When you buy a new car, it comes with a warranty, but what does a car warranty cover? According to Kelley Blue Book, a new car warranty, sometimes called a factory warranty, is the car manufacturer's promise to help pay for replacement parts or repairs covered during the specified warranty period. This warranty is usually included in the initial cost of your car. A full car warranty is a vehicle warranty that promises to repair or replace any part of the car that breaks down, regardless of how it was used. This means that if you have an expensive European luxury car, the cost of replacing its common parts will be much higher than replacing the same parts in a conventional domestic car.
It is important to note that not complying with the manufacturer's recommended maintenance program may void the car's warranty. Car warranties may seem like an unnecessary additional expense, but they can actually save you money on expensive repairs you may face in the future. When analyzing car warranties, it's important to check the conditions and exclusions of coverage. If your car has a mechanical problem or breakdown, such as a problem with the engine or steering, the car warranty could pay for the parts and labor to repair it.
If you don't know the original purchase date, write down the VIN (vehicle identification number) and call any dealer that sells that brand of car. All car manufacturers offer a warranty for their new vehicles, which usually lasts three years or up to a certain mileage, but some offer even longer coverage. Hybrid component warranties and electric vehicle (EV) component warranties cover repairs to the battery, electric motor, and other unique components found in an electric or hybrid car. If your car is faulty, you can opt for a full refund within 30 days, or a partial refund or repairs after that period.
Analyzing the different options can help you find the car warranty policy you prefer and that's best for you, rather than simply taking the one offered by the dealer. A vehicle warranty is a contract between a customer and a car manufacturer, dealer, or third party. Once the initial car warranty has expired, it is possible to purchase additional coverage in the form of an extended warranty. You might get a phone call offering to sell you an extended car warranty or even asking to be paid to renew an extended warranty on a car that you don't remember buying.
However, they differ from initial car warranties in that most include a deductible, just like an insurance plan. Before buying a warranty, consider your budget, your driving habits, and the make and model of your car. A car warranty guarantees your vehicle against manufacturing defects, while an auto insurance plan protects it against external damage.