A car warranty is like a safety net for your car, covering the cost of certain unexpected problems that aren't your fault. Whether you’ve got a brand-new car or a trusty second-hand runaround, a warranty could save you from hefty garage bills.
Key takeaways
- A car warranty covers you for the cost of certain repairs if parts of your car fail. It’s different from car insurance, which covers you for accidents and damage.
- Sometimes providers refer to car warranties as ‘car repair insurance’ or ‘mechanical breakdown insurance’. Policy details may differ, but the core product is the same.
- When it comes to car warranties, levels of cover and what’s covered vary widely. So, it’s always worth checking the small print.
- Annual costs can range anywhere from £200 to £1,000 or more. It depends on your level of cover and your car's age, size, and whether it is electric.
What is a car warranty?
Whether you call it a car warranty or a vehicle warranty, it works the same way. A car warranty is a type of cover separate from car insurance that pays for the cost of fixing certain faults in your car. If something breaks down unexpectedly, for example, if there's an electric fault, your warranty can save you from footing the repair bill.
You might see providers call a car warranty ‘car repair insurance’ or ‘mechanical breakdown insurance’. The name might be slightly different, but they refer to the same thing.
Warranties often come with new cars, but you can get one for a used car, too. They're usually only valid for a certain amount of time.
If your car is written off, your warranty won’t apply. But it can help cover specific costly repairs that might be because of manufacturer faults.
Do I need a car warranty?
A car warranty isn’t a legal requirement, but it can come in handy. Car repairs can be pricey, and a warranty might save you money in the long run. If your car is getting older or has clocked up the miles, a warranty might give you peace of mind.
Types of car warranties
There’s a warranty to suit most drivers. Here are the main types:
- Manufacturer’s warranty: This comes with a new car, usually lasting 3 to 7 years.
- Used car warranty: When buying a second-hand car, covering wear and tear.
- Extended car warranty: Adds more cover after your original warranty ends.
- Car warranty insurance: A separate policy that can protect you against big repair bills.
What’s covered by a car warranty?
Warranties usually cover mechanical and electrical parts. This includes the engine, gearbox, and electrics. Each policy is different, so always check the details to see what’s included.
In order for your car warranty to cover these things, you'll need to have a regular car service and avoiding things like car modifications which may void your warranty altogether.
Routine maintenance, like tyre changes and oil, is rarely covered.
What is an extended car warranty?
An extended car warranty gives you extra cover once your original warranty runs out. It’s a great way to keep your car protected as it ages. Think of it as a safety net for certain unexpected repairs.
What does an extended car warranty cover?
Extended warranties often cover:
- Engine and transmission
- Suspension and steering
- Cooling and fuel systems
It’s also important to know what extended car warranties won’t cover. For example, many providers have a mileage threshold, meaning your warranty won’t be valid if you exceed the upper limit.
Certain repairs might be excluded from your policy, too – it depends on your provider and the terms of your cover. So, it’s always a good idea to check the small print and read your policy documents carefully.
Choosing the right car warranty for you
Picking the right warranty depends on your car and budget. If you’ve got an older car, look for a used car warranty that covers common faults.
What’s the difference between a warranty and car insurance?
A car warranty and car insurance are two very different things. A warranty is designed to cover mechanical and electrical faults with your car, often due to manufacturing defects. For example, if your engine or gearbox develops a fault, a warranty might help cover the cost of repairs.
On the other hand, car insurance is a legal requirement for driving on public roads. It covers things like theft, damage caused by an accident, and if your car is written off. It can even cover things like vandalism.
But car insurance generally won’t cover mechanical issues – that’s where a warranty can come in handy.
Insurance protects you from car accidents and mishaps, while a warranty keeps you covered for faults and failures under the bonnet. Both serve important purposes but work in different ways.
How much can car warranties cost?
The overall cost of a car warranty depends on your car, its age, and the cover level you choose.
If you're getting basic coverage for a hatchback, a year's warranty will likely set you back between £200 to £400. But if you have a more premium car, or you opt for fully comprehensive cover, you're looking at £600+.
It’s also often the case that warranties for electric cars are more expensive due to the higher cost of repairs.
While some warranties might seem pricey, they might still be a lot cheaper than unexpected repair bills. This is especially true for electric vehicles or cars with specialised parts.
What our motor insurance expert says
“When you’re buying a car warranty, it’s important not to go off the headline price alone. A policy's true value lies in its claim limits and excess fees. Digging a little deeper into the fine print could save you from an unexpected bill down the line."
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