Understanding Auto Warranty Types

6 September 2016
 Categories: , Blog


Auto warranties are often provided by the manufacturer, or they may be an option given by the dealer when you purchase your vehicle. There are also third party companies and sometimes insurance companies that also give you the opportunity to purchase warranty coverage. Before opening up your wallet or signing on the line, make sure you understand the basic types of warranties so you can pick the types that are most likely to benefit you.

General "Full Warranty"

This type of warranty is most commonly provided by the car manufacturer, and it is only good for a certain number of years or mileage after the manufacturing year of the car. It also usually transfers with the car to any new owners until the warranty term expires. You may also occasionally run into this type of warranty on "certified used" cars, which are usually sold by a dealership.

A full warranty covers the repair or replacement of any defects or malfunctions in in factory-installed parts. It may also cover certified repaired or replacement parts. It will not cover any aftermarket or non standard parts that you have installed into the vehicle.

Auto Powertrain Coverage

Much like a general warranty, this coverage is designed to last for a certain number of years or until a certain mileage is achieved. It often comes with new car purchases, but you can also purchase your own powertrain coverage on a used vehicle.

The powertrain consists of the transmission, engine, and parts that connect the two. In other words, this coverage protects you if you have trouble with the main working components of your car, which also tend to be the most expensive to replace or repair. This is very good coverage to consider purchasing on your own, even if your dealer doesn't offer it to you.

Rust Coverage

This coverage isn't usually standard, and it isn't even necessary in all locales. Rust coverage is typically designed to last for a certain amount of time, and then you may be given the option to renew the policy.

If you own a newer car in an inland area that rarely gets snow, rust isn't likely to be a major concern. On the other hand, if you live near the ocean or in an area where roads are salted in winter to melt the snow, rust is a much more likely problem so this coverage could be well worth it.

For more information on the types of coverages that are available and to get help in picking the right ones for your needs, contact a warranty company in your area.