UNDERSTANDING THE DIFFERENT TYPES OF AUTO EXTENDED WARRANTIES
Understanding the Different Types Of Auto Extended Warranties
Extended warranties come in all shapes and sizes. Some offer powertrain only warranties, while others offer bumper-to-bumper warranties. Here are some of the different kinds available.
  • Luxury Coverage

  • This probably the most comprehensive warranty available for purchase. It covers your vehicle bumper-to-bumper including some familiar luxury items like emissions systems, GPS/navigation, DVD/entertainment equipment, phone and internet access systems.
  • Bumper to Bumper (or Exclusionary)

  • This is the recommended auto warranty. You have little to concern yourself with because your vehicle is literally covered from bumper to bumper. �Exclusionary Warranties� cover almost everything. They send you a list of what is not included because it�s a much shorter list than what is included. If it isn�t on the list, it�s covered!
  • Intermediate (or �Named Component�)

  • This coverage is good for vehicles with things like anti-lock braking systems or turbo. It provides a little more than the basic warranty coverage. Be careful, some dealers falsely refer to �Named Component� policies as �bumper-to-bumper� policies when they are not.
  • Big Ticket Item Coverage

  • These policies cover the major parts on older, used vehicles. They may not cover things like �wear and tear� items, radiators, turbo, etc.