What Are the Different Types of Warranties?
Four different types of warranties are express warranties, implied warranties, lifetime warranties and extended warranties. A warranty is a guarantee on an article or service that includes repair or replacement if the article does not meet the standards implied.
An express warranty is a guarantee from the seller that specifies the extent to which a product’s quality and performance is assured. It also states the conditions under which a product may be returned or replaced.
An implied warranty arises from the nature of the transaction and includes a warranty of fitness, a warranty of merchantability and a warranty of title.
A lifetime warranty is a guarantee on the lifetime of the product in the market. If a product is eventually discontinued, then the lifetime warranty remains valid for just a few more years after the product is no longer manufactured.
An extended warranty refers to guarantee of reliability of the product under conditions of normal use. It covers defects or issues that may arise after the sale. This warranty excludes parts that may wear out and need to be replaced periodically.
A consumer can also purchase warranties from third parties. Car warranties and home warranties can also be purchased from insurance companies.