What does an extended car warranty cover?
How coverage tiers work, from powertrain-only plans to exclusionary coverage.
- TopicAuto
- Reading time2 min
Coverage comes in tiers
Most providers sell three or four levels. Powertrain plans cover the engine, transmission and drive axles. Mid-level plans add named systems such as air conditioning, steering, brakes and electrical. Top-level plans are exclusionary: they cover everything except a short list of exclusions.
Named-component and exclusionary contracts
A named-component contract lists what is covered, and anything not on the list is not covered. An exclusionary contract lists what is not covered. Exclusionary contracts are broader and simpler to read.
What no plan covers
Maintenance, such as oil changes, brake pads, tires, wiper blades and filters. Damage from accidents, weather or misuse. Problems that existed before the contract started. Cosmetic items such as paint, trim and upholstery.
Benefits beyond repairs
Many plans add roadside assistance, towing, rental-car reimbursement while the car is in the shop, and trip-interruption reimbursement. These vary by plan.
More guides
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