Extended warranty

The extended warranty exists in several forms and adapts to the varied needs of motorists, whether for new or used vehicles. It can cover specific aspects of the vehicle, such as mechanical or electrical components, depending on the options chosen. Understanding the different types of warranties available is essential to making an informed choice and effectively protecting your vehicle.

2.1 Extended warranty for new vehicles

The extended warranty for new vehicles is in addition to the manufacturer's warranty offered when the vehicle was purchased. This extension allows the vehicle to be protected well beyond the initial duration of the factory warranty, which is generally 3 to 5 years. Once the manufacturer's warranty expires, the extended warranty takes over to cover certain defects and repairs.

• Coverage: This can include essential systems such as the engine, transmission, electronic systems, and sometimes even integrated accessories (GPS, cameras, etc.).
• Advantage: This option is ideal for motorists who plan to keep their new vehicle for a long period of time and want to protect themselves against costly repairs after the factory warranty ends.

Many dealers offer this warranty upon purchase of the vehicle, allowing motorists to include it in their car financing.

2.2 Extended warranty for used vehicles

Used vehicles may also benefit from an extended warranty, which is particularly useful for protecting an older or high-mileage vehicle. Unlike new vehicles, used vehicles may have already been used by one or more owners, increasing the risk of breakdowns or costly repairs.

• Coverage: This warranty may cover major mechanical repairs such as engine, transmission, brakes, or suspension systems, depending on the terms of the contract. Older vehicles or those with high mileage may have specific exclusions (certain parts not covered).
• Benefit: Purchasing an extended warranty for a used car allows motorists to limit the financial risks associated with major repairs, while increasing the perceived value upon resale.

These warranties may be offered by dealers or specialist insurance companies and can sometimes be tailored to the condition and age of the vehicle.

2.3 Specialized warranties (specific parts, powertrain, etc.)

There are also specialized warranties that focus on specific components of the vehicle. These warranties are often less expensive than a comprehensive warranty and only protect critical parts of the car.

• Powertrain: This coverage focuses on the vehicle’s major components, including the engine, transmission, and drivetrain. Since these parts are the most expensive to repair, powertrain coverage provides protection against major breakdowns that could otherwise cost the motorist thousands of dollars.
• Electronics and advanced systems: Modern vehicles are increasingly equipped with sophisticated electronic systems (GPS, cameras, sensors, etc.). Some specialized warranties cover only these electronic components, which can be expensive to replace.
• Air Conditioning and Heating Systems: Another specialized warranty option covers heating, air conditioning or cooling systems, items that are used frequently and are susceptible to failure in extreme conditions.

These warranties allow motorists to target the aspects of the vehicle most likely to cause problems, while reducing costs compared to comprehensive coverage.

2.4 Coverage durations and options

Extended warranties are flexible in terms of duration and coverage options, allowing motorists to choose protection that suits their specific needs.

• Coverage durations: Extended warranties can be valid for different periods, often between 1 and 7 years, or up to a certain number of kilometers driven. For example, a motorist may opt for an extended warranty that covers their vehicle for an additional 5 years or up to 100,000 kilometers. Motorists should carefully evaluate their vehicle usage to choose the appropriate duration.
• Coverage options: Extended warranty plans can offer different levels of protection, from basic coverage (such as a powertrain warranty) to comprehensive plans that even include additional services such as roadside assistance or non-mechanical part replacement. Some plans also allow you to customize coverage based on the driver’s specific needs. For example, a driver who drives a lot of miles per year might choose higher mileage coverage, while another might prefer extended coverage for shorter trips.

An extended warranty is a financial protection that helps protect drivers against the costs of mechanical breakdowns and major repairs once the manufacturer’s warranty has expired. However, not all extended warranties cover the same items. It’s important to understand what’s included in the coverage, as well as any possible exclusions. Let’s take a closer look at what an extended warranty typically covers.

4.1 Covered mechanical parts

Mechanical parts are often the most expensive items to replace or repair, and most extended warranties provide coverage for major vehicle components. These warranties apply to breakdowns or failures that are not caused by normal wear and tear but rather by unforeseen mechanical issues.

Here are some examples of mechanical parts covered by an extended warranty:

• Engine: The engine is often the focus of extended warranty coverage. This includes the internal components of the engine, such as pistons, camshafts, valves, and the engine block itself.
• Transmission: The transmission is also a critical part of coverage, covering both automatic and manual transmission systems. Internal components such as gears, driveshafts, and torque converters are typically covered.
• Steering and Suspension System: Some policies include coverage for steering-related parts (such as rack and pinion) as well as suspension (shock absorbers, control arms).
• Braking Systems: While brake pads and rotors may be excluded due to normal wear and tear, some warranties cover more complex components of the braking system, such as master cylinders and calipers.

By covering these essential mechanical parts, the extended warranty protects motorists from the high costs that can arise from major breakdowns.

4.2 Electrical and electronic systems

Modern vehicles are increasingly equipped with sophisticated electronic systems, and these components are also covered under many extended warranties. Repairs to these systems can be particularly costly due to their complexity, and motorists often take comfort in knowing that these components are protected.

Here are some examples of electrical and electronic systems that are often covered by an extended warranty:

• Infotainment systems: Includes touchscreens, GPS navigation systems, audio systems, and voice commands. If these systems fail or develop defects, they can be expensive to replace or repair.
• Safety electronics: Covers driver assistance systems such as reversing sensors, surveillance cameras, adaptive cruise control, and assisted emergency braking systems.
• Lighting: Some warranties cover sophisticated lighting systems such as LED or xenon headlights, as well as taillights.
• Air Conditioning System: The air conditioning compressor, condenser, and fans are often covered, as these components can require major repairs, especially in areas with extreme climates.

This coverage is especially important for motorists driving high-tech vehicles, as these electronic systems are often expensive to repair or replace.

4.3 Routine repairs and routine maintenance

While extended warranties often cover unexpected breakdowns and major repairs, it’s important to note that routine maintenance is typically not included. Repairs related to normal wear and tear or routine maintenance are not covered under a standard extended warranty, as they are considered a regular responsibility of the owner.

Here are some examples of repairs and maintenance that are generally excluded from the extended warranty:

• Oil and filter changes
• Changing tires and brake pads
• Wheel Alignment and Tire Balancing
• Replacement of windshield wipers and battery (in some cases)

However, some extended warranty contracts may include options to cover routine maintenance items for an additional fee. This allows motorists to plan an overall budget for regular vehicle repairs and maintenance.

4.4 Warranty Exclusions and Limitations

As with any insurance policy, there are exclusions and limitations in an extended warranty. It is crucial to read the warranty contract carefully to understand what is excluded in order to avoid any unpleasant surprises when it comes time for a repair.

Here are some of the common exclusions and limitations:

• Normal wear and tear: Parts subject to daily wear and tear, such as tires, brake pads, rotors, or windshield wipers, are generally not covered by the extended warranty.
• Accidents or Neglect: Repairs resulting from an accident, negligent use or lack of regular maintenance will not be covered. If a motorist neglects the servicing recommended by the manufacturer, some breakdowns may not be covered.
• Unauthorized Modifications: If the vehicle has been modified with non-compliant parts or aftermarket accessories, some extended warranties may deny coverage for repairs associated with those modifications.
• Geographic limitation: Some extended warranties may not be valid outside of the region or country of origin. For example, if you cross an international border with your vehicle, you may find that your coverage is not applicable in certain countries.
• Limited Mileage: Some warranties have a mileage limit, beyond which coverage is no longer valid. For example, a warranty may be valid for up to 100,000 kilometers or 5 years, whichever comes first.