What’s Covered and What’s Not: A Guide to Extended Car Warranty Coverage (2024)

Editorial Note: Content was created in partnership with Money Research Collective. Cars.com receives a commission from the partner links contained within the content.

By Kiah Treece

An extended warranty is a service agreement that covers certain types of repairs or replacements for a product beyond the manufacturer’s original warranty. While an extended warranty can help protect your car in case something malfunctions or breaks, not all repairs are covered. Read more to learn how extended car warranties work and what they cover.

What Does an Extended Car Warranty Cover?

The items covered by an extended car warranty vary based on the type of warranty you buy and the company you buy it from. For example, a bumper-to-bumper warranty typically offers the most comprehensive coverage, covering all necessary repairs and replacements for nearly every part of your vehicle. Powertrain warranties are slightly less comprehensive and generally cover only major vehicle components such as the engine, transmission and drive axle assemblies. Drivetrain warranties cover nearly everything that powertrain warranties cover except for your car’s engine.

Other types of warranties may offer different levels of coverage for specific parts, systems or types of damage. A corrosion warranty, for instance, covers damage to a vehicle resulting from rust or other corrosion, which can be beneficial in areas where water- or salt-related corrosion are common problems.

Additionally, some extended warranties may come with deductibles or limit the amount of coverage for an individual repair. These deductibles and coverage limits can vary by product and by provider, so it’s important to review policy language carefully before buying coverage.

Chose the best cars extended warranty for your vehicle by understanding what different types of warranty cover.

Best Bumper-to-Bumper Warranty Coverage

A bumper-to-bumper warranty is essentially an extension of a manufacturer’s original warranty. This type of extended warranty is generally the most expensive available but also the most comprehensive, including for the most essential components of your car.

Here are some of the components answering the question what does a bumper-to-bumper warranty cover if your car is damaged or breaks down (for reasons other than neglect or improper use):

Powertrain warranty

A powertrain warranty is another common type of extended warranty that covers the major components of your vehicle’s powertrain. These things make your car go, such as the engine, transmission and drivetrain.

However, while a powertrain warranty covers some of the same things as a bumper-to-bumper warranty, it doesn’t cover many of the items unrelated to actually making your car go. These include things like electrical systems, air conditioning and cosmetic items, as well as your fuel system, brakes, suspension and steering.

Drivetrain warranty

A drivetrain extended warranty covers the major components of your car’s drivetrain, including the transmission, driveshaft and axles. Essentially, it provides the same protection against unexpected mechanical failures as a powertrain warranty, except that a drivetrain warranty doesn’t protect your car’s engine. It also doesn’t cover other things typically excluded from powertrain coverage, including electrical systems, brakes or cosmetic items.

A drivetrain extended warranty is particularly beneficial if you travel frequently or rely heavily on your car for work. So, if you’re a long-distance commuter or need to protect your car to continue working, a drivetrain warranty may be a cost-efficient way to do so.

Corrosion warranty

In addition to bumper-to-bumper and powertrain warranties, there are also specialized warranties designed to protect against certain types of damage. A corrosion warranty is a less expensive type of warranty specifically designed to protect parts of your car damaged by rust and other corrosion. However, these warranties typically only cover damage when corrosion eats through a part — things like surface rust, paint damage or other cosmetic problems are generally not covered.

This type of warranty can be beneficial if you live in an area with high humidity or frequent snowfall. However, you should also note that the specifics of each warranty may vary, so it’s important to carefully review the terms and conditions before buying coverage.

Emission warranty

An emission warranty provides additional coverage for your vehicle’s emissions components. This type of warranty covers repairs or replacements of emissions-related parts, such as the catalytic converter, oxygen sensor and EGR valve. If you have an older vehicle, an emission warranty may be a good way to ensure your vehicle’s exhaust system stays in good working order.

Wrap warranty

Of all the extended warranties available, a wrap warranty is the one most like an extension of your car’s manufacturer warranty, and it covers a wider range of repairs and services. A wrap warranty covers things not covered in a powertrain warranty, so it’s particularly beneficial if you have warranties that expire at different times — for example, bumper-to-bumper coverage that lasts for three years and powertrain coverage for five. In this case, you could use a wrap warranty to cover those things not covered in the longer powertrain coverage to fill that gap.

While a wrap warranty can cover many different things, it’s ideal for cars with tricky electrical systems or other nonessential components that can be expensive to repair or replace if they break down. This type of extended warranty can be especially beneficial if you plan on keeping your car for several years beyond the manufacturer’s warranty period.

Additional Perks of an Extended Car Warranty

An extended warranty can be a worthwhile investment if you want to protect your vehicle and avoid unexpected repair costs. By investing in an extended car warranty, you can ensure that your vehicle is covered against potential breakdowns and keep it running smoothly for years to come. The best aftermarket car warranty also include additional perks such as roadside assistance, rental car coverage and more.

What Isn’t Covered Under an Extended Car Warranty

While extended car warranties typically cover many issues that may require parts of your car to be repaired or replaced, they don’t cover everything. For example, many extended warranties don’t cover things like accidents, theft, natural disasters, or normal wear and tear. Additionally, some warranties may limit the number of repairs or replacements covered per year.

These are some of the things most commonly excluded from extended car warranties:

Preexisting damage: If your car is already damaged before you buy a warranty, the warranty won’t pay for repairs related to that damage.
Normal wear and tear: Damage due to normal wear and tear — such as an alternator breaking down over time — may not be covered.
Regular maintenance: Warranties don’t cover normal maintenance, such as oil changes or tire rotations.
Neglect or abuse: Damage caused by neglect or improper use isn’t typically covered.
Damage from events: Damage from accidents or natural disasters isn’t covered by warranties.
Cosmetics: Body and interior components usually aren’t covered, with some exceptions.
Custom parts: If you install custom aftermarket parts or make other custom modifications to your car, those probably won’t be covered.
Improper installation: If you or an unauthorized repair person have improperly installed some parts or accessories, that may void your warranty.

Also, while many of the best auto warranty companies cover roadside assistance and towing or rental car expenses, not all do. In many cases, these are costs you’ll have to pay out of pocket.

Who Should Get an Extended Car Warranty

Extended car warranties can provide an excellent layer of added protection to help you cover the cost of repairs and replacements of certain parts after a manufacturer’s warranty expires. These warranties can protect against damage to expensive components that can ruin your vehicle’s value or make it undrivable in the case of a breakdown or malfunction. However, whether an extended car warranty is worth it depends on your vehicle and needs.

Bumper-to-bumper warranties cover repairs or replacement of nearly any component of a vehicle. Drivetrain and powertrain warranties focus on components that help a vehicle move. Corrosion warranties protect against rust damage, and emission warranties safeguard against damage to your exhaust system. You can use a wrap warranty to fill gaps in coverage if you have different warranties expiring at different times.

As such, here are some cases where an extended warranty can be particularly helpful:

If you buy a new car and want to extend coverage beyond the manufacturer’s warranty
If you depend on your car to get to and from work and need to keep it in good working order
If you plan to keep your car for several years and want to protect its value as an investment
If you’re on a tight budget and would have a hard time paying for unexpected repairs

While warranties can be helpful in many cases, they also vary widely based on the specific warranty you buy and the provider you choose. That’s why it’s important to check the terms and conditions of any warranty you’re considering before you buy so you know what’s covered — and what’s not.

Car Insurance Vs. Extended Warranty

Car warranty vs insurance and extended warranties are two of the primary ways to protect the value of your car. While both can offer coverage for unforeseen circ*mstances, there are several key differences. Car insurance is designed primarily to protect you from liability in the event of an accident and secondarily to cover the cost of repairs to your car for damages resulting from an accident or other covered event. An extended warranty is an agreement that covers repair or replacement coverage of specific mechanical or electrical components in the event of damage or breakdown — but only in certain circ*mstances.

For example, car insurance may pay to repair your car if you get into a collision (if you have comprehensive coverage). In contrast, an extended warranty would pay to repair a malfunctioning transmission or engine, so long as the malfunctioning isn’t related to neglect or improper use. Compare the best car warranty companies to find coverage that fits your needs.

Extended Car Warranty Coverage FAQ

What are two items typically not covered in a car warranty?

Two of the most common items not often covered by a car warranty are damage from normal wear and tear and abuse. Examples of normal wear and tear include brakes or tires wearing out. Abuse includes off-roading or overloading a vehicle, or using it for something other than its intended purpose.

What are common acts that void your vehicle’s warranty?

Acts that void a vehicle’s warranty include using it for something other than its intended purpose. This includes abusing a vehicle through off-roading, street racing and overloading a vehicle with weight. Other acts that often void a warranty include neglecting a vehicle’s maintenance, installing improper parts and installing some parts improperly.

Does doing your own oil change void the warranty?

Doing your own oil changes doesn’t typically void your car warranty. However, if damage results specifically from changing the oil yourself, the warranty may not cover the cost of related repairs.

Do warranties replace engines?

Extended car warranties may pay to replace your car engine if your engine breaks down and you have proper coverage. For example, if you have bumper-to-bumper coverage or a powertrain warranty, your engine may be covered, depending on the cause of the damage or breakdown.

How do different extended car warranty providers compare in terms of coverage and customer satisfaction?

When considering an extended car warranty, it’s essential to explore various providers to find the best fit for your needs. Coverage options, costs, and customer satisfaction can vary significantly between companies. For instance, CarShield, Endurance, and CARCHEX are popular choices among vehicle owners for extended warranties. Each has its own set of benefits and limitations.

CarShield Warranty Reviews often highlight the company’s flexible coverage options and affordability, making it a go-to choice for many seeking comprehensive protection against unexpected repair costs.
Endurance Warranty Reviews frequently praise the provider for its exceptional customer service and comprehensive plans that offer peace of mind to vehicle owners worried about future repairs.
CARCHEX Warranty Reviews tend to focus on the company’s transparency, variety of plans, and customer satisfaction guarantee, appealing to those who value clear terms and conditions.

By examining reviews and experiences from current and past customers, you can gain valuable insights into which extended car warranty provider might best meet your expectations for coverage and service. Remember, it’s always advisable to read the fine print and understand the specifics of each plan before making a decision.