What to Check Before You Buy a Car Warranty
Buying a used car warranty? Find out what's usually covered, common exclusions, claim limits and costs, plus the rights you already have when you buy.
Thinking about a warranty for your used car? We explain what's usually covered, what isn't, how claims work and what to check before you sign up.
A surprise repair bill is the last thing anyone wants after buying a car.
That's exactly what a warranty is there to help with. If a covered part fails, the warranty pays towards fixing it, so you're not left footing the whole bill yourself.
But not all warranties are equal. Two policies can look almost identical on the surface and still pay out very differently when something goes wrong. The detail is where it counts.
Here's what to look for, so you can decide whether a warranty is right for you, and pick one that actually does the job.
In this guide
- What is a car warranty?
- The rights you already have
- What a car warranty usually covers
- What a car warranty usually doesn't cover
- How making a claim works
- How long a warranty lasts
- How much a car warranty costs
- What to check before you sign up
- Warranties and car finance
Quick answer
- A car warranty helps cover the cost of repairing specific parts if they fail, usually the engine, gearbox, electrics and other major components.
- Most won't cover wear-and-tear items like tyres, brake pads and clutches. Before you buy one, check exactly which parts are included, the claim limit, the excess, and whether you need to keep up servicing to stay covered.
What is a car warranty?
A car warranty is an agreement to pay for repairs to certain parts of your car if they break down during a set period. It usually covers the parts and the labour needed to fix them, up to a limit.
There are three main types you'll come across.
Manufacturer warranty. Comes with the car when it's new, often for around three years, although some brands offer longer. If you're buying a younger used car, there may still be some of this cover left, and it usually transfers to you.
Dealer warranty. Many dealers include a short warranty with a used car, often three to twelve months. It's worth asking exactly what it covers, as some are fairly basic.
Extended or aftermarket warranty. Bought separately, either from the dealer or a specialist provider, to cover you once any other warranty runs out. These vary the most, so they're where the checks in this guide matter most.
The rights you already have
Before you pay for any warranty, it helps to know what you're entitled to anyway.
If you buy a car from a dealer, the Consumer Rights Act 2015 says it must be of satisfactory quality, fit for purpose and as described. Satisfactory takes the car's age and mileage into account, so an older car won't be held to the same standard as a new one.
If a fault shows up within the first 30 days, you can usually reject the car for a refund. Within six months, the fault is generally assumed to have been there when you bought it, unless the dealer can show otherwise.
A warranty sits on top of those rights. It doesn't replace them, and a dealer can't use it to take them away.
Buying privately? Your protection is much more limited. The car must be as described, but that's about it, which is one reason people buying privately often look at a warranty.
What a car warranty usually covers
Every policy is different, so always read the terms. But most warranties cover some or all of these:
- Engine
- Gearbox and transmission
- Clutch hydraulics (not the clutch plate itself)
- Fuel and ignition systems
- Cooling system
- Electrics and electronics
- Steering
- Suspension
- Braking system parts, such as the master cylinder
Higher levels of cover can add extras like air conditioning, airbags, sat nav, turbochargers or hybrid and EV components. If you're buying a hybrid or electric car, check whether the battery and motor are included, as they're often treated separately.
What a car warranty usually doesn't cover
Parts that wear out through normal use are almost always excluded. That typically includes:
- Tyres
- Brake pads and discs
- Clutch plates
- Exhausts
- Wiper blades
- Bulbs
- Bodywork and paintwork
- Glass
Most policies also won't pay for faults that were there before the cover started, damage from an accident, or problems caused by missed servicing.
Watch out for consequential damage. This is when one part fails and damages another. A snapped cambelt, for example, can wreck an engine. Some policies cover the knock-on damage, others only pay for the part that failed first. It's a big difference, so it's worth checking.
How making a claim works
The process is usually fairly simple, as long as you do things in the right order.
- Contact your warranty provider first. Before any repair work starts, call them and explain the fault. Most policies won't pay for work that wasn't authorised in advance.
- Take the car to an approved garage. Some providers let you use any VAT-registered garage, while others have their own network.
- The garage diagnoses the fault. The provider then confirms whether it's covered and how much they'll pay.
- The repair is paid for. Usually the provider pays the garage directly. Sometimes you pay and claim it back.
Bear in mind a warranty might not cover the whole bill. Most policies have a claim limit, either per claim or across the life of the policy, and some cap the hourly labour rate they'll pay. Anything over those limits is down to you.
How long a warranty lasts
Manufacturer warranties on new cars often run for around three years, and some brands offer longer, depending on mileage and servicing.
Extended and aftermarket warranties are usually sold in 12-month blocks, with longer terms available from many providers. Some let you renew each year, as long as the car stays within their age and mileage limits.
How much a car warranty costs
There's no set price. It depends on:
- Your car's age. Older cars usually cost more to cover
- Mileage. Higher mileage means a higher risk of something going wrong
- Make and model. Parts and labour cost more on some cars than others
- Service history. A full history can bring the price down, or be required to get cover at all
- Level of cover. More parts, higher claim limits and extras all add to the cost
- Excess. Choosing a higher excess can lower the price, but means paying more when you claim
You can usually pay upfront or in monthly instalments. Always compare the total cost of the policy with what it would actually pay out, and check whether you already have cover left from the manufacturer or dealer.
What to check before you sign up
A warranty is only as good as its small print. Before you commit:
- The parts list. Check the parts you're most worried about are actually named
- Claim limit. Is it per claim or in total, and is it enough to cover a major repair on your car?
- Excess. How much you'll pay towards each claim
- Labour rate cap. Some policies pay less per hour than many garages charge
- Consequential damage. Whether knock-on damage is included
- Servicing rules. Most need the car serviced on time, sometimes at a specific type of garage
- Waiting period. Some policies won't pay out for the first few weeks
- Existing cover. Any manufacturer or dealer warranty you already have
- Cancellation terms. Whether you can cancel and get money back if you change your mind
- Who's behind it. Check reviews and how easy the provider makes it to claim
Warranties and car finance
If you're buying a used car on finance, a warranty can make sense. You'll already have a fixed monthly payment for the car, and a warranty can help stop an unexpected repair bill from knocking your budget off course.
That said, it's not a must. Weigh up the cost of the policy against how old the car is, how reliable the model tends to be, and whether any existing cover is still in place.
If you do add a warranty to your monthly costs, include it when working out what you can afford, alongside your finance payment, insurance, fuel, servicing and MOT.
carloans 365 works with a panel of lenders to help find a car finance option that suits your circumstances, including applicants with a less than perfect credit history. Our eligibility check is a soft search, takes about 60 seconds and has no impact on your credit score.
If you're searching for a used car warranty, what a car warranty covers, whether an extended warranty is worth it or how much car warranty costs in the UK, this guide should help you make the right call.
