Car warranty insurance is a type of cover that helps protect you against the cost of repairing or replacing certain parts of your car if they fail due to mechanical or electrical issues. It’s different from regular car insurance, which covers damage caused by accidents, theft, or third-party claims. Warranty insurance focuses on faults that arise through normal use, not through collisions or external events.
Types of Car Warranty
There are a few main types of car warranty including:
- Manufacturer Warranty: Comes with most new cars and typically lasts between 3 to 7 years (or up to a set mileage limit, like 60,000 or 100,000 miles).
- Extended Warranty: Bought from a dealership or third-party provider to cover your car after the manufacturer warranty ends.
- Used Car Warranty: Often offered by dealerships for second-hand vehicles. The cover tends to be shorter (e.g. 3 to 12 months) and may be limited in what it includes.
What Does It Cover?
Warranty policies usually cover the cost of repairing or replacing major mechanical and electrical components, such as:
- Engine
- Gearbox and transmission
- Fuel and ignition systems
- Cooling systems
- Electrical components
- Steering and suspension
Some premium policies may also include cover for air conditioning, onboard computers, and more. But it varies by provider, so check the details carefully.
What’s Not Covered?
Common exclusions include:
- Tyres and wheels
- Brake pads and discs
- Exhaust systems
- Clutch (in some cases)
- Paintwork and body panels
- General wear and tear
- Damage due to neglect or misuse
Routine maintenance items like oil, filters, bulbs, and wiper blades are also not covered.
Conditions You Need to Meet
To stay covered, you’ll usually need to:
- Keep up with regular servicing at the correct intervals
- Use approved or VAT-registered garages
- Avoid unauthorised modifications
- Use the correct fuel and fluids
Failure to follow these terms could invalidate your warranty. Always read the policy documents carefully.
Electric Vehicle (EV) Warranties
Many EVs come with separate battery warranties that can extend beyond the main warranty — often 8 years or more. Battery cover may include protection against capacity degradation below a certain percentage. If you own or are buying an electric car, check how the warranty handles both the vehicle and its battery.
Is It Worth It?
That depends on your car’s age, mileage, and reliability. If your vehicle is out of warranty and you want peace of mind, it could save you from a big repair bill. But read the small print — some warranties offer very limited cover or require high excesses.
If you’re buying a used car, a short dealer warranty is a nice extra, but don’t assume it covers everything. You may still need to pay for diagnostics, minor faults, or wear-and-tear parts.
The Bottom Line
Car warranty insurance won’t stop your car from going wrong, but it can reduce the financial stress when something does. As with any policy, shop around, compare what’s covered, and make sure the terms suit how you use your vehicle.
If you rely on your car every day and want predictable costs, it might just be worth it.