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Research Your Options for Extended Automotive Warranties

How to Buy an Automotive Extended Warranty

If you’ve ever purchased a vehicle, you know that there are various extended warranty options. Newer vehicles will come with a manufacturer’s warranty for a short number of years. After this time, there is an extended automotive insurance policy that will cover issues you have with your vehicle after the manufacturer’s warranty period has run out. Investing in this type of insurance is a great idea; however, navigating the purchase of it can be a bit tricky.

What Is An Extended Warranty?

Before we get into the details of what the warranty will cover and how you should go about purchasing your policy, you probably want to know what an extended warranty is. After the original manufacturer’s warranty (OEM) is up, there is an OEM extended warranty from the car maker that you can purchase. Most people don’t realize you can also purchase this extended warranty through companies like Endurance Warranty, Delta Auto Protect, Carshield, or Good Sam.

An OEM extended warranty from the car maker or another provider is not a warranty program at all. It’s more of an insurance policy for your vehicle. It will help to safeguard you against costly unforeseen repairs. Each extended warranty program is going to be different from the next. They will specify the repairs that will be covered and the agreed-upon time or miles for the coverage period.

Two Types Of Extended Warranty Policies

To help you better understand your options, we want to explain the types of extended warranty policies that you can purchase. The first is offered by the car maker. For example, this would be a company like Ford, Chevrolet, Honda, or Toyota. This can be referred to as the OEM extended warranty or original equipment manufacturer’s warranty. You’ll get offered this policy by default from the car maker or the dealership in which you purchase the vehicle.

The second type of extended warranty policy is from an aftermarket source. This could also be called a third-party vendor. There are many of these different aftermarket insurance providers available that will cover various car makes and models under their extended warranty programs.

What to Look For

When you’re looking into how to buy an automotive extended warranty, it may be tough navigating the waters at first. You’ll always get offered an extended warranty from the manufacturer of the vehicle that you buy. However, you can also get a policy through other independent providers like Good Sam, Carshield, Delta Auto Protect, or Endurance Warranty. Shopping around for the best rate is a great idea before deciding on a specific policy to purchase.

Powertrain Vs. Bumper To Bumper

You’ll be offered two different extended warranty programs by the OEM. These are powertrain and bumper to bumper. Knowing the difference between these two is important when understanding what policy you want to purchase. You should realize this policy will typically be the same as your original manufacturer warranty. However, this policy just extends its coverage miles.

Powertrain Warranty: This OEM warranty offers coverage for engine and transmission components. This requires there to be a defect in the workmanship that caused the engine or transmission failure. It’s important to note that this doesn’t cover damage caused by various instances.

Bumper To Bumper Warranty: This common term is also referred to as a limited warranty. It covers the major components under the hood as well as additional items. Some of these additional items can be power seats, on-board computers, electronics, and navigation systems. Each warranty will be a bit different from the next when it comes to the additional items that are covered.