Understanding Car Warranties: What Do They Cover?

A car warranty is an agreement between you and the manufacturer of your vehicle,that protects the you from unexpected repairs or replacements of certain parts in your vehicle. It is an important aspect to know about before buying a new or used car, as it can save you a lot of money in the long run.

How long does a car warranty last?

The length of a car warranty varies, but the average is around 3 years or 36,000 miles, whichever comes first. Some manufacturers offer longer warranties, while others may only offer a 1-year warranty. It is important to review the warranty agreement carefully to understand what is covered and for how long.

What does a car warranty cover?

A car warranty typically covers the cost of repairs or replacements of specific parts in your vehicle that fail because of a manufacturing defect. The exact coverage varies by manufacturer, but common items covered by a car warranty include the engine, transmission, and drivetrain. Additionally, some warranties also cover electrical components, air conditioning, and audio systems.

To figure out exactly what your warranty covers, it's a good idea to take a look at the warranty paperwork you received from the manufacturer. This should have a list of the parts covered and any exclusions or limits.

If you're still unsure, feel free to give the manufacturer a call and ask for more details. Just keep in mind that some warranties have time limits for coverage and some parts may only be partially covered. By knowing what your warranty covers, you can make smart decisions about repairs and maintenance and take advantage of the coverage your manufacturer is offering you.

Remember that all warranties are different and have different limitations

It is also important to understand the limitations of your car’s warranty. For example, some warranties do not cover wear and tear or normal maintenance items such as oil changes or tire rotations. Additionally, some warranties have restrictions on where repairs can be performed and may require the use of only authorized repair facilities.

It is important to keep in mind that a car warranty is not the same as a maintenance plan. A maintenance plan covers the cost of regular maintenance items such as oil changes, tire rotations, and other routine services. These plans are also offered by the manufacturer or a third-party company, and can be purchased separately or as part of the overall vehicle purchase.

When buying a new or used car, it is important to ask the dealer or seller about the type of warranty that comes with the vehicle and what it covers. It is also a good idea to research different manufacturers and their warranty offerings to find the best coverage for your needs.

How are car insurance policies and car warranties different?

Car insurance policies and car warranties are two different forms of protection for your vehicle. Car insurance covers the cost of repairs or replacement of your vehicle in the event of an accident or theft. The difference with a warranty is that it only covers the cost of repairs or replacement of specific parts due to a manufacturing defect.

It is important to have both a car insurance policy and a car warranty for full protection of your vehicle. Without car insurance, you may be responsible for paying for repairs and replacements out of pocket in the event of an accident or theft. Without a car warranty, you may be responsible for paying for repairs and replacements of specific parts that fail due to a manufacturing defect.

How to identify and avoid car warranty scams

Unfortunately, scams surrounding car warranties are becoming more common. These scams often come in the form of robocalls or fake letters in the mail, claiming that your warranty has expired and offering to sell you an extended warranty at a discount.

One of the easiest ways to identify a car warranty scam is to be aware of the language used by the caller or in the letter. Scammers will often use high-pressure tactics, such as saying that you only have a limited period of time to take advantage of the discounted offer.

They may also use vague language, such as claiming that your warranty has "expired" without specifying which warranty they are referring to. They also try asking for your VIN number and insurance information to seem legitmate when reaching out to you. If you are unsure about the validity of a call or letter, do not provide any personal information and hang up the phone or throw the letter away.

Another red flag of a car warranty scam is if the caller or letter is offering an extended warranty at a discounted price. Legitimate car warranties are usually offered by the manufacturer, not by a third-party company. If you receive an offer for an extended warranty, it is best to contact your manufacturer directly to verify its legitimacy.

Also remember that you have the right to ask questions and to refuse any unsolicited offers. Protecting yourself and your personal information is the best way to avoid falling victim to a car warranty scam.

The main takeaway

A car warranty is an important aspect to consider when buying a new or used car. It provides peace of mind by covering the cost of repairs or replacements of specific parts in your vehicle that fail due to a manufacturing defect. It is important to understand what a car warranty covers, how long it lasts, and how it differs from car insurance (and how to spot the scams).

By having both a car insurance policy and a car warranty, you can ensure full protection of your vehicle. If you enjoyed reading this post, subscribe to our newsletter for more helpful information (we’ll only bug you once a month😉).

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About the Author: This article was crafted by the LOOP Marketing Team. Comprising of seasoned professionals with expertise in the insurance industry, our team is dedicated to providing readers with accurate, up-to-date, and valuable information. At LOOP, we're passionate about helping families navigate the world of car insurance, ensuring they get the best coverage at the most affordable rates. Learn more about our mission and values here.

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