What Are The Types Of Car Warranties?
The most common car warranties that auto manufacturers offer include bumper-to-bumper, powertrain, corrosion, and emissions.
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Key Points:
- All auto manufacturers provide bumper-to-bumper and powertrain coverage on new vehicles.
- Manufacturers include additional types of warranties that cover steel panel corrosion, accessories, emissions systems, hybrid components, and more.
- Extended warranties from manufacturers and third parties can cover repairs after the factory warranty ends.
When looking into vehicle protection, you’ll see that there are a few types of warranties on cars. But what does it all mean?
In this article, we’ll explain the five most common types of warranties on cars so you can make the best decision for your vehicle and wallet. We’ll also introduce you to some of the best extended car warranty providers that have multiple coverage options for drivers to choose from.
If you want to start comparing free quotes from our top recommended providers right away, click below.
An extended car warranty refers to mechanical breakdown coverage offered by a vehicle manufacturer. However, this term is often mistakenly used to describe coverage from third-party companies. Independent providers offer similar protection through vehicle service contracts, but we’ve used the terms interchangeably in this article for convenience.
5 Basic Types Of Car Warranties
The five most common types of warranties on cars are bumper-to-bumper, powertrain, corrosion, emissions control, and accessory warranties. These generally come with your new vehicle and last for your first few years of ownership.
| Types of Warranties on Cars | Details |
|---|---|
| Bumper-to-Bumper Warranty | This is the most comprehensive type of protection, covering most vehicle systems and parts. Routine maintenance services and wear-and-tear parts are not included. |
| Powertrain Warranty | This covers the parts of the car that make it move, including the engine, transaxle, driveshaft, transmission, and front- and rear-wheel drive systems. |
| Rust and Corrosion Warranty | This type of car warranty covers repairs or replacements of rusted-through body sheet metal. |
| Federal Emission Control or California Emission Control Warranty | The federal government requires automakers to offer a limited warranty on many emission-related parts. California has additional emissions laws, which many other states also elect to follow. |
| Accessory Warranty | A wide range of original equipment manufacturer (OEM) auxiliary components are covered, like air bags, sound and navigation systems, and seat belts. Sometimes, safety features are broken out into their own warranty. |
On paper, understanding what a car warranty covers might seem easy. But specifics vary from company to company, so make sure to ask exactly what’s covered when you purchase a vehicle or extended warranty.
Some companies offer unique warranty coverage. For example, GMC offers longer powertrain coverage on diesel engines than gas. Other unique types of warranties on cars include hybrid and electric vehicle protection and battery warranties.
When it comes to extended warranties, some companies, such as Endurance, even offer plans that combine mechanical breakdown coverage and routine maintenance services.
Exclusionary Vs. Stated-Component
When comparing extended car warranty companies, you might run into some car warranty terminology you’ve never seen before such as exclusionary and stated-component coverage.
Exclusionary coverage is the most comprehensive extended warranty on the market. Also referred to as bumper-to-bumper warranties, these types of warranties are so comprehensive that the contracts don’t list every covered part. Instead, they only list the parts that aren’t covered.
Stated-component warranties, on the other hand, list all covered vehicle components in the contract. If something isn’t listed, it isn’t covered. A powertrain warranty is an example of a stated-component plan. All in all, what is covered and what isn’t covered boils down to the warranty agreement itself.
Where Can You Buy An Extended Auto Warranty?
To keep your car protected after your original factory warranty has expired, you have two options: purchase a service contract from your vehicle manufacturer or purchase one from an independent warranty company.
If you buy a brand-new car, it will come with a limited warranty at no additional cost. For long-term coverage, an extended service agreement can be purchased from your car manufacturer before your limited new-car warranty expires, which is typically before the 3-year/36,000-mile mark.
Extended vehicle service contracts are also available from independent warranty companies. An aftermarket car warranty offers more flexibility in terms of coverage, pricing, and benefits. Plans can often be tailored to your specific needs and budget.
Manufacturer Vs. Third-Party Extended Warranty Coverage
Both manufacturer and third-party extended car warranty options have pros and cons, and it’s up to you to decide what you want to get out of coverage. If you’re looking for more flexible and customizable plans, often at better rates, an independent warranty is a better option for you.
But if using OEM parts for repairs is more important, a factory-backed warranty is likely better.
While most automakers and dealers offer extended warranty plans during the sale of a vehicle, there are many reasons to go with a third-party provider.
| Manufacturer Warranty | Third-Party Extended Warranty | |
|---|---|---|
| Coverage term | 100,000 to 175,000 miles maximum | Can extend up to 250,000 miles, plus specific types of warranties for cars over 100,000 miles |
| Number of plans | Generally offers two to three plans to choose from | Usually offers between four and six plans to choose from |
| Repair shop | Repairs can only be made at dealership service centers | Drivers can choose any certified repair facility, including dealerships |
| Perks | Plans usually come with roadside assistance, trip interruption, and rental car reimbursement | Reputable extended car warranty companies offer added perks like roadside assistance, trip interruption, and rental car reimbursement |
Used Car Warranties And CPO Warranties
If you’ve recently purchased a used or certified pre-owned vehicle, you can still qualify for certain types of car warranties. Some automakers will guarantee a transfer of the new vehicle warranty to the next car owner when a car is resold on the private market, and you can often get extended used-car coverage through your manufacturer or an independent warranty company.
More often than not, purchasing a warranty from a third-party company is a better choice for your used or CPO car. The higher terms of an aftermarket warranty provide peace of mind, no matter the age or condition of your car.
Types Of Car Warranties: Conclusion
We recommend shopping around, comparing quotes, and reading reviews of the types of warranties on cars to get a sense of what a plan would look like for you. If you’re not sure where to start, Endurance, Carchex, and CarShield are three of our highest-rated providers that are certainly worth looking at.
FAQ: Types Of Warranties On Cars
Below are a few frequently asked questions about types of car warranties:
What do most car warranties cover?
There are a few different types of warranties on cars, and what’s included in coverage varies from provider to provider. Generally, a bumper-to-bumper warranty covers all parts and systems of a vehicle, with few notable exclusions. Your engine and drivetrain components are protected through a powertrain warranty.
What type of warranty would you find on a new car?
Most new cars come with a range of warranties that cover certain parts for the first few years of your vehicle ownership. The most common types of warranties on cars are bumper-to-bumper, powertrain, corrosion perforation, emissions, and accessories warranties.
Who has the best extended car warranty?
If you’re looking for the best extended car warranty, Endurance may be the way to go. We recognize Endurance for having the Best Overall coverage in the industry. It has six levels of coverage and flexible payment plans. CarShield and Carchex are great alternatives.
How We Rate Warranty Providers
Our review process aims to deliver consistent and unbiased assessments of extended auto warranty providers. While there are multiple qualities that make a warranty company successful, our review team focuses on those we believe are the most important for consumers:
- Reputation: It’s important that an extended car warranty company is able to meet its claims obligations. Companies with a strong rating from the Better Business Bureau (BBB) and a long history of reliable service score well in this category. We also evaluate the availability and transparency of each company’s contracts, as well as whether each provider offers a money-back guarantee.
- Coverage: Our team of experts looks at the number of extended warranty plans available, as well as term limits, exclusions, and added benefits like roadside assistance. Ratings also take into account the availability of maintenance coverage.
- Cost: Cost can be difficult to compare between providers because so many factors impact vehicle service contract pricing. To determine our cost score, we perform a secret shopper analysis for a variety of vehicles and plans and consider available deductibles.
- Customer Experience: We listen to real customer sales calls and comb through reviews on sites like the BBB to learn about customer experiences. Warranty companies with a low volume of complaints score well in this area. We also consider the availability of mobile apps and chat features.
