What’s the Difference Between an Extended Warranty and a Basic One? | MotorBiscuit

When you purchase a new car, it comes with a basic factory warranty that covers most of the car’s interior, exterior, and electrical components. For the engine, there’s a powertrain warranty, and if you want even more peace of mind, you can opt for an extended warranty. But what is the difference between an extended warranty and a basic one?

What is a car warranty?

Close up detail of cars for sales in a used car dealership. (Photo by: MyLoupe/Universal Images Group via Getty Images)

Simply put, a warranty on a car is a legal agreement that repairs or services will be done by the manufacturer or a qualified repair shop if needed, noted The Drive. However, a car warranty does not pay for the repair costs in the event of an accident, nor does it cover wear-and-tear maintenance items like oil changes and new tires.

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