The Different Types Of Coverage Covered Under An Auto Warranty

An extended auto warranty is an optional service contract that car owners can purchase to extend the coverage of their vehicle beyond the manufacturer’s warranty. It can provide coverage for repairs and maintenance that may be needed after the original warranty period has expired.

Importance of knowing: what is covered by an extended auto warranty Knowing what is covered by an extended auto warranty is essential to help car owners make informed decisions. It can help them understand the level of protection and the types of repairs that are included in the extended warranty coverage, which can help them save money in the long run.

Table of Contents Overview

Types of Coverage Under An Auto Warranty

Powertrain Coverage

Powertrain coverage is a type of extended warranty that covers the internal components of a vehicle’s engine, transmission, and drivetrain. It includes the parts and labor for repairs or replacement of these components if they fail due to a mechanical defect.

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What is included in powertrain coverage? Powertrain coverage typically includes the engine, transmission, drive axles, and other components such as the timing belt or chain, water pump, and oil pump. Some extended warranties may also include additional components, such as the turbocharger or supercharger.

Bumper-to-Bumper Coverage

Explanation of bumper-to-bumper coverage: Bumper-to-bumper coverage,also known as comprehensive coverage, is a type of extended warranty that covers most parts of the vehicle, including electrical, mechanical, and other components. It is a more comprehensive coverage than powertrain coverage.

What is included in bumper-to-bumper coverage?

Bumper-to-bumper coverage typically includes most of the parts that are not covered by the powertrain warranty. It can include electrical and mechanical components, air conditioning, suspension, and brake systems. It may also include additional features such as entertainment systems or navigation.

Additional Coverage

Additional coverage, also known as an optional coverage, is a type of extended warranty that covers specific parts or systems not covered by the powertrain or bumper-to-bumper coverage. This type of coverage can be added to the existing extended warranty to provide more comprehensive protection.

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What is included in additional coverage? Additional coverage can include a variety of components and systems such as the steering system, fuel system, emissions system, and climate control system. It can also cover accessories such as the audio system or the sunroof.


Exclusions are parts or repairs that are not covered by an extended auto warranty. Knowing the exclusions is as important as knowing the coverage because it can help car owners avoid unexpected expenses that may arise due to repairs or maintenance that are not covered.

Exclusions can vary by the warranty provider and the specific warranty plan. Common exclusions may include normal wear and tear, maintenance items such as brake pads, and damage caused by accidents or misuse.

Benefits of Extended Auto Warranty Coverage

Peace of mind: Extended auto warranty coverage can provide car owners with peace of mind knowing that they are protected against unexpected repair costs that can arise after the manufacturer’s warranty has expired.

Savings on repair costs: Extended auto warranty coverage can help car owners save money on repairs by covering the costs of parts and labor. This can help them avoid high repair bills that can arise due to unexpected repairs.

Increased resale value: Having extended auto warranty coverage can increase the resale value of the vehicle because it provides potential buyers with an added layer of protection and peace of mind knowing that they are purchasing a vehicle with extended warranty coverage.

In conclusion, the American Dream Auto Protect extended auto warranty can provide significant coverage beyond the manufacturer’s warranty, providing peace of mind, cost savings, and increased resale value. Powertrain coverage typically covers the engine, transmission, and other essential parts of the vehicle.

Bumper-to-bumper coverage, on the other hand, covers almost all parts of the car, excluding only a few specific items.

Additional coverage can be purchased to cover other components such as electronics, audio systems, and more. While exclusions exist in extended auto warranties, the benefits outweigh the drawbacks.

By having a comprehensive understanding of what is covered by an extended auto warranty, vehicle owners can make informed decisions and protect themselves against potential repair costs. It’s important to carefully review the terms and conditions of a warranty before purchasing to ensure that it meets the specific needs of the vehicle owner.

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