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Car Warranty Basics: Everything You Need to Know

Comprehensive Guide to New Car Warranties and Extended Coverage

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When buying a new car, understanding its warranty is crucial to protect your investment and minimize repair costs. This guide explains the various types of car warranties, what they cover, what they exclude, and whether extended warranties are worth considering.

Understanding the Basics of a New Car Warranty

A new car warranty is a manufacturer-backed promise to repair specific defects or issues within a specified period. The coverage typically depends on time and mileage.

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 For instance, a three-year/36,000-mile warranty ends when either the time or mileage limit is reached.

Warranties help you avoid unexpected repair costs by ensuring manufacturers cover defects in materials or workmanship during the warranty period.

Car Warranty Basics: Everything You Need to Know

Types of New Car Warranties and Their Coverage

Bumper-to-Bumper Warranty

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Often referred to as a comprehensive warranty, this type covers nearly every part of the vehicle, from electrical components to infotainment systems. However, it excludes wear-and-tear items like tires, brakes, and wiper blades.

Powertrain Warranty

This warranty focuses on parts that power your car, such as the engine, transmission, and drivetrain. Powertrain warranties typically last longer than bumper-to-bumper warranties but require regular maintenance to remain valid.

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Corrosion Warranty

Corrosion coverage applies to severe rust damage that results in visible holes. Surface rust, which is cosmetic, is generally not included.

Roadside Assistance

Roadside assistance includes towing services, flat tire changes, lock-out assistance, and fuel delivery. Many manufacturers include this in their warranty packages, but it may also be available through your insurance provider or memberships like AAA.

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Emissions Warranty

This warranty covers parts related to your car’s emissions control system, such as catalytic converters and engine control modules. Coverage may vary depending on state regulations, with California offering stricter and more comprehensive protections.

Hybrid and Electric Vehicle (EV) Components

EV warranties focus on key components like batteries and electric motors. For example, MotorVero notes that most EV models provide up to eight years or 100,000-120,000 miles of battery coverage, depending on the battery type and manufacturer.

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What Car Warranties Don’t Cover

While new car warranties offer significant protection, they exclude several items:

  • Routine maintenance (oil changes, filter replacements)
  • Wear-and-tear items (brakes, tires, wiper blades)
  • Damage caused by accidents, vandalism, theft, or weather
  • Issues due to improper maintenance or misuse (racing, overloading, off-roading)

Additionally, installing aftermarket parts won’t automatically void a warranty, but manufacturers can deny claims if modifications directly cause a failure.

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What is an Extended Warranty?

An extended warranty, or vehicle service contract, provides additional coverage beyond the new car warranty. It typically begins when the manufacturer’s warranty expires, offering long-term peace of mind.

MotorVero recommends extended warranties for individuals who plan to keep their cars for many years. These plans often include extra perks like roadside assistance and rental car reimbursement.

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Pros and Cons of Extended Warranties

Pros

  • Protects against expensive repairs after the new car warranty expires
  • Extends coverage for long-term vehicle ownership
  • Helps maintain your car’s value with timely repairs
  • Offers benefits like roadside assistance and rental car coverage

Cons

  • Extended warranties can be costly, especially for older vehicles
  • Some warranties have exclusions that limit coverage
  • Not all drivers end up using the coverage they pay for

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Are Extended Warranties Worth It?

Whether an extended warranty is worthwhile depends on your car’s reliability, repair costs, and how long you plan to keep it. If you drive an older car prone to mechanical issues, an extended warranty can save you money in the long run. However, drivers with reliable vehicles may find it unnecessary.

How to Get the Most Out of Your Car’s Warranty

  • Read the warranty booklet: Understand what’s covered and excluded to avoid unexpected costs.

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  • Follow the maintenance schedule: Regular maintenance is key to keeping your warranty valid.
  • Keep detailed service records: Receipts and records prove your car was properly maintained.
  • Avoid misuse: Avoid racing, overloading, or other activities that void warranty coverage.

Final Thoughts

New car warranties provide essential protection against manufacturing defects, while extended warranties offer long-term peace of mind for high-mileage vehicles. By understanding your coverage, exclusions, and maintenance responsibilities, you can make the most of your car’s warranty and avoid unexpected repair costs.

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For expert guidance on car warranties and extended protection plans, MotorVero ensures you get the best coverage tailored to your needs.

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Last Updated On Jan, 27-2025

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