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Automobile Warranties

Automobile warranties come in all shapes and sizes and the reason for this is that in most cases, the seller sets the terms of the warranty, especially when it comes to used cars. In general, a warranty is defined as a guarantee on purchased goods that they are of the quality represented and will be replaced or repaired if found defective. But remember, the seller dictates the terms of the warranty, so you will find that the common theme with all automobile warranties is a time limit.

There are two major types of warranties: “used car warranty” and “new car warranty.” All new cars come with a warranty. The standard new car warranty is a 36 month/36,000-mile warranty. A standard new car warranty typically covers the breakdown of major parts that fail under normal usage. Tires, brakes, batteries, and most interior features are typically not covered under a standard new car warranty. If the breakdown of major parts (or all parts covered under the warranty) is not the result of lack of maintenance, misuse, or an auto accident, the warranty should cover all parts and labor.

What happens once the warranty runs out? Basically, your parts and labor will no longer be covered, which means all repair expenses will be your responsibility. If that does not sit well with you, there is a suitable option. When you purchase your vehicle, you can also purchase an extended warranty. Depending on the type of extended warranty, you will be covered for several years or more after the new car warranty (factory warranty) runs out. Extended warranties typically cover any costs you may incur on the repair of the mechanical systems as outlined in the contract.

Used car warranties, unfortunately, offer much less insurance for much shorter periods of time. Worse, some used cars do not offer a warranty at all and are sold “as is.”  In these cases, whatever happens once you drive off the lot is 100% your responsibility. Used car warranties run the gamut from 30-day warranties up to 12 month/12,000-mile warranties. The most common type of used car warranty, however, is a 3 month/3,000-mile warranty. This type of warranty typically covers only the engine, transmission, and rear end components.

Both used car and new car warranties will end when the time or the mileage runs out—whichever happens first.   Make sure you have insurance to cover your car when your warranty runs out, or to cover costs that your warranty does not cover.  AutoCarInsurance.org can help you find the best insurance coverage by letting you compare policies from the top insurance companies.