Most of the time when you purchase a new car, the vehicle will be protected by some kind of warranty that is offered by the manufacturer of the vehicle. Often these warranties offer coverage for approximately three years or up to driving the vehicle for a certain amount of miles. The details of this warranty will be determined depending on the terms of your contract when purchasing a vehicle. These warranties can protect you during a car accident and prevent you from having to pay huge premiums if any damage to your vehicle occurs. Keep reading our guide with all of the essentials to learn everything you need to know about car warranties from how much they cost and the importance of having one.
What Does a Car Warranty Cover?
One of the most common car warranties that is used and mentioned is the bumper to bumper factory warranty that is offered by most dealerships and is supported by the manufacturer of your car. Unsurprisingly, these types of warranties will cover every possible aspect of your car. These warranties often offer coverage for approximately three years of use. Certain makes and models offer coverage for longer. For example, the Hyundai sales team advertises a five year warranty that lasts up to 60,000 miles. Other companies are able to offer short warranties because their vehicles are known to be dependable and reliable. In some cases, a shorter warranty can mean a vehicle that is more reliable and less likely to need as much service appointments as another vehicle.
Some dealerships offer other warranties such as extended warranties. In some cases, an extended warranty can offer coverage for as many as 20,000 additional miles. These warranties sometimes include additional services and deals from the warranty so be sure to do your research carefully before choosing one. Extended warranties will often only cover specific areas of the car. The most common is the powertrain. Cosmetic issues will often have the shortest warranty.
Why I Need a Car Warranty
You may be wondering what happens to your vehicle if you need a repair but do not have a warranty on it. Your mechanic or repair service will demand their payment in full at the time of service and you will not be eligible for any financial assistant. A warranty can save you from this headache.
In the event your car breaks down or needs to be serviced, you are liable for paying for all of these repairs. With the assistance of a warranty, you can rest assured with the peace of mind that fixing your vehicle will be covered in the event it needs to be serviced. The cost of repairs for your vehicle potentially cost a great deal more than the cost it is to pay for a warranty. Unexpected expenses from a car repair can jeopardize your financial planning. Having a warranty gives you the confidence and reassurance that your vehicle can get back on the road as quickly as possible and that your warranty will help you to pay for repairs rather than having to pay for them yourself out-of-pocket.
Other warranty services can be helpful, such as roadside assistance. If you car breaks down during the middle of a drive, roadside assistance coverage would go towards paying for a tow truck, basic repairs or whatever is needed to help the driver out.
When Can I Get a Warranty?
If you purchase a warranty on your vehicle at the time of purchase, you will be responsible for your vehicle to be serviced by the dealership's service department regularly to prevent the warranty from becoming voided. You can purchase a warranty from a dealership or independently from a third-party. You can also purchase an extended warranty at any time from most dealerships. If you’re purchasing a used car, warranties can be purchased individually.
How Much Does a Warranty Cost?
Averages costs for putting a warranty on a vehicle are a pretty ride range. These costs can be approximately $350 per year or up to $750 per year or even $1,000 plus. Doing your research carefully and reading all of the fine print can help you to ensure that you receive the best warranty possible for your needs. It should also be noted that if you do purchase a warranty, you are responsible for maintaining the upkeep of your vehicle to prevent the contract becoming voided. For example, if you purchase a warranty from a dealership, be mindful of getting your car to its scheduled service appointments.