How Does a Car Warranty Work?

By Max Anthony •  Updated: 08/16/21 •  6 min read

A car warranty is a contract that includes coverage for the parts and labor needed to repair your vehicle. However, not all warranties are created equal. There are different levels of coverage, known as “coverage plans.” 

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Some offer only major repairs while others cover everything from minor wear and tear to major malfunctions. If you’re in the market for a new car or just want some reassurance about what type of protection you have with your current one, we’ve got the details on how a car warranty works?

How Does a Car Warranty Work?

A car warranty is an insurance policy that covers a car for manufacturing defects or malfunctions. It also includes other problems like if the battery dies, tires wear down, transmission fails, and etc. 

 The typical time frame of coverage ranges from 3 months to 6 years depending on what type of warranty you purchase. A common misconception about warranties is that they cover expenses resulting in accidents- this is not true! 

How Does a Car Warranty Work?

Accidents are covered through your personal auto insurance which typically requires a deductible payment before any benefits are received.

 Finally, it’s important to know how much your repair costs will be when you’re considering whether or not to buy a warranty so make sure you ask up front!

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Is a car warranty the same as car insurance?

If you’re a car owner, chances are that at some point in your life you’ve asked this question. A lot of people get these two terms mixed up because they sound similar and it’s easy to confuse them with one another. 

However, there is an important difference between the two: insurance covers damages caused by accidents or natural disasters while warranties cover repairs for defects.

One thing to keep in mind is that warranty coverage doesn’t last forever – most will expire after 12-24 months and only cover certain parts on your vehicle such as the engine or transmission. 

You generally want to get both types of coverage (insurance and warranty) if you can afford it so that your investment stays protected no matter what happens!

How much does an extended car warranty cost?

An extended car warranty is a relatively new type of insurance that covers your vehicle for an additional period of time beyond the manufacturer’s warranty. It may also cover other parts and systems that are not covered by the original warranty. 

The cost varies depending on what coverage you want, but it can be less than $1,000 in some cases for up to six years of coverage. An extended car warranty is worth considering if you plan to keep your vehicle long after its initial factory warranty has expired.

Types Of Car Warranties 

Bumper-to-bumper Warranty

Bumper-to-bumper warranties, or a “new vehicle warranty,” are sometimes called basic or introductory warranties. Vehicle components such as the battery, fuel system, and interior electronics, such as the radio or air conditioning, are also considered part of the vehicle. 

Bumpers are not included, however, because those parts are usually not the primary attraction of the ride. In most cases, a limited list of the items that are not covered will be included in the warranty. Therefore, you should specifically review the limited list to ensure you are aware of everything that is excluded.

Corrosion Warranty

Rust is one of the most common types of corrosive damage that can occur to a vehicle’s exterior. Luckily, warranty coverage for such problems typically covers rust and many other issues too because it doesn’t usually cost much to fix them. 

This gives you an added sense of security when increasing your likelihood with this long-lasting protection plan against these damages while also making it seem like they’re worth more than what they actually are!

Powertrain Warranty

This warranty is related to the vehicle’s powertrain. This means the engine and transmission are part of it, but so are other mechanical components such as the axles, transfer case, driveshafts, and seals and gaskets.

Customers in certain states who own a hybrid or electric vehicle can also get a warranty that adds batteries and an extended warranty on hybrid or electric vehicles.

Roadside Assistance

A roadside assistance program promises to help in the event of an accident. This is the normal case: a tow truck would be dispatched to help you.

A warranty may guarantee 100% satisfaction on 100% of all features, but some parts will be excluded. Under no circumstances will a manufacturer be held liable for an accident. 

In both scenarios, failure to maintain the vehicle is to blame, as is the case with any mistakes with aftermarket modifications. Additionally, car insurance is a necessity.

Is an Extended Warranty Worth it?

Extended warranties were created to ensure that when something went wrong with your product, you were covered. But now, many extended warranties are very expensive. 

Some even tack on extra charges for using it outside of the warranty period! This is why you need to do your research before deciding on purchasing one. It would be a good idea to compare prices between dealers and private sellers to determine who would offer you a better deal on a warranty.

When you decide to purchase an extended warranty, you should choose a reputable warranty company. A reputable extended warranty company will offer you a money-back guarantee on their product, as well as provide you with customer service. 

They will take care of all of the technical details including sending you the proper paperwork. You will receive an email or call each month, and will be able to call them directly if you have any questions.

Before deciding on a company to purchase an extended warranty for your car, make sure that they have been in business for a few years. Also check out their website to find out what types of products they carry. 

Most companies will have a wide selection of products to choose from including new or used vehicles, as well as a motorcycle, boat, and truck parts. 

You might want to purchase more than one type of warranty at a time, so that you are assured that you are getting the most benefits for your dollar.

An extended warranty is an excellent way to protect your car. If you ever need repairs due to car mishaps, you can rest easy knowing that your car’s warranty will cover those repairs. 

Even, if your car breaks down, you can rest assured that your warranty will repair it. In addition, an extended warranty will cover your vehicle in case it is stolen or damaged by fire or flooding.

If you ever need your car’s warranty to be enforced, you should contact your local Department of Auto Insurance. 

Many states have laws that require vehicle owners to purchase an extended warranty to protect their car’s warranty should it be involved in an accident. 

Since this is the law, you should not question a dealer or mechanic about whether or not your warranty will cover your repair bills.

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Max Anthony

Max is a gizmo-savvy guy, who has a tendency to get pulled into the nitty gritty details of technology and cars. He attended UT Austin, where he studied Information Science. He’s married and has three kids, one dog and a GMC truck and a Porsche 911. With a large family, he still finds time to share tips and tricks on cars, trucks and more.

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