Ensure Your Vehicle is Covered With an Auto Warranty

An auto warranty offers extended protection for new and used cars. Learn the best ways to ensure your vehicle is covered with an auto warranty today.

An auto warranty offers financial protection when minor or major repairs are needed on your vehicle after its purchase. Extended auto warranties cover certain repairs and expenses your manufacturer warranty does not, even when the latter is active. Many reputable auto warranty providers offer protection for new and used vehicles in 2021. Read ahead to learn the best ways to ensure your vehicle is covered with an auto warranty today.

Auto Warranties 101

When you purchase a new vehicle part of the purchase price commonly includes a warranty. Auto warranties are structured to last for a pre-specified number of years or number of miles driven. Some warranties are drafted to combine elements of both. The primary purpose of a warranty is to protect you financially from repair or replacement bills caused by flaws and defects in craftsmanship. Warranties also serve as statements from vehicle manufacturers to consumers about the commitment and assurance the automaker has pursuant to vehicle quality.

Most major parts on vehicles are covered by basic warranties. Each warranty is different, however, pursuant to length, mileage, and coverage protections. Before purchasing your vehicle, it is essential to both understand what the warranty offers and assess if you need more coverage than what is provided by its basic terms.

Manufacturer vs. Extended Warranty

Multiple types of warranties exist for various purposes but two main umbrella categories are most familiar with consumers. Manufacturer and extended warranties have similarities but also numerous differences. Understanding these differences helps you know when you need extended coverage and for how long.

Manufacturer’s Warranty

Most new cars are sold with an accompanying manufacturer’s warranty. This warranty protects you from defects in craftmanship for the life of the warranty. Both the car dealership where you purchased the vehicle and the automaker itself commit to fixing any problems covered by the warranty at no risk or cost to you, provided certain conditions are met. Manufacturer’s warranties last for a predetermined number of years or miles driven. During the life of a manufacturer’s warranty your vehicle’s battery, heating and AC system and seatbelts are commonly covered. Routine maintenance services are generally not covered by a manufacturer’s warranty nor is damage caused due to negligence or accidents. Premature rust, failing sensors and electrical and exhaust systems are commonly covered by manufacturer’s warranties, however.

Implied Auto Warranties

Each U.S. state has its own laws pursuant to auto warranties, which are referred to as implied auto warranty guarantees. A Warranty of Fitness for a Particular Purpose protects you against your vehicle having issues rendering it unsafe and unsuitable for the purpose for which it was sold. Faulty tow ratings, trailer hauling capabilities and RV functionality all apply to this type of implied warranty. A state-implied Warranty of Merchantability requires your vehicle to run as claimed by the automaker. The only exception to this implied warranty is if you signed an as-is or waiver agreement when purchasing your vehicle.

Extended Auto Warranties

Because a manufacturer’s warranty is limited in term and coverage features it is often necessary to consider purchasing an extended auto warranty. For example, the powertrain of your vehicle might need additional coverage protection outside the warranty your vehicle came with at purchase time. Powertrain limited warranties include your transmission, engine, and drive components. Bumper-to-bumper warranties offer comprehensive coverage and last three years or thirty-six thousand miles on average. Bumper-to-bumper warranties cover everything on your vehicle with limited exceptions. A corrosion warranty covers the costs of repairing damage done to your vehicle due to corrosion, whether from natural causes or accidents. Additional types of extended auto warranties include:

Lifetime limited.
Maintenance coverage.
Cosmetic.
Emissions.
Used vehicles.

Warranties for Used Vehicles

Auto warranties are expected when you purchase a brand new vehicle off the lot. Used vehicle warranties are necessary when the original warranty on the used automobile you buy has expired. Most used vehicle warranties limit coverage to cars with a maximum of 100,000 miles but some cover vehicles beyond it. Used vehicle warranties are comparable albeit slightly higher in pricing to the cost of extended warranties on new cars. Still, it is necessary to assess the value and condition of the used vehicle in addition to your finances to determine if a used vehicle warranty is the right choice for you. If your used vehicle is unreliable or you cannot afford potential repair bills, purchasing a warranty from a reputable provider is advisable.

4 Top Reputable Auto Warranty Providers 2021

A reputable auto warranty provider offers legitimate services at reasonable prices. In 2016 the FTC refunded more than four million dollars to people who were scammed out of hard-earned money by fake auto warranty schemes. Most of these scams originated from telemarketing calls, which are not part of a reputable warranty provider’s standard business model. Three of the top reputable auto warranty providers for 2021 include…

Carchex

Carchex is one of the most reliable brands in the industry and is perhaps known best for its multiple auto warranty options and plans. Bronze, Silver, Gold, Platinum and Titanium warranties are all available through Carchex today. Bronze warranties cover transmission, engine, and other major systems. Silver warranties include powertrain coverage and have up to seven year terms. Gold Carchex auto warranties are drafted for automobiles with mileage of 60,000+ miles. The Platinum warranty covers major vehicle components and is the largest inclusion-based warranty Carchex offers. Titanium warranties are essentially bumper-to-bumper plans with terms lasting up to ten years and minimal exclusions. Carchex warranty prices are available from the company via direct quote only but expect to pay approximately $1,500 for a five-year warranty contract with variations based on plan types.

Endurance

Endurance is popular because of its customer service-driven business model. The company is a gold-certified member of the Motor Vehicle Protection Products Association (MVPPA). Endurance offers a thirty-day money-back guarantee on its warranties due to its confidence in its products and services. Endurance warranty prices range between $350-$700 per year and plans start at $30 per month. Direct quotes from the company are available online or by calling 1-888-418-8229.

CarShield

Carchex offers warranties for vehicles with 200,000+ miles on them. CarShield Platinum plans cover the suspension, fuel injector, fuel pump and more. Annual contract and month-to-month warranty plans are available. Six different warranty plans are offered in total starting at approximately $99 per month. State regulations, vehicle type and driver age and driving records all impact pricing as well.

Olive

Olive offers extended warranty coverage options for new and used cars. Olive offers three tiers of warranty plans, Olive Standard, Olive Standard+, and Olive Ultimate. Standard covers the least of the three options, but still offers quality coverage for your vehicle. Coverage includes every lubricated part of your engine AND your vehicles transmission. And don't forget water and oil pumps. Olive offers free quotes for their services, but their prices can get as low as $19 a month. At the time of this writing that is the lowest extended auto warranty available!