Car warranties explained
Here’s a guide to different types of car warranties and how they work
First thing’s first: a car warranty isn’t the same thing as car insurance. While both can help you cover the cost of your car if something goes wrong, the criteria and providers are different. Having car insurance is a legal requirement and you can't drive without it. A car warranty typically provides you with some protection against the cost of mechanical and electrical failures.
What is a car warranty?
A car warranty guarantees the car will meet a specified criteria over a certain time frame. It’s not a legal requirement to offer a warranty, but many manufacturers and legitimate dealerships will have one. You can find a list of businesses that meet the codes of practice set out by the Motor Ombudsman here. Different warranties will have different levels of cover. For example, a warranty on a new car might look a bit different to a warranty on a used car because of age and mileage. But generally, a warranty will cover you for parts and labour on any mechanical or electrical faults that happen in the indicated time frame - from when you bought the car to when the fault appeared and was reported.
Type of car warranties
There are a few different types of warranties available. This will depend on who you purchase your car from and how long you’d like your warranty to last.
Manufacturer warranties
These are the warranties that are included by the manufacturer of the car. They protect you by covering manufacturing faults or any part that is not subject to ‘wear and tear’. If you claimed on a manufacturer’s warranty, it usually comes under one of three categories:
- Bumper to bumper – this covers most parts of the vehicle, from front to rear
- Drivetrain – this covers the car’s transmission items, like the engine, gearbox and differential
- Corrosion – this will cover the bodywork of the car if it deteriorates because of poor manufacturing
Each category might have slightly different timeframes attached to it.
Third-party warranties
A third-party car warranty is what’s available for older, used vehicles with higher mileage. You can either purchase your own third-party warranty by looking for a provider with good reviews, or it’s likely that the dealership you purchase from already provides a warranty through a third - party provider.
Extended car warranties
An extended warranty is exactly what it sounds like. When you’re offered a warranty by a manufacturer or seller, you can often pay for it to be extended. For example, if the warranty that came with your car was 365 days, you might be able to pay an amount to the seller or manufacturer to extend this to two years or longer.
Benefits of a car extended warranty
Buying an extended car warranty protects you for longer and can have longer term benefits too.
- You won’t have to shell out for new parts or repairs for a while
- The cost of parts and labour rates will increase over time – and extended car warranty can cover these costs
- If you sell your car before your extended warranty expires, the buyer might be covered too if the warranty is transferrable. A vehicle still under warranty has better resale value
What does a car warranty cover?
Car warranties can vary in what they cover. Typically, you’ll be covered for any defect or failure that is through a fault of the manufacturer. This means that if there’s an electrical or mechanical fault with the car that isn’t down to an accident or ‘wear and tear’, you should be covered for the labour costs and any replacement parts. Things that are often covered under warranty are:
- Engine
- Gearbox and clutch
- Steering
- Fuel system
- Electrics
- Air conditioning
This list is just to give an idea of what a car warranty typically covers, but you should always check with your provider. Some warranties will offer more or less cover than this.
What isn’t covered by a car warranty?
Things that aren’t usually covered on a car warranty are car components that are subject to wear and tear. Wear and tear means that some components may fail or breakdown over time, like brake pads, coil springs, and tyres.
The warranty won’t cover you for damage to your vehicle suffered in an accident, or from vandalism, fire or theft. This is what Motor Insurance is for.
Can my car warranty claim be rejected?
Just like car insurance, a warranty will have terms and conditions attached to it. If the damage you’re claiming for is outside of the criteria set out in the warranty, or you haven’t complied with the conditions, your claim may be declined.
If you’ve made a claim on your warranty and you think it’s been unfairly rejected, you can contact the Motor Ombudsman.
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