Everything You Need To Know About Car Warranties

Car Warranties

As a car owner, you want to protect your investment and ensure that it runs smoothly for as long as possible. One way to achieve this is by considering an extended car warranty. However, before you make a decision, it’s essential to understand what extended car warranties are, what they cover, and how they differ from regular warranties. In this article, we’ll dive into everything you need to know about extended car warranties. Keep reading to learn more.

When Do You Need an Extended Car Warranty?Car Warranty

An extended car warranty is a type of insurance policy that covers the cost of repairs and maintenance beyond the manufacturer’s warranty. Third-party providers generally sell extended warranties and can be customized to fit your specific needs and budget. You can click here to view the list of quality warranty providers.

Depending on the terms of the warranty, an extended car warranty can provide coverage for as little as a few months or as long as several years. An extended car warranty is typically purchased when the original manufacturer’s warranty expires. This is because buying an extended car warranty when you still have a valid manufacturer’s warranty in effect is often unnecessary and will simply result in paying for overlapping coverage.

So, when do you need an extended car warranty? The answer largely depends on your circumstances and how much risk you will assume. For example, an extended car warranty might be a wise investment if you have recently purchased a used car without a manufacturer’s warranty. This is particularly true if you are concerned about the potential cost of repairs and maintenance down the line.

What Does an Extended Warranty Cover?

An extended warranty is an optional service contract that covers repairs and maintenance of your vehicle beyond the manufacturer’s warranty period. It provides extra protection to vehicle owners in case of unexpected repairs or breakdowns. The coverage offered by an extended warranty can vary depending on the provider and plan selected. In general, an extended warranty covers the costs of repairs and replacements for major parts of the vehicle, such as the vehicle engine, transmission, and electrical systems, as well as air conditioning and heating systems.

Other components, such as brakes, suspension, and steering, might also be covered under certain plans. It is essential to carefully review and understand what is covered by your extended warranty to ensure that you are getting the necessary benefits for your vehicle. Some providers offer additional benefits such as roadside assistance, rental car reimbursement, and trip interruption coverage. However, it is important to note that the contract has certain exclusions and limitations. For instance, regular maintenance tasks such as tire rotations, oil changes, and brake pad replacements might not be included. Additionally, modifications made to the vehicle or preexisting damage might invalidate the warranty coverage.

How do Extended Warranties Work?Extended Warranties Work

When you purchase an extended warranty, you will usually have the option to choose between different levels of coverage. The more comprehensive the coverage, the higher the price of the warranty.

If your vehicle needs a repair covered by your extended warranty, you will need to bring it to a repair shop approved by the warranty provider. Some providers allow you to choose your repair shop, while others list approved facilities. The repair shop will evaluate the damage and submit a claim to the warranty provider. If the claim is approved, the repair shop will make the necessary repairs, and the warranty provider will pay for the costs. In some cases, the warranty provider may require you to pay a deductible before coverage begins.

What are the Benefits of Purchasing an Extended Car Warranty?

An extended car warranty offers many benefits to car owners looking to extend their vehicle life and avoid unexpected repair bills. One of the biggest benefits of purchasing an extended car warranty is peace of mind. Knowing that your car is covered in the event of a breakdown and your family budget won’t be impacted can make it easier for you to enjoy your car without worrying.

Additionally, purchasing an extended warranty can increase your vehicle’s resale value, as many buyers appreciate the security and peace of mind of having coverage in place.

Overall, extended car warranties can provide car owners peace of mind and financial protection. However, it is important to carefully consider the terms and coverage of the warranty before purchasing. Researching the warranty provider’s reputation and understanding your driving habits and needs can help you make a well-informed decision.

Manufacturer Vs. Third-Party Extended WarrantyManufacturer Vs. Third-Party Extended Warranty

So now, as you are aware of the nitty-gritty of extended car warranties, you must be concerned about whether to purchase it directly from the vehicle’s manufacturer or to rely upon a third party for the dealing. Since both choices bring you peace and a fearless traveling experience on your own vehicle, here are a few things that you should be aware of regarding your decision to purchase an extended car warranty from a third party or the manufacturer.

Manufacturer Extended Warranty

Most of the new vehicles come with the manufacturer’s warranty covering the expenses of repairs, maintenance, and specific wear and tear costs. Many new expensive car models, such as Hyundai and Volkswagen, offer car warranties that are better than the competitors in terms of covered mileage and duration. However, suppose you want to extend your manufacturer’s warranty. In that case, you may upgrade to the extended car warranty contract, which has amplified coverage, better coverage of vehicle repairs, increased coverage duration, etc. You may purchase the extended warranty from the manufacturer when bringing your new car to your home, 3 to 5 years later, or at any appropriate time. The warranty offers the services of factory-trained mechanics and technicians and in-house vehicle parts.

Pros & Cons of Manufacturer Extended Car WarrantyPros & Cons



  • Factory-trained mechanics performs maintenance and repair services
  • Generally, more expensive
  • Convenient to purchase and does not charge additional deductible at the time of repairs
  • Sometimes, it can be purchased only at the time of vehicle purchase
  • Covers new vehicle parts directly from the vehicle’s manufacturer
  • Coverage usually comes with a limitation of 100,000 miles
  • Every warranty is designed according to each vehicle’s needs

Third-Party Extended WarrantyThird-Party Extended Warranty

If you have not bought the extended car warranty at the time of purchasing your vehicle or looking for a trusted warranty provider to cover the benefits, there are various third-party extended warranties providers like Endurance, which are offering exceptional perks. This type of extended warranty comes with additional benefits, which are usually missing in the manufacturer’s extended auto warranty, and usually last longer.



  • You are free to visit any certified and skilled mechanic for your vehicle’s repairs
  • Usually comes with a long waiting period before filing for a claim
  • It comes with plenty of coverage options that last longer
  • The claim can be rejected for unclear reasons
  • The millage coverage is usually more than 200,000 miles
  • Rental car coverage and other added benefits are usually not entertained by the third-party.
  • Can be purchased anytime, even many years after the factory’s warranty expires

Extended Car Warranty GuideExtended Car Warranty Guide

Extended Warranty Coverage

The manufacturer’s warranty can be purchased at the time of purchasing a car but to make your brain free from all the nasty expenses which you might face unexpectedly on the road, there are extended auto warranties available for you. For extra coverage or to cover repair costs, you may avail of a warranty from a trusted provider. Each warranty applies to different parts of the vehicle and for specific repairs.

If you are planning to purchase an extended car warranty and are concerned about its coverage, here are different types of warranty plans which you can expect after your purchase.

Bumper-to-Bumper Warranty

This warranty plan covers any repair expenses of electrical and mechanical components between the bumpers and is mostly termed as an exclusionary contract. The coverage is usually applicable for three years.

Corrosion Warranty

If you are looking for a warranty plan that covers the damage caused due to natural elements like rain or wind, the corrosion warranty has the right plans for you.

Powertrain Warranty

The warranty is applicable for 60,000 miles or five years and covers repair expenses of the vehicle’s main components, including the drivetrain, engine, etc.

Drivetrain Warranty

This type of warranty covers the repair and maintenance expenses of the vehicle’s specific mechanical components like wheels, drive shafts, transmission, and axles and typically lasts for 60,000 miles or five years.

Stated Component Warranty

This type of extended auto coverage covers the repair expenses of the components specified in the contract and usually covers the vehicle parts such as brakes, steering, gearbox, and engine and typically lasts for three years or 36,000 miles.

How To Avoid Car Warranty Scams?Avoid Car Warranty Scams

While investing in an extended car warranty sounds great, various frauds and scams are spreading around, making consumers fall prey to these rackets. Due to these widespread scams, it becomes difficult to choose a trusted and credible extended car warranty provider. You probably have received robocalls or calls from telemarketers insisting you purchase an unbelievably attractive warranty plan. But beware of these calls, as these unsolicited calls can spoof your identity.

To save you from falling for these scams and help you pick the provider who understands your vehicle and the coverage it requires, there are a few useful tips that you may follow.

  • Do not go blind while signing the extended car warranty contract; always carefully read the terms and conditions specified in the contract. The company you have chosen probably has marketed its prospects beyond reality, so it is important to know exactly what you are signing for.
  • A credible and reputed car warranty provider never asks for your personal details and credit card information. Stay alert if this instance happens to you before signing any contract.
  • Always ask for a copy of the contract before paying any amount. A trustworthy company always provides a legitimate copy of the signed contract, and the consumer does not even have to ask for it. But if it doesn’t, you must have to ask for it before signing the contract.
  • Most telemarketers brag about their affiliation with the vehicle’s manufacturers, instantly leaving a pleasant impression on the consumer. But do not hurry and confirm the affiliation yourself by directly contacting the manufacturer or the dealership.
  • If you are considering any extended car warranty company, do not forget to check for reviews and see how previous consumers have reviewed its services.
  • The company you have chosen is probably only responsible for selling the plan to you and not for providing the claims. In such conditions, always verify the administrating company that is responsible for accepting or rejecting a claim.

How To Use An Extended Car Warranty?

An extended car warranty is simpler to use, just like a vehicle’s manufacturer warranty. Once you have received your copy of the signed contract and signed up for the terms and conditions, you can use the warranty plan whenever you want.

Here is how you can use your extended car warranty to cover the repairs required by the vehicle.

  • In case of a manufacturer’s extended car warranty, you may bring your vehicle to only the company’s repair shops and factory-trained technicians or mechanics, while in case of a third-party extended auto warranty, you may take your car to any certified technician to get it checked thoroughly.
  • The technicians diagnose the issues with the vehicle and suggest the appropriate repairs for it that are covered under warranty.
  • Most of the warranty-providing companies issue a membership card to the warranty holders, which you may show to the mechanic so they may proceed with the repairs and pass the claim to the extended auto warranty-providing company.
  • Ask for the deductible if it is to be paid at the end of the repairs.
  • The policy you purchased pays for the vehicle expenses, including its parts, labor, and any applicable taxes.

Some of the extended auto warranties can only be benefitted after the waiting period has gone. The waiting period is the specific time after which the claim regarding the vehicle’s repairs is made.

Best Extended Car Warranty CompaniesExtended Car Warranty Companies

Save yourself from falling prey to scams, and do not get crazy over those lucrative fake marketing tactics made by the ‘so-called’ scammers. The policies offered by fake telemarketers are void; they often may even spoof your identity.

While it could be difficult to find transparent car warranty providers in the market, some amazing companies are serving consumers in the best way possible and making their investments worthy. Each company covers different types of repairs under different price options.

Some of the most reputed and trusted extended car warranty providers who have always prioritized consumer convenience are; Endurance, Concord Auto Project, CarShield, CARCHEX, and Omega Auto Care. These companies offer the highest mileage and the maximum coverage duration with flexibility. Do not forget to check out these extended car warranties providing companies to save yourself from any scam and increase the life span of your vehicle.

Bottom line

Your car is your precious investment. To keep it in its best form, you should purchase an extended car warranty to leverage its maximum perks. When buying an extended warranty, comparing prices and coverage options from several warranty providers is the best way to obtain the most value for your money. Once you have chosen the level of protection you require and clearly understand the coverage offered, it’s time to get the best possible protection for your car from a trusted extended auto warranty-providing company.

Frequently Asked Questions (FAQs)

What is the average cost for an extended car warranty?

The cost of an extended car warranty depends upon the vehicle model, the mileage, the types of repairs that will be covered, and the coverage duration specified by the provider. However, on average, an extended warranty costs between $2000 to $3500.

Can You Buy An Extended Car Warranty After Purchase?

The best part about an extended car warranty is that it can be purchased anytime. Although many car manufacturers suggest purchasing it when paying for the vehicle, you may invest in this type of warranty anytime during the lifetime of your car.

Can I Transfer an Extended Car Warranty?

Many extended car warranties are transferable to the next owner of the vehicle. However, you need to understand the policies specified in the contract to know the transferability of the extended car warranty in the future.

How is an Extended Warranty Different Than Car Insurance?

Car insurance provides expense coverage in case of a collision or an accidental collapse. On the other hand, an extended car warranty provides additional coverage of different types of repairs and maintenance expenses for a prolonged duration.

Are Auto-Extended Warranties Worth It?

An extended auto warranty is worth your time and investment if you are concerned about your vehicle’s expenses in the future. By providing coverage of almost all hefty maintenance and repair expenses, an extended warranty brings you peace of mind and saves you from breaking the budget.

How To Cancel An Extended Car Warranty?

To cancel an extended auto warranty, specify your mileage and cancellation date on the warranty form and get a signed copy from the dealer. You may cancel your extended warranty at any time and will be given a certain amount for the unused period.

What is the Extended Car Warranty Waiting Period?

The waiting period for Extended Car Warranty before filing a claim is mostly 30 days/1000 miles however, for those car owners who drive at low mileage, some warranties offer a waiting period of 90 days/200 miles and 60 days/500 miles.

Can I purchase an extended car warranty for a used car?

If the used car you purchased is of a premium brand and the latest model, it is worthwhile to purchase an extended car warranty plan for it. If the used car is of no high worth, you may skip investing in the extended car warranty for it. Most extended auto warranty companies do not cover old models or vehicles that have run for 100,000 miles, so it is important to consider the car’s history before purchasing an extended warranty plan.

What will happen if I take my vehicle to the repair shop that my warranty provider does not cover?

In this case, either you must pay from your pocket to cover the repair expense, or the repair cost is covered to a specific limit under warranty. While purchasing the car warranty, do not forget to find out the repair shops and technicians to whom you may bring your vehicle to cover the repair expenses.

Which repairs are exactly covered under the extended car warranty?

The extended car warranty covers any mechanical or electrical breakdown, engine failure, component damage, or any trouble with the non-wear and tear parts of the vehicle. You may look into the coverage policies before signing the contract.

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