A warranty is basically an insurance plan for your vehicle. Like health insurance for people, car warranties cover specific services, replacements, and repairs. So, what does a car warranty cover? Most warranties cover the repairs and replacement of the engine and transmission, electrical parts, the air conditioning, seat belts, and other safety components.
What Is A Factory Warranty?
A factory warranty, otherwise known as a manufacturer warranty, is offered by the car’s manufacturer and usually covers any damage or failure of parts. This type of warranty will pay for the replacement or repair of any defects that were missed when it was manufactured. When it comes to factory warranties, these are often valid for a certain time period or until a specific amount of mileage is reached on the car. When you purchase a car, a factory warranty may be provided by the manufacturer.
What Exactly Does A Warranty Cover?
There are three basic car warranties that car owners can choose from, depending on what they find important. All of these warranties are granted upon purchase of the car and can last for a few years after you take the vehicle off the lot.
Before signing up for a warranty, shop around with other providers instead of immediately agreeing to the one that your dealership is offering. Just because you bought your brand new or used car from there, it might not be the best deal. Also be sure to read the fine print, as you would when signing any important contract.
Factory or Manufacturer’s Warranty
When it comes to factory or manufacturer’s warranties, the repairs and replacements will be done at the dealership. This type of warranty covers the malfunctions of the engine, air conditioner, and electrical parts but does not cover general wear and tear on parts like tires, windshield wipers, and brakes. If you’re hesitant to shop around when it comes to warranties, signing up for a factory warranty is your best bet.
The bumper-to-bumper warranty is an ideal option for drivers who want to avoid paying a massive bill from their auto repair shop. This warranty is the most comprehensive and covers most parts if you find yourself dealing with a mechanical breakdown, just not the bumper. However, if you damage the parts on your own, the repairs will not be covered under warranty.
Bumper-to-bumper warranties may also offer car owners roadside assistance and rental car services should they experience a vehicle malfunction. This type of warranty is the best for people who want to have peace of mind when it comes to their finances.
The powertrain warranty covers the repair and replacement of the parts required in providing your vehicle with the power needed to run. Coincidentally enough, those parts tend to be the most expensive to fix, which is what makes the powertrain warranty popular among car owners. These parts include the engine, transmission, and driveshaft.
The Bottom Line On Car Warranties
Many car owners question if a warranty is worth it upon purchasing their car. The short answer is: yes. But if you have an emergency fund of money stashed away for car repairs, then you may be able to get away without a warranty.
Car warranties can provide drivers with a sense of reassurance and can reduce the financial stress that comes with damages or mandatory repairs. Most cars become less reliable over time, which means that paying for an extended warranty could pay off. Extended warranties are typically offered to car owners once their factory or manufacturer’s warranty expires. When looking for a suitable extended warranty, take the time to compare what it covers with what the previous warranty covered. Like most warranties, extended warranties also don’t cover routine maintenance, new tires, or oil changes.
Before deciding on a warranty, conduct thorough research on the different types offered by third party insurers in the area. But be sure to do this quickly, as the sooner you sign up for a warranty, the cheaper it will be.