No matter how reliable, safe, or well-built, every car will need repairs eventually. When you have an issue that requires the help of a professional mechanic, you may wonder, “If my car is under warranty, do I have to pay for repairs?”
This is a logical question since car companies tout their comprehensive warranty on repairs, ensuring every new car off the lot provides owners with years or even decades of reliable service at car dealerships.
However, there are several reasons for repair, including:
The issue of whether a warranty will cover a repair comes down to the type of repair needed and what kind of warranty is protecting the car. Not all warranties are created equal, and before you can submit a claim, you’ll need to know exactly what your warranty covers.
Types of Car Warranties
Defective factory parts are the main reason warranties exist. Sometimes, car companies design and build parts they think will last far longer than they do. To make sure customers have peace of mind during their ownership, the manufacturer will offer to fix such manufacturing mistakes for a specific period of time or mileage.
Having a warranty on repairs can even transfer from one owner to the next if the car hasn’t reached the end of its warranty period.
Now, it’s important to point out that just because your car has a “warranty” doesn’t mean that the warranty covers every part of the car. There are different kinds of warranties. Some manufacturers will cover all parts, while others will only cover some.
Bumper-to-Bumper
With bumper-to-bumper warranties, nearly every part of the car is covered. This warranty includes:
For a new car, the length of time is generally three years, and the mileage is 36,000 miles. Of course, this is an average, as some manufacturers cover more time and mileage, some less. Hyundai famously touts its 10-year/100,000-mile warranty, which it uses as a marketing tool to demonstrate how reliable it believes its cars are.
Powertrain
With this warranty, only the powertrain and drivetrain components are covered. This includes the engine, transmission, driveshaft, differential, and other parts responsible for getting power to the ground. These are generally the most expensive parts to replace, so getting a warranty that covers drivetrain components can be beneficial for someone who doesn’t want to spend the extra money on a comprehensive extended warranty and just wants to protect the most vital parts. Powertrain warranty coverage is usually cheaper than bumper-to-bumper warranties. They usually last longer, too. Some powertrain warranties are good for up to ten years or 100,000 miles (see Hyundai above).
Other Warranties
While bumper-to-bumper and powertrain warranties are the most common warranties, they’re not the only ones. There are also emissions warranties for the parts that control the car’s emissions output, rust and corrosion warranties that protect a car in case of severe rust issues, and even hybrid car-specific warranties that cover items like batteries, inverters, and control modules. You may also have thought, “If my car is under warranty, do I have to pay for a service?” Sometimes, warranties do take care of regular maintenance items for a limited time. Perhaps the manufacturer provides free oil changes for the first year or one complimentary brake pad replacement.
The manufacturer may also offer to reimburse for towing or rentals. Keep in mind, though, that the “warranty” period for these services is usually only a couple of years or perhaps as little as 25,000 miles.
Warranties Are Not Insurance
This is the crux of the question, “If my car is under warranty, do I have to pay for repairs?” In reference to the three definitions of “repair” from earlier, remember that accident repairs are handled by your insurance company (and/or the other driver’s insurance company). The repairs that warranties cover are flaws in the vehicle’s build or design. Let’s give some examples:
And again, natural wear and tear aren’t covered because if it were, every car could conceivably have a claim, which wouldn’t be financially feasible for automakers.
Why Don’t Warranties Cover Accidents?
Remember that car warranties exist because the vehicle manufacturers are essentially saying, “We don’t think anything will go wrong with this car, but just in case, we’ll cover anything that does go wrong for a limited time.” In other words, the warranty on repairs will take care of a problem that’s their fault. Even companies that take pride in their engineering and create robust, reliable vehicles can have parts with critical weaknesses.
There are plenty of examples of this, such as early Cadillac CTS-Vs experiencing differential failure because of a design flaw. Accidents are out of the control of the manufacturer. There may be recalls if some safety equipment doesn’t work, such as in the case of the Takata airbag recall. However, that’s a preventive measure taken before an accident occurs, not a reaction to an accident that’s already occurred.
Car companies may end up having to pay for repairs in the event of an accident that is the result of a faulty part, however. If, for example, there were a flaw with a car’s brakes that meant sometimes the car wouldn’t be able to come to a stop, this issue could certainly result in crashes.
In this case, if accidents happened before the car company could identify the problem and issue a recall, the manufacturer could be legally liable to assist their customers with their damaged cars.
What Other Things Aren’t Covered by Warranties?
Aside from accidents, warranties also won’t cover the wear and tear that a car will normally experience in its lifetime. Worn tires and brake pads, paint chips, worn trim and interior pieces, and other parts that naturally degrade would be exempt (in most cases). There are coverage packages that will cover tires, but they only take care of the tires if something happens to them, such as a rupture or puncture. In this case, they act more like insurance than warranties.
Damage that’s the result of poor maintenance or driving in extreme conditions will most likely not fall under warranty coverage, either. If, for example, you regularly drive at triple-digit speeds, never change the oil, or race through standing water, you can easily destroy your engine. Even though such destruction of your engine is not due to an accident, it would still not be the manufacturer’s fault that the engine broke down.
Should Warranties and Service Agreements Overlap?
If you’re purchasing a used car that’s only a year or two old, you may wonder, “If my car is under warranty, do I have to pay for a service agreement now or wait until the warranty expires?”
While a less-than-honest dealer might pressure you into paying for a service agreement while the car’s warranty is still valid, they’re not doing this to provide you with more coverage. Instead, it’s a move to make extra money.
Only once your warranty runs out should you purchase a service agreement. Doubling up the coverage doesn’t protect you more; it makes one of the policies redundant. Instead, wait until your warranty is about to lapse and then buy a service agreement to begin once your warranty runs out.
What Are Vehicle Service Agreements?
Once your car’s warranty runs out, the manufacturer will no longer handle any repairs for previously covered parts. If you have a 3-year, 36,000-mile powertrain warranty, once either of those milestones has been reached, you’re on your own. Some manufacturers offer the ability to extend a car’s warranty, generally for another two years and perhaps an additional 15,000 or 20,000 miles. However, almost no manufacturers will continue covering a car after the 5-year mark.
When your warranty runs out, this doesn’t have to be the end of your car’s protection. you can purchase a vehicle service agreement, which will continue to act as a warranty. Service agreement repairs fall under the same stipulations as your old car repair warranty, covering faults with the car rather than accidents like car repair insurance. As for why you would need a vehicle service agreement, you’ll be able to get service contract repairs when you can’t get repairs under your car insurance. Service contract repairs will take care of otherwise huge bills if, say, you have an alternator that stops working.
Are Service Agreements Extended Warranties?
No. While they act similarly in that they cover defects and flaws that can arise, warranties are something offered by the automaker, while service agreements are purchased by the customer. Plus, vehicle service agreements can be tailored to the specific needs of the consumer, not just what the manufacturer wants to cover in their manufacturer warranty.
For example, if you were to purchase a certified pre-owned Toyota, that car would most likely come with a Toyota extended warranty covering it with a limited 12-month/12,000-mile warranty, a 7-year/100,000-mile limited powertrain warranty, and a 24-hour roadside assistance 7-year/100,000-mile warranty.
However, once these time periods are over, the coverage ends for good, and the stipulations for protection are usually more strict than those for an aftermarket service agreement.
Protect Your Car with CarShield
If you’re driving around in a vehicle with an expired warranty, you could be on the hook when something goes wrong. Remember that it’s not just car manufacturers who can make faulty parts! If you have had any aftermarket parts put in from previous repairs, they can experience failures, too. If and when this happens, you need protection so you’re not stuck with a huge bill for covered repairs.
With CarShield, you don’t have to worry! With 24-hour roadside assistance, towing and rental cars provided, and your choice of repair facility, you can expect all of your service agreement repairs to be completed without any stress on you. If you’re ready to have some peace of mind when you drive, contact CarShield today!
