What is an exclusionary warranty?
An exclusionary warranty is a type of vehicle service contract (VSC) that covers all parts on a vehicle unless they’re explicitly listed as excluded. Not all exclusionary warranties cover the same components, but they’re all alike in structure.
Exclusionary warranties may also be referred to as comprehensive warranties or bumper-to-bumper warranties because of their extensive coverage. They’re generally as close as you can get to your car’s original manufacturer’s warranty.
Excluded items
Some typical exclusions include:
- Maintenance items, including wear-and-tear parts
- Preexisting conditions
- Repairs due to misuse, abuse, accidents, environmental damage or lack of maintenance
- Cosmetic issues
What is an inclusionary warranty?
An inclusionary warranty is a type of vehicle service contract that only covers specifically listed components. Inclusionary warranties may also be called listed-item or stated-component contracts.
Providers may offer a few inclusionary warranty options. For example, powertrain warranties are a type of entry-level inclusionary warranty that cover components like your engine, transmission and drive axle. A higher-tier inclusionary warranty may cover the powertrain components plus add coverage for other systems like air conditioning, steering, brakes and electrical.
Excluded items
General exclusions for inclusionary warranties are similar to exclusionary contracts. Some typical exclusions include:
- Maintenance items, including wear-and-tear parts
- Preexisting conditions
- Repairs due to misuse, abuse, accidents, environmental damage or lack of maintenance
- Cosmetic issues
Differences between exclusionary and inclusionary warranties
The two biggest differences between exclusionary and inclusionary warranties are cost and scope of coverage. Exclusionary warranties are more expensive than inclusionary warranties since they cover more components, typically costing around $1,000 or more a year of coverage. Entry-level inclusionary plans, like powertrain warranties, typically cost around $600 to $750 per year of coverage.
| Exclusionary coverage | Inclusionary coverage | |
|---|---|---|
| Cost | Most expensive option | Least expensive option |
| What’s covered | Most vehicle parts | Specifically named components |
| What’s not covered | Specifically named components | Most vehicle parts |
| Additional benefits | May include roadside assistance, car rental reimbursement or trip interruption coverage | May include roadside assistance, car rental reimbursement or trip interruption coverage |
| Where to buy | Auto manufacturers or third-party extended warranty providers | Auto manufacturers or third-party extended warranty providers |
| Best for | Newer vehicles | Older vehicles |
You may prefer an exclusionary warranty because it’s easier to understand and includes the most comprehensive coverage. Although there will likely be several services you won’t end up using, the ones you do use could end up saving you money.
Inclusionary warranties cover fewer components, so they’re less expensive than exclusionary warranties. This can make them more appealing to consumers with older or higher-mileage cars.
How to choose the right warranty for your vehicle
Choosing the right warranty for your vehicle generally depends on your vehicle’s age, type and condition, the coverage level you’re comfortable with and your budget.
Vehicle age, type and condition
Exclusionary plans are often only available for vehicles under a certain age or mileage, which vary depending on the provider.
Older vehicles
If your vehicle is older with higher mileage, it’s likely not worth it to spend money on an exclusionary warranty, and it may be better to use that money to save up for a newer car or unexpected car repairs. Instead, an inclusionary warranty like a powertrain warranty may be a better option, providing peace of mind against some of the most expensive repairs, such as engine repairs.
Newer vehicles
Newer vehicles with low mileage are generally more dependable, so you may not end up using an inclusionary or exclusionary warranty at all. However, after your factory warranty expires, exclusionary extended warranties are usually a better option for newer vehicles than inclusionary extended warranties.
Vehicle type
Before buying a warranty, research your vehicle to get a general sense of its reliability on sites like J.D. Power, RepairPal and Kelley Blue Book. If your car model has known weaknesses, find an extended warranty plan that addresses these. If your car is known for its dependability and workmanship, you may want to skip an extended warranty altogether.
Coverage needs
If you want the same level of coverage as your manufacturer’s warranty, or if you’re concerned about needing extensive repairs in the future, an exclusionary contract may be your best option. If you’re interested in an inclusionary plan, make sure you fully understand its limitations before purchasing since these plans cover fewer parts and issues.
Ryan Hartman, founder of Chaiz, an online marketplace for auto warranties, emphasized that with inclusionary warranties, “ONLY the components stated in the contract are actually covered, which can lead to disputes during the claims process.”
“With exclusionary coverage, the risk of this happening is much lower, since every part is covered unless it’s specifically excluded,” Hartman said.
Your budget
Exclusionary warranties are more expensive than inclusionary warranties, and many people simply don’t have the money to pay the higher price. If both options seem out of budget, it may be better to save what you can for unexpected repairs in an emergency fund.
Plus, in addition to premiums, you’ll typically be responsible for paying a deductible for every claim you file, which typically ranges from $0 to $200. You may also need to pay out of pocket for select services or parts that aren’t covered under your contract. For example, fluids and filters typically aren’t covered under most car warranties.
Additional coverage options to enhance coverage
Whether you buy an exclusionary or inclusionary extended warranty, some extended warranty providers allow you to customize your policy by adding on extra coverage. This may include coverage for:
- Tires and wheels
- Windshield repair
- Cosmetic issues, like dents or rust
- Luxury electronics
- Key fob replacement
- Commercial or rideshare use
- Recommended maintenance, including oil changes and tire rotations
Adding any of these options will increase your overall extended warranty costs. But if you want to lock in lower pricing or pay over time for coverage, an add-on plan may be worth it.
FAQ
What is the difference between an inclusionary and exclusionary warranty?
The difference between an inclusionary warranty and an exclusionary warranty is that an inclusionary warranty lists all the components that are covered, whereas an exclusionary warranty only lists components that aren’t covered. Exclusionary contracts offer more comprehensive coverage, so they tend to cost more than inclusionary contracts.
Is an exclusionary warranty worth it?
An exclusionary warranty may be worth it if you want peace of mind since it will provide your car with the same or similar coverage to the original manufacturer’s warranty. However, exclusionary warranties may not be worth the cost for older or high-mileage cars.
How can I find out what components are covered under inclusionary coverage?
You can find out what components are covered under inclusionary coverage by reviewing a sample contract, which will outline the specific parts that are covered. This will help you learn what is and isn’t covered before purchasing a policy.
Are older vehicles eligible for exclusionary coverage?
Some older vehicles may be eligible for exclusionary coverage, but most providers have an age and mileage limit for vehicles to qualify.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Federal Trade Commission, “Auto Warranties and Auto Service Contracts.” Accessed Aug. 15, 2026.
