There are several auto extended warranty types available for both new and used autos. The main three include Powertrain, Bumper-to-Bumper (or Exclusionary Coverage) and Named Component. Here we’ve listed the different types of car warranties to help you decide what’s best for you.
- A Powertrain car warranty covers the Drivetrain only (mainly the internally lubricated parts of the engine and transmission). This type of warranty covers primarly the major drivetrain systems and is typically most relevant for higher mileage vehicles or drivers that have high annual mileage requirements.
- Bumper-to-Bumper warranties (more accurately termed as Exclusionary service contracts) cover all mechanical systems of the vehicle , apart from those listed on an exclusive list of non-covered items. This is typically the easiest form of extended warranty to understand and offers excellent coverage in most cases.
- The Named Component extended warranty covers a specified list of named components. Most major mechanical parts and systems are covered. Always read all the details of each warranty to determine which is best for your needs.
Are You Eligible?
Whether your auto is new or used, you are eligible for an auto extended warranty. The main difference is the cost and eligibility. Comprehensive used car extended warranties are usually a bit pricier the older the vehicle gets in age since the auto is at a higher risk of mechanical failure. The older the used car is, the less availability there is for comprehensive coverage. You can also purchase an extended car warranty to supplement your original manufacturer’s warranty on a new car. This is only beneficial if the two warranties cover different components or different mileage or time periods. Used car extended warranties often come with additional benefits such as roadside assistance, rental, and towing benefits.
We hope that clears up any confusion you may have had regarding extended warranties. Check back continually for more helpful tips!