What Is a Drivetrain Warranty?

What does a drivetrain warranty cover?

A drivetrain warranty only covers the components that transfer power from your motor/engine to your wheels, such as your:

• Transmission: Converts engine power into usable speed and torque for your wheels.
• Drive shaft: Transfers torque from the transmission to the differential.
• Differential: Allows your wheels to rotate at different speeds, especially while turning.
• Transfer case: Transfers power from the transmission to both the front and rear axles in four-wheel or all-wheel drive vehicles.
• Axles: Deliver power to the wheels and support the vehicle's weight.
• Wheels (but not tires): Rotate to move the vehicle forward or backward.

Cars can have very different drivetrain configurations, so it’s impossible for us to list every part that’s in your vehicle’s drivetrain.

Car warranty coverage can vary by provider, so the best way to get more specific coverage details is to read your vehicle service contract agreement.

If you want more coverage than a drivetrain warranty provides, consider a powertrain or bumper-to-bumper warranty instead. These plans are often more expensive, but they also give you a better chance of being financially protected if you need a major repair. They’re also more common than drivetrain warranties, giving you more warranty provider options.

What does a drivetrain warranty not cover?

Notably, a drivetrain warranty does not cover your car’s engine. Also, some contracts list wheels as part of a drivetrain, but many exclude wheels and tires from coverage. Drivetrain warranties only cover the small list of components listed in your warranty agreement. That means a drivetrain warranty won’t cover most of your vehicle.

Other components that often aren't covered by a drivetrain warranty include:

• Starters
• Alternators
• Fuel system components
• Brakes
• Manual clutch assemblies (in some cases)

More broadly speaking, extended car warranties don’t cover preexisting conditions, so your drivetrain components must be in good mechanical condition when you sign up. (And it doesn’t hurt to get a pre-purchase inspection as proof.)

Extended warranties also won’t cover any cosmetic problems or damage caused by accidents. If your axle is bent in an accident, for example, you need to file a claim on your car insurance to fix it.

Most people either don’t know what a warranty covers or aren’t sure what it covers, according to a ConsumerAffairs survey.

Don’t expect your warranty to cover the cost of fixing covered parts 100% of the time. Vehicle warranties only cover repairs due to manufacturing defects. Abusing, misusing or neglecting your vehicle may void your warranty. That means you’re out of luck if your transmission breaks because you put off maintaining it, warranty or not.

» MORE: What does a car warranty cover?

Drivetrain repair costs

The cost of fixing your drivetrain will depend on the problem you’re facing and the make, model and year of your vehicle, but here are estimated costs for replacing some of the major parts of your drivetrain.

• Transmission replacement: $3,000 to $9,000
• Transfer case replacement: $2,000 to $8,000
• Axle replacement: $531 to $2,325
• Front differential: $2,000 to $8,000-plus
• Rear differential: $2,500 to $6,000

What can void a drivetrain warranty?

As with other warranty types, drivetrain warranties come with conditions, and failure to meet them can result in a voided warranty. Common reasons a warranty might be voided include:

• Lack of maintenance: Failing to follow your vehicle’s recommended maintenance schedule
• Unauthorized repairs: Getting service from unapproved mechanics or using non-OEM parts
• Modifications: Making performance or structural modifications to drivetrain components
• Misuse or abuse: Using your vehicle for racing, off-roading or towing beyond its rated capacity
• Accidents and environmental damage: Incidents not related to a manufacturing defect, such as crashes or flooding

How to file a drivetrain warranty claim

If a part covered by your drivetrain warranty fails (or is in the process of failing) and you need to make a claim, you should call your warranty provider right away. They can walk you through the provider’s specific claims process. In some cases, providers may also have recommendations for service centers or automotive technicians near you that can work on your vehicle.

When filing any type of warranty claim on a vehicle, having proper documentation is essential. Be sure you have records of any routine maintenance you’ve done on applicable car parts so you can share them with your warranty provider when you file your claim.

You should familiarize yourself with what all your warranty covers before you need it; for example, if towing is included in your plan, you may need to let your warranty provider know that you’ll be using that benefit to get your car from wherever it is to an approved repair shop. And you don’t want to try to make a claim on a component that your drivetrain warranty doesn’t cover.

» MORE: How do you get your car warranty claim approved?

Drivetrain vs. powertrain warranties

The most significant difference between powertrain warranties and drivetrain warranties is that the powertrain includes your engine (along with all other drivetrain components). Think of it this way: your drivetrain is made of the parts that transfer power to your wheels, and your powertrain is all of those parts plus the thing that creates that power in the first place — your engine.

It’s difficult to get more specific about the relative pros and cons of these types of warranties because most providers don’t sell drivetrain plans anymore.

While drivetrain warranties were once the most rudimentary extended warranty option, they’ve largely been phased out, leaving powertrain plans as the narrowest form of coverage you can find these days. The upside is that people looking for cheap extended warranties now get coverage for their engines.

» MORE: How to choose an extended car warranty

FAQ

Bottom line: Do you need a drivetrain warranty?

Whether an extended warranty is worth it for you “depends on several factors, including the level of coverage provided, the cost of the warranty and the likelihood and cost of potential repairs,” said Oliver Brown, data coordinator at wheelssize.com, an online automobile info hub. Basically, for you to come out ahead financially, the repairs need to cost more than you pay for the warranty (plus any deductibles).

If you see drivetrain repairs in your future, an extended warranty could be a smart bet.

If you have a car that’s known for transmission problems as it gets older, for example, the odds of extended warranty coverage paying for itself go up. Transmission replacements cost anywhere from $3,000 to $9,000, so a warranty could save you more than it costs you if your transmission goes bad.

“The main thing I wanted to be sure about was the drivetrain -- it turned 121,000 now. When you're not getting something that is new … you definitely want some coverage onto it,” a ConsumerAffairs reviewer from Indiana told us during a phone survey. Another survey respondent in California said drivetrain coverage could be beneficial for “anyone who wants to keep their car running for a long time without possibility of large, major expenditures.”

That doesn’t mean drivetrain coverage is all you need, though.

More comprehensive coverage tends to cost more, but we’ve often found that it offers a better relative value. Put simply, you get more parts covered per dollar.

“It's essential to carefully review the terms and conditions of the warranty to ensure it covers the specific components and repairs that are most likely to fail,” Brown said. “If the cost of the warranty is significantly higher than the expected cost of repairs, it may not be worth it.”