Auto Warranty Buyer's Guide | Types of Extended Warranties

The consumer guide to uncovering the best value

in auto warranties and repairs.

Auto Warranties

Types of Extended Auto Warranties

Extended Warranties can range from full Bumper to Bumper protection all the way down to covering only the vehicle’s powertrain, and everywhere in between. The auto warranty industry has broken it down into three major categories and all extended warranties will fall into one of these. They are Bumper to Bumper, Stated Component, and Powertrain.

An Insider’s Secret You Should Know

When is a used car not a used car? When it comes to extended warranties, the industry uses the term “New Car” to mean any vehicle that is still covered by a portion of the manufacturer’s warranty. You could have bought your vehicle from the third owner with 40,000 miles on it and the warranty companies still consider it a new car if it is within the manufacturer’s warranty period. So don’t think that just because you have 40,000 miles on your vehicle and you didn’t buy it off the showroom floor, that you have to settle for a “used car” warranty.

Automotive Resources

Bumper To Bumper Coverage

A Bumper to Bumper warranty, also known as a new car warranty, a wrap program, or an exclusionary policy, is the most comprehensive coverage you can buy. They cover so many parts and components that the policy will only list the items that are not covered. Hence the term “exclusionary” since only the items excluded from coverage are listed. Most bumper-to-bumper policies will also include, or offer as an option, added benefits and coverage such as 24/7 roadside assistance, towing, car rental reimbursement, travel interruption protection, wear and tear coverage, seals and gaskets coverage, and hi-tech electronic equipment coverage.

Bumper to Bumper coverage is only available to what the industry calls “new cars”. In most cases these are vehicles that have up to 50,000 miles. You will pay a small surcharge for miles above 12,000 but the additional protection is well worth it.

An insider’s tip is “Bumper to Bumper does not cover the bumpers”. Contrary to the term “bumper to bumper” these policies do not cover every single part on your vehicle from bumper to bumper. Make sure you read the policy to see exactly what is not covered. They are however the most extensive coverage you can buy.