New car purchases typically come with warranties; either from the manufacturer or the dealership. If you financed the car, your lender would prefer to have one in case of costly defects. Vehicle warranties can save you from paying for expensive repairs. Every make and model vehicle can have a warranty, but some warranties are better and cover more than others.
If you have a warranty currently, you can always select a better one with more benefits. When searching for a car warranty, it is important to know the basics. A vehicle warranty is a guarantee of certain aspects of the car, truck, or van.
Manufacturers offer warranties that guarantee the usability of the vehicle and its parts, usually until a certain point.
A limited warranty has an expiration date, and it will only cover eligible repairs for that period. Once the warranty expires, you will be responsible for repair costs.
A lifetime warranty is a longer, though not forever, guarantee with specific restrictions. While the name is misleading, it offers coverage for a longer period than a limited warranty.
Dealership warranties may cover less than manufacturer’s warranties. They may cover fewer certain aspects of the vehicle and go by one of the following names:
- “Bumper to bumper” coverage
- “Powertrain” coverage
For instance, the manufacturer will offer a warranty on all of the vehicle’s parts for 50,000 or three years. The warranty could cover faulty parts, defects, and other problems not caused by the driver.
Car warranties are not a type of car insurance. Warranties cover mechanical problems but not accidents. A warranty will cover expenses that keep the vehicle operating, as it should normally.
A warranty will not substitute for auto insurance coverage. You will need to get insurance that at least meets your state’s minimum car insurance requirements
Similarly, vehicle warranties will not cover man-made or natural disasters. Only car insurance can take care of expenses related to thief, vandalism, and acts of God.
So, what exactly do car warranties cover? Find out about the benefits of having a warranty on your vehicle.