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A used car warranty covers the cost of repairing or replacing a vehicle’s major mechanical parts and systems. It covers breakdowns and defects in those components, as well as the labor costs for fixing them, but not damage from things like accidents or bad weather.
What Different Types of Used Car Warranties Cover
Used car warranty companies usually offer a range of plans, and the most basic plans cover everything that moves the vehicle, such as the engine and transmission. Broader warranties called bumper-to-bumper warranties often cover all of the vehicle’s major systems, including electrical components, heating and cooling, safety features, high-tech parts, and hybrid batteries.
| Type of Warranty | What It Covers |
| Powertrain warranty | Your engine, transmission, driveshaft, differential, transfer case, and axles |
| Drivetrain warranty | The same parts as a powertrain warranty except for the engine |
| Bumper-to-bumper warranty | Most car systems, except for parts that undergo normal wear like tires, brake pads, and wiper blades |
| Wrap warranty | Fills in the coverage gaps when a bumper-to-bumper warranty expires and a powertrain warranty is still active |
| Restraint systems warranty | Seat belts and air bags |
| Corrosion warranty | Rust damage |
What a Used Car Warranty Doesn’t Cover
You’ll have to read your warranty’s terms and conditions for the full list of exceptions, but usually you won’t get coverage for:
- Parts or systems excluded by your specific type of warranty (e.g. your engine with a drivetrain warranty)
- Parts that undergo normal wear and tear (e.g., tires, brakes, battery, etc.)
- Damage from accidents, severe weather, vandalism, or other external situations
- Routine maintenance
- Cosmetic damage
- Issues that existed prior to purchasing the warranty
- Issues that arose due to neglecting maintenance
Bottom Line
A used car warranty is a type of extended warranty that can keep drivers from paying for expensive repairs out of pocket after the manufacturer’s warranty has expired. Each warranty provider has its own rules on which vehicles qualify for coverage, but some providers even offer options for high-mileage cars.
To learn more, check out WalletHub’s guide to the best used car warranties.
People also ask
How much does an extended car warranty cost?
An extended car warranty costs around $1,500 on average, with prices typically ranging between $1,000 and $3,000. The exact cost of an extended car warranty depends on several factors, including the condition of the car, the car’s mileage, and the amount of coverage included in the warranty.
Factors That Affect Extended Car Warranty Cost
An extended car warranty pays for repairs to a car’s major systems if they malfunction. If you drive an older car...
read full answer by WalletHub, Financial CompanyWhat is not covered under an extended warranty?
Extended car warranties don’t typically cover routine maintenance services such as oil changes, wheel alignments, tire rotations, or brake inspections. They also exclude damage caused by weather events, accidents, vehicle modifications, or lack of proper care. In other words, an extended warranty only protects you from mechanical breakdowns, not from damage or issues that can be avoided through maintenance or safe driving.
Most Extended Warranties Do Not Cover:
- Routine maintenance, such as oil changes...
Is it worth buying a warranty on a used car?
No, it is not worth buying a warranty on a used car in most cases. It’s only worth buying an extended warranty for a used car if the vehicle is particularly unreliable and the owner cannot afford to pay out of pocket for expensive repairs. For drivers with reliable cars and the ability to pay for repairs, used car warranties generally do not provide much value compared to the expense.
Car warranties, also known...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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