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DIFFERENT TYPES OF AUTO WARRANTIES
There are several different kinds of warranties, all
of which offer different types of coverage. New car
owners are eligible for bumper-to-bumper coverage, which
covers everything mechanical in your vehicle. While used
car owners can purchase stated component coverage or
power train coverage.
Bumper-To-Bumper Warranty Coverage
These types of warranties are for new cars, and are
known as new car warranties. This is the most
complete coverage you can buy and is only available for
vehicles with less than 50,000 miles. The coverage is so
extensive that the policy will only list items that are
not protected, otherwise known as 'exclusionary items'.
Bumper-to-bumper warranties typically will also offer
extras like roadside assistance, rental reimbursement,
free towing, etc..
Stated Component Coverage
Commonly known as inclusionary coverage. This type
of policy will cover the major parts of your vehicle and
is available for new and used cars with moderate mileage
between 50 - 100k.
These policies will list all items covered or included in
the warranty; for this reason it is called an “inclusionary”
policy. Some stated component coverage policies will
offer the same 'extra' coverage as bumper-to-bumper auto
warranty plans.
Power Train Coverage
This is the simplest form of auto warranty coverage,
only offering coverage for the car's power train.
This includes the transmission, engine, drive shift and
drive axles. There are enhanced power train auto
warranty policies that will offer coverage for
additional components and parts.
A power train policy is the least expensive out of all
of the different types of auto warranty plans and are
for vehicles with high mileage. They will protect you
from paying for the most expensive types of car repairs,
engine issues.
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