Car warranty insurance

When you buy a new or used vehicle from a dealership, your vehicle will come with certain warranties in place that will start as soon as you drive off the lot. These warranties are meant to provide motorists peace of mind and help pay for various costs. So, what exactly is a warranty and what does it cover? Stick around to learn more!

What are car warranties?

Car warranties are provided by the car manufacturer and are sometimes referred to as a factory warranty. A factory warranty is automatically included when you purchase a brand new car from a dealership and is meant to cover any repairs that may be required, should any other materials or parts have something wrong with them over the course of your coverage.

A manufacturer warranty is typically basic in terms of what is and isn't covered, and typically will last for three to five years, depending on the make and model.

Types of car warranties

There are several types of car warranties available to you, including the following:

Standard car warranty

A standard warranty is one that you get from the manufacturer when you buy your car from the dealership. This is free and typically covers the engine, brakes, electronics, and other components that may need repair.

Comprehensive warranty coverage

With comprehensive warranty coverage, any component of the vehicle that suffers a manufacturing defect will be paid for by the manufacturer themselves. For example, if there is a recall on your vehicle for a faulty seatbelt or glitch in its software system that is causing safety issues for drivers, you can take the car directly to the dealership and they will fix it for free. This typically includes the labour costs associated with fixing the malfunctioning part as well.

Corrosion warranty

A corrosion warranty will repair your vehicle if it experiences corrosion that starts within your car and corrodes through one of your panels. This type of warranty is highly recommended for those who live in areas where there are extended periods of snowfall and rain, given that it can lead to higher chances of vehicle corrosion due to the salt on the roads.

Emissions warranty

Any parts of your vehicle that are specifically responsible for your car producing emissions into the surrounding environment have coverage under an emissions warranty.

Powertrain warranty

The powertrain warranty is designed to cover the costs of a repair related to any belts or hoses throughout your vehicle that are deformed or unsafe. It also covers the engine, powertrain, and other associated components.

Tire warranty coverage

If your car's wheels have some sort of deformity to them, you'll be insured by this type of warranty. Just keep in mind that if you have a popped tire, this type of repair is not covered as it is not related to the material or the tire or a malfunction of the tire itself.

Car warranty for hybrid and electric vehicles

If you drive a hybrid or electric vehicle, you can also purchase a protection for repairs. Rather than the engine, your car will have coverage for its battery and any other electrical components.

What are third-party warranties/vehicle service contracts?

Extended warranties can be purchased by car owners to provide further coverage once their original factory warranty has come to an end. As the owner, you have the option of getting extended protection from your manufacturer again or purchasing separate extended warranties from a third party once you are no longer covered.

Typically, when you buy extended warranties from the manufacturer, there will be no change in what it covers, it will only extend the length of your coverage.

What does an extended warranty cover?

While the actual coverage you receive may change depending on your warranty provider and the specific policies you choose, you can expect the following from your extended warranties:

• Your vehicle's engine, transmission, and its axles.
• Any software your vehicle uses such as the GPS.
• The fuel pump and injectors.
• The water pump and radiator.
• The suspension system and its parts.
• The alternator, ignition system, and starter motor.
• Heating systems and AC systems.
• Gearbox and steering column.
• The brakes and wiper blades.
• And more.

Is extended warranty coverage the same as car insurance?

No, extended warranty and insurance are not the same, but we can see why car owners may get confused. While insurance coverage is mandatory if you are a car owner in Canada, an extended warranty is completely optional and up to you whether or not you wish to purchase additional coverage. When you're insured, you'll have third-party liability protection, coverage for repairs, theft, and other benefits depending on what type of insurance you purchase.

On the other hand, car warranties are meant to cover costs associated with any mechanical problems, factory recalls, and any defects your vehicle may experience. It will also prevent you from paying labour costs out of pocket. All new vehicles come with a guarantee and can be negotiated directly with the manufacturer.

What car insurance do I need for my vehicle?

Because car warranties and insurance are not the same thing, drivers in Canada will need to purchase various types of auto insurance to ensure they are adequately protected while behind the wheel, including:

• Third-party liability insurance
• Uninsured motorist coverage
• Accident benefits coverage
• Comprehensive car coverage
• Collision car coverage
• Accident forgiveness
• Preventative auto insurance

Can I get an extended warranty for a used car?

Are you thinking about buying a used car but aren't sure if there are any warranties available? Regardless of whether your vehicle is new or used, extended warranties are available for both. Here's a closer look at some of the different extended warranty options you may want to consider for your used car:

Basic used car warranty

With this standard warranty coverage, your vehicle will be covered for mechanical issues that could directly affect the overall safety of your car.

Limited extended warranty

With a limited warranty, a portion of your repair costs and upkeep will be paid for. The period of coverage will depend on your specific policy.

Service warranty

With a service warranty, the full cost of any repairs or maintenance will be covered. For example, the cost of new batteries, brakes, windshield wipers, and more.

How much will a car warranty cost?

When you purchase a new car, the manufacturer's warranty is automatically included in the purchase price. The cost of your extended car warranty will vary depending on how much protection you'll receive, the length of the warranty itself, the make and model of your vehicle, the current state of your car, and more. Generally speaking, you can expect your extended warranty to cost anywhere between $500 to $2500. Newer vehicles may have the option of purchasing warranties at a more affordable price compared to older vehicles with known mechanical issues. That said, it can vary between providers, and we suggest getting a quote from different companies before purchasing your coverage.

Where can I purchase car warranties?

While your new car warranty will be included automatically when you purchase it from a dealership, you can purchase extended warranty coverage before your factory warranty runs out. Typically, you can purchase extended warranties from a third-party provider that deals specifically with extended coverage. You can purchase an extended warranty from a car insurance company as well.

Can I transfer my car warranty from one vehicle to another?

Whether or not your extended warranties can be transferred from one vehicle to another will depend on your warranty provider, the specific details of your coverage, and what exclusions there are. While some may be transferable, others may not. We recommend reviewing the terms and conditions of your coverage before signing any documents and speaking to your provider directly for more information.

Can my car warranty be voided?

Yes, there are numerous scenarios where your extended warranty could be voided. Common reasons that could lead to your extended warranty being voided include mechanical negligence, not keeping up with your scheduled car maintenance requirements, declaring your vehicle a total loss following a car accident, changing the odometer reading to change the mileage, and more. At the time you sign your extended warranty contract, ensure that you fully understand the fine print of your documents to ensure you know what is required of you to avoid nullifying your coverage.

How much does car maintenance cost?

Your car maintenance cost can vary depending on several factors, including the make and model of the vehicle you own, where you live, what time of the year it is, and more. When finding an auto mechanic, it's important that you look for one that is transparent about their prices ahead of time so you are not caught off-guard when getting the bill once the work is complete.

Do electric cars require more upkeep than other vehicles?

So, does an electric car require less maintenance than other vehicles? While electric vehicles don't have a traditional engine, they still require upkeep for their battery, brake pads, and other components. That said, when compared to traditional vehicles, electric ones tend to require less maintenance overall.

How should I maintain my vehicle?

Over the years, vehicles can experience wear and tear, which could affect their ability to operate safely while on the road, which is why car owners need to stay up-to-date on their upkeep. To avoid having to pay costly repairs out of pocket and for peace of mind, brush up on our car maintenance guides:

• Winter car maintenance checklist
• Summer car maintenance tips
• Canadian car maintenance tips
• Electric car maintenance
• Car maintenance tips for road trips

Looking for extended warranties? Contact BrokerLink today!

Whether you're looking to save on car insurance, have further questions about extended warranties for your vehicle, or want to brush up on safe driving tips, the experienced brokers from BrokerLink are here to help in any way we can.

With years of experience and locations across the country, if there's a BrokerLink in your neighbourhood, don't hesitate to come into one of our offices and work with a broker from our team face-to-face. If you aren't close by, you can always give us a call to speak with a team member over the phone. And if you need a competitive quote at the moment, take advantage of our free online quote tool!

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