Reading the Fine Print of an Auto Warranty Reveals its Many Benefits

To succeed in business, you need to know your customers’ needs and how to best meet them. You also need to be able to brand yourself, setting your business apart from local competitors. That’s why many auto dealerships throughout the country are offering extra auto warranty policies to clients. These policies can save a client a lot of money if a part stops working. What’s more, they also have many other benefits drivers can take advantage of as the need arises. Check out the fine print of a typical auto warranty to see why these policies are an ideal offering to customers of all ages and walks of life.

Flexible Coverage Choices

As a dealer, you can pick different coverage options to suit your customers’ needs and budget. A comprehensive policy (also known as a bumper-to-bumper policy) shows customers that a used car is a worthwhile investment. It covers almost every part of the car. It’s also worth noting that buyers know warranty companies don’t offer this coverage for vehicles that aren’t in tip-top shape. If you can’t afford or obtain this type of coverage for used vehicles, a powertrain policy is another good choice. A powertrain policy covers vital vehicle parts such as the drive shaft, drive systems, engine, and transmission.

Emissions control warranty coverage covers the car components that emit emissions. There is a federal policy and a policy for the state of California. If you sell hybrid or electric vehicles, you’ll want to consider a hybrid battery warranty policy, as it covers traction batteries. While these batteries are a vital part of a vehicle, they aren’t covered by a regular powertrain warranty.

You can take out one or more warranty policies for a vehicle at the same time. For instance, if you decide not to offer bumper-to-bumper coverage, you could consider providing both a powertrain warranty and rust/corrosion coverage. On the other hand, if you’re selling relatively new or brand-new hybrid vehicles, you may want to offer hybrid battery warranty coverage along with either powertrain coverage or rust/corrosion coverage.

Policy Duration

Policy duration varies depending on the policy you pick and which insurer you work with. The make/model of the vehicle and its condition may also determine the duration of the warranty. However, warranties usually run between three and five years. This means your clients can benefit from the policy long-term. What’s more, each time your customer uses the warranty program, he or she will remember your dealership in a positive light. This can generate word-of-mouth advertising for your business that can bring in new customers and boost sales.

Other Perks and Amenities

Some policies offer roadside assistance. If the car gets a flat tire or runs out of gas on the road, the warranty company will send someone to help the driver. If the car breaks down on the road and can’t be fixed on the spot, the warranty company will cover the cost of having the car towed to an authorized repair shop. Some policies even provide rental car assistance. This gives the policyholder free access to a rental car while his or her car is being repaired.

Claim Process and Deductibles

Before committing to an auto warranty, it’s crucial to understand the claim process and deductible requirements. Review the steps involved in filing a claim, including the necessary documentation, approved service providers, and timelines. Additionally, consider the deductible amount you’ll need to pay out of pocket when making a claim. While a higher deductible may result in lower upfront costs, it can affect your overall savings if frequent repairs are needed.


It’s common for vehicle owners to sell a car when they no longer need or want it. Insurers are aware of this fact and many offer transferable coverage. What this means is that the buyer would also become the new policyholder for the warranty. He or she would be able to immediately benefit from the coverage and all that it offers until the policy expires. This enables a car owner to sell the vehicle faster than would be otherwise possible. It also raises the vehicle’s value as buyers understand the value of a good warranty policy.

Bear in mind that coverage variations depend not only on the coverage you pick but also on who you buy your warranty from. Read your policies carefully to know which components are and aren’t covered in your policy. If you don’t understand the policy, ask the seller to explain the terms and conditions. If something isn’t clear on the policy, don’t take the seller’s word for things. Rather, ask for clarification in writing so that customers know what to expect (and not expect) from their auto warranty.

It’s important to choose an auto warranty provider that has a reputation for providing top-tier customer service, fast assistance, and speedy compensation. If you’re offering auto warranties with your vehicle sales, consumers will expect your partner to provide good service. If your insurer doesn’t meet consumer expectations, customers won’t only blame the warranty company. They may also hold it against you for picking the warranty provider in the first place. That’s why many companies choose to work with Capital Home and Auto when they need either home or auto warranties. Capital Home and Auto has been in business for more than twenty years and has a reputation for meeting and even exceeding consumer expectations. Policies are flexible to meet our business partners’ needs and budgets. Our contracts are clear, so you know what your consumers can expect from our firm. The claims process is simple and efficient for consumers. Contact us to learn more about our policy options or to schedule a visit to get specific quotes for your business.


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