7 Types of Car Warranties

a person examining a toy car with a magnifying glass symbolizing a car warranty

When you purchase a new car, it can be confusing to keep track of all of the different types of warranties available. There are several different types of warranties, and each will cover a different part of the car. To better understand what you’re paying for, here are the seven types of car warranties you’re most likely to run into while purchasing a new car.

  1. Basic Warranty
    Basic warranties are also referred to as “bumper-to-bumper” coverage. This type of warranty comes with all new cars and sometimes is transferrable when the vehicle is sold to a new owner. A basic warranty will cover the parts of a car that may break down due to normal wear-and-tear or manufacturing error. This type of warranty will not cover parts that normally break down such as batteries or tires, and certainly will not cover any damage that is due to misuse of the car.
  2. Dealership Warranty
    This type of warranty is given to vehicles when it is purchased from a dealership. Each dealership will typically cover different things. There are usually specific stipulations in the contract regarding what is covered and what you must do to repair any covered parts. These stipulations may include that you can only have your car serviced at the dealership where you purchased your vehicle.
  3. Extended Warranty
    Extended warranties are also known as aftermarket warranties. This type of warranty will cover a vehicle for an additional period of time after the manufacturer’s warranty has ended. Each company will have a different type of extended warranty and some vehicles may not be covered at all. You can check each manufacturer’s website to determine if there is an extended warranty which will be offered to your vehicle. Generally, an extended warranty will cover less than what the original warranty did.
  4. Powertrain Warranty
    A powertrain warranty covers the major parts of the vehicle such as the transmission, engine, and transaxle parts. Should there be a manufacturer error, these parts will be replaced or repaired at no cost to the owner. Some companies offer powertrain warranties without any deductibles while others have a deductible that varies. This type of warranty may also be referred to as a drivetrain warranty.
  5. Rust and Corrosion Coverage
    This type of warranty may not come included in the basic warranty with all dealerships. While you can find this type of warranty included in basic warranties in manufacturers like Buick, not all companies will offer this type of coverage. As the title implies, rust and corrosion coverage will cover your car in the case of rust, usually after it’s made a hole in the metal. Some manufacturers will offer this warranty from a certain point on the vehicle down. For example, you may only be covered from the window line and down.
  6. Emissions Warranty
    This type of warranty covers any emission problems that you may experience after a certain amount of years or miles. An emissions warranty may be covered under the basic warranty, but it may only be offered separately. However, finding this type of warranty separate is rare. Ford is one of the few companies where you will find the emissions warranty separate from the basic warranty.
  7. Roadside Assistance
    While this is generally offered by car insurance companies, roadside assistance may also be offered by some car manufacturers. If you are stranded on the side of the road due to issues with your vehicle, you will receive help if you have roadside assistance. Most car manufacturers will tow the car or change a tire free of charge and are available 24/7.