Understanding New Car Warranties

All new cars come with several warranties, from bumper-to-bumper coverage to those that cover specific components like the powertrain, emissions system and rust perforation. A new car can come with 6 or more warranties which can be daunting for its new owner to wade through.

Bumper-to-bumper: Often called the basic warranty, a bumper-to-bumper policy covers virtually every component on a new car. Most exclude regular maintenance, like fluid top-offs and oil changes, but a few luxury brands — most notably BMW and Saab — have separate free-maintenance provisions. Bumper-to-bumper warranties usually expire faster than powertrain warranties. American and Japanese cars typically come with a 3 year/36,000 mile warranty while luxury and more upscale brands carry a 4 year/50,000 mile warranty.

Who Are You Really Buying Your Car Warranty From?

Did you know that in most instances, the company you are buying your warranty from has nothing to do with paying your warranty claims?
The safest way to buy an extended automobile warranty is to buy direct from the warranty administrator.

Extended Warranty Administrator – This is the company that actually issues the warranty and is responsible for paying any claims. This is the company that should come under the closest scrutiny by consumers. Buying coverage direct from an administrator offers the most security as your money goes directly to the company responsible for fulfilling the obligations under the warranty contract. You will also be able to obtain the same coverage they sell through car dealers and avoid the car dealer’s markup. Administrators will offer you pre-sale counseling and after sale support.