Guide to car warranties: Everything you need to know

Quick insights

• Car warranties generally cover the costs of repairing mechanical problems and defects.
• Different types of warranties provide more or less coverage depending on the type of warranty and the company providing it.
• Issues related to wear and use, as well as maintenance costs, aren’t covered under most car warranties.

What is a car warranty?

A car warranty in the United States covers the costs of fixing certain defects in a vehicle for a set time period. More often than not, car warranties provided by automakers will cover issues in the drivetrain or powertrain, which includes the critical parts a car needs to work. There are additional types of car warranties that cover other parts and potential issues.

How long does a car warranty last?

New car warranties in the United States can last up to 10 years, but the coverage period varies mostly by automaker. There might be a mileage limit, too. The warranty’s expiration date or the mileage limit is used to indicate a car warranty’s extent of coverage.

For used cars, warranties could last anywhere from a few months to several years. A used car could still be under the factory warranty after your purchase, as well. The extent of coverage depends mostly on the manufacturer, dealership and condition (or age) of the vehicle. You might even be able to purchase another type of warranty.

Types of car warranties

There are many types of car warranties offered by manufacturers, dealers and even third parties.

Basic warranty

New cars sold in the United States come with basic warranties from the manufacturer to cover defects with the most critical parts of a vehicle. These are often called bumper-to-bumper warranties because nearly every mechanical part from the front to the back of the car is covered.

Powertrain warranty

A powertrain warranty covers a number of issues that could occur within critical parts of a vehicle:

• Engine
• Transmission
• Driveshaft
• Axles
• Differential
• Transfer case

The warranty’s terms will specify the issues with these parts that will be covered, as not every issue will be. The powertrain also consists of components that aren’t covered by this warranty type, such as brake pads and oil filters. 

Extended warranty

Extended warranties provide supplemental coverage, usually for an additional time period or greater mileage limit after a factory warranty expires. An extended warranty may also cover repairs and services that aren’t included in the factory warranty.

Dealership warranty

The warranties offered by car dealers are more common for used cars than new ones. Certified pre-owned warranties, for example, are common options for cars that have passed extensive inspections based on the manufacturer’s criteria. This type of warranty might supplement a factory warranty, as a result.

Emissions warranty

This warranty covers costs to repair parts of a vehicle’s emissions system, including various sensors, valves and filters, plus the catalytic converter. The emissions system of on-road vehicles must pass a federal test periodically, often completed alongside your car’s annual inspection.

Rust and corrosion coverage

Rust and corrosion that isn’t caused by wear and use of the car is covered by this type of warranty. Body panels, for example, might be repaired or replaced when they rust or corrode due to manufacturing flaws. This coverage may be useful because this type of damage could be unavoidable.

Roadside assistance

This service includes towing, tire changes, jump-starts and more. While not a warranty itself, roadside assistance is a type of coverage for automotive problems that may be included in a warranty or car insurance policy.  

What do car warranties cover?

Car warranties generally cover the costs to repair mechanical defects that occur in a vehicle. Covered costs include replacement parts and labor. The exact scope of coverage varies by warranty type and the company that provides the warranty.

What won’t a car warranty cover?

Many things a car needs to be in ideal shape aren’t usually covered, including oil and tire replacements. Car warranties aren’t for cosmetic damage—scrapes, smudges and scratches—or repairs needed after a collision. Those can fall under insurance coverage. The type of warranty and its specific terms dictate the dollar limits of coverage and the amounts an owner would be responsible for.

How do I check if my car is still under warranty?

There are several ways you could check if your car is still under warranty:

• Review your owner’s manual: It should have the specific terms of your factory warranty coverage, and maybe even the expiration date. The extent of the warranty is based on when the car was initially sold.
• Review purchase documentation: Look through the paperwork you signed when you bought your car. It should state the warranty period or mileage limit.
• Contact the dealership: Whether you bought a new or used car, gather your VIN and contact the dealership. Employees can look up the status of your vehicle’s warranty, particularly if you have an extended one.
• Check with the manufacturer: These companies will likely have online tools where you can check your warranty’s status. You could also contact the company’s customer service department to check. Have your VIN handy to confirm the status.

What do I do once my warranty is expired?

When your car’s warranty expires, several options can help with unexpected costs:

• Extended warranties and vehicle service contracts: These are commonly offered by car manufacturers, dealerships and third parties. You can purchase a service contract for various time periods, and sometimes it will be renewable.
• Mechanical breakdown insurance: This can be added to your existing auto insurance policy when the warranty expires. It can be useful when certain parts malfunction or fail entirely.
• Emergency fund: While this type of savings helps with many of life’s unexpected costs, you could designate a fund specifically for future car repairs.
• Regular maintenance and service: This helps preserve your car and gives you a chance to detect issues before you face inconvenient repair costs.

In summary

Depending on the type, a car warranty could cover the costs to fix a number of possible issues. Basic factory warranties generally cover defects or mechanical problems in the powertrain. Warranty coverage lasts until a certain date or mileage is reached, regardless of type.

Once a warranty expires, you have several options to cover car repair costs, such as purchasing an extended warranty, additional insurance or vehicle service contract. Before buying extended coverage, be sure to shop around for a price that fits your budget, and to confirm the reputations of coverage providers. Steady maintenance can also keep your car roadworthy in the long run and identify issues before they become very expensive to fix.