Differences between Comprehensive and Power Train Warranty in Canada.

Sept. 20, 2011 - PRLog -- Automotive Warranties offered in Canada are confusing at best to an average consumer; they are designed to be that way, something that is very similar to an insurance policy. It can be easily mistaken and misunderstood if the purchaser is not knowledgeable about automotive technology. In essence these types of products are underwritten by an insurance company. In layman’s terms if you pay me few hundred dollars right now, when your vehicle requires repairs (depending on the component and reason for the breakdown) we may or may not cover the cost of your repair. The two main categories of warranty you will encounter today in the market place are called “comprehensive coverage” and “power train”. Let us look into the comprehensive coverage first.

Comprehensive unlike the word used to describe the product is not the same as “bumper to bumper” coverage. The typical sales pitch on these products would be “if anything breaks down on your vehicle, we will cover the repair cost.” however there are many fine prints on these types of contracts that will often lead to misunderstanding and frustration when you try to make a claim.

First of all no warranty will cover items they called the “wear and tear” items. This includes the most often changed items on your vehicle. The list includes your brake rotors, pads, tires, AC Freons, or insurable items such as windshield, body panels, so on and so on.  So what does comprehensive warranty really cover then you ask. Well the correct technical answer is “the warranty will cover the part and labor cost on any manufacture defect” in another word “if the item in question are not designed to be frequently replaced due to wear and tear” it will be covered under this warranty. For example if your CD player stopped functioning, it will be a warranty related item. However if your CD player stopped working due to your buddy trying to install a new system for you it will not be covered.

The service department of a dealership usually investigate the claim by booking your for one hour labor upfront, after if they can determine it is a manufacture’s defect, your cost for the hour labor will be waived. However if the verdict is “guilty” you will be on the hook for about $100 for the mechanic’s labor. Any new vehicle will come with some sort of warranty when they are sold, depending on the manufacture, it will vary from 3 years or 60,000 km up to 5 years or 100, 0000 km. If you are insisting on purchasing an extended warranty, it is always the best option to buy it from the manufacture itself, rather than any aftermarket product.

Power train warranty on the other hand only covers the power train components of your vehicle. This will usually include all internal mechanical parts along with gaskets and seals on your engine, transmission and differentials. Power train warranty usually runs a much longer period, starting from 5 years or 100,000 km to 7 years or 160,000 km depending on the manufactures. Same diagnostic procedures will also apply to the power train warranty if any claims are made.

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