What’s the difference between a warranty and a vehicle protection program?

Most people are aware that new cars come with manufacturer warranties off the lot, but did you know that used cars can receive just as much (if not more) coverage? If you're buying a used car from a private seller, you can sign up for a vehicle protection program. What are the differences? KSL explains what each type covers.

What is a manufacturer warranty?

Warranties are provided by the manufacturer and are included in the cost of almost every new vehicle. It’s basically the manufacturer’s way of saying “We guarantee we built this car to last for a certain time without issue.” The time period is usually three years or 36,000 miles, whichever comes first. If anything goes wrong within that time period that’s covered by the warranty, the manufacturer will fix it for you. Browse listings on KSL

What’s covered?

Manufacturer warranties vary, but usually they cover the basics — mechanical issues, electrical problems, safety features not working properly, etc. A warranty may also include roadside assistance and routine maintenance. Some vehicles have powertrain warranties that cover the transmission and engine for a longer mileage or period of time. If you don’t have a powertrain warranty, your car is likely covered for the standard three years, 36,000 miles. Find cars with fewer than 30,000 miles

What’s not covered?

Since a manufacturer’s warranty includes the basics, what it doesn’t include is pretty much everything else. That means you’ll be on your own for any damage from accidents (even if they occur within the designated time frame) and any wear and tear issues, which usually occur after the warranty is up. So while your engine may be covered, your tires and your interior won’t be. 

What is a vehicle protection program?

Vehicle protection programs differ from warranties in that they don’t have to come from the manufacturer; they usually include different time frames or levels of coverage and they can be applied to new or used vehicles. You may also hear them referred to as “extended warranties” or “vehicle service contracts.” These terms mean essentially the same thing — you’re paying a certain amount to have your car covered for qualifying repairs and services. 

Drivers buy vehicle protection programs for the same reasons they would buy health or dental insurance; they know that they might not end up needing it, but if they do, they’ll be covered. If you experience issues with your new-to-you car, a protection program is there to fix any problems that might not be covered by a manufacturer’s warranty. It’s a reassuring solution if you have any anxiety about the uncertainties of private car sales. 

What’s covered?

With a vehicle protection program, buyers may choose different levels of coverage depending on the age and mileage of their vehicle. That might include:  

• Qualifying repairs

• 24-hour roadside assistance

• Access to rental cars during repairs

• Use of any certified mechanic you choose

• Nationwide access to mechanics

What’s not covered? 

Since your coverage is customizable, it’s all up to you! Consider the mileage and age of your vehicle when choosing which coverage is right for you. If it’s a relatively new car, you can probably get away with a lower level of coverage. If it’s seen some years, you might not want to take chances. No matter what you choose, the repairs and services are usually more comprehensive than those offered by the manufacturer warranty. 

Unlike a warranty, there are usually no age or mileage limitations (as long as you keep up with regularly scheduled maintenance). You can keep your coverage going as your car accrues miles, or drop to a lower level of coverage if you think you’ve bought a winner. 

Car ownership is full of surprises, but a warranty or protection program can lessen the impact of those surprises and keep your car moving no matter what the road throws your way. Buy or sell a car on KSL Cars today.