Owning an automobile requires high-end upkeep and maintenance to ensure that it keeps running at an optimum state for miles. Every vehicle comes with an auto warranty. An auto warranty comprises an assurance from the manufacturer, wherein the company undertakes the responsibility to fix any defects in the product over a specific period.
What is and isn’t included in a car warranty
When it comes to coverage of auto warranties, you may want to look at several aspects, including your automobile’s brand, the type of warranty you seek, and the degree of coverage. Let us take a look at the types of car warranties that you can avail. There are several options to choose from when it comes to the right auto warranties for your vehicle. Here are the most common ones:
Factory Warranty
Buying a vehicle from a dealership implies that you will be getting a typical manufacturer’s warranty with your car. It is not limited to new cars only. You can also avail them with pre-owned vehicles and used vehicles. As a result, the warranty will cover any defect in the vehicle that results from a shortcoming in any part, or an error in manufacturing. Usually, such a warranty will be applicable for a certain number of years or miles, ideally, whichever occurs first. When you sell such cars, the warranty is then transferable between owners.
Extended Warranty
After the expiry of a factory warranty, the owner of a vehicle can opt for an extended warranty. The terms of such warranty are generally different from auto warranties offered by a manufacturer; however, you are not bound to get it only from them. You can approach any trusted third-party provider for the best options.
Bumper-to-bumper Warranty
Usually, this type of auto warranty is the most comprehensive option for a vehicle. However, it does exclude certain components from its coverage. Still, overall, it can be opted along with either of the above two options and can vary in terms, depending on the warranty provider.
Powertrain Warranty
This type of auto warranty usually covers an array of vital components of a car, which include engine, driveshafts, gaskets, transmission, axles, seals, and transfer case, among others. As compared to a bumper-to-bumper warranty, the coverage of a powertrain warranty is longer. Even though a powertrain warranty falls at the lowest level of warranty coverage, many auto owners still consider it vital to get one, owing to the enormous costs involved in the replacement of the above auto parts.
Corrosion Warranty
A car can get damaged due to rust, especially after external damage to the car from an accident, water, or other environmental factors. Thus, such a warranty will cover a loss resulting from such incidents.
Despite such replete coverage from an auto warranty, there are several parts that do not fall under the purview of an auto warranty. Some examples are:
- Routine repair and maintenance, such as changing oils and rotating tires
- Items such as brakes, windshield, headlight bulbs, clutches, and more
- Scratches in the paint, resulting from damage to an external area
- Interior damage, such as broken plastic or seat damage
- Damage resulting from the negligence of the driver
- Damages resulting from a car accident
- Damage due to environmental factors
- Alterations and modifications.
Car warranty and car insurance: What’s the difference?
Many of you might think that car warranty and car insurance are the same. However, they are two different things. The most marked difference between the two begins with the fact that car insurance is a mandatory requirement, often required by various state laws. A car warranty, on the other hand, is an optional choice.
When it comes to car warranties, there are several coverage exclusions. You can cover all of these only through a comprehensive insurance plan. Take, for example, the incidence of a car accident, where you could use insurance to cover the costs or damages resulting from the accident.
Similarly, as aforementioned, auto warranties will not cover the cost of damages resulting from bad weather, theft, or environmental factors. However, car insurance will certainly provide coverage against these incidents as well. So, speaking in broader terms, car insurance is often preferred by car owners who would like to get a complete and comprehensive protection option for their car.
What is covered in an extended car warranty
You can avail of an extended warranty through a manufacturer or any third-party provider. Usually, an extended warranty can cover:
- Major vehicle systems, including air conditioning
- Powertrain components including transmission and engine
- Damage resulting from corrosion
- Round-the-clock roadside assistance including towing
- Regular wear-and-tear of the car.
Do you need an extended auto warranty?
Usually, after the expiration of a typical factory warranty, your car is no longer protected against any incidence of damage or defect in any part of the vehicle. So, no matter the extent of the damage, if your car does not have additional warranty, you will have to spend your own money on the repairs.
This is when an extended auto warranty can be helpful. Usually, all you will have to do is to pay a monthly amount towards the warranty. It will protect you against the risk of bearing the entire amount of the damage to the car, in an unlikely event. However, before opting for an extended warranty, you may want to consider the following factors:
- Duration for which you plan to keep the car with you
- Are you planning to sell your vehicle in the coming few years?
- Related costs of an extended warranty
- Provider of extended warranty
- Present condition of your car
- Are you driving a luxury model or a regular sedan?
- Time of manufacturing of your car
- How many miles does your car offer?
- What is the condition of your car?
Each of these factors has a bearing on the cost of the warranty that you will have to pay each month if you plan to go ahead and get an extended warranty. It is good to grab hold of a few options and consider the best choice before opting for one.
How to get the most benefits out of your car’s warranty
When spending your money on an auto warranty, you must aim to get the most out of the warranty before purchasing an extended warranty. Here are a few points that you must consider before picking an option. It is essential to ensure that your warranty serves your interests well.
First, decide the type of coverage that you would like to go for. Be clear about the kind of warranty that you are willing to choose. It could be a comprehensive coverage or a bumper-to-bumper coverage. However, in either case, you should be aiming to cover those parts of your car, wherein a damage will entail a bill that you cannot pay or one that might be too much for you to pay.
There are some cars and their makes that are known to require constant repairs and entail costly repair parts. It is especially the case with luxury models. In this case, an extended warranty might be the best option for you to cover the costs of such repairs and replacements.
Consider the cost of the warranty and the amount you will have to pay every month to meet the warranty’s maintenance cost.
Lastly, look for the best options in auto warranty providers, who will be willing to provide a warranty for your car. For this, you will have to make a thorough comparison of some of the best auto warranty providers and the features of their coverage plans.
Best car warranty companies
When it comes to the best car warranty providers, here are some companies that you should consider.
Endurance
It is easily the best choice for vehicles with high mileage. Endurance offers one of the most seamless and convenient warranty options for old vehicles. It provides exclusive features and coverage benefits to owners. One of the notable features of their plans is the absence of a betterment clause. In case of a repair, a better part will replace a cheaper part, which is covered under the warranty. However, their warranty does include a consequential loss clause, which implies that the warranty shall not cover those parts that are affected due to uninsured parts. Their warranty includes several add-on options along with their plans. One of the major drawbacks of their service is that not all their plans are directly administered by them.
Carchex
Carchex has the best warranty options plans available. Auto owners can choose from a variety of five different plan tiers. It has the most extensive number of coverage plans. However, Carchex is only a broker and not a direct provider of these options. Hence, all queries might not be directly handled internally. Thus, when opting for a plan, you will have to check with them for the specific inclusions and exclusions of the warranty.
Concord Auto Protect
Concord Auto Protect has the best customer support system. It is available for its customers round-the-clock. Certified by the National Institute for Automotive Service Excellence, Concord lets its customers get their vehicles repaired at all facilities. They offer three-tier coverage with their plans. Their coverage is nearly average in comparison to other options, but they have still got a lot of viable alternatives to look out for.
However, there are quite a few drawbacks that are associated with the warranty provider. Due to this, you should check before choosing an option with them, such as their consequential loss clause and coverage options, before committing to any warranty plan.
Liberty Bell Auto Protect
If you are looking for a warranty provider with broad coverage of makes, then this is an ideal option to choose. They offer three different plans that include a wide array of components and breakdown services. It is the ideal coverage that you might expect out of your warranty provider.
Although the warranty provider only insures cars that are of the year 2000 or later, the area of its services is somehow limited. There are no options to consider if you want to go for additional coverage, and this makes them limited in choice for commercial use. They have included the betterment clause and the consequential loss clause in their plans. It undoubtedly opens a broad scope for them to avoid meeting several claims.
You best understand the essence of an auto warranty when you face unforeseen circumstances and have to bear a huge cost to replace a vehicular part. A car warranty accentuates the confidence of the buyer. It assures them that they can use the vehicle for a long time. Financial losses are a major determining factor when it comes to car warranties, and accordingly, the decision to get one should be made with strict attention to consequences. Apart from the options mentioned above, there are several other auto warranty providers that you can choose. Regardless of the alternative you opt for, it is important to weigh the pros and cons before zeroing upon any available alternative. It will reduce the possibilities of future regrets.
Now that the importance of auto warranties is understood, one should choose a suitable type of warranty and a reliable provider after doing thorough research. To get a better idea as to which warranty and provider to choose, one can also check with friends and family members.
