Whether you're driving a new vehicle or one that’s been on the road for years, an extended warranty helps cover expensive repairs that may arise after the manufacturer’s warranty expires.
In this guide, we'll dive into what makes an extended warranty great, what to look for when choosing one, and highlight the factory warranties offered by popular automotive manufacturers in Canada. Plus, we’ll introduce GuardTree, Canada’s only extended warranty subscription service for used vehicles.
What to look for in an extended car warranty
Finding the best extended car warranty in Canada requires careful consideration of several factors. Here’s what to keep in mind:
Coverage options
- Comprehensive vs. Powertrain Coverage: Comprehensive plans cover nearly every component of the vehicle, while powertrain warranties focus on essential components like the engine, transmission, and drivetrain. Depending on your vehicle’s age and condition, choose the one that suits your needs.
- Inclusion of Wear and Tear: Some warranties cover wear-and-tear components, such as brakes and suspension parts, which are commonly excluded from standard policies.
Term length
Some extended warranties offer coverage for several years beyond the factory warranty. Check if the term and mileage limits meet your driving habits. Shorter coverage periods might leave you without protection when you need it most.
Claim process
Look for a warranty that has a smooth and straightforward claims process. Some companies allow you to take your car to any licensed repair shop, while others may restrict you to certain networks.
Deductibles
Find out if your warranty requires you to pay a deductible per claim. Lower or no deductible means fewer out-of-pocket expenses when your car needs repairs.
Transferability
If you plan to sell your vehicle, having an extended warranty that can be transferred to the new owner can boost your car’s resale value.
Exclusions
Always read the fine print to understand what’s not covered. This might include regular maintenance items like oil changes, certain parts prone to failure, or pre-existing conditions in used vehicles.
EV coverage
- Battery: EV batteries are the most expensive component. Ensure the warranty includes comprehensive coverage for battery repair or replacement. Some warranties cover a significant reduction in battery capacity (e.g., if the battery degrades to below 70% capacity). Additionally, it should also cover malfunctioning onboard chargers and issues related to home charging stations and potentially charging cables and connectors.
- Coverage of Electrical Systems: EVs have many electrical parts such as the electric motor, inverter, charging system, and power electronics. Ensure that these are covered.
- Software and Sensors: Look for coverage for software-related issues, charging ports, and advanced driver-assistance systems (ADAS).
Should you purchase an extended car warranty while your vehicle is under factory warranty?
If your car is still under the factory warranty, you may wonder whether purchasing an extended car warranty is worth it. The short answer is that it depends on your specific needs and how long you plan to keep your vehicle. Factory warranties typically cover major repairs and parts for a set period, usually 3 to 5 years or up to a certain mileage. However, once this coverage expires, you're responsible for all repair costs. If you plan to keep your car for many years or drive long distances, an extended warranty can provide peace of mind, protecting you from expensive repairs after the factory warranty ends.
Another factor to consider is how much you're willing to pay upfront versus potential repair costs down the road. Some extended warranties offer flexible plans, covering specific parts or systems, while others provide more comprehensive coverage. If your vehicle has a strong track record for reliability, you might not need the extra coverage. However, if you drive a car model known for costly repairs or if you anticipate putting heavy mileage on it, an extended warranty can be a valuable investment. Always compare the terms of your factory warranty with what an extended plan offers to make an informed decision.
How do I find out if my car is still covered by a factory warranty?
To find out if your car is still covered by its factory warranty, you can follow a few simple steps. First, check your owner's manual or the warranty booklet that came with your vehicle. These documents typically outline the length of the warranty, including coverage for both time and mileage. If you don't have these documents handy, you can also locate your car’s Vehicle Identification Number (VIN), which is a 17-digit code usually found on the driver’s side dashboard or inside the door frame.
Once you have your VIN, contact your car’s manufacturer or a local dealership. Most manufacturers offer a warranty lookup tool on their websites, where you can enter your VIN to see if your warranty is still active. You can also call the customer service department of the manufacturer and provide them with your VIN to get warranty details. Additionally, some third-party websites allow you to check factory warranty status by entering your VIN. Always ensure you're using a reliable source for this information.
Factory warranty by automotive manufacturers in Canada
While not exhaustive, below is a list of the factory warranties offered by major car manufacturers in Canada, including the mileage and age limits of each:
BMW
- New Vehicle Warranty: 4 years / 80,000 km
- Powertrain Warranty: 4 years / 80,000 km
- Corrosion Warranty: 12 years / unlimited km
Ford
- Basic Warranty: 3 years / 60,000 km
- Powertrain Warranty: 5 years / 100,000 km
- Corrosion Warranty: 5 years / unlimited km
General Motors (Chevrolet, Buick, GMC)
- Basic Warranty: 3 years / 60,000 km
- Powertrain Warranty: 5 years / 100,000 km
- Corrosion Warranty: 6 years / unlimited km
Honda
- Basic Warranty: 3 years / 60,000 km
- Powertrain Warranty: 5 years / 100,000 km
- Corrosion Warranty: 5 years / unlimited km
Hyundai
- Basic Warranty: 5 years / 100,000 km
- Powertrain Warranty: 5 years / 100,000 km
- Corrosion Warranty: 5 years / unlimited km
Kia
- Basic Warranty: 5 years / 100,000 km
- Powertrain Warranty: 5 years / 100,000 km
- Corrosion Warranty: 5 years / unlimited km
Mercedes-Benz
- Basic Warranty: 4 years / 80,000 km
- Powertrain Warranty: 4 years / 80,000 km
- Corrosion Warranty: 5 years / unlimited km
Toyota
- Basic Warranty: 3 years / 60,000 km
- Powertrain Warranty: 5 years / 100,000 km
- Corrosion Warranty: 5 years / unlimited km
Volkswagen
- Basic Warranty: 4 years / 80,000 km
- Powertrain Warranty: 4 years / 80,000 km
- Corrosion Warranty: 7 years / unlimited km
Subaru
- Basic Warranty: 3 years / 60,000 km
- Powertrain Warranty: 5 years / 100,000 km
- Corrosion Warranty: 5 years / unlimited km
Why extended warranties matter
Extended car warranties help protect you from unexpected repair costs, which can be particularly high for modern vehicles equipped with advanced technology. Whether you’re purchasing a new vehicle or keeping your used car on the road longer, having a comprehensive extended warranty ensures that you’re covered when the unexpected happens.
Canada’s first extended warranty subscription for used vehicles: GuardTree
For drivers of used vehicles, extended warranties can be hard to come by. But GuardTree, Canada’s first extended warranty subscription service, offers a unique solution. GuardTree allows vehicle owners to pay a low monthly subscription fee for warranty coverage, tailored to their needs. Unlike traditional extended warranties that require large upfront payments, GuardTree’s flexible plans ensure that you only pay for the coverage you need when you need it.
The subscription model is a game-changer for used gas or EV vehicle owners in Canada, providing affordable and customizable protection options. It covers a wide range of vehicles and ensures that even older models have access to reliable extended coverage.
For used car owners, GuardTree offers unparalleled flexibility, making it the best choice for ongoing protection. By considering coverage options, claim processes, deductibles, and exclusions, you’ll be able to find the best extended warranty that suits your needs.
