Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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A car warranty can protect you from unexpected repair costs if the vehicle or one of its covered components malfunctions or breaks down. Whether you have a manufacturer warranty or an extended warranty, coverage usually lasts for a set number of months or miles.
Remember that a car warranty isn’t a car insurance policy, and the two aren’t interchangeable. Knowing what you will and won’t get with warranty coverage — and the different types of warranties available — can help you determine how to use your coverage best.
What a car warranty covers
Your car warranty coverage will depend on the type of warranty you have. With that said, here are some general components a warranty typically covers:
Powertrain
A powertrain warranty covers repairs for the parts that keep your vehicle in drivable condition. These parts include the engine, gearbox, driveshaft, and axles.[1]
Electrical components
Coverage often includes essential electrical systems like the alternator, starter motor, wiring, and onboard computers that control key vehicle functions.
Air conditioning
Many warranties cover repairs to the air conditioning system, including the compressor and related components needed to keep your car cool.
Heating systems
Heating system coverage typically protects components like the heater core, the blower motor, and the controls that help you manage cabin temperature.
Safety features
Many warranties cover critical safety systems such as airbags, seat belts, and anti-lock braking systems.
Suspension
Some warranties also cover suspension components like shocks, struts, and control arms that contribute to a smooth and stable ride.
What a car warranty doesn’t cover
While a car warranty often covers a wide range of parts, it’s essential to understand the exclusions. Typically, a warranty won’t cover the following:
Regular maintenance: While some extended warranties may include some types of maintenance, it’s not the norm. If you need your oil changed, tires replaced, or other maintenance done, don’t expect your warranty to help withroutine maintenance costs.[2]
Wear and tear: Normal use causes vehicles to deteriorate over time. But your car warranty typically doesn’t cover wear and tear.
Accidents: If your car sustains damage caused by a collision, you’ll need to use your car insurance policy to get coverage for repairs or replacement.
Specific components: Certain parts may not be covered, depending on your warranty. For example, a powertrain warranty won’t cover drive belts, batteries, or other parts that can wear down over time.
Pre-existing conditions: If your car has a mechanical problem before you purchase an extended warranty, you won’t be covered if the pre-existing condition is the reason for a breakdown.
Types of car warranties
You can get a few different types of car warranties for your vehicle. Here’s what to know about how each one works.
Also known as a factory warranty, the manufacturer’s warranty comes with a new-car purchase at no additional cost.[3]With it, the car manufacturer promises to repair or replace certain vehicle parts that fail due to defective materials or material workmanship.
Under a bumper-to-bumper warranty, coverage typically includes the powertrain, electrical systems, and sometimes additional components. Bumper-to-bumper essentially means most parts between the front and rear bumpers.[4]
Most manufacturer warranties for a new car last three to five years or up to a specific mileage limit, such as 36,000 or 60,000 miles, whichever comes first.
An extended warranty, also known as a service contract, is optional coverage you can purchase separately from the vehicle manufacturer, a dealership, or a third-party provider. It kicks in after the original factory warranty expires, offering continued protection against unexpected repair costs.
Extended warranties vary widely in coverage and length, often lasting several additional years or a set number of miles. Prices vary depending on the provider, vehicle, and coverage level, but they typically cost between $1,000 and $4,000. It’s wise to consider your needs to decide whether an extended warranty is worth it.
With a certified pre-owned (CPO) warranty, the manufacturer or dealer inspects, refurbishes, and certifies the used vehicle before selling it. CPO warranties usually offer coverage similar to a new car manufacturer’s warranty, although the terms are often shorter.
You can get a CPO warranty when purchasing a certified pre-owned vehicle directly through a dealership’s CPO program. The vehicle’s purchase price typically includes a CPO warranty. However, certified cars usually cost more than non-certified used vehicles.
What can void a car warranty?
Even if your car warranty explicitly covers a specific component, certain actions or conditions can void your coverage. The following can nullify your warranty:
Neglect: Keeping up with your car’s scheduled maintenance and using proper fluids is vital. If you don’t, your warranty coverage may not apply.
Misuse: Misuse and abuse can include off-roading in a vehicle that doesn’t have that capability, street racing, and overloading the vehicle.
Unauthorized repairs: If you use non-approved parts or make other unauthorized modifications to your vehicle, you could lose warranty coverage, especially if those changes caused the damage.
Odometer tampering: Your warranty provider may void your warranty if your odometer has been rolled back or tampered with. Besides being illegal, odometer tampering prevents the warranty provider from verifying the true mileage and service history.
If your car is under warranty and needs some repairs, you can take these steps to make the most of your car warranty’s protection:
Review your warranty terms. Check your warranty documentation to confirm the issue is covered, and note any coverage limits, exclusions, or deductibles.
Contact the warranty provider. Before scheduling repairs, contact the dealership, manufacturer, or third-party provider to understand the claims process. Be sure to ask about how you’ll be reimbursed and how long it takes.
Visit an authorized repair shop. Most warranties require using approved or authorized service centers to cover repairs.
Pay any deductible. Many warranties require paying a deductible, which can vary by plan.
Keep records. Save all receipts and service documentation to support future claims and show that you’ve kept up with maintenance.
Pros and cons of a car warranty
If you’re considering buying an extended warranty or vehicle service contract for your car, weighing the advantages and disadvantages is essential.
Pros
Covers the unexpected: Your vehicle may break down when you least expect it, forcing you to dip into your savings or even borrow money to cover the cost of repairs. A car warranty can give you some peace of mind.
Increases resale value: If you decide to sell your car while it’s under warranty, you may be able to transfer the coverage to the buyer, giving you some leverage to increase the sales price.
Predictable expense: A car warranty can help you avoid unexpected high repair bills by replacing them with consistent, scheduled payments that are easier to budget for.
Cons
Can be expensive: Warranties can cost several thousand dollars. And with no guarantee that you’ll ever use the warranty, you may ultimately pay more for the coverage than the cost of potential repairs.
Limitations: Depending on the necessary repairs and the circumstances of the damage, your warranty may not cover you.
Claims can be a hassle: Your warranty provider may limit where you can get your vehicle repaired. Additionally, some warranties require you to pay a deductible for each repair.
Car warranty coverage FAQs
Below, we cover the answers to some common questions about car warranties.
Is a car warranty worth it?
A car warranty may be worth it if you plan to keep your car for a long time, the model has a low reliability rating, or you don’t have the savings to cover large and unexpected repairs.
How do you know if your vehicle is under warranty?
You can check your car’s warranty status by reviewing your warranty documents, reading the owner’s manual or bill of sale, checking the manufacturer’s website, or contacting the dealership that sold it to you.
How long does a car warranty last?
Ultimately, how long a car warranty lasts depends on the type of warranty and the warranty provider. While most warranties last between three and five years or 36,000 and 60,000 miles, some may be shorter or longer. A powertrain warranty usually lasts longer than a bumper-to-bumper warranty.
Does a warranty cover regular service costs?
Generally, no. You typically won’t get coverage for the regular maintenance your vehicle needs.
If you sell your car, does the warranty transfer to the new owner?
In some cases, the warranty can transfer to the new owner. Check with the warranty provider to learn more about transferability.
J.D. Power. "The Difference Between A Powertrain And Bumper-To-Bumper Warranty."
Consumer Financial Protection Bureau. "What are the differences between a manufacturer’s warranty and an extended vehicle warranty or service contract?."
J. D. Power. "What Is A Bumper To Bumper Warranty?."
Ben Luthi
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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