You can think of a car warranty as an insurance policy. Should anything go wrong with the car while it’s covered by a warranty, you’ll be protected from some, or all, of the repair costs. Every new car sold in the UK comes with at least three years of manufacturer-backed warranty coverage and there are companies that provide warranties for older cars, as well.
In this guide, we’re going to explain everything you need to know about car warranties. We’ll go over why it’s important to have one, what is and isn’t covered, what the best new car warranties are and how you can get coverage for an older car.
Do I need a car warranty
Yes, you do. All new cars come with one anyway, typically lasting between three and seven years, depending on the manufacturer. There’s always a mileage limit on warranty coverage, as well. Many car manufacturers also offer extended warranty packages, adding further years of coverage for a relatively modest extra cost.
If you’re buying a used car that’s no longer covered by the manufacturer’s warranty, you may be offered further coverage by the supplying dealer at extra cost. Or you can buy one from a third-party provider like Motoreasy, so long as your car meets certain age and mileage requirements.
Buying warranty coverage may cost a few hundred pounds a year but it could end up saving you a lot. Even relatively minor failures can be very expensive to fix in modern cars. Just replacing a couple of electronic sensors, for instance, could easily carry a four-figure bill.
Make sure you carefully read the terms and conditions of any warranty before you buy it, in particular what is and isn’t covered.
How does a car warranty work?
When your car suffers a breakdown or failure, a warranty will cover some of or all the repair costs, as long as the car has been properly maintained and meets the conditions of the warranty. For instance, if the engine in your three-year old car seizes up despite having been serviced on schedule, the manufacturer will carry out a repair under warranty. If, however, you’ve never had the car serviced in that time, you’ll probably have to pay for the repair yourself.
How much of the repair costs are covered depends on the level of coverage the warranty provides. Some only cover the cost of parts, others cover both parts and labour. There will be an upper cost limit on repairs, as well.
Exactly what parts of the car are covered also varies between different warranties. Manufacturer-backed warranties generally cover just about everything, third-party warranties may exclude certain items like the car’s electrical system. Note that no warranty covers parts that wear out through normal use like tyres and brakes, unless there are exceptional circumstances.
What’s the best car warranty?
Toyota has a solid claim to the title as it offers the longest new car warranty available in the UK. Called Toyota Relax, the initial three-year coverage is extended in one-year increments up to 10 years or 100,000 miles (whichever comes first), so long as you have the car serviced by a Toyota dealer.
Kia, SsangYong and MG all provide a seven-year warranty with varying mileage limits, while Renault and Hyundai warranties last for five years.
However, a warranty that simply lasts a lot of years may not be best for everyone. BMW’s three-year warranty has no mileage limit, so it may be best for drivers who do a lot of miles.
Types of car warranty
When your car’s original manufacturer-backed warranty expires, the supplying dealer may offer you an extension to the manufacturer’s coverage. Dealership groups like Pendragon or Marshall also offer their own warranty packages.
There are yet more options if you’re buying a used car. Most manufacturers have an approved used car scheme that operates through their franchised dealers and a decent manufacturer-backed warranty is generally included in the deal. You may also offered further years of coverage at extra cost.
Outside the approved used schemes, many dealers offer their own extra-cost warranty packages. Independent dealers can also offer warranties, though they are usually acting as agents for one of the third-party warranty providers.
Note that consumer protection laws stipulate all used cars are covered by a three-month warranty from the date of sale.
What does my warranty cover?
What’s covered depends on what sort of warranty it is. A manufacturer-backed warranty on a new car should cover just about every area of car including the engine, gearbox, electronics, brakes and suspension. And the repairs shouldn’t cost you a penny in parts or labour.
Buy a used car from a manufacturer’s franchised dealer and it should be covered by an approved used car warranty that offers similar coverage. However, things like the exhaust, wheels and battery may not be covered – as a car gets older, these items become ‘consumables’, which are never included in a warranty.
Note that, if it’s judged the failure was caused by misuse or neglect of the car, you will have to pay up.
Third-party warranty providers, including those used by independent dealers, generally offer several levels of coverage. The basic package may just include the car’s major components – engine, gearbox, etc. The upper levels will offer more comprehensive coverage, possibly matching a manufacturer warranty. Always read the small print carefully to find out exactly what’s covered in any warranty.
Are wearing parts covered?
Wearing, ‘consumable’ parts like tyres and brake pads generally aren’t covered by a car warranty, though some do cover them for the first 90 days of a car’s life, giving time for any manufacturing defects to appear.
Even if a wearing part isn’t covered, associated parts may be. For instance, a clutch plate isn’t covered but the rest of the clutch assembly – bearings, springs, etc – are. Similarly, brake pads aren’t covered but the callipers are.
A car’s bodywork has a separate warranty covering any rust that develops. However, if the rust has been caused by a dent or scrape, you’ll have to pay the cost of repair.
Am I covered for the full amount of the repair under warranty?
A new car warranty should cover the full cost of parts and labour. Many used car warranties also cover parts and labour but there are some that only cover the cost of parts. In either case, used car warranties usually place an upper limit on the cost of a repair.
Let’s say there’s a £5,000 limit on engine repairs. That means you can make one or more claims up to a total cost of £5,000; if the full cost of repairs is actually £7,500, you’ll have to pay the balance.
What about extra cover?
Many new car warranties also include breakdown cover that will reimburse any costs you incur if your car grinds to a halt at the side of the road. That can include recovery, car hire, overnight accommodation, rail fares and so on.
A used car warranty probably won’t offer such comprehensive coverage. However, you may be able to pay for an upgrade that includes a similar level of breakdown cover.
Do I have to have my car serviced at a main dealer to protect my warranty?
No. Under block exemption rules, you can have your car serviced by an independent garage that uses the correct original equipment manufacturer (OEM) parts, rather than aftermarket ‘pattern’ components. Make sure you get a receipt that itemises the parts used so you can prove the car was serviced correctly, should you need to make a warranty claim.
However, this only applies to the warranty provided on a new car. With any other form of warranty, the provider can impose whatever conditions they please. That’s how Toyota can offer an extended warranty that’s contingent on the car being serviced by its dealers.
Do I have to have a full service history to protect my warranty?
Yes. Whoever provides a car warranty, they will want to see that your car has been properly serviced on schedule. The service history is your evidence for that. There’s a little leeway, though. If a service was carried out 1,000 miles or 30 days beyond the scheduled mileage or dates, it’s highly unlikely a warranty claim will be refused.
What if I don’t carry out general maintenance?
Here’s a scenario that’s rare but we’ve seen it happen several times. The engine of a two-year old car overheats and seizes. The owner assumes that, given the car’s age, the repair will be covered under warranty. However, when the dealer handling the repair investigates the car’s history, it turns out it has done 40,000 miles and never been serviced. The oil has turned to jelly and the coolant tank is dry, which caused the engine to seize. As a result of that neglect, the owner is liable for the full cost of repair, which could run to tens of thousands of pounds.
The same principle applies to other parts as well. If the braking system becomes damaged because the pads have completely worn away, the costs won’t be covered by the warranty. Likewise, if the clutch assembly shatters because you tear around like a racing driver, you’ll have to stump up for the repairs.
What if one part fails and breaks another?
The term to look out for is ‘consequential loss.’ Many warranties do cover consequential losses, but there may be an upper limit on the cost. Audi’s Approved Cover used car warranty, for instance, states that they ‘will not pay for any damage caused by consequential failure exceeding £2,000 per claim inclusive of VAT.’ That means the policy will cover consequential losses that cost no more than £2,000 to repair – you’d have to cover any extra.
That may be a bit hard to follow, so here’s an example. Your car’s water pump breaks, causing the engine to overheat and blowing a hole in the radiator. If the warranty doesn’t cover consequential losses, only the water pump will be covered because that was the first part to fail, leaving you to pay the bill for a new radiator. If consequential losses are covered, you won’t have pay anything.
Now, let’s say the overheating caused the engine’s cylinder head to warp. Repairs will cost £2,500. With an Audi Approved Cover warranty, you’ll have to pay the £500.
Is a car’s warranty transferable?
If you sell your car while it’s covered by the manufacturer’s warranty, it stays with the car for the new owner to use. Check the terms and conditions to make sure you don’t need to inform the manufacturer of the change of ownership. You shouldn’t sell your car if a claim is in progress.
If your car is covered by a third-party warranty, it should be transferrable to a new owner, if it has been paid for in full. There will be paperwork to do, though, and you’re under no obligation to transfer the warranty, anyway.
What if I modify the car?
You have to be very careful here. If you fit your car with aftermarket wheels, lower the suspension or remap the engine for extra performance, you’re probably invalidating the warranty. Even if the modified part is unrelated to the one that fails, the manufacturer could still refuse the claim on the basis that the car is no longer in its original specification.
Is it worth getting a warranty on an older car?
Most companies that provide warranties for older cars have age and mileage limits. They vary between companies but you’re unlikely to get a warranty for a car that’s more than 10 years old or has over 100,000 miles.
If your car is within those limits, it’s definitely worth getting a warranty, even if it’s only worth a few thousand pounds. After all, one big repair bill could easily write it off. Any less than that, though, and it’s probably not worth spending the extra on a warranty, even if you could get one for a car that cheap.
