The
new car warranty, which is also known as the original
manufacturer’s warranty, is a contract between you
and the manufacturer that assures you that for a specific
amount of time or mileage, the parts and labor for the
replacement or repair or the covered systems will be paid.
Most new car warranties are generally limited to three
years or 36,000 miles, whichever comes first. The purpose
of these new car warranties is to guarantee that the brand
new car you just purchased has no manufacturer’s
defects.
A
warranty is not an insurance policy. While they are similar
in that they both protect you from the financial payments
of damages to your car, they differ in their legal construction.
An insurance policy is a direct contract between you
and the insurance company, while a warranty is provided
by a dealer and is a contract between the dealer and
you. However, some insurance companies do offer this
type of insurance policy, which is called “mechanical
breakdown insurance.”
Another
type of warranty new cars have is called the “adjustment
warranty.” This type of warranty is provided by
the car dealership, which covers all parts and systems.
The adjustment warranty is usually a short-term warranty
that usually only lasts for ninety days or less.
The new car warranty will usually have many parts to it.
The bumper-to-bumper warranty is the most comprehensive
part of the new car warranty. This deal covers everything
from the tires up to the wiper blades.
Another part of the original warranty is the powertrain/drivetrain
warranty. This will cover the engine, transmission, and
differential. This generally has a wider coverage than
the bumper-to-bumper warranty because it covers a specific
number of months and number of miles, and it covers items
considered as an extensive repair.