Consumers can buy an extended auto warranty at any time, even after their original manufacturer’s warranty has expired. Not all warranties cover the vehicle bumper-to-bumper, so it’s important to understand what is and is not covered with your extended auto warranty.
Car warranty plans are typically offered in three types. The most common is the powertrain warranty. The powertrain is comprised of the the components responsible for creating power within the car: the engine, drive shafts, and transmission. If any of these parts fail, the repair cost is covered by the warranty. However, the typical vehicle is made up of thousands of parts so the few covered by the powertrain warranty make it comparably limited.
The Inclusionary Warranty
This warranty, also known as the named parts warranty, provides coverage for parts listed in the contract terms. If a part not listed in the contract malfunctions, the vehicle owner must pay for repairs. Be sure to read the fine print of the contract to determine which parts are actually covered.
The Exclusionary Warranty
This is the most comprehensive auto warranty plan. Also known as a bumper-to-bumper warranty, this plan provides coverage for an array of parts and systems. It covers so many vehicle parts, it is easier to state which parts are excluded. This is why it is called the exclusionary warranty. This coverage applies to the major systems of the vehicle including the electrical components, engine, air conditioner, brakes, transmission, fuel system, transfer unit, front and rear suspension, and more.
Component Coverage
This coverage accounts for factory brakes, air conditioner, electrical components, engine cooling system, fuel system, front and rear suspension, convertible motor, mirror electronics, door locks and more.
Powertrain Coverage
This coverage includes the transmission and engine and drive axle assembly. All of those internally lubricated parts positioned within the differential housing, final drive housing and trans-axle housing are also covered.
Specialty Coverage
This coverage includes business/commercial use, high tech electronic components, navigation system, key loss/damage, components for hybrids/electric/natural gas and even windshield repair.
Additional Benefits
A number of extra benefits are available under the majority of extended car warranties yet they are paid for separately. Examples of such additional benefits include rental car coverage, roadside assistance, fuel delivery, lockout assistance, substitute transportation, and towing.