Factory Warranty Guide: Coverage and Term Lengths

What is a factory warranty?

A factory warranty, also known as a manufacturer’s warranty, comes with every new vehicle sold in the U.S. These warranties are provided by the company that made your vehicle, which separates them from dealer warranties or warranties from independent warranty companies selling vehicle service contracts.

These warranties follow the vehicle, not the owner, so it’s also possible to purchase a pre-owned vehicle with a factory warranty remaining.

What do factory warranties cover?

Auto warranties generally only cover manufacturing defects. So, if a part fails on its own and needs to be repaired, it should generally be covered under a bumper-to-bumper or powertrain warranty. For example, if your engine or transmission suddenly fails out of nowhere, your warranty should cover repairs or replacement.

» MORE: Car warranty guide: what you need to know

What factory warranties don’t cover

While factory warranties can offer a lot of protection, there are several things they typically don’t cover:

• Routine maintenance like oil changes, tire rotations and brake pads
• Wear-and-tear items such as windshield wipers, tires and brake rotors
• Cosmetic damage including paint scratches and upholstery stains
• Damage caused by accidents, misuse or lack of proper maintenance
• Aftermarket parts or modifications that affect performance or reliability
• Environmental damage such as hail, flooding or road salt corrosion

Types of factory warranty coverage

Factory warranties typically come with at least bumper-to-bumper and powertrain warranties, though they may come with other types of warranties.

Bumper-to-bumper warranties

With factory warranties, you’ll generally get at least three years or 36,000 miles of bumper-to-bumper coverage. Bumper-to-bumper warranties cover the vast majority of the parts on your car, with just a few exceptions.

Powertrain warranties

Factory warranties typically provide five years or 60,000 miles of powertrain coverage. Powertrain warranties typically only cover your engine, transmission and drivetrain.

Corrosion or anti-perforation warranties

Corrosion or anti-perforation warranties protect the car’s body panels from rust building up inside the paint.

Battery warranties

Battery warranties guarantee the traction batteries inside hybrids, plug-in hybrids and electric vehicles (EVs), usually for at least eight years or 100,000 miles.

Accessory warranties

Accessory warranties cover any accessories that were purchased from the manufacturer, such as tow hitches or floor mats.

Should you get more warranty coverage?

If you’d like additional coverage beyond what your factory warranty provides, you have two main options:

• Certified pre-owned (CPO) warranties: CPO warranties come with certified pre-owned vehicles and typically extend the factory bumper-to-bumper warranty by one year or 12,000 miles.
• Extended warranties: Extended auto warranties are available from car manufacturers and third-party warranty companies, and they come in a variety of different coverage levels and term lengths.

Whether spending extra for more warranty protection is worth the cost or not depends on your personal situation and preferences. For example, the average bumper-to-bumper extended warranty costs around $1,000 per year of coverage, but it might be worth it if you drive a vehicle with below-average expected reliability or if you want peace of mind. If nothing ever goes wrong with your vehicle, an extended warranty would cost you more than it saves you.

For Veronica, a reviewer from Maryland, getting an extended warranty was worth the cost. She said: “When I had a $4,000 issue with one of my former vehicles, Endurance covered the entire balance except for $100.”

Factory warranty coverage by automaker

Below is a table comparing major automakers’ bumper-to-bumper and powertrain warranties.

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Bottom line

Understanding what’s covered and not covered with factory warranties can help you decide whether you need extra or extended coverage. Before getting additional coverage, check whether your car is still under warranty and what’s covered so you don’t purchase coverage you don’t need.