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Auto Warranty

Auto warranties cover repairs or replacement for certain parts of your car for a limited time frame. This can either come from your auto manufacturer or from a reliable third party. Each type of coverage has its benefits as well as its limitations, whether it's on a new or used car. It is important to know the difference between coverage types and how they can impact you and your vehicle.

There are 2 main types of Auto Warranties:

  • New car warranties
  • Extended warranties

When purchasing a new car, there will be packages that include protections for a limited number of years and/or miles.

Some of These Include:

  • Bumper-to-bumper: Coverage protecting all the “non mechanical" parts of your vehicle (tires, wiper blades, light bulbs, etc.).
  • Drivetrain: Covers breakdown of the mechanics that make your car go.
  • Rust or corrosion: Protects against deterioration of the exterior of your vehicle.
  • Roadside assistance: If your car breaks down on the side of the road while it's under warranty, you'll get picked up and towed to a certified repair shop.

Extended Warranties

Once your warranty expires, it would be wise to pursue an extended warranty. In the simplest of terms, an extended warranty is actually a vehicle service contract that extends the protections on your vehicle for additional years or miles. All new cars come with a warranty that will cover repairs for a certain period of time and a certain number of miles, such as 3 years and 36,000 miles. When this period expires, consumers have the option to purchase an extended auto warranty from a third-party. This would be a new contract given by a third-party provider. It is important to find the right plan for you, and an extended warranty can be a good idea if it covers items likely to break down within the warranty period.

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