Finding a suitable car warranty for your vehicle is essential to making sure you're covered when it comes time for maintenance and repairs. A car warranty is a contract, usually between you and the vehicle's manufacturer or the car dealer, that will cover the costs of repairs up to a certain amount and for a certain period of time, as explained by Consumer Affairs. Learn everything you need to know about finding the best car warranty.
What Do Warranties Cover?
Warranties, in general, can cover a wide variety of damages and repairs that may occur to your vehicle. If the air conditioner breaks down or the transmission fails, for example, an extended warranty likely will cover the cost of repair. Just keep in mind that warranties typically don't cover interior damage that occurs from expected wear and tear.
You can opt for special wear and tear plans, however, that can cover the difference between traditional warranties and interior repair costs. These plans may also cover other aspects of your vehicle, like tires. Wear and tear plans often appeal to those who choose to lease vehicles since they will be responsible for any repairs at the end of the contract.
No matter how durable or advanced a vehicle is, it will need routine maintenance eventually, according to U.S. News. The costs for this maintenance can be burdensome over time, but warranties can cover those costs, as well. In fact, the new-car warranty that covers routine maintenance costs is often enough justification for some drivers to buy new rather than used when they need a vehicle.
Types of Warranties
Before you can find the best car warranty, you need to know what options are available. Here are the various types of warranties and the type of coverage they offer, as described by The Drive:
- Factory Warranty: These warranties come with new cars, and they cover whatever the manufacturer deems appropriate.
- Extended Warranty: Extended warranties function similarly to factory warranties, sometimes offering coverage beyond the factory warranty. They can also take the place of expired warranties, so they can cover new and used cars.
- CPO Warranty: These warranties are designed to accompany certified pre-owned vehicles that have been inspected and approved by the manufacturer.
- Bumper-to-Bumper Warranty: A bumper-to-bumper warranty offers comprehensive coverage for every part on a vehicle that's manufacturer-approved. That means every part of a vehicle you've made no modifications to.
- Powertrain Warranty: As you might expect, a powertrain warranty is designed to cover repairs for basic drive components, such as the driveshaft, engine, transmission, and axles.
- Drivetrain Warranty: A bit different from a powertrain warranty, a drivetrain warranty covers drivetrain components, such as the driveshaft and transmission, according to Consumer Affairs. The key difference is that it does not typically cover the engine.
- Car Maintenance Warranty: This warranty covers general routine maintenance costs, such as oil changes, air filter replacements, and general tuneups.
- Wear and Tear Warranty: A wear and tear plan is used to cover repairs to the interior of your vehicle and some exterior areas, as well. This includes upholstery and paint, and a solid plan may even cover cleaning costs.
How Much Do Warranties Cost?
On average, warranties are generally affordable. This applies provided that you opt for an extended warranty, of course, as factory warranties automatically come with the cost of a new vehicle. Extended warranties can vary, but they typically cost between $1800 and $4000, according to Consumer Affairs. That typically comes out to monthly payments from $80 up to several hundred dollars.
Prices can vary for a variety of reasons, but four primary factors affect the overall cost:
- Amount of Coverage
- Fees
- Deductibles
- Maximum Payout
Warranties are similar to insurance in regard to fees and deductibles. You can find warranties that have no deductible at all, but they'll be more costly in terms of fees and monthly payments. Meanwhile, higher-deductible plans will be cheaper in terms of standard payments.
Best Company Warranties
If you're looking for an extended warranty beyond what a factory warranty will offer, there are two companies you may wish to consider. Endurance is ranked as the best provider by Consumer Affairs and Consumer Advocates, according to The Drive, so its comprehensive coverage may be exactly what you're looking for. It's known specifically for including coverage for repairs and OEM services that many drivers are disappointed to find out their factory coverage doesn't actually include.
Autopom! is also an appealing option if you're a resident of California. Its mechanical breakdown policies are quite extensive, so it's easy to find a plan that covers everything your factory warranty leaves out without having to pay more than you need to.
Best Manufacturer Warranties
If you're more interested in getting as much as you can from your manufacturer warranty, there are certain makes you should consider when choosing a new vehicle. The top manufacturer for generous warranties is Hyundai. While it doesn't offer the longest or most comprehensive coverage, it excels at offering the right balance of coverage and extras that are uncommonly bundled together compared to the rest of the industry.
Volkswagen is another exceptional option when you're searching for a quality warranty that provides adequate coverage. Although that trend has somewhat wavered for 2020, VW's new-vehicle warranties have become more and more generous over the years, with some effectively doubling what the competition offers.
If you're looking for a more luxurious vehicle, consider opting for a Jaguar. Its warranty coverage is far more extensive compared to what you'll find among other luxury car companies. In fact, Jaguar offers bumper-to-bumper coverage for a longer period than any other luxury brand on the market.
Getting the best car warranty possible is easy when you know what to look for. Keep an eye out for warranties with general age and mileage limits, as they're the primary factors that providers used to describe their policies. Of course, different kinds of warranties will be more specific about covered features rather than just the time and distance covered.
Information and research in this article verified by ASE-certified Master Technician Duane Sayaloune of YourMechanic.com. For any feedback or correction requests please contact us at research@caranddriver.com.
Sources:
https://www.thedrive.com/reviews/28682/best-car-warranty
https://www.consumeraffairs.com/auto_warranty/
https://cars.usnews.com/cars-trucks/which-automaker-has-the-best-warranty
https://www.caranddriver.com/news/a28567261/2020-volkswagen-warranty-changes/
https://www.caranddriver.com/features/a28924863/buying-cpo-pros-cons/
