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What Is an Extended Car Warranty? And What Does It Cover?

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What Is an Extended Car Warranty? And What Does It Cover?

What Is Extended Car Warranty? An extended automobile warranty might help drivers avoid unexpected auto bills. When a new car’s warranty expires, some people find an extended warranty worth the money. What you need to know about extended warranties.

A Car Warranty

A car warranty guarantees that certain parts of the vehicle will last for a certain period or mileage. As part of these contracts, the factory agrees to pay for particular repairs if a component does not meet reasonable expectations.

What Is A Car Warranty?

A car warranty covers the cost of repairs or replacements when your automobile breaks down mechanically. It will cover mechanical flaws, but not necessarily harm outside of that scope. An automobile warranty does not cover repairs or replacements due to “normal wear and tear.” A warranty usually covers labor costs to repair warranted items.

Car Warranties

The basics are covered by most automakers, although there are differences. A standard car warranty is three years/36,000 miles, whichever comes first. These warranties do not cover stuff like tires, brakes, and other routine maintenance. If the cosmetic damage is confirmed to be a manufacturer’s defect rather than normal wear and tear, it is included.

Warranty for Your Car

A complete warranty covers nearly everything else in the car—including the heating, air conditioning, audio, and electrical components—as long as the failure is due to a manufacturer’s defect and not to the new car owner’s negligence.

Car Warranty Examples

Best new automobile factory comprehensive (also known as bumper to bumper) warranties include:

  • Hyundai: 5 years/60,000 miles
  • Kia: 5 years/60,000 miles
  • Genesis: 5 years/60,000 miles
  • Mitsubishi: 5 years/60,000 miles
  • Volkswagen: 6 years/72,000 miles for 2018 and 2019 models (4 years/50,000 miles for 2020-and-newer models)
  • Jaguar: 5 years/60,000 miles
  • Infiniti: 4 years/60,000 miles
  • Lincoln: 4 years/50,000 miles
  • Tesla: 4 years/50,000 miles
  • Cadillac: 4 years/50,000 miles
  • Powertrain Warranties

But on that same list of vehicles, differences exist in coverage on items like the powertrain factory warranty:

  • Hyundai: 10 years/100,000 miles
  • Kia: 10 years/100,000 miles
  • Genesis: 10 years/100,000 miles
  • Mitsubishi: 10 years/100,000 miles
  • Volkswagen: 6 years/72,000 miles – (4 years/50,000 miles for 2020-and-newer models)
  • Jaguar: 5 years/60,000 miles
  • Infiniti: 6 years/70,000 miles
  • Lincoln: 6 years/70,000 miles
  • Tesla: 8 years/mileage varies by model
  • Cadillac: 6 years/70,000 miles
  • Corrosion Warranties

When the warranties for corrosion coverage are compared, there are many differences:

  • Hyundai: 7 years/unlimited mileage
  • Kia: 5 years/100,000 miles
  • Genesis: 7 years/unlimited mileage
  • Mitsubishi: 7 years/100,000 miles
  • Volkswagen: 7 years/100,000 miles
  • Jaguar: 6 years/unlimited mileage
  • Infiniti: 7 years/unlimited mileage
  • Lincoln: 5 years/unlimited mileage
  • Tesla: 12 years/unlimited mileage
  • Cadillac: 6 years/unlimited mileage

Extended Car Warranty

MBI (Mechanical Breakdown Insurance) or “Vehicle Service Contracts” (VSC). Canada and other countries have their legislation and standards for MBIs. A reputable “extended warranty solutions” provider should only offer you programs that are legal in your state. In most circumstances, your MBI or VSC will protect you if you travel outside of your state or country of residence.

These extended car warranty options usually cover vehicles whose original warranties have expired due to mileage or time constraints. Some are purchased to cover mechanical breakdowns caused by defects outside the manufacturer’s warranty. Their cost usually covers parts repair or replacement. An MBI or VSC can cover more than a manufacturer’s warranty. But both are only as good as their sponsors. Before choosing the best option for your needs, examine the MBI or VSC company’s reputation with the BBB and other review sources.

Who Has Car Insurance And Who Has Extended Warranty?

MBIs and VSCs are not like automobile insurance, and so cover different things. Car insurance helps cover damages from crashes, fires, vandalism, hail, and other weather-related events. To drive lawfully in the US, you must also obtain car insurance.

An extended car warranty (MBI or VSC) covers mechanical breakdowns caused by defective parts, not by accidents or other covered events. MBI and VSC coverage is not required by law, but some drivers prefer the peace of mind they provide.

It’s probably unnecessary to pay extra for roadside assistance since most auto insurance policies already include it. Ask your MBI or VSC provider if roadside assistance is additional or if you can skip it to save money on your MBI or VSC.

What Is Covered By Extended Auto Warranty?

In addition, various providers may offer varying levels of coverage for the same car with varied pricing and deductible alternatives.

That level of coverage is commonly included in the original manufacturer’s car warranty. It excludes suspension, steering, braking, AC, heating, electrical components, instrumentation, power windows, power liftgates, power seats, power mirrors, rearview cameras, emissions, and safety systems. This type of plan usually excludes services like oil changes, brake pads, and rotors, which are considered normal wear and tear. Some plans offer a mix of the two.

The mainline is that you must obtain detailed terms and conditions from the MBI or VSC provider to understand their policies.

Who Offers Extended Auto Warranty?

People find and buy extended mechanical breakdown coverage from two sources:

Buying An MBI or VSC From A Car Dealership Has Both Pros And Cons

The ease of buying from a dealer is appealing, and the dealer’s program may be worthwhile in many circumstances. You may be urged to make the decision straight away if only to roll it into your auto loan. The issue with adding it to your auto loan is that if you don’t like it, getting a refund is difficult.

You likely used MotorTrend’s Ultimate Car Rankings and Car Match services to investigate the car you bought. Taking the time to explore MBI and VSC services can help you buy the proper one. If you don’t buy through a dealer, you still have time to research and make the best choice.

Cons of Buying A MBI or VSC From A Third-Party Provider

In some circumstances, you can even buy the application on your terms if you buy it from a third-party vendor. It allows you to compare coverage levels, terms and conditions, and payment options. It’s possible to cancel an MBI or VSC if you don’t require it or sell your car.

The disadvantage of buying through a third-party supplier is that most do not disclose their prices online, employ misleading advertising, robocall you, or use other methods to pressure you into making an immediate phone purchase. They may also request a $1,000 down payment, making cancellation difficult if you sell your car or do not receive the service you expected.

Don’t forget to ask about their no-robocalls policy and their transparent web pricing. If your car is 10 years old or newer and has less than 140,000 miles, you should be able to get an immediate online quote from Olive.

Christian Edet is a movie and gaming freak. An experienced writer whose interests include games, cars, insurance, and tech provides relevant information to all interested. He graduated from Anglia Ruskin University, Chelmsford, United Kingdom, and studied Business Information Systems (BSc.)