What an extended car warranty covers depends on your specific warranty. In general, they may include the powertrain (engine, transmission, etc. Some extended warranties only cover the powertrain of the vehicle). But they differ from initial car warranties in that most include a deductible, just like an insurance plan.
Please note that each coverage included in the factory warranty will have a different time and distance limit. While a factory warranty will be fully covered when a vehicle is new, each will expire at a different time. This also means that used vehicles can have partial factory warranties with only special or powertrain coverages. A factory warranty helps you get your vehicle back on track after a mechanical breakdown occurs.
Many drivers are protected by a factory warranty, also called a manufacturer's warranty, as they come with all new and certified pre-owned vehicles. But how do they actually work? It's easy to assume that typical things, such as oil changes, are covered by warranty, but factory and extended warranties are insufficient in this regard. A car warranty is different from car insurance because it covers broken or defective parts, not damage from a collision, extreme weather or other external forces. Even if you don't buy a new car just because of its factory warranty, it's worth doing some research in advance.
An extended car warranty, also called a vehicle service contract or aftermarket auto warranty, is an optional service plan that helps cover the cost of certain auto part repairs or replacements. The MBI is a popular alternative to extended warranties, as they have to follow certain regulations that protect the consumer. If you buy a new car, you may get to a point where the seller starts talking about other warranty options. It's especially useful if you've been loyal to the brand in the past or if other car owners have the same problems.
However, it's smart to be wary of extended warranties, whether you're offered one at your car dealership or you're considering buying one from a third-party warranty company. Warranties can last from one to three years, although there are some warranties that have increasingly shorter terms. We'll explain what you should look for in your contracts so you can understand exactly what your car warranty covers. If you buy a used car from a dealer and the manufacturer's warranty has expired, you may be able to purchase a warranty from the dealer.
However, MBI often requires you to visit a small dealer network and it usually doesn't last as long as the plans of the best auto warranty providers. Read the fine print of your warranty or look at a sample contract to make sure you know what type of service contract your aftermarket car warranty is under.