What is a car warranty?

A car warranty is a vehicle service contract wherein the provider agrees to fix parts broken due to defects in the manufacturer’s design or installation.

Car warranties do not cover everything. For instance, most warranties will not cover accidents or normal wear and tear. New vehicles come with a manufacturer’s warranty, which often covers the vehicle for three years or around 30,000 miles, whichever occurs first.

Manufacturer’s warranties typically do not have deductibles. Car warranties taken out after the manufacturer’s warranty expires are called extended warranties. An extended warranty must be purchased independently and typically have a deductible.