What is a car warranty and what is covered?

Types of warranties

Manufacturer’s warranty

New cars usually come with a manufacturer’s warranty, which covers you for any mechanical or electrical faults.

Whilst modern cars are usually reliable, they are more complex than older models, due to their increasingly elaborate electronic systems. However, in the unlikely event that your new car is faulty, if you’re covered by a warranty, you shouldn’t bear the brunt of this cost.

Extended warranty

Once you reach the end of the manufacturer’s warranty period – or reach your mileage limit, you may have the option to purchase an extended warranty.

Coverage for an extended warranty will often be less comprehensive than a manufacturer’s warranty – and there may be more restrictions in place. For instance, if a new part is needed, an extended warranty may only cover the installation – and the not the cost of the part itself, as this may increase the car’s resale value.

Used car warranty

Used car warranties are available with many used cars, including approved used models. A used car warranty will cover the cost of parts and labour for a set list of mechanical components. However, the warranty duration, mileage limit and extent of coverage can vary drastically.

As you might expect, used car warranties are usually less comprehensive than original manufacturer warranties.

What does a car warranty cover?

• Mechanical and electrical faults: Most car warranties will cover the cost of rectifying mechanical and electrical faults, providing they were not caused by the owner’s negligence.

• The gearbox and clutch.

• Electrical systems (including the infotainment system).

• The braking system: Any faults with the braking system should be covered under your warranty.

• Rust: Some manufacturer warranties cover premature rusting. For instance, all BMW models registered from 1st January 2004 are covered by a 12-year anti corrosion warranty.

• Servicing and maintenance: Many manufacturers offer free servicing and maintenance packages as part of their warranties. Having your car serviced and maintained at a manufacturer-recommended garage should help to ensure it runs reliably in the long term.

Please note: Warranty coverage will vary depending on the car and provider, so check the terms carefully before committing.

What is not covered by a car warranty?

• Wear and tear: When wiper blades, fluids and oil filters needed replacing, this can be attributed to normal wear and tear, which isn’t covered under most car warranties.

• Tyres: Replacing tyres falls outside the remit of a manufacturer’s warranty if the tyres are made by a third-party company. However, in some cases, car manufacturers will offer a separate tyre warranty, which is provided by the tyre manufacturer.

• Brake pads: Although the braking system itself is usually covered, car warranties typically won’t cover the cost of replacing worn brake pads, as this tends to fall under wear and tear.

• Clutch plate: Similarly, whilst the clutch unit parts are generally covered, clutch part replacement is not often included in car warranties.

• Accidental damage to the glass, bodywork and interior is not typically covered by manufacturer warranties. However, some dealers may offer ‘top up’ cover, providing additional cover for dents, scratches and bodywork damage.

Warranty terms of cover

Before committing to a car warranty, it’s important to understand what’s covered and for how long. As many car warranties have mileage limits, you should also consider your driving habits and whether you’re likely to exceed the limit early on.

Finally, read the terms carefully to avoid invalidating your warranty. The following actions may void a car warranty:

• Aggressive driving or misuse: This may include off-roading, competitive racing and/or driving at excessive speeds. You may also void your warranty if you repeatedly hit kerbs, so be careful!

• Using your car for commercial purposes: Using your vehicle for commercial purposes (e.g. as a taxi) will invalidate your car warranty. There are special warranties available for taxis, although these are typically more expensive.

• Exceeding the maximum towing capacity: Towing a load that exceeds your car’s maximum towing capacity can damage your car and invalidate your warranty. Use our towing capacity calculator before attaching a caravan or trailer to your car.

• Modifications: Any illegal modifications may void your warranty (e.g. excessive window tints or under-car neon lighting that is too bright), even if they are unrelated to the component that needs repairing. If the reason for repair can be linked to an aftermarket modification, your warranty may also be voided.

• Failure to keep up with servicing and maintenance: If you don’t keep up with routine maintenance (e.g. changing oil, adjusting wheel alignment, filter changes and servicing your car at the recommended intervals), you could void your warranty.

• Buying a car with a salvage title: Be careful when buying a used car. If the vehicle has previously been written off, the manufacturer warranty will have been invalidated. Therefore, you should always check whether a car has been in an accident before buying.

• Odometer tampering: Odometer tampering, disconnecting or replacing the odometer (which is responsible for tracking mileage) is classed as fraud and will void your car warranty. Having an accurate mileage is crucial for evaluating your car. If the odometer is damaged, you should have it repaired by a reputable specialist as soon as possible.

Extended warranties and additional coverage

If your car’s original manufacturer warranty is coming to an end, you may consider purchasing an extended warranty for your peace of mind.

Whilst a manufacturer warranty is usually included in the price of a new car, you will have to pay for an extended warranty. The amount you pay will depend on the following factors:

• The value of the car: The higher the value, the more expensive the repairs are likely to be.

• The age and mileage: The older the car and the higher its mileage, the more likely it will need repairs.

• The level of cover: The more comprehensive your extended warranty policy is, the more it is likely to cost.

You can opt for a shorter or more basic warranty to keep costs down. However, this also increases the risk that you’ll have to pay for repairs out of your own pocket.

It is important to note that car warranties don’t usually cover any form of ‘wear and tear’ (i.e. the gradual degradation of components through continued use.)

However, if you own an electric, hybrid or plug-in hybrid car, you may be able to get cover for your electric batteries on a separate policy. If your main warranty provider does not offer this, you can arrange cover for your batteries through another provider.

Some warranty policies also include roadside assistance cover, which will cover the cost of a vehicle recovery service should you ever break down.

Tips for choosing the right car warranty

• Make sure any warranties you are considering cover the most important/expensive repairs.

• Pay attention to any mileage limits and whether you are likely to exceed them.

• Use a trusted, impartial comparison website to compare quotes for similar policies.

• Before committing to a policy, read reviews from customers. If reviewers frequently report issues with the service and claims process, consider alternatives.

• Choose a policy that lasts however long you intend to keep your car, so that you’re protected from unexpected repair costs.

• Bear in mind that policies sold by car dealers are often more expensive than those available online – and don’t necessarily provide more cover.

• Read the terms of your chosen warranty carefully to ensure you don’t invalidate your cover. If you are unsure about anything, don’t be afraid to ask the provider. It’s better to be safe than sorry.

Transferring a manufacturer’s car warranty

If you sell your car when it’s still under the manufacturer’s warranty, any outstanding cover will usually be transferred to the next owner.

There are some exceptions to this rule. Warranties for some car models can be transferred, but coverage will be more limited for subsequent owners.

When advertising your car, you should highlight any outstanding warranty cover, as this may increase the pool of prospective buyers and help you get a better price for it. If you want to know how much warranty cover you have left for your motor, the dealership should be able to tell you.

Transferring used and extended car warranties

Unlike many manufacturer warranties, extended and used car warranties are not automatically transferred at the point of sale – and not all providers will allow you to transfer.

If the warranty provider does agree to transfer the warranty to the next owner, you may be charged an admin fee.

Consumer rights and legal aspects

If you buy a new or used car from an official dealer and the vehicle develops a fault, you are automatically protected by the Consumer Rights Act 2015, which provides a statutory warranty for all cars bought from a dealer.

The degree of protection you will receive from the Act will depend on how long you have owned your car:

• If your car develops a fault within the first 30 days, the vehicle is still under statutory warranty, so you can simply return it to the dealer and reject it for a refund.

• If your car develops a fault between one and six months from the date of purchase, the law will assume that the fault previously existed, unless the seller is able to prove otherwise. The vehicle will still be protected by a statutory warranty – and the seller will have one opportunity to fix the issue. If they cannot, the buyer will be entitled to a refund, which will typically be less than the original purchase price, accounting for however long the buyer has used the car.

• After six months, protection from the Consumer Rights Act 2015 expires - and the onus falls on the buyer to prove that the fault existed at the time of purchase if they want to make a claim for the dealer to rectify the fault.

What should I do if my warranty provider won’t pay out?

If your car warranty provider refuses to honour your claim, here are the steps you should take:

• Review your policy. Check the terms and conditions carefully to ensure that the required repairs are covered. If you still believe you are in the right, you can escalate your complaint.

• Get in touch with your warranty provider and quote the relevant section of the policy to demonstrate that the requested work is covered.

• Give the provider as much detail as you can to make your case, including photographs of the affected area and a description of the damage.

• If they still refuse to pay, ask them to put the reason why they are not responsible in writing.

• It is wise to keep a record of any communications between you and the provider, as you may need to use this as proof.

• If you are not satisfied with the provider’s explanation, you should collect quotes for the required work, then tell them you intend to claim back the cost.

• If the provider still refuses to pay out for something that’s clearly covered, they will be in breach of contract.

• If your warranty provider is a member of a trade association, you can raise the issue with them.

• If the provider is the dealer that sold your car, you may need to raise the issue in court. You can take it to the small claims court if the value of the repairs is less than £10,000 (or less than £5,000 in Scotland and Northern Ireland).

• Remember, court action should be a last resort. Make sure you have taken every reasonable step to settle the matter with the provider first.

• If the warranty is underwritten by an insurance company, you can refer the matter to the Financial Ombudsman Service. However, before doing this, you must have exhausted the warranty provider’s internal complaints procedure – or be able to show that the complaint was resolved more than eight weeks after it was raised.

Frequently Asked Questions