-
4 Different Kinds Car Warranty Insurance
When shopping for car warranty insurance, you’ll find that there are many different types of coverage offered. Depending upon the year and type of your vehicle, and the coverages that you are seeking, many different warranty companies may be able to provide you with a good deal. It’s always important to research coverages, including exceptions, and compare prices and company reputation before making your final selection.
1. Manufacturer Limited Warranty
Most new cars are automatically sold with car warranty insurance. This is usually referred to as a limited warranty, but may cover bumper-to-bumper defects in parts or workmanship. This will likely include any parts that malfunction, but not wear and tear, for a period of time or mileage. An example may be 4 years or 40,000 miles, whichever comes first. Warranties vary by car manufacturer. Some also offer extended warranties that take effect after the initial warranty period ends, or Certified Pre-Owned warranties that cover major system defects once a car has been determined to qualify as certified. Extended warranties will generally differ from the original coverage, but should still cover poor workmanship or poor part quality on the major systems within the vehicle. It’s important to verify any current coverage on the vehicle before shopping for an additional policy.
2. Bumper to Bumper Warranty
Many companies specialize in selling car warranty insurance. You can research AAA car warranty insurance, Fidelity car warranty insurance or coverage from any number of the many service providers that sell this type of policy. One of the policies offered by most of these companies is generally bumper to bumper. This will normally mirror coverage offered by the manufacturer, so make sure that your car is either not covered by a manufacturer warranty, or that you can purchase this coverage for a used vehicle. Bumper to bumper should cover all parts of the vehicle that may malfunction. Aftermarket parts, labor and things such as the battery, tires and wear and tear may not be included, though you might have the option to add this coverage for a fee.
3. Used Car Warranty
Used car warranty insurance is usually a bit more limited in inclusions and will only cover major systems in the car. Used cars are more likely to experience mechanical problems due to age, therefore this type of warranty will likely cover only things like the engine, transmission, drivetrain, heating and cooling, fuel system and braking system. Wear and tear is generally not included, nor are items like GPS or emissions systems.
4. Powertrain Warranty
Many companies offer car warranty insurance that covers only the powertrain. This, of course, includes most of the major systems that make the vehicle operable. Dodge has recently implemented a lifetime powertrain warranty on most of its new cars, but this only applies if you are the original owner. Aftermarket companies may offer this type of policy which covers the engine, transmission, drivetrain, pump systems, four-wheel drive components and more.
