SOME CARD INFO MAY BE OUTDATED
This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.
Key Takeaways
- A car warranty guarantees that your manufacturer or third-party issuer will cover the cost of certain repairs for a specified time period or mileage.
- Some car warranties are included with a new car, while others are optional to purchase.
- Car warranties cover mechanical defects and system failures, while car insurance covers damage due to incidents.
Most new cars come with manufacturers’ warranties that cover the cost of repairs to your vehicle for a limited time. Car owners also have the option to purchase an extended car warranty, which covers the cost of certain repairs after the manufacturer’s warranty expires.
Car warranties can help you avoid paying out of pocket for some expensive repairs. But it can be confusing to know what warranties come with new or used cars, which ones require an additional purchase and what each type covers. Here’s what to know.
How car warranties work
A car warranty is a contract where the manufacturer or warranty company agrees to cover certain repairs to a vehicle for a specific period of time.
For new cars: Most new cars come with a manufacturer’s warranty, which covers the cost of repairs due to malfunctions on the manufacturer's end. This warranty doesn't cover damage caused by the driver, as car insurance does, or typical wear and tear. But if the battery or air conditioning stops working due to a manufacturing defect, for example, your car warranty would cover the cost to replace or repair it, and you wouldn’t have to pay out of pocket for it.
New car manufacturer warranties typically last 36,000 miles or three years, whichever comes first. Car owners can also choose to purchase an extended car warranty after the manufacturer's warranty ends.
For used cars: Car warranties typically transfer when a car is sold. This means that when you buy a used car, you'll want to check its mileage and the year it was purchased to see if the original warranty remains and whether it is transferable. You can also typically buy an extended factory warranty for a used car.
Types of car warranties
Coverage between warranty types can vary depending on the manufacturer or provider. Below are the most common types.
Bumper-to-bumper warranty
What it covers: As the name implies, a bumper-to-bumper warranty (also known as a comprehensive warranty) covers repairs to parts between a vehicle's front and rear bumper. This usually includes things like the car’s body, the heating and air-conditioning system and the steering. Note that this warranty doesn't cover maintenance like routine oil changes or wear and tear of parts like brake pads, for example.
How long it lasts: Coverage can vary, but the basic contract lasts three years or 36,000 miles — whichever comes first.
Powertrain warranty
What it covers: Any repairs related to the parts that move a car, such as the engine, transmission or suspension.
How long it lasts: Coverage limits and terms vary, but this warranty typically lasts longer than a bumper-to-bumper warranty. For example, all new Honda cars offer powertrain warranties for five years or 60,000 miles, whichever comes first, while new Hyundais come with a 10-year or 100,000-mile warranty.
Extended car warranty
What it covers: The cost of repairs after the manufacturer's warranties have expired. This warranty is sold separately by manufacturers, dealerships or independent dealers that aren't connected with a specific carmaker.
How long it lasts: Costs and coverage terms vary across dealers, car type and more, so be sure to read coverage terms carefully before purchasing one to understand what the inclusions apply. Many companies offer contracts lasting two to seven years, though some also offer short-term extended warranties.
Nerdy Perspective
While an extended warranty might give some car owners peace of mind, they're not necessary to purchase. To determine whether the coverage is right for you, consider a number of factors like the type of car, how reliable it is, how much money you have set aside for major repairs and how long you plan to keep the vehicle.
Service contracts or prepaid maintenance
What it covers: Certain routine maintenance tasks, like oil changes and air filter replacements. Vehicle service contracts are sometimes labeled as extended car warranties. A service contract doesn't meet the federal government’s definition of a warranty, which is to protect or correct a product when it fails.
How long it lasts: One to ten years, with mileage limits, but varies depending on the dealer, manufacturer or independent contractor selling the contract. Service contracts can extend the coverage period for certain warranties, and typically take effect after the initial factory warranty ends (usually three years).
Additional warranties
Carmakers also offer several other types of warranties, some of which aren't as common. Examples include:
Roadside assistance: This generally covers towing costs and tire changes if the car breaks down during travel.
Corrosion warranty: Also known as rust warranty, this covers replacement and repairs due to rust to sheet metal parts of the car.
Federal emissions warranty: This type of warranty covers repairs needed to correct defects in parts that would prevent the car from meeting Environmental Protection Agency standards.
Advertisement
Best for low cost per mile (new car)  | Best overall  | Best for 24/7 claim filing  |
Limited-Time Deal: $360 off on CarShield's website | Limited-Time Deal: $300 off on Endurance's website | on Premier Auto Protect's website |
Cost comparison $$ | Cost comparison $$$ | Cost comparison $$$ |
Online quote No | Online quote Yes | Online quote No |
Plan choices Excellent | Plan choices Excellent | Plan choices Good |
Frequently asked questions
What's the difference between a car warranty and car insurance?
Generally, car insurance covers the cost of repairs for external damages caused by accidents, theft and other incidents, while a car warranty covers the cost to repair internal car issues such as mechanical and electrical failures.
Car insurance is mandatory for all drivers. A car warranty may come included with your car purchase, or you can opt to purchase an extended car warranty after your manufacturer's warranty expires or to cover additional components.
Neither a car warranty nor car insurance covers regular car maintenance, such as oil and tire changes.
What does a car warranty not cover?
Car warranties don't cover regular wear and tear or components that are meant to wear down over time, such as brake pads and tires. Windshield wipers and any car fluids are also typically not covered.
Misuse can also void your car warranty or prevent you from reimbursement. Racing, off-roading, hauling too much weight or modifying your car with unauthorized parts can affect your warranty coverage.
🤓 Nerdy Tip
Regular maintenance to your car is necessary to guarantee that a warranty won’t be voided. A warranty will remain valid no matter who performs the repairs, meaning you can use your own mechanic rather than the dealer’s service department. However, it’s a good idea to keep the receipts as proof that the work was done. Explore more on
Article sources
NerdWallet writers are subject matter authorities who use primary,
trustworthy sources to inform their work, including peer-reviewed
studies, government websites, academic research and interviews with
industry experts. All content is fact-checked for accuracy, timeliness
and relevance. You can learn more about NerdWallet's high
standards for journalism by reading our
editorial guidelines.
