What does a powertrain warranty cover?

What is a powertrain warranty, and what does it cover?

A vehicle's powertrain is all the parts that create power and deliver it to the wheels, including its engine, transmission, driveshaft, differential(s) and axle(s). If any of these components unexpectedly need repairs, the expense can be significant, which is why a powertrain warranty is worth considering.

The engine is the largest and most expensive item covered by a powertrain warranty. Your engine block contains a crankshaft, pistons and many other parts that help your car turn air, fuel and sparks into movement. A powertrain warranty covers the complete engine, including failure or issues with its components.

Everything else a powertrain warranty covers is technically part of your drivetrain. The drivetrain includes your:

• Transmission
• Driveshaft
• Differential(s)
• Axle(s)
• Transfer case (if applicable)

The complexity of your drivetrain mostly depends on whether your car has front-wheel drive, rear-wheel drive, all-wheel drive or four-wheel drive.

Issues with any of these components can bring your car to a grinding halt, and you’ll have to pay up or fix them yourself if you want to get back on the road. Transmissions are particularly expensive to replace, sometimes costing several thousands of dollars without coverage.

» LEARN: What is a drivetrain warranty?

What does a powertrain warranty not cover?

Simply put, if a part doesn’t contribute to creating power or transferring it to the wheels, don’t expect it to be covered under a powertrain warranty. You're still responsible for repairs to many important components with a powertrain warranty, including the heating and air conditioning system, for example.

If you want help paying for repairs to other parts of your vehicle, bumper-to-bumper warranty coverage might be a better choice. Bumper-to-bumper coverage is more expensive, but it can be worth it if you’re worried about your car’s other systems.

» MORE: What is a bumper-to-bumper warranty?

It’s also worth noting that not every powertrain warranty covers seals and gaskets, so be sure to read the details of your plan to find out whether or not these components are included.

Keep in mind that a powertrain warranty (like all warranties) won’t cover damage due to accident or theft. It also won’t cover any routine maintenance.

Likewise, most powertrain warranty plans don’t cover your wheels or tires, even though they move the car. Most tires need to be replaced roughly every six years, but it’s hard to find warranties, even among bumper-to-bumper plans, that include coverage for tires.

Car warranty coverage also generally doesn’t include maintenance or replacement of items designed to wear down, though you may be required to keep up with both as part of your policy. Plan to take care of the following items yourself:

• Oil changes are usually necessary every 5,000 to 7,000 miles.
• Brake pads need to be replaced every 25,000 to 70,000 miles, and rotors are typically replaced about every 70,000 miles.
• Occasional tire rotations help extend the life of your tires.

Factor these costs into your budget on top of whatever you’re spending on your vehicle, including for fuel and the warranty.

Powertrain warranties, like all auto warranties, don’t cover damage sustained from accidents, vandalism or theft. These events should be covered by your car insurance. Your warranty only covers repairs and replacements that come about due to a malfunction or a breakdown.

How much does a powertrain warranty cost?

Powertrain warranties typically cost between $350 and $1,000 per year. With a new car, you pay for the warranty upfront, with the cost wrapped into your vehicle's purchase price. In other cases, you may make a down payment at the start of coverage and a monthly payment thereafter. Most warranties also require a deductible ranging from $50 to $100.

Powertrain warranties are a great option for drivers who have unreliable vehicles or plan to own their vehicles for a long time. Depending on when and where you buy, you can get a powertrain warranty from your car dealership, your manufacturer or an independent auto warranty company.

You might also see options for:

• Bumper-to-bumper warranties, which cover more components but generally cost more and don't last as long
• Drivetrain warranties, which include everything in your powertrain except the engine

» MORE: How much does an extended car warranty cost?