Extended Auto Warranty Information

New Auto Warranty

Virtually all new passenger vehicles come with limited warranty which covers any defects in material or workmanship for 36 months or 36,000 miles (whichever comes first). High-end makes, such as BMW, Mercedes-Benz or Lexus, offer 4 years/50,000 miles warranty on all of their models, and a few other manufacturers may be even more generous. This original car manufacturer warranty is often referred to as comprehensive or bumper-to-bumper, because it covers just about every part (from the front bumper to the rear, as the term suggests). Wear and tear items are usually not covered as well as damages resulting from improper use.

This "new car" warranty is fully transferable, so don't worry if the vehicle you are buying has had one or more previous owners. This warranty can be voided if the vehicle has ever been issued some form of branded title, such as salvage, dismantled, junk, loss due to flood or fire, etc. A vehicle history report will normally show such title issues, but may not make it clear if the warranty has expired. When if doubt, call the manufacturer customer service number and have them check the warranty status by providing them with the Vehicle Identification Number (VIN), which you can easily get from the seller. Click here for a list of manufacturer toll-free numbers.

Extended Auto Warranty

Once the original warranty has expired, you will have to cover all repairs out of pocket. Repair bills can run up in the thousands and the risk of malfunction increases with the level of usage as well as the age of your vehicle. There are several types of extended warranty that can be purchased if the vehicle is under 100,000 miles even if the original warranty has expired:

Bumper to bumper coverage – comes with new cars, but can be extended relatively inexpensively. This warranty has very few exclusions, which are listed in the policy, and is the best coverage you can get.

Stated component coverage – covers most major parts, including a large number of minor components listed on the policy. This is a good alternative when the vehicle does not qualify for bumper-to-bumper warranty.

Powertrain coverage – covers only the “powertrain” which contains the most expensive parts: the engine, transmission, drive shaft, axles, trans-axles, etc.

Warranty Providers

You can purchase additional warranty from your local dealer or a number of specialized firms. Some warranty providers offer online-only discounts. Watch out for high deductibles and coverage exclusions. Get a few quotes from different extended warranty companies before you settle on a provider. Companies like SmartAutoWarranty.com offer competitive quotes from multiple extended warranty providers.

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