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What exactly does a car warranty cover? Any surprise vehicle breakdowns that need repair or replacements of components can be covered under a car warranty, serving the purpose of covering unexpected repairment costs that can cost hundreds to thousands of dollars. When it comes to clear answers about what exactly will be covered under the different types of car warranties, there is no single direction, it all boils down to which warranty your vehicle is under, the agency covering it, and the plan you have chosen.
When you’re first getting into the vehicle purchasing process, understanding the manufacturer’s warranty and the services they offer under different coverage areas can be quite tricky. Similarly, when your manufactures warranty has run its course, the world of extended auto warranty can seem quite frighting and untrustworthy. Before making any rash decisions or running away from the solution, it is important to fully understand what services are provided and what are excluded so your expenses aren’t met with a shock in any case. It is important to understand what a manufacturer warranty does for you and where an extended auto warranty comes into the picture.
Factory Car Warranty:
When you go through a new vehicle or a certified pre-owned vehicle purchase from a dealership, the vehicle comes with a manufactures warranty. This warranty spreads over different coverage areas like powertrain warranty, accessories replacement warranty, on-road assistance, and other aspects depending on the manufacturer you’re purchasing from. It is aimed to cover any repairments or replacements the vehicle might need over the course of time, in case of any breakdowns due to manufactures error or poor workmanship. Different manufacturers have different course times/ miles run for these vehicles, once this milestone is reached, the car is no longer covered by the manufacturer’s warranty.
It is pretty clear that different components are covered under the manufactures warranty, as long as these issues are not the result of normal wear and tear or the owner’s own negligence but what about labor costs?
Does the new extended car warranty cover labor costs too?
New car warranties from automakers do not cover labor costs and regular service costs, they usually only cover major components like powertrain, electrical systems, and coverage for component repairments, while you have to step in for labor costs yourself. If your vehicle breakdowns due to damage caused by regular use, it will most probably not be covered under your factory warranty.
Extended Auto Warranty:
Once your factory warranty runs its course, your vehicle is left unprotected. It is never a good option to drive around in an unreliable vehicle without protection. That is where an extended auto warranty steps in. An extended auto warranty continues to serve to cover for repairments, rather than having to pay for repairments out of pocket, which can come out to be huge bills, your agency will have you all covered apart from a small deductible being cut from you.
Coverage usually includes both labor and parts costs, unlike factory warranties. In case of unexpected breakdowns, you can rest assured that you won’t have to pay for steep repair costs out of pocket.
Deciding whether you need an extended warranty can be a tough decision. In case your vehicle is highly reliable and you’re sure that you can cover unexpected repairments, there is no need for you to invest in a costly extended auto warranty. But, in the case where your vehicle is either pre-owned, has been running for a long time, faces breakdowns often, and requires high maintenance with costly repairments, the best option for you is to invest in an extended auto warranty. It will not only serve as peace of mind but also prove to be worth the cost in the long run. You can rest assured that your vehicle will be covered for steep repair costs, labor, and component replacement services and will most probably also have the perks of roadside assistance service.
