When signing the paperwork for your new vehicle, one thing that you should examine thoroughly is the auto warranty. After all, your car is one of the largest single purchase you might make in life. Research shows car owners now hold their vehicles for longer, and for this reason, warranty coverage becomes all the more important.
Warranty in the automobile sales and service industry is a convoluted concept. It’s no wonder most car owners leave the dealership without the best coverage for their cars. Understanding the type of coverage could save you a lot of money in repairs and maintenance. A vehicle is a considerable investment, and it’s only with this crucial warranty information that you can guarantee its protection.
Of all types of automobile warranty coverage available in the industry, bumper to bumper warranty is the most common. It is a phrase thrown around with abandon in the industry, and most new car buyers take it at face value.
While bumper to bumper warranty has a nice ring to it, you might be surprised it doesn’t cover everything in your new vehicle. Before you sign those papers, you should examine the term lengths, fine print, and details about the payment structure.
Take time to understand what bumper to bumper warranty actually means, how much it costs what it covers and doesn’t. The specifics of this warranty can make all the difference when protecting your new vehicle.
Learn in detail about bumper to bumper warranty coverage to make an informed decision.
Bumper to bumper is a type of extended warranty that covers all major systems of the vehicle except for several listed items. It is a manufacturers’ warranty that covers a new vehicle for three years or 36,000 miles (whichever comes first). Some automakers today offer extended new car coverage terms going to five or six years as a selling point.
It is the most significant component of a new car’s warranty package as it offers the most comprehensive coverage for all parts and systems of the vehicle.
This comprehensive auto warranty can be misleading. The term bumper to bumper warranty implies that all parts of your vehicle from the front bumper to the rear bumper are covered but this is not the case.
The coverage is for all parts except “wear items,” and this list is long. These are parts of your car that deteriorate with time, and you’ll have to pay for such repairs out-of-pocket for these repairs.
Some components and services that this warranty doesn’t cover include:
Lenses and headlights/tail lights
Interior trims/ Fabric and upholstery
Repairs due to accidents or collision
Repairs arising from neglect or lack of maintenance
Oil changes and oil filters
Damage from environmental conditions
The list of items can even be longer or shorter depending on the manufacturer, your vehicle model or the year of manufacture. Some manufacturers also include coverage of some parts for a short period.
If you damage a vehicle part, or the damage happens through an act of God, this warranty won’t cater for repairs. Your auto insurance covers such kind of damage, which is a good reason to invest in the best auto policy out there.
If you enter your vehicle in races or such extreme use, this voids your warranty. Any modifications or alterations to your vehicle could also void the manufacturer’s warranty and cost you a lot in repairs.
It’s advisable to consider this warranty as manufacturers’ defect warranty. Why? Your car’s manufacturer is only willing to replace and repair parts that fail due to defective material or workmanship.
A powertrain warranty is the other common form of extended manufacturers’ vehicle warranty. It covers the engine, transmission, suspension and drivetrain. The warranty is offered for new cars or certified pre-owned (CPO) vehicles. In case of damage or malfunction to these parts, this warranty covers the cost to repair or replacement.
In the engine, this warranty covers all parts from the gears, crankshaft, pistons, timing belt, the oil pump to the intake and exhaust valves.
For the transmission system, most warranties cover all internal components from the mounts to the torque converter. However, you should check the fine print because some manufacturers exclude cables and electrical items.
In the front and rear-wheel drive systems, components covered include the axle shafts and all internal systems and axle housing, gaskets and seals, sprockets, chains and gears.
In most cases, powertrain warranty won’t cover repairs in case of accident or collisions, improper maintenance, poor quality fuel, corrosion and regular use.
Powertrain warranty normally applies 60,000 miles or for five years (whichever comes earlier). However, this might vary depending on the manufacturer or the specific vehicle you want to buy.
The main difference between bumper to bumper and powertrain warranty is the specifics of parts and services covered and the time.
Bumper to bumper covers more parts but has a shorter lifespan. It offers more comprehensive coverage than a powertrain warranty. On the other hand, powertrain warranty coverage applies for fewer parts in your car but lasts longer.
When you buy a new car, the three years basic coverage offered by basic comprehensive warranty might look like a long period in which to make a decision. But, what happens if your car breaks down after the expiry of your bumper to bumper warranty?
For many drivers, the basic warranty coverage period expires without having made bought any further coverage. In case of repairs or servicing, it means you have to pay out-of-pocket. If you had purchased extended bumper to bumper warranty, you would have avoided such costs.
Extended bumper to bumper warranty works after the expiry of the original period provided by the manufacturer. It is an agreement to cover auto repairs and services after the factory warranty expires.
It offers you more peace of mind knowing you can still have your car repaired and serviced without draining your finances. These extended warranties come with perks such as 24/7 roadside assistance, rental car reimbursement, towing and trip interruption protection and other benefits.
An extended warranty comes at an extra cost and is sold separately. It goes into effect once the auto manufacturer’s bumper to bumper warranty expires. While some manufacturers offer extended auto warranties, you can also shop for a better deal from third-party providers.
These comprehensive plans come in different packages to suit unique car owner needs. In addition to covering most parts, repairs and services in your vehicle, they have add-ons to enhance your experience.
Buying an extended bumper to bumper warranty becomes a smart decision if you plan to keep your vehicle over a long period.
This extended coverage offers additional benefits, including:
Added perks to the basic coverage. They include 24/7 emergency roadside assistance, rental car reimbursement, towing to a repair facility, trip interruption coverage and key fob replacements, among others.
You can keep your vehicle instead of selling it due to expensive repairs/services
You save a lot of money on costly repairs when you have this extended car warranty.
Tailored warranty coverage: The best auto warranty companies offer different levels of coverage to suit your unique driving needs.
You can choose the best repair shop in your neighborhood.
Auto warranty companies offer flexible interest-free payment plans. You can negotiate prices with an auto warranty provider to get the best deal on the market.
Enjoy peace of mind knowing your vehicle is covered for long.
Now that you appreciate the importance of extended bumper to bumper warranty, it’s time to shop for the best deal. The choice is between manufacturer auto warranty and comprehensive third-party coverage.
The manufacturer extended warranty limits you in terms of flexibility. They mostly have a single warranty for specific car models. These plans also force you to purchase expensive original equipment manufacturer (OEM) parts. There’s no room for price negotiations and to make it worse, you don’t have a say on the service shop you want to use.
Third-party extended warranty, on the other hand, offers more flexibility in terms of price and coverage. The top auto warranty companies offer tailored coverage plans to suit different car owners. You also get to choose your mechanic, and there’s room for price negotiations.
Are you about to buy a new car? Before you sign those papers, make sure you get the best warranty coverage for your vehicle. This smart move could save you thousands of dollars in repairs and maintenance. With this insight on the bumper to bumper extended warranty, you can now make the best decision to guarantee your vehicle is always in mint condition and at the best price.
To find the best auto warranty deals on the market, don’t look any further. PolicyScout is your one-stop-shop for the best deals on auto insurance and warranty coverage. Contact us today, and let’s help you find the right coverage for your vehicle.