The Essential Guide to Types of Car Warranties and What They Cover

There are several types of car warranties that provide varying levels of coverage and protection. Here are some common types of car warranties:

1. Manufacturer’s Warranty

Also known as a factory warranty or new car warranty, this type of warranty is provided by the vehicle manufacturer and typically covers a certain period of time or mileage. Manufacturer’s warranties usually offer comprehensive coverage for defects in materials or workmanship and may include specific components or systems of the vehicle.

2. Powertrain Warranty

A powertrain warranty covers the major components of the vehicle’s powertrain, including the engine, transmission, and drivetrain. This type of warranty focuses on the essential components that enable the vehicle to move and operate. Powertrain warranties may have longer coverage periods compared to other types of warranties.

3. Extended Warranty

An extended warranty, also known as a service contract or vehicle service agreement, is an additional warranty that can be purchased to extend the coverage beyond the manufacturer’s warranty. Extended warranties can cover various components and systems of the vehicle, depending on the specific terms and conditions outlined in the contract.

4. Certified Pre-Owned (CPO) Warranty

A certified pre-owned warranty is offered by manufacturers or authorized dealers for used vehicles that meet specific criteria and have undergone thorough inspections. CPO warranties often provide additional coverage compared to standard used car warranties and can offer similar benefits as manufacturer’s warranties for new vehicles.

5. Used Car Warranty

When purchasing a used car from a dealership or private seller, it may come with a used car warranty. This type of warranty varies in coverage and duration, depending on the age, mileage, and condition of the vehicle. Used car warranties can help provide some level of protection against unexpected repairs.

It’s important to carefully review the terms and conditions of any warranty before making a purchase. Coverage limits, deductibles, and exclusions can vary between warranties, so it’s essential to understand what is and isn’t covered. Additionally, keep in mind that certain warranties may require adherence to maintenance schedules and other specific requirements to maintain the coverage.