What is a Car Warranty and What Does it Cover?

Your car happens to be the second most valuable thing. Unfortunately, as cars age, they tend to break down a little more often than when they were fresh off the lot. That’s why, whether you are buying a new or used car, you should ensure you have a car warranty.

The truth is that you can save a lot of money on expensive repairs you may encounter along the way by having that car warranty. The warranty also comes in handy when costly unplanned maintenance needs to be done. That said, this article will discuss exactly what a car warranty is and what it covers.

So, what is a Car Warranty?

Essentially, a car warranty is a form of an insurance contract. It’s an agreement that says your aftermarket warranty company or manufacturer will cover the costs of replacing and repairing damages to your car. As long as the problem is covered on your warranty, you won’t have to pay for costly repairs.

Car warranties could run anywhere from one to three years. However, some warranties will have longer or shorter periods. Your car must be under a particular age and mileage to be eligible for these automobile warranties.

What Does a Car Warranty Cover?

Car warranties are usually broken down into individual levels of coverage. Different car brands always have other terms, and the length of coverage depends on your vehicle’s make. Let’s explore the standard car warranties and what’s covered under each.

1.    Bumper-to-Bumper Warranty

This is one of the most comprehensive car warranties. It precisely covers all car parts between your front and back bumper beside the bumpers. Some of the systems and components covered in the bumper-to-bumper warranty include;

• Fuel delivery
• Vehicle body
• Steering
• Suspension
• High tech systems like GPS and camera
• Heating and air conditioning
• Electronics and electrical systems like door locks and sunroof
• Engine and transmissions

When reviewing your warranty package, note that the bumper-to-bumper coverage may appear under the new vehicle limited warranty. That’s because this warranty covers the car for only a specific term length.

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2.    Powertrain Warranty

While powertrain warranties last longer than bumper-to-bumper warranties, they cover fewer components. In essence, they only cover elements that make your vehicle move like;

• The drive systems
• Transmission
• Engine
• Gaskets
• Axles
• Driveshafts
• Seals
• Transfer case

The powertrain warranty will mostly cover damages that happen due to faulty workmanship or errors of the manufacturer. Powertrain components of your car tend to be the most expensive, and sometimes simple repairs could cost up to thousands of dollars.

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What’s not included in your Car Warranty?

Car warranties won’t cover normal wear and tear. For instance, a car warranty won’t cover brake pads, tires, and windscreen wipers as you’d expect them to wear and tear over time and need to be replaced. You will notice that the car warranty excludes regularly used parts.

Also, car warranties won’t cover;

• Routine maintenance
• Vandalism and theft
• Accident damages
• Negligence damage
• Interior and exterior body damage
• Damages caused by environmental factors

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