Used and extended car warranties

What is a car warranty and how does it work?

A car warranty covers the cost of fixing or replacing car parts if your car breaks down or something goes wrong, unlike car insurance, which typically covers accidents, theft or damage. If you buy a used car, you may still be covered by the manufacturer's original warranty, or be given a warranty by the dealer.

The dealer selling you the car may offer their own extended warranty, which may be more expensive than shopping around for a car warranty quote.

What are the different types of car warranty cover?

There are a few types of car warranty, each designed to suit different stages of vehicle ownership.

New car warranties

Most brand-new cars come with a manufacturer’s warranty that typically runs for around three years or up to 60,000 miles (although some manufacturers offer up to 100,000) - whichever is reached first. This cover is usually included in the purchase price and protects against faults caused by manufacturing defects.

Used car warranties

If you’re buying a car and the original manufacturer's warranty has already ended, a dealer may offer a used car warranty. This is often included in the sale. It generally provides short-term protection, usually around three months.

Third-party warranties

When buying a car privately rather than through a dealership or manufacturer, you can often get cover through an independent warranty provider.

Extended warranties

Extended warranties let you continue cover beyond the standard warranty period, often for 12 months or longer. These can be bought from the manufacturer, the dealership or a third-party provider.

How much does an extended car warranty cost?

It can vary. The cost of your extended warranty will depend on things like:

• The car’s make and model
• Its age
• The engine size
• How far you drive your car

The cost will also depend on how much cover you want.

An extended car warranty may include an excess (the amount you contribute to the cost of a claim) or a single claim limit for repairs, capping the amount the warranty will pay out. This is why it’s important to check the policy details carefully.

Always shop around and compare prices, benefits, and any exclusions. The best car warranty for you is the one that meets your exact needs and fits your budget.

What does a typical car warranty cover?

With typical warranties, you can choose from two levels of cover: mechanical and breakdown insurance (MBI) or service and repair plans. The former is regulated by the Financial Conduct Authority (FCA), while the latter is not.

In practice, service and repair plans may seem more comprehensive, but what they actually cover can vary. That’s why it’s important to shop around, compare warranty quotes, and understand exactly what’s included before you commit.

In general, most car warranties cover the cost of repairs to:

• Engine and fuel systems
• Clutch and gearbox (the transmission)
• Suspension
• Brakes
• Steering

A good warranty will usually include labour costs, but always check the policy to be sure.

Unless included as an extra, car warranties don’t cover items such as tyres or batteries, which are subject to wear and tear.

What does a car warranty not cover?

Car warranties come with certain restrictions, so it’s important to be aware of key terms and conditions, including:

• Mileage limits: cover often ends once a car reaches around 60,000 miles. Some manufacturers or used car warranties allow up to 100,000 miles, but higher limits usually cost more.
• Wear and tear: faults caused by normal wear and tear are usually excluded. Regular servicing and maintenance are your responsibility. Parts commonly affected include tyres, brake pads, clutch, and similar items.
• Cosmetic damage: scratches, scrapes, and dents are usually not covered.
• Issues covered by car insurance: warranties typically only cover mechanical or electrical failures not caused by accidents or external damage.
• Approved repairers: repairs often need to be carried out at approved garages. Some policies allow non-approved garages, so check your policy carefully.

If it’s a used car warranty, also check:

• Pre-existing faults: problems that existed before you bought the car won’t be covered, so inspect the vehicle carefully.
• Age limits: many policies won’t cover cars over a certain age, often around 10 years, so always check the maximum age allowed.

Is a car warranty worth buying for a used car?

It depends. You should weigh the cost of unexpected repair bills against the price of the warranty. Consider factors such as:

• Any limits on the amount you can claim
• Early claims clauses that may restrict coverage at the start of the policy
• Whether repairs must be carried out by specific garages
• Your liability if repairs increase the car’s value - known as betterment
• What happens if an uncovered part fails and causes further damage
• Whether you need additional coverage for long-term structural corrosion or paintwork, especially for classic cars

Depending on your circumstances, a used car warranty can be worthwhile - particularly for older or vintage vehicles that you want to protect.

How can I keep my car warranty valid?

To keep your warranty valid:

• Stop using your car as soon as any problems appear, such as warning lights on the dashboard.
• Service your vehicle at the intervals recommended by the manufacturer, using a VAT-registered garage.
• Maintain a valid MOT if your car is over three years old.
• Avoid car modifications or fitting non-standard or non-manufacturer-approved parts.
• Use the correct fuel and fluids for your vehicle.
• Check if your warranty requires repairs at the insurer’s approved garages. Using other garages when not allowed may void your cover.

What is the claims process for a car warranty?

If a fault develops, it’s important to follow the warranty provider’s claims process carefully to avoid having a claim rejected.

In most cases, you should contact the warranty provider as soon as the issue is identified, and before any repair work is approved or started by a garage.

The provider will usually assess the fault, confirm whether it’s covered under your policy, then authorise the repair and labour costs. Only once they’ve given their approval should the garage go ahead with the work. It’s important that you do this, as unauthorised repairs are unlikely to be reimbursed.

Check out our car insurance guides for more useful pointers and advice.