Useful Information You Should Know About Car Warranties 

Car warranties are crucial for protecting your investment in a vehicle.

A car warranty is an essential protective measure that every car owner should seriously consider. This contract between you and the car manufacturer or warranty provider assures you that certain issues or defects related to your vehicle will be taken care of, financially and service-wise, for a specific period. Understanding the ins and outs of car warranties can be a daunting task, given the complexities and variety of the terms involved. This document aims to provide a comprehensive guide on car warranties, demystifying the nuances associated with them, and empowering you to make informed decisions.

Types of Warranties

Car warranties primarily fall into two categories – Manufacturer’s Warranty and Extended Warranty. The manufacturer’s warranty is usually included in the purchase price of your vehicle, whereas an extended warranty can be purchased separately for additional coverage after the original warranty expires. For example, a Jeep Warranty is a manufacturer’s warranty, while a Jeep Extended Warranty can be purchased for extended coverage. There are also different types of warranties within these categories. The most common ones include:

  • Bumper-to-Bumper Warranty – This type of warranty covers almost all components and systems in your vehicle, except for wear-and-tear items like tires and brakes. It usually lasts for three years or 36,000 miles.
  • Powertrain Warranty – This warranty covers the engine, transmission, and drivetrain components that make your car move. It typically has a longer coverage period, ranging from five to ten years.
  • Corrosion/Rust Warranty – As the name suggests, this warranty protects against corrosion and rust on specific parts of your vehicle’s body. It typically lasts for five to twelve years.
  • Emissions Warranty – Required by law, this warranty covers the emissions control system of your vehicle and usually has a coverage period of two to eight years.


Some warranties might only cover powertrain components such as the engine and transmission, while others might provide comprehensive coverage. Moreover, not every car producer will provide you with the same type of warranty, as well as the coverage of it. It is crucial to understand the scope of coverage before purchasing a warranty. Additionally, most warranties have limits and exclusions, so be sure to read the fine print carefully. On average, the coverage of a car warranty will include mechanical or electrical failures, defects in materials or workmanship, and certain parts that wear out before the expected lifespan. 

However, it is essential to note that warranties do not cover regular maintenance and general wear-and-tear items such as tires, brakes, and wiper blades.


Warranties vary in length. A typical manufacturer’s warranty might last for 3 years or 36,000 miles, whichever comes first. Extended warranties can last much longer, but their exact length will depend on the provider. Some extended warranties might offer coverage for a specific number of years, while others may cover your vehicle up to a certain mileage limit. On average, extended warranties can last anywhere from 5 to 10 years. 

Furthermore, some warranties have a time-based limit (e.g., 10 years) and a mileage limit (e.g., 100,000 miles). It is essential to understand the duration of your warranty and its limitations to ensure proper coverage.


Some warranties are transferable to new owners if you sell your car before the warranty expires, which can enhance the resale value of your vehicle. However, not all warranties are transferable, so be sure to check the terms of your warranty if you plan on selling your car in the future. When purchasing a used car, it is also important to inquire about the remaining warranty and if it can be transferred. The transferability of a warranty is usually mentioned in the terms and conditions and often requires a transfer fee. This fee varies depending on the provider and can range from $50 to $200.

Maintenance Requirements

To keep your warranty valid, you might need to follow certain maintenance schedules and have your maintenance work performed by authorized service centers. Failure to comply with these requirements could result in voiding your warranty. It is crucial to understand the maintenance requirements of your warranty and keep records of all maintenance work done on your vehicle. For example, some warranties might require oil changes every 5,000 miles, while others may have a longer interval of 7,500 miles. By staying on top of maintenance requirements, you can ensure that your warranty remains valid and provides coverage when needed. The warranty terms and conditions will provide a detailed outline of the maintenance requirements, so be sure to read them carefully.


Every warranty has exclusions. These are conditions or components not covered by the warranty, and they are crucial to understand before making a purchase. Common exclusions include accidents, misuse or neglect of the vehicle, modifications made to the vehicle, and damage caused by natural disasters. It is essential to be aware of these exclusions and how they could affect your coverage. For example, if you plan on modifying your vehicle, make sure to check if your warranty will still cover any issues that may arise from those modifications. While exclusions may seem like a downside, they are necessary to protect the warranty provider from fraudulent claims.


The cost of a car warranty can vary depending on several factors, including the type of warranty, coverage offered, and duration. On average, a manufacturer’s warranty is usually included in the purchase price of your vehicle. Extended warranties can be purchased separately and typically range from $1,000 to $2,000. However, the cost can also depend on the make and model of your vehicle, with luxury vehicles often having higher warranty costs due to their complex components and systems. In addition to the initial cost, warranty providers may also require a deductible for each service visit. Deductibles can range from $50 to $200 and are determined by the provider. Most importantly, it is essential to do your research and compare different warranty options before making a purchase to ensure you are getting the best coverage at the most reasonable price.

Car warranties are crucial for protecting your investment in a vehicle. Understanding the types of warranties available, coverage offered, duration, transferability, maintenance requirements, and exclusions can help you make an informed decision when purchasing a warranty. It is essential to read the terms and conditions carefully and ask any questions you may have before signing a warranty contract. By doing so, you can ensure that your vehicle is covered for potential issues, providing you with peace of mind on the road.