A Guide To Know About Extended Car Warranties

The sellers of the vehicles wish to reflect their confidence in their product. This is achieved by offering a warranty. These warranties are offered as incentives by the sellers to buy their product. A warranty guarantees to repair or replace a particular component if necessary within a specified period of time. It is an agreement that is made between a customer and the manufacturer and in this case the manufacturer has faith in its product.

What Is An Extended Warranty?

It covers the engine and the transmission defects. Most of the extended warranties are the agreements which are made to cover repairs after there is expiry of the factory warranty. It does not include routine maintenance like wear and tear of tires, brakes, etc.

Two Types of Extended Warranty

There are basically two types of extended warranty.

  • Those are provided by car makers which are also called as the original equipment manufacturers.
  • Aftermarket warranties provided by third-party vendors ( an insurance or warranty company that is not affiliated with a car brand)

Manufacturers Warranties – Warranties provided by the manufacturers are of two types when the vehicle is new and these are “powertrain” and “bumper to bumper”. If you are wondering what does Powertrain warranty cover, then read on.

The answer is simple it covers the expenses and the important parts of your vehicle that is its engine, axle assemblies, transfer case and its transmission. It involves covering those parts which are very significant for the operation of the vehicle and these parts are very expensive to replace.

It is a kind of insurance policy on your vehicle and provides safety against the expensive repairs. An extended warranty from the manufacturers also covers extra benefits like roadside maintenance. A bumper to bumper covers other components in the vehicle like a navigation system, power seats, audio system and the other electronics.

Third Party Warranties – These warranties also give similar coverages as provided by the manufacturer but some third party warranties have different rules and needs that are not offered by manufacturer warranty. It may also require you to pay for the repair by your pocket and later you can file a claim for the reimbursement.  This is not as fast as it may take much time. But these warranties cost less than the manufacturer warranties. While purchasing these warranties, read all the coverage details carefully.


An extended warranty is of great help to a customer for the proper maintenance of the car. Many shoppers who have purchased extended warranties are glad that they performed the task of purchasing this warranty. Read the document carefully to ensure that it does what you expect from it.

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