The manual for my 1998 Contour states that when the oil light comes on to "check the oil level as soon as possible."   It says nothing about the worst case scenario is complete oil pressure loss for whatever reason, and that you have seconds to shut down the engine to avoid severe damage. My 16 year old son's driving class did not discuss any of the warning lights in the car they drove other that to show where they were.   The used car warranty specifically denies coverage if the car continued to be driven after a part broke. How many people know how serious the light is? If this manual is this unhelpful, I suspect most are. So this is an area the warranty company does or should know, that their clients may not know enough to avoid more damage. If this happens under a manufacturer's warranty, do they usually cover te damage?

Optional Information:
1999 Ford Contour 2.5L V6

Already Tried:
&5% of people I know did not know red oil light could mean imminent engine failure. Ford dealer knew of only one new car under warranty denied even after lockup: oil leak ignored.