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What Is a Car Warranty?

How Does a Car Warranty Work and What Is It?

The price of the vehicle includes the cost of the manufacturer’s warranty. Contrary to appearances, auto insurance and car warranties are not the same thing.

Under a car warranty, repairs at the dealer or dealer-authorized repair facilities for vehicles that break down as a result of mechanical faults unrelated to driver negligence are free for the vehicle’s owner. Up until the car hits a specific age or mileage threshold, warranties are still in effect. Therefore, a brand-new car’s manufacturer powertrain guarantee may be in effect for five years following the time of the initial purchase or until 60,000 miles, whichever comes first.

An extended automobile warranty can be purchased by a car owner to provide additional coverage after the factory warranty has run out. As stated in their vehicle service contract, clients must pay monthly or yearly charges for extended auto warranties as well as any applicable deductibles.

Most extended auto warranties function by paying back repair costs covered by the insurance policy. Owners of cars submit these costs, and the company that provides the warranty subsequently reimburses them for the covered costs less the deductible.

Some extended auto warranties may also cover the cost of renting a vehicle.

Types of car warranties

There are various types of vehicle warranties available for new cars, each serving a distinct purpose. Let’s review some of the most popular auto warranties.

Powertrain warranty

The vehicle’s moving parts, such as the engine, transmission, axles, driveshafts, transfer case, seals, gaskets, and the majority of other lubricated parts that are a part of those systems, are covered by the powertrain warranty.

Although some automakers extend it up to ten years or 100,000 miles, the powertrain warranty normally lasts for five years or 60,000 miles, which is longer than the bumper-to-bumper warranty.

Rust and corrosion warranty

This kind of insurance offers coverage for rust or natural corrosion damage to the paint and sheet metal of your car.  There is no mileage cap on these warranties, which typically have a five-year duration.

Federal emissions warranty

The law mandates that all automakers provide an emissions warranty.

For automobiles that fail emissions tests, the performance warranty covers the cost of fixing specified parts, such as catalytic converters.

State-specific coverage limits may also differ. For instance, California offers a longer warranty than the one required by the federal government, covering more parts for an additional seven years or 70,000 miles.

Accessories warranty

Automobile warranties can also cover extras like transport racks, splash guards, stem caps, and spoilers in addition to parts and components. Car manufacturers often include accessories that are put on a new vehicle before it is given to its owner in the initial limited bumper-to-bumper warranty. The typical warranty period for parts and accessories installed after a new vehicle has been delivered is 12 months or 12,000 miles. Owners of automobiles should be aware that this coverage does not apply to aftermarket or custom equipment.

Extended warranty

Since a manufacturer warranty has a set expiration date or mileage cap, car owners who use their vehicle after that point may seek to further extend the guarantee. These extended warranties, which offer various levels of coverage, are car service contracts offered by the manufacturer or a third party.

How Much is a Car Warranty?

The cost of the factory automobile warranty is covered by the purchase price of the car, so owners don’t directly pay for it like they would for auto insurance. Extended auto warranties do come with a price, though, in the form of premiums and deductibles.

The price and coverage options of extended auto warranties depend on a number of variables, including the make, model, mileage, and location of the vehicle.

How long is the warranty on a car?

Usually, the powertrain has a five-year or 60,000-mile warranty. This, however, is not a set rule. Many automakers, like Hyundai and Kia, provide alternatives for lengthier coverage.

Vehicle owners who purchase an extended warranty can select from a variety of terms—ranging from one to five years—offered by the service provider. The majority of extended auto warranties, however, have a maximum mileage cap for which they provide services; for instance, if a car has more than 150,000 miles, the firm may elect to decline coverage.

Given the rising trend of scam vehicle warranty calls, it is crucial for car owners to be aware of the precise term length of their warranties. In this scam, a fictitious employee of a car warranty provider states that the customer’s current warranty is about to expire. The caller then makes an unfounded pitch for an extended auto warranty. Customers are urged to report these con artists to their phone carriers and refrain from cooperating with them.

What Voids a Car Warranty?

Both original and extended auto warranties stipulate that owners must perform sufficient and regular maintenance on their cars. The provider may void the warranty if it is proven that a part or component failure was the result of carelessness.

Off-road use, overloading, and racing are examples of behaviors that may be deemed to be misuse of the vehicle and result in the voiding of the warranty. The contract may also be void if any alterations or automotive modifications cause harm to other components or systems.

It is strongly advised that auto owners become familiar with their warranty agreement in order to understand what is not covered and what kinds of circumstances can cause the warranty to be voided. Keeping invoices and service documents that show proof of regular auto maintenance is also vital.

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