What does a car warranty cover?
Even the most robust warranties only cover factory defects

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“All of our vehicles come with a four-year/50,000-mile bumper-to-bumper warranty” sounds comforting, but what does a bumper-to-bumper warranty really cover? What about a powertrain warranty? And if your electric vehicle (EV) battery dies, would your warranty cover a $10,000-plus replacement?
Car warranties only cover factory defects — parts that fail entirely on their own due to manufacturing issues. Most warranties (factory or extended) don’t cover car repairs needed due to damage, abuse, misuse or neglect.
Even the most robust bumper-to-bumper car warranty will only cover some of your car’s parts and only part of the time.
Jump to insightBumper-to-bumper warranties apply to every part of your car except a small list of exclusions; powertrain warranties only apply to select engine and drivetrain components.
Jump to insightThe most common exclusions are for wear-and-tear items, like brake pads and clutches, and cosmetic items, like interior upholstery.
Jump to insightThe Magnuson-Moss Warranty Act established standards for when warranty companies can actually void coverage.
Jump to insightCar warranties: What's covered?
First, it’s important to establish one thing all car warranties have in common: Auto warranties only cover unexpected repairs needed due to factory defects.
A warranty is the automaker’s promise to fix problems that shouldn’t be problems in the first place.
For example, the transmission is covered if you’re driving along and it suddenly starts lurching and won’t shift out of second gear for no apparent reason. Similarly, if your infotainment screen suddenly goes black and won’t respond to any inputs, the repair would very likely be covered under your warranty.
The common thread between these issues is they don’t seem to have any cause. You didn’t pummel your transmission at the racetrack or pour coffee all over your center stack, and there’s no one and nothing to blame but the people who put the car together. Automakers call the underlying issues that cause these kinds of problems “defects in materials or workmanship.”
Most people don’t fully understand how car warranties work
We surveyed 1,000 drivers, and only 55% of them said they knew what a warranty covered. That’s not ideal, but what’s worse is that about half of those people were actually wrong about what warranties will pay for.» RELATED: Nearly 13% of Americans can’t afford a $1,000 out-of-pocket car repair
Types of car warranty coverage
Most new cars actually come with multiple warranties that are designed to cover different replacement parts for different lengths of time:
- Bumper-to-bumper warranties: Bumper-to-bumper warranties cover practically every part between your bumpers (minus the kinds of exclusions we mentioned earlier). You may also see them listed as “basic” or “limited” warranties. Technically, they cover every part except the ones listed under the exclusions in your contract, so be sure to read that section carefully.
- Powertrain warranties: A powertrain warranty covers your engine, transmission and drive axle (the part that brings torque to the wheels), as well as other essential components that make the car go. Powertrain coverage often outlasts bumper-to-bumper warranties, though. Some, like Hyundai’s, go as long as 10 years/100,000 miles.
- Hybrid/EV battery warranties: These cover the big, main battery powering your hybrid or electric vehicle and certain other expensive battery-related components. They typically guarantee the battery will keep working and retain 70% maximum charge up to a certain number of years or miles, typically around eight years/100,000 miles.
- Emissions/rust/corrosion warranties: These warranties cover very specific scenarios or component groups, such as rust underneath the car or your emissions system.
What isn't covered by a car warranty?
Warranties won’t cover a mechanical breakdown related to accidents or collisions (that’s what your car insurance policy is for). Weather damage, vandalism, misuse or abuse (like racing, off-roading or towing too much) and neglect (like missing maintenance or abandoning your vehicle) aren’t covered either. Not even the most comprehensive bumper-to-bumper warranty will cover:
- Routine maintenance like oil changes and tire rotations.
- Normal wear and tear on items that have short, predictable life spans, such as brake pads, tires and wiper blades.
- Cosmetics like leather upholstery, dashboard trim or scratches on your carbon fiber finish.
- Body panels like doors, bumpers and other painted pieces (although you may get some paint protection through your factory anticorrosion warranty, explained below).
- Any other exclusions listed in your warranty agreement. For instance, catalytic converter coverage is complicated because it’s such an expensive part.
It’s important to familiarize yourself with the exclusions in your contract so that you’re not surprised later on when your claim is denied. “It seemed like everything is covered. But when I went to go and get some stuff done, it turned out it wasn't covered,” reported a reviewer in Georgia. “I can understand that stuff can't be paid for but with things like spark plugs -- that's not a regular everyday thing that you have to change.”
What to know about aftermarket parts
Aftermarket parts lead to countless claim denials. We asked a claims adjuster with Mopar, the brand that handles parts and warranties for Jeep, Dodge, Ram, Chrysler and Alfa Romeo, about the most common reason he denied warranty claims: “Unauthorized lift kits,” he said. “If we find out that you installed a lift kit that wasn’t one of ours, we’ll automatically deny any claims for any suspension or transmission work.”
» RELATED: Do car warranties cover windshields?
What kind of things would void my car warranty?
You can reasonably expect your warranty to be voided if your vehicle is:
- Flood titled
- Salvage titled
- Found with an altered odometer
- Subject to extreme environmental damage
You can see how a warranty administrator would look at a car with these issues and say, “Yeah, we definitely can’t guarantee the parts after that.”
Why would my claim get denied?
There are also some situations that may result in denied claims but leave your remaining warranty intact, such as:
- Aftermarket part installs
- Chip installs/engine logic alterations
- Racetrack or off-road use
- Nonrated towing
- Missed regular maintenance intervals (e.g., delayed oil changes, bald tires)
- Damage short of a total loss
The key difference is that, in the first list, it’s reasonable to assume that every part of the car has been affected, and as a result, factory quality can’t be guaranteed. But, in the second list, only some of the areas of the car may be impacted, and therefore, it wouldn’t be right (or, in some cases, even legal) to void your entire warranty.
Real-world example
If you’re 2,000 miles late for an oil change, your warranty provider may deny your claim for an engine repair, but they shouldn’t deny your claim for a sunroof repair. Similarly, if you install a custom engine part, you run the risk of your warranty provider denying all powertrain-related claims. But no matter how much horsepower you add, they shouldn’t deny claims for a dead infotainment system.
The key takeaway is this: Even if something doesn’t void your warranty altogether, it may effectively “void” coverage for certain areas of your car. So approach aftermarket parts and off-roading/racing with caution.
Types of car warranties
There are a few different types of car warranties, and different coverages are available from each one. We’ve broken down the various options below, but contract details may vary, so it’s always best to read any warranty agreement carefully before you buy.
New car warranties
Also known as manufacturer's warranties or factory warranties, new car warranties are included with all brand-new vehicles.
The minimum new car warranty term is three years/36,000 miles, which means the warranty lasts until the vehicle is three years old or has 36,000 miles on its odometer, whichever comes first. However, some car makers offer considerably more.
NOTE: Factory warranties always follow the car, not the owner. So, if you buy a used car that’s two years old and has 20,000 miles on the odometer, it should have some factory warranty left, barring any warranty-voiding misfortunes.
» COMPARE: Best new car warranties
Certified pre-owned warranties
Certified pre-owned (CPO) warranties are coverage plans manufacturers or individual dealerships may include with a certified pre-owned vehicle purchase. They’re typically bumper-to-bumper warranties lasting two years/24,000 miles or less.
Compare CPO warranties by automaker
If you’re interested in buying a certified pre-owned vehicle, check out our breakdowns of different car manufacturers’ CPO programs to see how your choice stacks up:
- Acura
- Acura MDX
- Aston Martin
- Audi
- Bentley
- BMW
- Buick
- Cadillac
- Chevrolet
- Chrysler
- Dodge
- Ferrari
- FIAT
- Ford
- Genesis
- GMC
- GMC Hummer EV
- Honda
- Hyundai
- Infiniti
- Jaguar
- Jeep
- Jeep Grand Cherokee
- Jeep Wrangler
- Kia
- Land Rover
- Lexus
- Lexus IS
- Lincoln
- Maserati
- Mazda
- McLaren
- Mercedes-Benz
- Mini
- Mitsubishi
- Nissan
- Polestar
- Porsche
- Ram
- Range Rover
- Rolls-Royce
- Subaru
- Tesla
- Toyota
- Volkswagen
- Volvo
Extended auto warranties
Extended auto warranties, also known as vehicle service contracts, are optional warranties that give you comprehensive coverage beyond what your factory warranty offers. A common term length for an extended warranty is seven years/100,000 miles, meaning it would extend a four-year/50,000-mile factory warranty by another three years/50,000 miles.
In most cases, bumper-to-bumper coverage offers the best bang for your buck.
You can purchase extended auto warranties from the manufacturer of your vehicle, like Honda, or from a warranty company, like Endurance. Some automakers require you to purchase your extended warranty before the factory warranties run out, while third-party car warranty companies are generally more flexible.
Types of extended warranty coverage
Extended coverage options vary considerably, but here are the main three categories you’ll see:
- Platinum/Diamond/Supreme plans are generally bumper-to-bumper-equivalent plans, but be sure to read the fine print before you buy.
- Gold/Silver plans typically offer something in between bumper-to-bumper and powertrain, with coverage for a few hundred parts.
- Powertrain plans are pretty much a direct extension of your factory powertrain warranty, with coverage for a few dozen engine, transmission and drivetrain-related components only. Some companies offer Powertrain Plus plans that sprinkle in coverage for a few other components, too.
How to choose
While the Gold/Silver plans may sound like the best value, based on our experience pricing out hundreds of extended auto warranties from top-ranked providers, bumper-to-bumper plans tend to be the best overall value because they cover hundreds or thousands more parts for around 10% to 40% more.
In fact, we spoke to around 15 dealerships representing various automakers that told us they no longer sell Gold- or Powertrain-equivalent extended auto warranties because so many customers ended up dissatisfied with how many unexpected repairs weren’t covered.
How much does an extended warranty cost?
Average extended car warranty costs range from $600 to $1,000 per year. More expensive or less reliable vehicles generally cost more to cover. As you might expect, the price of an extended warranty tends to rise as your vehicle ages. Luxury brands and high-maintenance models tend to have higher warranty costs. Most people finance a warranty through lump-sum, short-term or monthly payments.
When is extended warranty coverage worth it?
So, is it worth paying thousands of dollars to extend your factory warranty? It depends. In general, an extended car warranty is most likely to be worth it if:
- You drive a vehicle with below-average expected reliability.
- The cost of a warranty plan is less than you expect to save on covered repairs.
- A surprise repair bill could be financially ruinous.
- You don’t mind paying a few thousand dollars for extra peace of mind.
You can get an overall idea of your vehicle’s expected reliability from J.D. Power’s annual U.S. Vehicle Dependability Study. Then you can see how much repairs might cost from tools like Kelley Blue Book’s 5-Year Cost to Own tool, Edmunds’ True Cost to Own (TCO) tool and RepairPal’s estimated annual repair cost.
Compare those costs to how much an extended warranty would cost you (we recommend getting quotes from multiple warranty providers) to decide whether an extended warranty is financially worth it for you.
FAQ
What should I look for when comparing car warranties?
Keep a close eye on costs, coverage and company reputations. A warranty is no good unless the company is known for paying out claims in full and on time.
Can I transfer my car warranty to a new owner?
If your vehicle is still under factory warranty, the remaining warranty amount should transfer automatically. Most extended auto warranties can be transferred to new owners, though you typically have to fill out paperwork and pay a transfer fee of around $50 within 30 days of the sale.
What’s the difference between a warranty and a recall?
A warranty is passive protection against manufacturing defects. A recall is an acknowledgment of a known, widespread issue affecting certain models and years. Recall repairs are free and often safety-related, so it’s best to schedule your recall repair work as soon as possible.
What happens to my warranty if I modify my vehicle?
Most modifications won’t instantly void your warranty, but they may result in claim denial for any parts or systems the aftermarket part affects. For example, if you install a lift kit without your warranty provider’s approval, all claims for engine, suspension and transmission repairs may be denied if the lift kit can be implicated as the cause.
How will warranty companies know if I abused, misused or neglected my vehicle?
The telltale signs of neglect, abuse or misuse can be easy to spot for trained technicians and experienced claims adjusters. Excess clutch wear, worn-out brakes, balding tires or a carved-up undercarriage are all signs the vehicle may have been tracked, taken off-road, or otherwise abused or misused.
Neglect is much easier to define; if you can’t provide maintenance receipts, used car warranty companies may simply assume the vehicle has not been properly maintained as outlined in your manual.
Are car warranties voided if I miss a scheduled maintenance?
Warranties aren’t instantly voided in most cases, but your warranty provider may deny claims for parts related to the missing maintenance. If you miss an oil change, for example, your provider may deny claims for engine-related repairs.
What is the difference between a car warranty and car insurance?
Unlike auto insurance, a warranty is not legally required. However, some of the top car insurance companies offer similar benefits, like roadside assistance.
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:
- Consumer Financial Protection Bureau, “What is an extended warranty or vehicle service contract?” Accessed June 17, 2025.
- U.S. Bureau of Labor Statistics, “Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category.” Accessed June 17, 2025.