An auto warranty is a contract that can help provide coverage for specific vehicle repairs or component replacements that your personal auto insurance may not cover. When your vehicle experiences certain mechanical failures or manufacturer defects covered under the terms of the auto warranty, it may help reduce your out-of-pocket expenses for eligible repairs.
An auto warranty may help cover certain repair costs, but different warranties contain distinct terms and coverage, including which components are covered, the duration of coverage, and the claim requirements.
Types of auto warranties
Auto warranties generally fall into the following categories:
I. Express warranties
Express warranties are written agreements made by manufacturers or dealers that specify what components of your car may be covered, along with conditions for coverage and the duration of the warranty.
Manufacturer's warranties (factory warranties)
These warranties may be included when you purchase a new vehicle, potentially outlining coverage like the following as an assurance of product quality:
- Bumper-to-bumper warranty: Also known as the comprehensive warranty, this can help cover most vehicle components, except specifically excluded items.
- Powertrain warranty: This may cover major mechanical failures for engine, transmission, and drivetrain components.
- Corrosion warranty: This may cover rust or corrosion issues.
- Emissions warranty: This can help pay for repairs to emissions control components.
Manufacturer's warranties are typically limited by time and/or mileage, so it may be important to check your warranty’s terms.
Certified pre-owned warranties
These are special warranties for used vehicles that pass manufacturer certification and may provide a range of coverage.
Limited warranties
Limited warranties can help cover specific components or systems under particular terms. Limited warranties are typically based on a specific duration of time where they are applicable.
II. Extended warranties (Vehicle Service Contracts)
Extended warranties are separate from manufacturers’ warranties. They are typically purchased by a vehicle owner separately when buying a new vehicle. They may be offered by dealerships, manufacturers, or third-party companies.
Extended warranties may cover optional components or products not included in the vehicle’s standard coverage. Extended warranties can potentially be purchased at any time, but the cost may increase as the vehicle ages. These warranties may have deductibles that must be paid before coverage is honored.
III. Implied warranties
Implied warranties are not written protections but typically exist because they are established by laws, like the Uniform Commercial Code (UCC). This can cover a wide range of commercial transactions in the United States, which include, cars, trucks, and other vehicles. The implied warranty with the UCC outlines how cars sold to buyers typically need to be fit for their ordinary purpose and meet a certain level of quality.
Common exclusions
Auto warranties typically won’t cover:
- Routine maintenance (e.g., oil changes, tire rotations, brake pads)
- Normal wear and tear items (e.g., tires, windshield wipers, brake pads)
- Damage from accidents or environmental factors
- Modifications or aftermarket parts
- Pre-existing conditions
Read the fine print
Before buying a warranty, it may be important for you to understand what’s included and excluded. Does it require a deductible? If so, how much? What maintenance and repairs can your warranty help pay for that your auto insurance won’t?
What’s the difference between an auto warranty and auto insurance?
It's important to note that auto warranties and auto insurance are separate products with different purposes and coverage options. While warranties may help with mechanical failures, auto insurance typically helps to cover damages from events like collisions, theft, or bad weather.
Infinity Insurance Agency, Inc. (IIA) works with carriers that offer a variety of personal auto insurance policy options. While insurance carriers typically don’t offer warranties, our Spanish bilingual representatives can help you explore your auto coverage options.
Call IIA at 1-855-478-3705 or get a free quote online today!