The consumer guide to uncovering the best value

in auto warranties and repairs.

What You Need to Know About Auto Warranties

Auto warranties come in many sizes and flavors. Knowing the right warranty for your particular vehicle, situation, and driving habits can save you time, aggravation, and most importantly money.

Vehicle warranties are known as manufacturer’s warranties, extended warranties, vehicle service contracts, mechanical breakdown insurance, and product warranties. Each of these has their own benefits and limitations and each are governed by specific laws and regulations.

Manufacturer’s Warranty

Manufacturer’s warranties are issued by the original vehicle manufacturer and cover specific components for a set number of months and a set number of miles. Manufacturers are required by law to cover factory installed parts for defects or workmanship.

In the United States new vehicles come with at least two warranties. The Basic Warranty covers most components except items that are subject to wear out in the normal course of driving, such as brake pads, filters, belts, hoses, and wiper blades. A Powertrain Warranty usually starts where the Basic Warranty ends and only covers the engine, transmission, axles and driveshaft. Your vehicle might also come with a Rust or Corrosion Warranty. Additionally, Federal Law requires Emissions Equipment to be covered for 8 years or 80,000 miles, and Passive-Restraint systems for 5 years or 50,000 miles.

Manufacturer’s warranties typically cover 36 months or 36,000 miles up to 60 months or 60,000 miles. See your owner’s manual, dealer, or check the manufacturer’s Web site for specific details about your particular vehicle.

Extended Warranties, Vehicle Service Contracts, and Mechanical Breakdown Insurance

Extended warranties, vehicle service contracts, and mechanical breakdown insurance are basically the same thing and we will refer to all of them as extended warranties.

An extended auto warranty is basically a contract between you and the warranty provider that says if a part or component described on the policy breaks, or wears out in some cases, the warranty company pays to have it fixed.

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