What Does a Powertrain Warranty Cover?

What is a powertrain warranty?

A powertrain warranty is a type of auto warranty that covers a few dozen parts in and around your vehicle’s engine and drivetrain, including these key components:

Powertrain = Engine + Drivetrain

• Transmission
• Driveshaft
• Differential
• Drive axles
• Turbo/superchargers

In other words, it covers the essential components that make your car go.

All new vehicles sold in the U.S. come with powertrain warranties, but you can also purchase an extended powertrain warranty from your vehicle’s manufacturer or a third-party provider for continued coverage.

Real-world example

Let’s say your 2023 Ford Mustang starts having engine trouble. The dealership tells you that you need to replace an engine front cover gasket, quoting a cost of $950. Luckily, your Mustang is new enough that it’s still covered under Ford’s five-year/60,000-mile factory powertrain warranty. Since the Ford warranty booklet lists seals and gaskets under covered components, the dealer should fix this for free.

Used car powertrain warranty

A used car powertrain warranty differs from a powertrain warranty for new cars because of the wear and tear it accumulates over the years. Repairs like engine repair and transmission repair are not uncommon over the years.

When you have little or no remaining factory coverage, you must consider the higher costs and stricter requirements that can accompany a powertrain warranty for used vehicles.

The value calculation differs for used and certified pre-owned coverage due to higher mileage and additional years of use. Your warranty provider can also present additional risk through third-party contracts and CPO protection.

EV and hybrid powertrain warranty nuances

Electric vehicles (EVs) and hybrid vehicles have separate coverage that differs from that of traditional vehicles. An EV powertrain warranty typically covers the drive unit, which converts electrical energy into mechanical energy, battery packs, electric motors and hybrid components. EV and hybrid vehicles also have different time and mileage limits than a conventional powertrain warranty.

Therefore, it is critical that you carefully review your EV and hybrid powertrain warranty to ensure you understand what is covered and what is not.

What a powertrain warranty covers

Powertrain warranty coverage varies based on several factors:

A powertrain warranty typically covers your engine and drivetrain, but not always.

• Manufacturer
• Model year
• Powertrain type
• Contract language
• Mileage
• Coverage options

Powertrain warranty component list

As an example, this is a list of components covered under Ford’s factory powertrain warranty.

In your engine: All internal lubricated parts

• Cylinder block and heads
• Electrical fuel pump
• Powertrain control module
• Engine mounts
• Flywheel
• Injection pump
• Manifold (exhaust and intake)
• Manifold bolts
• Oil pan
• Oil pump
• Seals and gaskets
• Engine thermostat
• Engine thermostat housing
• Timing chain cover
• Timing chain (gears or belt)
• Turbocharger/supercharger unit
• Valve covers
• Water pump

In your transmission: All internal parts

• Clutch cover
• Seals and gaskets
• Torque converter
• Transfer case (including all internal parts)
• Transmission case
• Transmission mounts

For rear-wheel-drive vehicles

• Axle shafts
• Rear bearings
• Center support bearing
• Drive axle housing (including all internal parts)
• Driveshaft
• Retainers
• Supports
• Seals and gaskets
• Universal and constant velocity joints

For four-wheel/all-wheel-drive vehicles

• Axle shafts
• Bearings (front and rear)
• Center support bearing
• Driveshafts
• Final drive housing (including all internal parts)
• Hubs-automatic front locking
• Locking rings
• Seals and gaskets
• Universal and constant velocity joints

For front-wheel-drive vehicles

• Axle shafts
• Front bearings
• Seals and gaskets
• Universal and constant velocity joints

To find out exactly what your powertrain warranty covers, check your warranty guide or extended warranty agreement.

» MORE: How vehicle service contracts work

What a powertrain warranty does not cover

A powertrain warranty only covers repairs needed for the exact parts listed in your powertrain warranty agreement. That means most of your vehicle isn’t covered under a powertrain warranty.

“The biggest mistake I see is customers think a powertrain warranty means the entire car is covered,” warns Ashley NeSmith, founder of Ashley the Auto Advocate.

Powertrain warranties won’t cover repairs resulting from:

• Negligence, such as missing the recommended maintenance intervals listed in your owner’s manual (e.g., oil changes every 5,000 miles) or leaving your car unattended for months at a time
• Misuse or abuse, including off-road use, towing beyond the vehicle’s rated capacity, competitive racing or track events (with limited exceptions for some track-ready vehicles)
• Damage, whether it’s from weather, theft, vandalism, a collision or another outside cause (your car insurance applies here)
• Aftermarket parts that cause warranty-protected parts to fail, such as an added turbo that ruins your engine

NeSmith suggests some questions to ask your provider about your warranty before you purchase.

• Who backs it?
• How long does it last?
• Where can you take the vehicle for repairs?
• How much is the deductible?
• What's excluded?

Keep in mind that incorrect mileage, including odometer tampering in used car purchases, can void warranty coverage and result in a claim denial due to time and mile caps. A warranty can also be canceled if a driver exceeds their warranty’s mileage limits.

» MORE: Bumper-to-bumper protection

Nonpowertrain systems

Nonpowertrain systems are a notable exception to powertrain warranties. Several pricey systems are not included under most warranties, including your steering, brakes, suspension, climate control and infotainment system.

For example, say your BMW’s infotainment system goes out in the middle of your work commute. Regardless of whether you have kept up with maintenance, your powertrain warranty won’t help replace your interior electronics.

Now, let’s say your check engine light suddenly comes on, thanks to a bad head gasket. If you’ve always changed the oil on time and avoided the local racetrack, there’s a good chance that BMW (or a third party) will cover the cost of the repair.

However, if you haven’t changed the oil in 7,000 miles and recently set a record at the local track meet, your mechanic will probably diagnose the issue as your fault, and it won’t be covered under warranty.

Conditional exclusions and claim requirements

Your warranty provider will pay for all approved repairs, but first, you must meet a few requirements.

You will need to take your vehicle to an approved repair facility with certified technicians. When you go, be sure to bring your warranty paperwork so you can confirm the repairs.

Be sure to keep all repair paperwork and invoices in a safe place for future reference.

Powertrain coverage differences by warranty type

There are several types of powertrain warranties that you can buy.

• Factory powertrain warranty. This refers to the official powertrain warranty that you receive with a new vehicle purchase. This lasts for five years or 60,000 miles.
• Dealer powertrain warranty. A dealership powertrain warranty is one you buy directly from a car dealership. It is sometimes called a manufacturer’s warranty because the manufacturer backs it. It covers specific electrical and mechanical repairs.
• Certified pre-owned powertrain warranty. A CPO powertrain warranty is similar to an extended powertrain warranty, covering critical components such as the engine, transmission and drivetrain.
• Third-party powertrain service contract. Third-party powertrain warranties are available from an independent company and are typically customizable for repair costs and other services. This coverage kicks in after your original warranty expires.
• Transferable powertrain warranty. Some powertrain warranties are transferable to a new owner if you sell your vehicle before coverage ends. Not only does this added benefit make your vehicle more attractive for sale, but it can also mean you can charge more.

Each type of warranty may have different exclusions, transfer rules and claim processes, so it is critical to read the fine print before purchasing so you know what you are receiving.

How long does a powertrain warranty last?

Powertrain warranties usually last longer than bumper-to-bumper warranties.

Powertrain warranty coverage is based on the number of years you’ve owned your vehicle and/or mileage — these warranties usually last longer than bumper-to-bumper warranties. In comparison, factory powertrain coverage lasts between five years/60,000 miles and 10 years/100,000 miles, depending on the automaker.

To help, this warranty comparison shows options from several reputable extended warranty companies.

You also have the option to extend a powertrain warranty. Extended powertrain warranties last for as long as your contract states or as long as you continue making monthly payments. They can be purchased at your vehicle’s dealership or from a third-party extended vehicle warranty provider.

» MORE: Manufacturer vs. extended warranty

Luxury-brand mileage-limit exceptions

While some vehicles may have no mileage limit, luxury vehicles work a little differently.

They typically have maximum lease mileage limits of 5,000 to 15,000 miles per year, but this can vary by manufacturer. If you exceed your limits, you may incur steep penalties of $0.10 to $0.30 per mile.

There are some exceptions, including renegotiating your contract, transferring your equity to a new vehicle and purchasing miles when you buy your warranty. These may bypass the exception, regardless of miles.

How much do extended powertrain warranties cost?

While the average bumper-to-bumper extended warranty costs around $1,000 annually, the cost of a powertrain extended warranty is typically significantly cheaper.

Cost considerations

The type of warranty you buy significantly impacts cost. If you have an older vehicle with high mileage or you opt for a bumper-to-bumper warranty instead of an extended powertrain warranty, you can expect higher costs.

To find a cheap extended warranty with the right coverage, research your vehicle’s expected maintenance and repair costs online. Then compare the extended warranty for your vehicle with how much you expect to spend on repairs to see whether a warranty is worth it for you.

» MORE: Extended car warranty cost factors

Is an extended powertrain warranty worth it?

When determining whether an extended powertrain warranty is worth it, there are several criteria to consider.

• Reliability risk. Research your vehicle’s average repair costs to get an idea of whether the cost of the powertrain warranty is worth the investment.
• Vehicle age. The older your vehicle gets, the more likely it is to need repairs. However, warranties for older cars are more expensive than warranties for new cars.
• Warranty cost. Obtain quotes from multiple extended powertrain warranty companies to help ensure you choose the best warranty at the lowest price.

Carefully weighing these factors, along with overall costs, can help you determine whether investing in an extended powertrain warranty is worth it for your specific vehicle.

While a powertrain warranty may only cover a few dozen parts out of the thousands on a typical car, it’s still a valuable form of protection because the parts it does cover are both essential and expensive to replace.

Parts like transfer cases can be extremely expensive. Costing up to $9,000, they transfer engine power from the transmission to the driveshaft and axles.

“A powertrain warranty covers the expensive stuff like the engine, transmission, and drivetrain. I'm not talking about a few hundred dollars. I'm talking about $4,000, $6,000, even $8,000 or more. If you have a major failure, that warranty can pay for itself in a hurry,” said NeSmith. As a former subprime finance director, she has spent over 25 years serving franchised dealerships.

» MORE: When to get an extended warranty

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