Understanding bumper-to-bumper car insurance

When you buy a new car, you might hear about "bumper-to-bumper insurance" being included. This is a type of factory warranty or extended warranty and not something generally offered by car insurance companies. So, what is it and how is it different from car insurance? Let's break it down.

What is bumper-to-bumper insurance?

When you buy a brand-new car, it usually comes with two types of warranties:

• Powertrain warranty
• Bumper-to-bumper warranty

The powertrain warranty often lasts longer than a bumper-to-bumper warranty because it covers the durable (but expensive) mechanical parts of the drivetrain. The bumper-to-bumper warranty, on the other hand, covers pretty much everything else. However, this one typically has a shorter duration, usually lasting three to five years.

A bumper-to-bumper warranty, also known as bumper-to-bumper insurance, is one of the most comprehensive types of coverage offered by automakers. True to its name, it’s designed to cover repairs for nearly every part of your vehicle, from “bumper to bumper,” with only a few exclusions. It’s usually available as a comprehensive extended warranty option or included with new cars as part of the factory warranty.

These warranties usually last for 3 years or 60,000 km, whichever comes first, matching the basic coverage period of a manufacturer’s warranty. During this time, any repair or replacement needed due to defects in materials or workmanship is fully covered under the bumper-to-bumper warranty.

What does a bumper-to-bumper warranty cover?

A bumper-to-bumper warranty covers most parts of your car between the front and rear bumpers, but the exact coverage depends on the specific contract. Some warranties offer more detailed protection than others for mechanical breakdowns. Generally, though, a bumper-to-bumper warranty typically includes coverage for:

• Brakes
• Suspension
• Engine damage
• Transmission and drive axles
• Steering
• Windshield wiper motors
• Heating and air conditioning
• Electronic systems
• Safety systems
• Vehicle body

What does bumper-to-bumper insurance not cover?

While bumper-to-bumper coverage is pretty extensive, it doesn’t cover absolutely everything. Some parts that are typically excluded include:

• Batteries
• Tires
• Wheel alignments
• Brake pads and linings
• Clutch linings
• Light bulbs
• Wiper blades
• Trim pieces
• Shock absorbers
• Upholstery
• Bumpers
• Glass

These items are considered wear-and-tear parts since they naturally wear out with regular use and aren’t classified as defects. Maintenance tasks, like fluid changes and alignments, are also not covered under a bumper-to-bumper warranty. Things like theft, vandalism, racing, accidents, or improper use aren’t covered either. Improper use also includes neglecting routine maintenance. For example, if you skip oil changes and end up needing a full engine replacement, you’ll be responsible for the cost.

Despite the name, bumper-to-bumper coverage doesn’t cover every single repair or replacement for your car—ironically, it doesn’t even cover the bumpers! Each warranty has a list of parts that aren’t included, and the exact details depend on the insurer. That’s why bumper-to-bumper coverage is often called an "exclusionary warranty"—it covers almost everything except what’s specifically excluded. That said, this warranty can still offer great protection during the first few years of ownership.

How much does a bumper-to-bumper warranty cost?

Like any coverage, a bumper-to-bumper warranty doesn’t last forever and will need to be renewed. When your manufacturer warranty ends, you can opt for an extended bumper-to-bumper warranty, which typically costs between $500 and $1,500 per year or more. The price can vary widely since warranty providers don’t follow a standard pricing structure. Factors like your car’s make, model, age, and mileage will play a big role in determining the cost, as well as the length of coverage.

How long does a bumper-to-bumper warranty last?

Most bumper-to-bumper warranties from manufacturers last about three years or 60,000 kilometres, whichever comes first. Some of the best new car warranties extend that coverage up to five years or 100,000 kilometres. With an extended warranty, depending on the provider, you could get coverage for up to 15 years and 400,000 kilometres.

Where can I purchase an extended bumper-to-bumper warranty?

When you’re buying a new or used car at a dealership, you’ll often have the option to add an extended warranty or extra bumper-to-bumper coverage. But you’re not limited to the dealership—you can also get warranty plans directly from insurance providers, lenders, or other third-party providers.

Have I voided my bumper-to-bumper car warranty?

Your bumper-to-bumper car warranty comes with specific terms and conditions, and violating them can void your coverage. To get all the details, it’s best to check your car’s manual or the warranty document from the manufacturer. Here are a few common things that can void your warranty:

• Replacing original car parts with non-OEM or third-party equipment
• Modifying the ECU, “chipping,” or altering the engine map
• Unauthorized modifications, like changes to the suspension, engine, or ECU
• Getting repairs or servicing done at unapproved auto shops
• Using the vehicle for off-road driving, racing, or sports activities

Other types of car warranties in Canada

In addition to bumper-to-bumper warranties, there are several types of car warranties available. Here are a few of them:

Manufacturer’s warranty

The manufacturer’s warranty—also called the factory warranty or new vehicle warranty—comes with every brand new car purchase in Canada. It’s provided by the vehicle manufacturer and covers repairs for defects in materials or workmanship.

Federal emission control warranty

In Canada, every new vehicle comes with a federal emission control warranty—it’s required by law under the Canadian Environmental Protection Act. If any emission control parts fail during normal use, they’re covered under this warranty.

Accessories warranty

An accessories warranty is provided by automakers to cover any defects in materials or workmanship for the accessories that come with your new car. This can include things like roof racks, floor mats, remote start fobs, rear-seat entertainment systems, and more.

Anti-perforation warranty

Rust damage is a common issue for cars in Canada, especially in regions where road salt is used during winter. To help protect against this, most manufacturers offer an anti-perforation warranty. This warranty specifically covers rust that causes perforation, like holes, in the body panels or structure of the car.

Certified pre-owned warranty

If you’re shopping for a used car but still want the peace of mind that comes with a warranty, a certified pre-owned (CPO) vehicle is a great option. CPO vehicles are used cars or trucks that have been carefully inspected, refurbished, and certified for quality by the automaker or dealership. Plus, they come with an extended warranty as part of the CPO program, giving you added confidence in your purchase.

Aftermarket warranties

Aftermarket warranties come from third-party providers, not your car’s manufacturer. They work like extended service contracts, offering extra coverage once the original manufacturer’s warranty expires. These warranties usually let you choose from a variety of coverage options to fit your needs. Some of these warranties may be cheaper in the event that you choose a deductible to pay in the event of a claim, it is important to make sure that you can pay this deductible in the event of a claim.

How is a bumper-to-bumper warranty different from comprehensive car insurance?

A bumper-to-bumper car warranty, as the name implies, provides extensive coverage for most parts of your car. However, don’t confuse warranty coverage with car insurance—they’re not the same. A warranty means that if a part covered under warranty fails due to a manufacturing defect, the manufacturer may replace it free of charge.

Car insurance, on the other hand, is completely different. It’s mandatory in Canada and is designed to cover damage to your car or others in the event of an accident or other sudden incidents. Comprehensive coverage, more specifically, is part of car insurance that covers non-collision-related damages to your car, like weather damage, fire, theft, and vandalism. For more complete coverage, you'd want to add collision coverage and comprehensive coverage to your car insurance policy.

Learn more with BrokerLink

If you still have questions regarding bumper-to-bumper car insurance or need some advice about any other areas of car insurance, reach out to BrokerLink today. We are car insurance experts and we can help you find the best car insurance quotes in town!

You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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FAQs on car insurance

Does insurance cost more for a new car?

Car insurance is usually more expensive for new cars because the cost of repairing or replacing them is higher, the likelihood of finding replacement parts can also be more difficult depending on whether or not the vehicle is a new model or a new year of the specific model. So, if you trade in your old car for a new one, don’t be surprised if your insurance premium goes up.

Does car insurance cover engine replacement?

Car insurance may cover engine replacement depending on the type of coverage you have and what caused the engine to fail.

Does an accident affect your insurance?

Any type of car accident has the potential to increase your insurance premiums for many years. But it really depends on who's at fault in the accident and what type of coverage you have.

If you have any questions, contact one of our local branches.