From Time:

Extended car warranties are legitimate products that can cover your vehicle for certain equipment breakdowns and mechanical failures. These warranties can go beyond the standard factory warranty and may pay some or all of the costs associated with costly car repairs. There are different types of car warranties and legal provisions that define your rights and the responsibilities of warranty providers.

A car warranty is a written guarantee of the integrity of a product and the maker’s responsibility for the repair or replacement of defective parts. Not all warranties are written, but most new cars come with a powertrain warranty that covers major components for five years or 60,000 miles. Extended car warranties, also known as auto protection plans or vehicle service contracts, can cover certain repairs but are not actually warranties according to federal law.

Types of car warranties include the powertrain warranty, which covers the major components of the powertrain, usually for five years or 60,000 miles. There is also the bumper-to-bumper warranty, which covers everything from bumper to bumper but has exclusions for items that fail with normal wear and tear. Other types of warranties include the rust and corrosion warranty and the federal emission warranty.

In addition to the warranties provided by the manufacturer, there are also extended car warranties that can enhance the original warranty on a new car purchase or add more service protection to a used car. However, it is important to read the fine print and understand what is covered and excluded under the extended car warranty before making a purchase. It is also important to research providers and their reviews thoroughly to avoid any surprises.

The coverage of a car warranty depends on the type of warranty you have. Each warranty has specific language regarding what it covers and what it doesn’t. When you receive the documentation accompanying your warranty, make special efforts to understand all the terms and conditions. Pay special attention to parts, time periods, mileage, and other terms that apply to the coverage in your warranty. Whenever you require maintenance or repairs, make it a habit to refer to this documentation.



Read more: What Is a Car Warranty?