In Ontario, a powertrain warranty offers drivers critical protection by covering components of a vehicle that contribute to movement. This includes the engine, transmission, and drivetrain. Whether it’s provided by your manufacturer or a third-party warranty provider, powertrain warranties help shield customers from some of the most costly repairs a vehicle owner can endure. For example, overhauling a failed transmission can cost anywhere from $2,500 to $4,000. When it comes to critical systems in a car, the powertrain is at the top of the list. This is because it simply makes the vehicle work! When a powertrain problem develops, the car won’t work as it should, if at all. Fortunately, you can protect yourself with a powertrain warranty. This is a guarantee that your vehicle’s components will continue to operate normally for a specified period of time.
A general understanding of how powertrain warranties work and what options are available to you can help you save yourself from disappointment and a whole lot of money.
What Does A Powertrain Warranty Cover?
Powertrain warranties will typically cover, as mentioned above, the fundamental parts of a vehicle’s powertrain. This includes the car’s electric motor, transmission, axles, and driveshaft. In some cases, a powertrain warranty will cover parts such as turbochargers and control units.
Like many warranties, your exact coverage will vary widely depending on the provider. On top of this, many powertrain warranties won’t always cover the full cost of repairs. For example, some may require the holder to pay a deductible. In other cases, the warrantor might pay only $1,000 or $2,500 toward a repair, regardless of the total cost!
Can My Warranty Be Denied?
Yes! If you violate the terms and conditions of your powertrain warranty, you might not get any coverage at all. For example, claims can be denied if you are racing your vehicle. Alternatively, claim denial can also occur if your car is used for commercial purposes or if you fail to adhere to your manufacturer’s maintenance schedule.
Like any warranty, your best bet for determining what your warranty covers is to read your contract carefully. It is essential not to depend on a warranty’s marketing materials, which will, more often than not, lead to critical details.
How Long Does A Powertrain Warranty Last?
The length of your powertrain warranty will vary depending on the vehicle manufacturer. For example, Toyota Canada’s powertrain warranty backs its vehicles for five years, or 100,000 km, whichever comes first. On the other hand, Mitsubishi Canada offers powertrain protection for 10 years or 160,000 km. This is just six months shy of the average vehicle age in Canada.
In some cases, warranty providers will offer powertrain warranties that can stretch the original coverage by years or tens of thousands of kilometres. This will generally depend on whether you buy your vehicle used or new. Additionally, there is powertrain protection for vehicles whose warranties have expired.
With this in mind, your vehicle’s age and mileage at the time of warranty purchase will count toward its age and mileage limits. For example, a seven-year/140,000 km warranty will not provide an additional seven years of protection. Instead, it simply covers your car until it’s seven years old or has driven 140,000 km.
Where Can I Purchase a Powertrain Warranty?
Like shopping for a car or an insurance policy, you’ll want a powertrain warranty that suits your needs. On top of this, you’ll like it to be reasonably priced and backed by a provider you trust.
Factory warranties are sold exclusively by dealerships of the same manufacturer. Aftermarket warranties, on the other hand, are sold by independent dealerships. Generally, these must be obtained where you initially purchased your vehicle. There are a few aftermarket providers that sell directly to consumers. Some examples of these are companies such as Ensurall and Obvi. They are a handy alternative to dealerships and the only option for vehicles that you have purchased through private sales.
You can expect to pay between $500 and $1,500 for a powertrain warranty. Similar to an insurance policy, this price will depend on many factors. These include the vehicle’s model and year, warranty length, deductible amounts, claim limits, covered components, and, of course, the seller.
How Do I File A Powertrain Warranty Claim?
Unlike insurance claims, the process of filing a powertrain repair claim can differ depending on the type of warranty you have. Generally, a factory warranty will require repairs at an authorized dealer of the same manufacturer. If you have access to this, your claim will likely be accepted without any issues. This serves as an advantage in comparison to factory warranties.
Are Aftermarket Warranties Sufficient?
As for aftermarket, or “third-party” warranties, it will depend on your warranty specifically. Some will let you choose any licensed mechanic, but others will require you to visit a pre-approved repair shop. Either way, you’ll need the warrantor to authorize any repairs before they begin. In some cases, you may even need to pay the full repair cost up front and then wait for reimbursal.
Conclusion: Do I Really Need A Powertrain Warranty?
At the end of the day, do you really need a powertrain warranty? Well, if you’re looking for peace of mind, the security you need might already be built into your vehicle. Nowadays, the powertrain components of many newer vehicles are so highly dependable that a powertrain warranty makes little sense, no matter the price. When considering a powertrain warranty, it would be best for you to ask yourself some questions. Do the deductible amount, claim limits, and coverage exclusions justify the price? Consider as well whether other parts of the car may deserve the investment more.
Remember, if you have any questions about the insurance side of things, don’t hesitate to contact us at isure or request a quote today!
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