Auto Warranty

Auto warranty is used for older vehicles with a mileage of around 50,000 cars, or newly purchased used cars. Signing up for an extended warranty from a reliable company will ease your mind in case you experience any mechanical issues in the future.

Auto warranty falls into the following three categories:

  1. Bumper-to-Bumper Warranty: This is available for "new car," vehicles with mileage below 50,000 - 60,000 miles. It is also known as new car coverage, a wrap plan, luxury or full coverage. It is more commonly called exclusionary coverage because it covers the majority of vehicle components, and only what is excluded from the plan is specified.
  2. Stated Component Coverage: Used for vehicles with mileage between 50,000 and 100,000 miles. This type of plan covers a great deal of major parts and components, and the policy will specify which parts are covered. For this reason, it is also known as an inclusionary policy.
  3. Powertrain Coverage: This is a basic coverage that protects the engine, transmission and drive axles. There are versions called "plus" or "enhanced" policies that extend coverage to additional vehicle parts like the starter and air conditioner. Powertrain Coverage insures the most essential equipment, and will protect you from humongous repair bill.