Types of Vehicle Warranties: What Coverage you Need

January 27, 2012

When it comes to protecting the money you have invested in your vehicle, vehicle warranties can be the best thing you can study about. The cost of auto repair goes up every day it seems. A vehicle warranty is a way to guarantee any repairs your vehicle needs are paid for by the service company and not by you.

Types of Vehicle Warranties

Vehicle warranties come in many different types and auto coverage options. Choosing the one that is right for you and your car can save you money and time.

Manufacturer’s Warranty

The manufacturer’s warranty is issued by the maker of the vehicle and covers certain parts of your car for a limited amount of time. The law does require the manufacturer to cover all factory installed parts against defects. Federal law also requires the manufacturer covers emissions parts for 8 years or 80,000 miles and passive restraint systems, (i.e. seat belts,) for 5 years or 50,000 miles.

Other then the items listed above, most manufacturers’ warranties typically cover your car for at least two different warranties; the basic and the power train. The basic warranty also known as bumper-to-bumper, covers everything that is not considered wear and tear. Wear and tear items include windshield wipers, tires, brake pads, filters, belts, and hoses. A drivetrain warranty covers everything that makes the car move, including the engine, transmission, axles, and drive shaft. The manufacturer’s vehicle warranties usually are good for 3 years or 36,000 miles.

Extended Warranties

An extended warranty is a contract that states if certain parts or components of your vehicle breaks down, the warranty company pays for the repairs. There are many different auto coverage options available with extended vehicle warranties, including roadside service, rental car reimbursement, travel interruption, wear and tear coverage, seal and gasket coverage, and electronic equipment coverage. When purchasing an extended warranty, it is advisable to find one that covers all options listed here as well as making sure the extended warranty covers everything the manufacturers’ warranty covered as well.

Vehicle Eligibility

While it is easier to get a warranty for a newer vehicle, you can get one for high year/mileage vehicles also. Some features may cost a little more, however. Vehicles with rear dually, salvage titles and even four wheel drive may cost a little more for a warranty.

Mileage

Mileage can be a bit tricky. But you will need to be familiar to understand your policy.  The mileage warranty of your vehicle can either be actual or additional. Actual mileage is what is on your odometer. For example, if your coverage is for 3 years and 100,000 miles and you have 60,000 miles on the car, your coverage only allows an additional 40,000 miles. Additional miles is what is on your odometer plus. So if your coverage is for 3 years or an additional 100,000 miles, the coverage on your car will end at either 3 years or 160,000 miles. When purchasing a vehicle warranty, pay attention to the way the mileage warranty is worded.

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