Wednesday, February 22, 2017

An auto warranty is a contract that provides a vehicle owner with coverage against claims for mechanical failures or repairs. New vehicles come with several types of warranties, and they cover different parts of a vehicle.

Definition

    According to the U.S. Federal Trade Commission, a warranty is sold with a new vehicle as part of the dealer price. This is different from a service contract, which similarly provides coverage against major repairs, but can be purchased at any time, and is separate from the original purchase price.

Types

    New vehicles come with different types of warranties. Some vehicle manufacturers may provide coverage from as little as three years and 36,000 miles, to as much as 10 years and 100,000 miles. New cars come with at least a basic warranty that covers all parts except those that are affected by wear and tear. There are also drive train warranties (which cover the engine, transmission, drive shaft and other parts), and warranties against rust and corrosion (which cover holes in the vehicle's sheet metal).

Roadside Assistance

    Manufacturers will typically offer a roadside assistance service that provides comprehensive coverage in case a vehicle owner becomes stranded for many reasons, such as a flat tire or running out of fuel.

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