A vehicle warranty is an insurance policy for your car parts. It protects you and your wallet from design and manufacturing faults, but doesn’t usually cover regular wear and tear and replacement of parts needed during regular service, such as oil, filters, belts, tires, wipers and spark plugs.
Many new cars come with a “bumper-to-bumper” warranty that lasts for a certain period of time or until a certain amount of mileage is reached. This type of warranty covers almost everything between the vehicle’s front and back bumpers. An extended warranty, on the other hand, is coverage you purchase in addition to the “bumper-to-bumper” coverage. If you opt for this type of warranty, make sure the extended warranty option covers the same things the original “bumper-to-bumper” warranty covers.
A vehicle warranty can be a great investment, can save you thousands in repairs and can protect you from defective parts and manufacturer errors. If you are purchasing a used car, check to see if the manufacturer warranty is still in effect and if you can take over the remaining period of that warranty. If not, consider purchasing an after-market warranty, which we will discuss in our next post.