpers, and malfunctioning electronics wouldn’t come with any additional cost to get fixed. As a result, it’s often a warranty chosen by people who have a relatively new car, as it provides peace of mind while not costing too much.
Powertrain Warranty
Completely different from a bumper-to-bumper warranty, a powertrain warranty focuses on the core components that power your car. This includes the engine, transmission, and drivetrain (the really expensive stuff). A powertrain warranty tends to cover either the cost of repairs or replacements when these things go wrong.
Also different from bumper-to-bumper warranties, Powertrain warranties usually last a long time, as they are more concerned with the critical parts of your car. This kind of warranty is favored by drivers with older cars or cars with more mileage.Â
Corrosion Warranty
A corrosion warranty covers damage caused by rust or corrosion. Most commonly on the underneath of your vehicle, rust, and corrosion can lead to holes in your vehicle’s body panels which, if left untreated, can cause significant damage to your car’s condition. This kind of warranty tends to focus specifically on these holes, and can often exclude surface rust.
As well as this, there can also be a requirement for you to take measures to prevent the build-up of rust by doing things like washing your car regularly. If you live in a part of the US that has harsh winters or high humidity levels, a corrosion warranty could be particularly helpful.
Emissions Warranty
An emissions warranty ensures that your vehicle’s systems meet government-mandated emission standards. It covers components like the catalytic converter, oxygen sensors, and parts of the exhaust and emissions control systems.
The most important thing about this warranty is that it’s federally mandated for certain periods or mileage, so you need to make sure you’re covered. Being covered not only means you comply with the law but also ensures your vehicle remains environmentally efficient.
Electric Vehicle (EV) Battery Warranty
An electric vehicle battery warranty that only applies to you if you own an electric car. It has nothing to do with the battery that’s found in petrol or diesel vehicles (this would be covered by one of the other auto warranty types on this list). The warranty specifically protects against defects or performance issues in your EV’s battery pack.
A warranty of this type often guarantees a minimum percentage of battery capacity over a set time or mileage, ensuring the vehicle maintains a good driving range. As EV batteries are a costly component and have a limited lifespan, a battery warranty should be a key consideration for you and your EV.
Which is the Best Type of Car Warranty?
The best type of auto warranty for you ultimately depends on your specific needs, driving habits, and your car’s age and mileage, as well as your budget, of course. You’ve already read our breakdown of the types of warranties available, so you know what advantages some types of auto warranties have over other types of auto warranties. Comparing their advantages and measuring them up against your own circumstances will help you decide which type of car warranty is best.
Some things to consider when comparing different policies are the cost of the policy, the level of support offered, the range of issues covered, and typical response times. Remember to research what policies are available and how much each one costs before you commit to anything.
How Much Does a Car Warranty Cost?
The cost of an auto warranty can vary significantly depending on factors like the type of warranty, the provider, the car’s age, make, and model, and the kind of coverage you choose. We’ve created a guide to help you understand the costs associated with auto warranties, so head over there to read more about how much an auto warranty could cost you.
Compare Car Warranty Providers
If you’re reading this guide, you probably already know that cars come with various (and large) costs when they go wrong. Because of this, it’s best to get an auto warranty plan in place before something does. As you’ve read, a warranty means you’re able to get back on the road in good time, so your transport isn’t hindered, even when disaster strikes.
We can find you an auto warranty deal that protects your car’s more general health, so you won’t have to worry about what could be around the corner. If that sounds like something you could benefit from (and why wouldn’t it?) click the button below to complete our quick form and start comparing auto warranties today. What are you waiting for?
FAQs
What is covered by an auto warranty?
Auto warranties typically offer protection against mechanical and electrical failures in your car. A warranty means you don’t have to pay for parts or labor to fix your car, so having one can save you a lot of money.
How do I compare auto warranty providers?
Compare leading auto warranty providers by using our online search tool. All you need to do is complete our simple assessment form.
Then, based on your specific criteria, we will search and compare warranty providers on your behalf, leaving the choice entirely up to you.
