Buying a car, whether brand new or used, is one of the biggest purchases most of us will ever make. That’s why protecting that investment is essential. One of the most common (and most misunderstood) protections is a car warranty.
So, what is a car warranty exactly? In simple terms, a car warranty is a type of guarantee provided by the manufacturer or a third-party provider that covers the cost of repairing or replacing faulty parts for a certain period after purchase. It gives you peace of mind that if something goes wrong with your car, you won't be left footing a hefty bill - at least for specific issues.
Whether you're buying new or exploring used car finance, understanding how car warranties work can help you make smarter decisions and avoid unexpected costs down the line
There are several different types of car warranties available, and each works a little differently. Here's a breakdown of the most common options:
Manufacturer Warranty
When you buy a new car, it almost always comes with a manufacturer warranty. It covers most major mechanical and electrical faults due to manufacturing defects. This usually lasts between three to seven years or up to a certain mileage (this can range from 60,000 up to 100,000 miles). Some manufacturers offer very generous warranties, some have unlimited mileage and some can be extended with servicing at approved dealers. Therefore, by shopping around and comparing your options you may have the option to significantly extend your warranty.
Extended Warranty
Once your manufacturer warranty expires, you may have the option to purchase an extended warranty. This offers continued protection and may be suitable for anyone planning to keep their vehicle for the long haul. It often includes different levels of cover depending on your budget and driving habits.
Approved Used Car Warranty
Some used cars, especially those bought from a dealership, come with an approved used car warranty. These are typically provided by the manufacturer or dealer and offer reassurance that your used vehicle has been thoroughly checked and is covered for a limited time - typically between 12-36 months.
Aftermarket Warranties
Aftermarket warranties (sometimes called third-party extended warranty) are third-party policies you can purchase separately - either at the time of buying the car or afterwards. These warranties are not purchased from the manufacturer. They offer varying levels of cover, and terms differ widely, so it’s vital to compare policies and providers carefully to find the best option for you.
Not all warranties are created equal. One key distinction is whether your warranty is insured or non-insured (discretionary) and this can have a big impact on how claims are handled.
Insured warranties are backed by a regulated insurance provider. This means your claim is protected by law, and the provider is obligated to pay out if the terms are met.
Non-insured (discretionary) warranties, on the other hand, are not regulated in the same way. The provider has the discretion to approve or deny claims, even if they appear to meet the warranty terms.
So how can you tell which type you have? Ask your provider directly or check the documentation for references to insurance backing. If your warranty is discretionary, it’s especially important to understand the provider’s reputation and claims process.
While policies can vary, car warranties cover mechanical and engineering faults (including parts and labour costs) - generally consisting of the following:
Engine - including internal components like the timing belt, pistons and oil pump.
Gearbox and Clutch - protection for gear changes, clutch mechanisms and internal transmission parts.
Steering - including the power steering pump and rack.
Fuel System - injectors, fuel pumps and sensors.
Electrics - from starter motors to central locking and onboard computers.
Air Conditioning - compressors and ventilation components.
All warranties typically cover the main mechanical and electrical parts of the car, but after that, the details can vary significantly. That’s why it’s so important to read the small print and understand exactly what’s included before you sign.
What Isn’t Covered by a Car Warranty?
A car warranty is there to protect you from unexpected faults, not general wear and tear. Here’s what most warranties don’t cover:
Wear and tear items - brakes, tyres, wiper blades and light bulbs.
Routine maintenance - oil changes, filters, MOTs and services.
Accidental damage or neglect - any problems caused by not maintaining the car properly or damage from accidents.
Modifications - aftermarket upgrades that can void your cover.
Always check the exclusions list carefully and keep up with your service schedule to avoid voiding the warranty.
You can get additional coverage and protection for things not included in a warranty. For example, Cosmetic Repair cover and Tyre & Alloy cover. However, this will come at an extra cost so before committing to anything make sure the overall package is affordable.
The length of a car warranty varies depending on the type:
Manufacturer warranties usually last 3 to 7 years or up to 100,000 miles - whichever comes first. Once you hit that time or mileage limit your warranty will expire.
Approved used warranties often cover 12 to 24 months. Although some may extend to up to 36 months.
Extended and aftermarket warranties can last anywhere from 12 months to several years, depending on the provider and the level of cover selected.
Can a Car Warranty Be Voided?
Yes, you must stick to the terms of the agreement otherwise you could be at risk of voiding your warranty. Your warranty may be voided if:
You don’t service the car as required.
You modify the vehicle in a way that impacts its performance.
You misuse the vehicle (e.g. racing or off-roading a standard road car).
Stick to the manufacturer’s service intervals and avoid unauthorised repairs to stay covered.
Benefits of a Car Extended Warranty
Wondering if an extended warranty is worth it? Here are some of the key benefits:
Avoid Expensive Repairs
Modern vehicles are packed with complex electronics and systems - when things go wrong, they can be pricey to fix. An extended warranty can save you thousands in repair bills.
Peace of Mind
An extended warranty provides reassurance that you're covered if a fault develops - reducing stress and potentially saving you from unexpected costs.
Custom Coverage
Many extended warranties allow you to choose your level of cover. Whether you drive long distances or just do short trips, you can tailor the policy to suit your lifestyle.
Boosts Resale Value
A car with a transferable extended warranty can be more appealing to buyers, as it shows the car has been looked after and offers extra protection after the sale.
Great for Used Cars
Extended warranties are especially useful if you're buying second-hand. If you're considering financing a used vehicle, take a look at our guide to used car finance to help understand if it’d be a good option for you.
Electric vehicles (EVs) come with unique components that can differ significantly from traditional petrol or diesel cars, most notably, the battery. Fortunately, EV warranties typically include battery coverage, often for longer periods than standard mechanical warranties. For example, many manufacturers offer 8-year or 100,000-mile warranties specifically for the battery pack, reflecting its importance and cost.
Beyond the battery, EV warranties may also cover electric motors, charging systems, and onboard software. However, because EVs have fewer moving parts, some traditional warranty elements (like gearbox or clutch cover) may not apply. If you're switching to electric, it's worth comparing warranty terms carefully, especially around battery degradation, which can affect range over time.
Car Warranty and Car Finance
Many car finance deals allow a warranty to be included, especially when financing approved used cars through a dealership. This provides an extra layer of protection during your repayment term.
When you're making monthly payments on a car, having warranty cover can give you peace of mind that any mechanical issues won’t disrupt your budget - or worse, leave you without a working vehicle.
Extended warranties can also be added to some car loans, giving you a chance to protect your car over some, most or even the full length of the agreement.
If you're considering adding a warranty to your finance package, it's important to know that the cost of the warranty will be included in the total amount borrowed. This means you’ll likely pay interest on it over the term of the agreement. Make sure to factor this into your overall affordability assessment before proceeding.
Final Thoughts
So, what is a car warranty? In short, it’s your safety net. Whether you're buying a brand-new car or financing a used one, having warranty cover could mean you're protected from the kind of unexpected repair bills that can cause real financial strain.
Always check what’s covered, what’s excluded, and how long the cover lasts. And if your manufacturer warranty is running out, now might be the perfect time to explore your options with an extended plan.
FAQs
What is the difference between a car warranty and insurance?
A car warranty covers mechanical and electrical faults caused by manufacturing defects. Insurance, on the other hand, protects you against accidental damage, theft, fire, and third-party claims.
Are extended warranties worth it?
Extended warranties can be worth it - offering additional peace of mind if your manufacturer warranty has expired. For high-mileage drivers or those with older cars, the savings on potential repairs can outweigh the cost of the policy. However, always make sure it fits your financial situation before you go ahead
Will missing a service void my warranty?
Yes, it’s possible that missing a service could void your warranty. Most warranties require you to stick to the manufacturer's service schedule. Missing services or using unapproved garages can void your cover.
What does a new car warranty cover?
A new car warranty typically covers mechanical and electrical components, including the air conditioning, audio system, and onboard electronics in addition to any engine related failure - as long as faults aren't due to wear and tear or neglect.
Can you buy a warranty for your car?
Absolutely. If your car didn’t come with one, or your original warranty has expired, you can purchase an aftermarket or extended warranty for your car from a third-party provider.
