08 January 2025
Car warranty cover: What to know
4 minutes
Whether you’ve just picked up a brand-new vehicle or you’re driving around in old faithful, car warranty offers crucial peace of mind. It’s there to protect you financially if your car experiences certain mechanical or electrical failures. But what does a car warranty cover exactly? How long does it usually last? And is there such a thing as car warranty insurance?
Before we dive in, we realise that the term “car warranty cover” might be a little ambiguous. You might be interested in what sort of coverage car warranties provide, or you might be looking for car warranty insurance. We address both of these points below.
Let’s dive in.
What does car warranty cover?
A car warranty is a promise by your car’s manufacturer or a warranty provider to repair or replace specific vehicle parts if they fail within an agreed period of time or mileage limit. This usually comes at little or no cost to you, depending on your coverage. Typically, standard warranty coverage includes a broad range of potential failures, including:
The engine and transmission
- All internal mechanical parts of the engine
- Gearbox components (both manual and automatic)
- The engine control unit
- The turbocharger or supercharger if factory-fitted
Steering and suspension
- Power steering components
- Suspension springs and dampers
- Wheel bearings
- Steering rack and pump
Electrical systems
- Alternator
- Starter motor
- Central locking
- Window mechanisms
- Factory-fitted entertainment systems
Braking system
- Brake master cylinder
- ABS components
- Brake calipers
- Wheel sensors
Car warranties usually have exclusions, however, and you’re likely to find that your policy probably won’t cover:
- Wear and tear items, such as brake pads, clutch plates, and windscreen wipers
- Tyres
- Bodywork and paint
- Interior trim and upholstery
- Damage caused by accidents (you need to have car insurance in place for this)
- Problems caused by poor maintenance
Note that the issues your warranty includes and excludes can vary depending on your car’s manufacturer or your warranty provider. Budget warranties might only cover specific components, while comprehensive policies could include additional items like air conditioning, in-car entertainment systems, and catalytic converters. Make sure you read your warranty documents carefully to ensure you have the right coverage in place.
How long does a manufacturer’s warranty last in the UK?
In the UK, manufacturer warranty lengths vary between car brands, but most new cars come with a warranty of at least three years or 60,000 miles. Some manufacturers offer warranties as long as seven years, or up to 80,000 or 100,000 miles. Others offer warranties that are exclusively time based, and apply no matter how many miles you cover.
It’s worth noting that these warranties often come with conditions. For example, you may be required to service your car regularly at approved dealers. And some components might have different coverage periods than others. As with any document of this nature, take the time to read through the fine print closely.
If you feel your warranty period doesn’t quite meet your needs, most manufacturers also offer the option to extend the warranty for an additional cost. This is either done through the manufacturer’s own extended car warranty programmes or third-party providers. You may also take out certain types of insurance to make sure you’re always financially covered.
What voids a car warranty?
While your car warranty can provide a valuable financial safety net, certain actions can render it invalid, leaving you unprotected when you need it most. It’s important that you understand what would likely void your warranty so that you can maintain your coverage and avoid unexpected (and often costly) surprises down the line.
Be conscious of the following:
- Missing scheduled services: Missing scheduled services or having work done by unqualified mechanics can quickly invalidate your warranty. Manufacturers require regular maintenance at specified intervals, and it’s important that you keep detailed records of all these services and repairs.
- Making unauthorised modifications to the vehicle: While you might be tempted to enhance your car’s performance or appearance, aftermarket modifications like engine remapping, non-standard exhausts, or significant suspension changes can invalidate your warranty. Even something as simply as fitting the wrong wheel and tyre combination could cause problems.
- Failing to maintain your car properly or misusing it: Using incorrect fluids or oils, fitting non-genuine parts, and conducting DIY work on major components can also void your coverage. Seemingly minor oversights, like ignoring warning lights or continuing to drive with a known fault, could leave you unprotected, too. Additionally, using your vehicle for purposes not covered by the warranty — such as racing or undisclosed commercial use — will typically leave you unprotected.
- Mismanaging your records: If you don’t have all the necessary documentation relating to any changes or repairs you conduct on hand, you may encounter issues during the claims process. Also be sure to report all problems to your manufacturer or warranty provider as quickly as they take place.
The key to maintaining your warranty is simple: follow your manufacturer’s guidelines, keep meticulous records, and always check with your warranty provider before making any significant changes to your vehicle. If you’re ever unsure about whether something might affect your warranty, it’s better to ask first rather than risk losing your coverage.
Is there such a thing as car warranty insurance?
Yes, there is car warranty insurance or car warranty cover, though it’s usually called mechanical breakdown insurance (MBI). While it serves a similar purpose to a warranty, there are some key differences.
Traditional warranties are service contracts between you and either the manufacturer or a warranty provider. They’re not regulated by the Financial Conduct Authority (FCA). Mechanical breakdown insurance, on the other hand, is an actual insurance product that’s regulated by the FCA. This means it comes with additional consumer protections, including:
- Access to the Financial Ombudsman Service if you have complaints
- Protection under the Financial Services Compensation Scheme
- Stricter rules about how the product can be sold and marketed
- Clearer terms and conditions requirements
The coverage itself can be quite similar to a warranty — both can cover mechanical and electrical failures. However, MBI policies often have different claims processes and might require you to pay for repairs upfront and then claim the money back, whereas warranties typically handle the payment directly with the repairer.
Quickfire summary
Car warranties typically cover mechanical or electrical failures that take place within an agreed period of time or mileage limit. While comprehensive warranties cover a broad range of issues, basic options will usually only cover specific components. Most warranties have exclusions, as well as conditions that will void the warranty altogether.
If you’re looking for advice regarding car warranties or any sort of car insurance, speak to the team at Howden. Over 51% of new car insurance clients saved an average of £195 between February 2024 and July 2024. Speak to us today to find out how we can help you.
Also read:
- How often should you service your car?
- Should you lease or buy a car? How to decide
- How long does a MOT take?
- READ MORE CAR INSURANCE GUIDES
Car Warranty cover FAQs
Can I transfer my car warranty to a new owner?
In most cases, yes, manufacturer warranties can be passed onto a car’s new owner as they’re linked to the vehicle rather than the person. The process is usually pretty straightforward, but you’ll need to inform the manufacturer of the change in ownership and ensure all service records are passed to the new owner.
If you have an extended warranty or third-party warranty, check the terms carefully as some of these may not be transferable or might require a transfer fee. Be sure to handle any transfer paperwork before completing the sale of your vehicle.
Can I get warranty coverage for a used car?
Yes, you can certainly get warranty coverage for a used car. There are several options available to you. If you’re buying from a dealership, many offer their own warranty schemes that typically last between three and 12 months. For private purchases, you can buy MBI from various providers and experienced brokers who understand used car coverage.
For the best protection, it’s worth having any used car inspected by a qualified mechanic before purchasing a warranty. They’ll help you identify any existing issues that might be excluded from your coverage.
What’s the difference between mechanical breakdown insurance and a warranty?
The key difference between MBI and a warranty is the level of consumer protection they offer, though both products serve essentially the same purpose: helping you manage the cost of repairs.
MBI is a regulated insurance policy that protects against repair costs. It’s overseen by the FCA, which means you get additional consumer protection and can appeal to the Financial Ombudsman if there’s a dispute.
A warranty, on the other hand, is a contractual agreement between you and the provider to repair certain faults. While it offers similar coverage, it isn’t regulated by the FCA and typically offers less consumer protection. However, warranties are still covered by consumer rights legislation.
Is it worth getting a car warranty?
Sadly, there’s no easy way to answer this question directly without knowing your vehicle or your personal situation. Newer cars often have a fairly lengthy manufacturer warranty, so you may or may not benefit significantly from having additional cover ( this depends on what the manufacturer warranty covers). If you have an older vehicle, you may get extra peace of mind knowing that you’re protected by an extended warranty.