The Complete Guide to Car Warranty Exclusions and What You Need To Know
Car Warranty: What It Doesn't Cover?
For most of us, a car is a valuable possession. We depend on it for convenience and independence and to ensure it stays in perfect operating condition. So we use warranties and insurance to protect our vehicles from breakdowns and unforeseen circumstances. But did you know your car warranty has some exclusions, and that what a warranty covers depends on the type of warranty and the level of your coverage?
There are different car warranties, but which one is best for your vehicle in Canada? A car warranty can protect you from paying extra out of your pocket if your car breaks down. However, not all warranties look the same and function the same way. Read on to learn about what is excluded from your car warranty and what a bumper-to-bumper warranty actually means.
In this article:
What Is Car Warranty?
A car warranty is a contract that says that your car manufacturer will pay for repairs if there is a fault or problem with some of the vehicle's components during a specified period. This period varies depending on the manufacturer and is mentioned in years or kilometers. Typical warranty coverage is 3 years or 60000 kms. Warranty coverage can also change for individual parts. Honda, for example, provides a standard warranty of 5 years or 100,000 kms for the powertrain and 3 years or 60,000 kms for the emission system, among other things.
A car warranty covers problems caused by defects in the components when they don't function properly. However, it does not cover damage from accidents, normal wear, and tear, or using the car in a way not recommended by the manufacturer. What is included and excluded in your car warranty can be ambiguous and take the vehicle owner by surprise when a problem occurs.
Therefore, it's strongly advised to read your car warranty documents before purchasing one. Keep reading to understand why there is no bumper-to-bumper warranty and what is not covered.
Types Of Car Warranty And What They Cover
The five most common types of car warranties offered are a bumper-to-bumper warranty, powertrain warranty, rust warranty, emissions control warranty, and accessory warranty.
Manufacturer Warranty v/s Extended Warranty
The two main types of warranties are factory and extended car warranties. A factory warranty, also known as a manufacturer's warranty, is provided when you purchase a new or certified pre-owned vehicle from a dealership. Although the details of the warranty can differ, it's meant to cover any defective parts and problems caused by them. Once your manufacturer’s warranty expires, you can extend it by opting for an extended warranty. However, the coverage plan for an extended warranty might differ from the manufacturer's warranty.
Bumper-to-bumper v/s Powertrain Warranty
These warranties are further classified into bumper-to-bumper warranty and powertrain warranty. The bumper-to-bumper warranty offers complete protection and coverage, while the powertrain warranty only covers your vehicle's powertrain, which includes the engine, transmission, axles, driveshafts, etc. Usually, the powertrain warranty has a longer coverage period compared to the bumper-to-bumper warranty and is offered for 5 years or 100,000 kms or more.
A bumper-to-bumper warranty is the most comprehensive plan that covers almost all parts of your vehicle between your front and rear bumpers, excluding a few components. Since a few components are excluded, the name "bumper-to-bumper" might sound misleading and can take you by surprise while negotiating your warranty claims with your manufacturer.
Typically, a bumper-to-bumper warranty is offered for 3 years or 60,000 kms, but this can vary based on the manufacturer or the warranty provider. A bumper-to-bumper warranty plan can include the following things:
Heating and air conditioning system
Electrical systems (power seats, audio, and entertainment systems, sunroofs, heated seats, etc.)
Powertrain components (engine, transmission, and certain driveline parts)
Steering and suspension systems
| Types Of Car Warranties | What Are They? |
| Bumper-to-Bumper Warranty | This is the most comprehensive protection that covers almost all vehicle systems but excludes routine maintenance parts and wears and tear components such as brake pads, wiper blades, etc. Usually offered for 3 to 5 years, or 60,000 kms to 100,000 kms. |
| Powertrain Warranty | Covers the engine and transmission components like the driveshaft, transaxle, engine, front, and rear wheel drive systems, etc. Usually offered for 5 years 60,000 miles, but can be extended up to 8 years or 160,000 kms depending on the warranty provider. |
| Rust and Corrosion Warranty | This type of car warranty covers repairs and replacements of rusted body panels. Usually, these warranties offer replacements for body panels that have completely rusted, with no coverage for less-corroded parts. |
| Emission Control Warranty | It covers the components that are used in your vehicle's emission control system. These warranties are often complex and can include or exclude some parts over different periods of time. |
| Accessory Warranty | This type of carry warranty covers an array of accessories like airbags, infotainment and navigation systems, etc. |
What Is Excluded In Car Warranty?
Car warranties are not insurance, and they do not cover damage caused by accidents, theft, weather, or other external factors unrelated to the car's manufacturing quality. The car warranty only covers certain things, such as mechanical defects and problems. There is a wide range of parts that a new car warranty does not cover. Some of the important things not covered by your car warranty are listed below.
Regular Maintenance And Consumables
Your vehicle needs regular servicing and repairs from time to time, and you have to take the vehicle to the garage and change the oils and lubricants. Additionally, you have to check whether the other consumables, like the radiator coolant and the steering fluid, are topped up. You might have to replace your windshield wipers, brakes, filters, and other components.
This regular vehicle maintenance is excluded from the manufacturer’s warranty. Even car insurance providers don’t offer this coverage. However, car insurance providers might include a consumable cover, which includes engine oil, oil filters, lubricants, coolant, etc. However, in most cases, the manufacturer's warranty excludes consumables. As a result, before claiming anything under your car's warranty, you must first read your warranty documents.
Exterior And Interior Damage
The vehicle's exterior body includes several components, like bumpers, the hood, windshield glass, rear glass, door windows, the fender, etc. If any damage occurs to these exterior components of a vehicle due to weather, accidents, or natural disasters, the manufacturer will not pay for the repairs, as these things are always excluded from the warranty. However, you can get insurance coverage for these components. Ensure you opt for a comprehensive insurance plan that covers these parts when you want to get them repaired.
Similarly, the manufacturer’s warranty also excludes interior damage that can happen due to rough handling and overtime usage. Steering wheel leather peeling off, cracks and dings on your dashboard, scratches on your gear knob, frayed door pad fabric, broken AC vents, etc. are some interior damages that happen with time.
Accidental And Environmental Damage
The manufacturer warranty is an assurance that your car’s components will function properly for a specified period of time. Although this is assumed to happen under normal circumstances, if your car gets involved in an accident, the warranty might not cover any damage whatsoever, including the parts that are usually covered under warranty like the powertrain, etc. In the case of a severely damaged car or one declared a total loss, your entire warranty is voided.
Bumper-to-bumper coverage, also known as comprehensive coverage, covers almost all major components of a vehicle. However, the powertrain warranty covers engine transmission-related components. Before choosing your car warranty, consider your car's make, how old it is, and which warranty is best for the type of coverage you want.
The car’s make and model also affect the cost of replacement parts and associated repairs. If you own a high-end vehicle with expensive parts and an extended warranty that can cover your repair costs.
Another factor to consider while choosing your warranty is to check how much it costs monthly. A good way to check if buying a car warranty is worth it is by comparing your car's warranty premium and repair costs after a breakdown. If your repair costs are too high compared to your warranty, consider purchasing a new warranty to avoid costly repairs.
The last factor to consider is choosing between the manufacturer and third-party warranty providers. Extended warranties are offered by both manufacturers and third-party providers. Although the cost and coverage can differ between the two, it's important to read the warranty documents to ensure you are not taken by surprise later.
Buying Guides & Articles on Auto Parts
Articles and Guides written by auto parts experts to ensure you have all the required knowledge to make the correct purchase here at Parts Avatar.
Read all Guides & Articles
