What is a Auto warranty?
A auto warranty is a type of service contract that covers certain components of your vehicle, such as the engine, transmission and electronic systems, that are subject to mechanical defects. When you get a warranty on a new car, it’s basically a guarantee from the manufacturer that your car is in working order — and that if it turns out to have unexpected problems with key components, they’ll foot the bill to fix it.
How a warranty works: If your car needs repairs that weren’t caused by an accident and don’t fall under the bill of normal wear and tear, your dealer can file a warranty claim. When the warranty provider authorizes the claim, the repairs can proceed under warranty at a reduced cost to you.
What a warranty covers on a car: A comprehensive bumper-to-bumper warranty covers most parts in your car, but it won’t pay for damage caused by an accident or for parts that are designed to wear out, like brake pads. Other warranties may cover only certain components, such as the powertrain or restraint systems.