Owners of older vehicle or of vehicles that have around 50,000 or more miles, elect to have auto warranty to guarantee their purchase. It is the ideal choice when your manufacturer or dealership warranty expires.
Auto warranty falls into the following three categories:
- Bumper-to-Bumper Warranty: This is the best choice for new cars, those with a mileage between 50,000 and 60,000.
- Stated Component Coverage: Vehicles with mileage between 50,000 and 100,000 miles are recommended to use Stated Component Coverage. Its policy clearly dictates which parts are protected under its warranted.
- Powertrain Coverage: This is a basic coverage that protects the engine, transmission and drive axles. Other hybrid versions of it are called plus or enhanced policies, because they extend coverage to additional vehicle parts like the starter and air conditioner.