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WarrantyCompass

Factory warranty

The coverage a manufacturer includes with a new vehicle at no extra cost — a bundle of separate warranties, not one blanket policy.

Part of the Coverage types cluster.

What it means

The factory (manufacturer’s) warranty is the set of coverages included in the price of a new vehicle: typically a basic limited warranty, a powertrain warranty, corrosion coverage, emissions coverage, and often roadside assistance. Each component has its own term, limits, and exclusions.

Why it matters

Included coverage is the cheapest coverage you will ever have — no separate purchase, often no deductible. Knowing the shape of the bundle tells you which repair belongs to which policy before you walk into the dealer.

What it is NOT

It is not one blanket policy, not a service contract, and not a guarantee that every repair in the early years is free — exclusions apply to every component of the bundle.

Terms in this glossary describe general warranty practice and US norms — they are informational, not legal advice, and not a reading of your specific warranty booklet.