Which Construction Equipment Extended Warranty Should I Purchase?

Let’s face it, buying a piece of construction equipment in this day and age is quite expensive, and what is even more expensive is having the downtime if something happens to that piece of equipment. That is why it is imparitive to protect your investment and stop worrying about unpredictable machine-repair expenses.

Construction equipment extended warranties have been called “health insurance for the engine.” You pay money up front to avoid paying considerably more money at the time of the repair. As with insurance, you get what you pay for, and sometimes paying less means not getting the coverage you need. In the world of construction equipment there are typically three different coverages to choose from: Powertrain Extend Warranty, Powertrain + Hydraulics Extended Warranty and Full Machine Extended Warranty. Now you need to ask yourself what is the difference between these terms and what makes the most economical sense.

Let’s start off with defining what each extended warranty plan typically covers. A construction equipment powertrain warranty typically covers the following components:

Powertrain Warranty

• ENGINE – All internal parts (excluding external lines and hoses), Engine electronic controls
• FUEL SYSTEM
• AIR INDUCTION AND EXHAUST SYSTEM
• COOLING SYSTEM
• TRANSMISSION
• DRIVE LINE
• DRIVE SYSTEMS TRACK TYPE MACHINES ONLY – Steering clutch and brake including controls, bevel gear, shaft and bearing. Differential steering planetary, differential drive and brake, planetary, brake and differential steering control valve.
• DRIVE SYSTEMS WHEELED MACHINES ONLY – Differential, Differential housing, Bevel gear, Bevel gear shaft and bearing. Differential lock and Differential lock actuator valve. Drive axle front and rear.
• WHEELS AND AXLES
• VIBRATORY COMPONENTS
• SWING GEAR ASSEMBLY
• ELECTRICAL

Powertrain + Hyd Extended Warranty

• Engine
• Fuel System
• Air Induction And Exhaust System
• Cooling System
• Transmission
• Drive Line
• Drive Systems (Track Type Machines Only) – Steering clutch and brake including controls, bevel gear, shaft and bearing. Differential steering planetary, differential drive and brake (excluding external controls), planetary, brake and differential steering control valve. Final drives.
• Drive Systems (Wheeled Machines Only) – Differential (excluding external brake controls), differential housing, bevel gear, bevel gear shaft and bearing. Differential lock and differential lock actuator valve. Drive axle front and rear. Final drives.
• Wheels And Axles
• Vibratory Components
• Swing Gear Assembly
• Electrical
• Hydraulics – Pumps, motors, valves, hydraulic cylinders, hoses, lines, and controls. Excluding brake controls. Excluding quick

Full Machine Extended Warranty

• Engine
• Fuel System
• Air Induction And Exhaust System
• Cooling System
• Transmission
• Drive Line
• Drive Systems (Track Type Machines Only) – Steering clutch and brake including controls, bevel gear, shaft and bearing. Differential steering planetary, differential drive and brake (excluding external controls), planetary, brake and differential steering control valve. Final drives.
• Drive Systems (Wheeled Machines Only) – Differential (excluding external brake controls), differential housing, bevel gear, bevel gear shaft and bearing. Differential lock and differential lock actuator valve. Drive axle front and rear. Final drives.
• Wheels And Axles
• Vibratory Components
• Swing Gear Assembly
• Electrical
• Hydraulics – Pumps, motors, valves, hydraulic cylinders, hoses, lines, and controls. Excluding brake controls. Excluding quick
• Factory AC-including compressor, clutch, condenser, evaporator and temperature control programmer

Frames/ Other: including main frame, track frames, engine frame, loader boom, backhoe boom, dipperstick and linkages, bucket linkages, scarifier and ripper linkages, scraper bowl, draft frame and sliding floor, elevator drive gearbox, skidder arch, skidder boom and grapple, forklift mast and frame, motor grader circle and circle drive gearbox

As you can see there is a lot that construction equipment warranty contracts cover. These are the general coverages, however you must read your contract to see what your specific terms and conditions are for your extended warranty contract. Sometimes it makes more sense to read what is not covered than what is not covered. Now you ask which contract is the best one? Well, that is for you to decide, however when comparing the terms between the three coverages powertrain + hydraulics cover 90-95% of what a full machine extended warranty does. You need to decide what makes the most fiscal sense for your company.