New Car Warranties - What They Include And Don’t

The past ten years has seen a considerable improvement in the warranties that cover new cars. Automobile giants are churning out vehicles with improved warranty elements that are enticing customers. One instance is that of Chevrolet announcing that it would offer an 8 year, 80,000 mile warranty in its new Volt plug-in electric car. The warranty is offered on the batteries of this vehicle which is soon to be unveiled.

So, considering that warranty offerings are looking quite promising, you would want to understand the inclusions and exclusions in new car warranties. Here we take a look at some of these specifics.

New Car Warranty Coverages:

Traditionally, most automobile manufacturers offered warranties such as 3 years or 36,000 miles in their new car models. Today, this has taken a new turn with warranties that protect transmission, engine and other powertrain elements for a longer duration.

Industry giants like Chrysler and General Motors provide powertrain coverages of 5 years or 100,000 miles. Ford is seen to offer 5 years or 60,000 miles, on par with most other auto manufacturers. Hyundai is known to have started this new wave of competition in the 1990s and they still continue to offer the 10 years or 100,000 miles powertrain warranty that they did back then.

  • The basic cover, the bumper-to-bumper warranty, includes almost all elements of the vehicle, i.e., the air-conditioning, electrical fixtures, and the audio system. The warranty is usually capped at 3 years and 36,000 miles, while some luxury brands may extend it further.
  • The most significant part of your warranty is the powertrain coverage. This part compensates for transmission and engine repairs that could amount to a lot of money.
  • Roadside assistance for support during the breakdown of a car was initially only provided for luxury brands. This has, however, been added to the ambit of most warranties today.
  • Warranties also include protection against rust for body parts. However, this is a rare occurrence in modern vehicles.
  • If your car is equipped with substantial basic and powertrain warranties, you can refrain from purchasing costly extended warranties from new-car dealers.

New Car Warranty Exclusions:

Most of the regular warranties do not include maintenance consumables like windshield wipers, oil changes and brake linings. But these options may be available to luxury cars in the market today.

When you are already in possession of a new vehicle with robust warranty, you need to observe the following steps:

  • Review the coverage - You should read the owner?s manual thoroughly, particularly when you are in need of a costly repair. Even if the dealer refuses to honour certain parts as components of the powertrain, you can verify whether this is stated in the manual. You can also call the automobile company for further clarifications.
  • Check what is covered in hybrid warranties - If the vehicle you buy is a hybrid of gas and electricity, the costly battery and other hybrid components may be equipped with special coverage.

In summary, it is important to familiarise yourself with your warranty coverage, as it would be useful at the time of claims.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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