How does a car warranty work?

Whether you buy a new or used car, a car warranty can cover the cost of repairs if your vehicle develops mechanical or electrical faults. Find out more with our guide to car warranty cover.

Written by

Julie Daniels

Motor insurance expert

Last Updated

31 MAY 2024

8 min read

What is a car warranty?

A car warranty is a type of insurance that can cover the cost of parts and labour – during an agreed timeframe – if your car develops a mechanical or electrical fault.

Most new car warranties last three to seven years. But this could be longer or shorter depending on your car’s manufacturer or dealer.

All car warranties are subject to you maintaining your car in line with set terms and conditions. So if your car hasn’t been looked after according to the T&Cs of your car warranty, your claim might be rejected.

You can get a warranty from your car’s manufacturer, the car dealership or a third party.

Unlike car insurance, a car warranty isn’t a legal requirement. Whether you choose to buy one or not is up to you.

What does car warranty cover?

Car warranty coverage will vary depending on your car’s manufacturer. You’ll need to read the warranty document to see what repairs are covered.

Most car warranties cover the cost of repairing mechanical or electrical faults with the:

Engine
Fuel pump
Radiator
Transmission system
Gearbox
Electrics
Air-conditioning system.

But do check the small print. Not all parts are covered for the same length of time. For example, Kia has a seven-year warranty, but the battery and air conditioning refrigerant charge are covered for only two.

What doesn’t a car warranty cover?

Typically, a car warranty won’t cover wear and tear on parts such as tyres, brakes, the clutch and windscreen wipers. Exclusions will vary, though. Check with your warranty provider to see which components aren’t covered.  

You may also find that your car warranty doesn’t cover accidental damage or vandalism. Your car insurance, on the other hand, may cover these things.

It’s worth noting that if you need to make a claim on your car warranty, most will require you to have taken ‘reasonable care’ of your vehicle. What that means will vary among warranty providers, but you can expect it to include:

Having your car regularly serviced
Fitting only genuine manufacturer-approved parts
Taking prompt action to address warning lights or faults
Not modifying your car outside of its standard specification
Using the right fuel, brake fluid and coolant
Following your car warranty’s claims procedure.

If in doubt as to what you are and aren’t covered for, check the specifics of your car warranty.

What are the main types of car warranty?

The three main types of car warranty are:

New warranty - all new cars have a manufacturer’s warranty that’s valid for three to seven years.
Used car warranty - some used cars will still be in warranty. But even if they’re not, the dealer may offer a car warranty to boost your buying confidence. You also have the option to buy a used car warranty independently.
Extended warranty - if you’d like longer cover, you can sometimes buy an extended warranty when yours is due to expire.

Where can I buy a car warranty?

A new car will come with a manufacturer’s warranty as standard.

If you’re buying a used car from an independent dealer or garage, you can buy a warranty either from the dealer or from a third-party provider.

These used car warranties are also known as ‘aftermarket’ or ‘extended’ warranties. They’re not a legal obligation, so it’s completely up to you whether you buy one. If you do, always check the extended warranty’s terms and conditions to be sure you’ve got the cover you want.

How much does car warranty cost in the UK?

The cost of your car warranty will depend on a few factors, including:

Your annual mileage – the higher your miles, the more expensive your warranty will typically cost.
The make and model of your car – more high-tech models are more expensive to repair and typically carry a higher warranty cost.
Your car’s age – older cars are more of a fault risk, so tend to have more expensive warranties.
The excess you set – sometimes a higher excess can reduce your premiums.
The level of cover you want – the more comprehensive car warranties are often the most expensive.

It’s always worth shopping around to find the best deal on your car warranty.

Can you get used car warranty?

Yes, you can. There are four types of used car warranty:

Dealer warranty – if you bought your used car from a dealership. The cost, cover and duration of this will vary depending on the dealer and any third-party agreements it has in place.
Approved-used warranty – provided by the car manufacturer under its used car sales scheme for up to two years after you buy the car. This typically covers you for 12-24 months and tends to be fairly comprehensive.
Manufacturer warranty – also known as ‘remainder of manufacturer warranty’, this covers you for however long is left to run on the car’s original warranty (as long as you’ve complied with the warranty T&Cs).
Third-party warranty – you can buy this type of warranty from an independent car warranty provider and choose the level of cover you want.

Used car warranty could last anything from a few months up to several years. So be sure to check the terms fully before you commit.

It’s also worth noting that used car warranties tend to have car age and mileage limits – typically 10 years or 100,000 miles. If your warranty provider has set this limit, you won’t be covered once you exceed it.

Will I have a car warranty if I buy from a private seller?

Not necessarily. You’ll need to check with the seller to find out whether the car you’re buying is still covered under the manufacturer’s warranty. If not, it’s possible to buy a third-party used car warranty.

But remember, with an older car you’ll typically face higher warranty premiums and more cover exclusions.

Read our advice on buying a used car.

What else should I look for when buying a car warranty?

As with any financial agreement, it’s worth checking the small print before you commit to a car warranty. Here are some of the key terms to look out for:

Betterment
If your car’s repaired with a higher quality part than the one it’s replacing, you may be expected to pay for it or contribute to the cost.

Consequential loss
If a part that’s insured fails because of the failure of another (uninsured) part, you might be expected to pay for at least some of the cost of repair. So, ideally, you want to be covered for consequential damage.
Garage
It may be that your car warranty specifies a list of ‘approved garages’ you need to use. If you go with another garage, you might have to pay towards labour costs.
Labour rate
This is the garage’s hourly rate and your warranty will state how much the provider will pay. Be aware that if the labour costs go above what your car warranty covers, you’ll have to pay the extra.
Excess
Just like car insurance, an excess is the amount you’ll need to pay towards repairs when you claim. It’s worth checking to see whether your car warranty provider increases your excess as your mileage goes up – some do.
Insured vs uninsured warranties
Insured car warranties are regulated by the Financial Conduct Authority (FCA). This means that your warranty provider must abide by FCA standards and regulations, unlike uninsured warranties.

Can my car warranty claim be rejected?

Yes. There are a few reasons your car warranty claim could be rejected, including:

You’ve neglected the car – if the car isn’t properly maintained, isn’t serviced at the manufacturer’s recommended frequency or hasn’t had its MOT, this will likely break the terms of your warranty and you won’t be covered. You may also be penalised for using the wrong fuel, or continuing to drive with a warning light or known fault.
You’ve misused your car – if there’s evidence that you’ve been using the car inappropriately (for example, taking it off-road when it’s not designed for this), you might find you’re not covered.
The parts aren’t covered – depending on your warranty, certain parts might not be covered. Manufacturer’s warranties tend to offer the best coverage.
You’ve modified the car – if you’ve made modifications to the car after taking out the warranty, you might have an issue when you come to claim. And if the modifications led to the issue you’re claiming for, your claim will most likely be rejected.
Natural disasters – damages relating to flooding or other natural disasters often aren’t covered. Check your policy’s small print or ask your warranty provider to clarify this.

Is it worth having a car warranty?

This really depends on how expensive the car warranty is and what cover it offers. Cheaper warranties may have a lot of exclusions, but a comprehensive car warranty could be more expensive.

It’s also worth weighing up the price of the warranty versus the cost of repairs. If your car’s cheap to fix, you might want to just pay for the repairs yourself.

On the other hand, some car warranties include breakdown cover, which could potentially make you a saving.

What other protection do I have if my car is faulty?

If you buy a car – new or used – from a recognised dealer, you’re protected under the UK Consumer Rights Act 2015.

This states that the car must be of satisfactory quality, fit for purpose and as described. And you’re protected under the following terms, regardless of the warranty:

You have 30 days to claim a full refund, repair or replacement
If a fault emerges between 30 days and six months, you can get a partial refund, repair or replacement
After six months, it’s up to you to prove the car was faulty when you bought it.

You can also take legal action for breaches of the Consumer Rights Act for up to six years after purchase (five in Scotland), if you feel it’s worth pursuing.

How can I find the best car warranty?

The best car warranty for you will depend on your circumstances, so it’s worth doing your research and shopping around.

Decide whether you want to prioritise price, cover level or warranty length, then compare quotes.

Do I need car insurance if I have a warranty?

Yes, if you’re driving on UK public roads, you’re legally required to have car insurance, no matter how good your warranty is. Plus, a warranty only protects you if the car develops a mechanical fault.

Car insurance can cover you for theft, accidental damage and more depending on the policy you choose.

Get a quote

Frequently asked questions

How long is a car warranty?

Car warranties vary in length. If you buy a brand-new car, you’ll be covered under the manufacturer’s warranty, which typically lasts between three and seven years. If you buy an approved-used warranty from your dealership, it will probably last between 12 and 24 months.

For independent car warranties bought through a dealership or third party, the term length will vary.

How to check if a car is still under warranty

If you bought a used car and don’t have all the paperwork, you can check whether it’s still under warranty with the local dealership. But there’s a couple of things you need to do first.

Look up the VIN. A VIN is a 17-character ID code for your vehicle. Every car has one, located in the following places:

On a metal plate between the back of the steering wheel and windscreen
The driver’s-side door jamb or doorpost
Inside your rear wheel well
Under your spare wheel.

Write down or take a picture of your VIN, then do the same with the mileage reading on your odometer. You need both to check your car’s warranty.

Next, look up your car model’s nearest dealership, give them a call and pass the above information to them so they can perform a VIN check using their system.

Even if the car is still within the warranty period, it doesn’t mean that the warranty is still valid. Warranties come with terms and conditions, and if these haven’t been met your warranty may have lapsed.