Suitable warranty coverage for your vehicle is important to make sure that you are covered when you need to repair the car after a collision. A car warranty is an agreement between your insurance provider or your vehicle’s manufacturer and you. As per the agreement, the manufacturer or insurer will cover the repair and any other cost for a particular period of time – depending on the coverage you have.
However, first of all, it is important to know when do you need a car warranty coverage and what areas these warranties cover?
Generally, if your car is damaged or needs to be repaired, then having a warranty would be a blessing as the insurance company will cover the cost of repair/damage. But this entirely depends on the warranty you have. For instance, an extended warranty will cover the replacements of various components like air conditioners and transmission systems but will not cover the damage done to the interior, such as wipers, wind/side screens, mirrors, in short, or the damages done due to the normal exposure.
It doesn’t matter how advanced or durable your vehicle is, eventually it will need routine maintenance. These costs can be unbearable sometimes and make you think to avoid it next time. That is the reason you should have an auto warranty for your vehicle, which covers the maintenance costs for your car. In fact, the routine maintenance costs covered by the manufacturer’s warranty in new cars is enough to motivate drivers to purchase a new car instead of purchasing an old one.
Different types of warranties are available in the market and you should evaluate all the types before making a decision to purchase any particular warranty.
Types of Warranties
Factory Warranty: It is applicable to the new vehicles or on every component the manufacturer says it can be applied to.
Powertrain Warranty: It covers damage repair for basic components like engine, driveshaft, axles, and transmission.
Bumper-to-Bumper Warranty: It provides the coverage for all the parts and components of your vehicle that are approved by the manufacturer until you made any modification to them.
Car Maintenance Warranty: It covers routine maintenance costs of general items like oil changes, tune-ups, and air filter replacements.
Drivetrain Warranty: Particularly design to cover driveshaft and transmission. This is slightly different from the powertrain warranty, as it does not cover engine damages.
GPO Warranty: GPO warranties are considered for the vehicles that are approved and inspected by the manufacturer.
Extended Warranty: These warranties are somewhat similar to the factory warranty, but can be applied on both the new and used cars. It also covers the expired warranties.
Wear and Tear Warranty: This warranty coverage is designed for the repairs of the interior of your car along with some exterior parts. This involves paint and upholstery. If you have solid wear and tear warranty coverage, then it may cover cleaning costs as well.
How much does a warranty cost?
Generally, warranties are economical. It becomes more affordable if you take an extended warranty for a new vehicle, as the factory warranty coverage automatically comes with a new vehicle. Extended warranties come in different ranges and mostly cost between $1800 to $4000. That usually becomes $80 to a few hundred dollars per month.
Price values for warranties vary for multiple reasons, but the factors that affect the primary cost are:
- Amount of coverage
- Maximum payout
Which car company has the best warranty?
If you are looking to get a new car, it is a must to look for the warranties that are available in the market. To get the best value for your money, you need to see how manufacturers handle warranties for the new cars.
Generally, all vehicle manufacturers provide some sort of warranty with the new vehicle. But in the list below, we are going to discuss only those manufacturers that provide the best warranties with the new cars.
Hyundai is known for its cheap vehicles and for this reason, you might think that the warranty won’t be good enough. Incorrect!
Hyundai is an excellent warranty provider. Mainly, its powertrain warranty is famous and among the best warranties; as it provides coverages up to 100,000 miles or 10 years. Hyundai will provide coverage for the parts that are originally installed by the company and are defected while normal use.
Mitsubishi provides a basic vehicle warranty for 5 years or 60,000 miles. Basic vehicle warranty coverages are also called “bumper-to-bumper” coverage. This will cover the damage done to factory-installed parts only.
KIA’s basic car warranty coverage lasts 60,000 miles or 5 years. The company also provides a powertrain warranty with all new vehicles for up to 10 years or 1000,000 miles. KIA also offers 5 years’ anti-perforation warranty per 1000,000 miles with roadside assistance, which means it will also cover body panels and bodywork damage after an incident.
VOLVO chose to merge the powertrain and comprehensive/basic coverage together for their customers. For all new cars, the warranty comes with a limit of 4 years or 50,000 miles. It also provides corrosion protection, which covers rust related damages on bodywork, body panels, or engine.
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