Everyone knows the pleasure of bringing home that shiny new car that is the pride of the neighbourhood. And then comes the bad part, the escalating costs, the increasing maintenance problems  and the relationship just starts turning sour as you car begins to burn a hole into your pocket. An auto car warranty can help you mitigate such problems by offsetting the costs of maintenance.

Car warranties, very similar to insurance, work with the customer paying a certain fixed amount to the auto warrantor who in turn makes an agreement to fix a certain set of components in the car if they go bad in the next certain amount of years. The cost of the warranty is directly dependant on what all parts are covered, how long the warranty cover is for (this includes both the mileage and the number of years) and how old your car is or basically, the auto warranty company’s assessment of how much maintenance your car is going to need. New cars typically come with a default warranty even though that is for a short term only after which it must be renewed. Insuring your car is always a good idea as it helps reduce the costs of repair drastically in the case of accidents or other serious damage to your car.

Car warranty companies offer several different packages depending upon your needs and requirements. Default car warranties last for a minimum of one year, though extended warranties can last for 3, 5 or even 12 years. Two of the major warranty companies with operations in Canada are Warranty Direct and Lubrico Warranty (insured by Lombard Canada) and Carchex.

Each of the car warranty companies have a choice of 5-6 different schemes which allow the consumer to allow the scheme that best fits his needs and his pocket. Some of the common schemes available under these companies are:

1) Limited Protection : Engine, Transmission, Differential, Transfer case, Turbo/Supercharger are the parts covered and Roadside assistance and towing are also provided, with the option of a zero deductable

2) Value Protection : Limited protection + Seals and Gaskets

3) Limited Superior: Value protection + Supplementary mechanical parts, front suspension, electrical, brakes, fuel injection, steering air conditioning and an extra value package.

4) PowerTrain protection: Limited Protection + optional air conditioning protection and other optionals.

5) Superior protection: Limited superior + $5000 per claim liability and other optionals.

Car Warranties in Canada can cost anywhere between $1000 for the lower end limited protection and can go up to 5000-7000 $ for bumper to bumper coverage. Though apart from the type of package needed, the car warranty companies also look into what the model of the car is (more expensive models have higher warranty costs), how old the car is and what the Mileage on the car is (higher the mileage, higher is the warranty cost). Many car warranty dealers have their own websites where you can enter the specifics of your car and they give you a general estimate of the warranty costs so that you can make an informed decision. So log on today and go grab that warranty to keep the pride of the neighborhood running for a really long time.