Compare New and Used Car Warranties | GoCompare
Skip to Content

Car Warranty

Get covered for unexpected car repairs with Loyalty Cover[1]

Get quotes
Family car trip

What is a car warranty?

A warranty can cover the cost of parts and labour for your car after a mechanical or electrical failure.

New cars usually come with a warranty that lasts several years. This means that while the car is covered by this, the manufacturer will make repairs free of charge.

Used cars bought from second-hand car dealers are sometimes sold with a warranty. But this cover will probably be shorter and more limited than a manufacturer’s warranty.

When that manufacturer or dealer warranty runs out, you can buy an extended warranty from a car warranty provider to continue your protection.

However, not all extended warranties are the same. So shop around to make sure you get the right cover to keep your car on the road.

Pregnant and senior woman driving a car

Do I need a car warranty?

A car warranty can give you peace of mind that costly and unexpected repair bills for your car will be covered. Whether you need one largely depends on your situation and preference.

This type of protection will cover the cost of labour and replacing certain parts of your car to fix mechanical and electrical failures.

Without this financial safety net, the amount you’d need to pay could be very expensive.

And these types of issues will not be covered by your car insurance unless they’re the result of something like an attempted theft or an accident that you’ve made a claim for.

But it’s worth noting that a car warranty will usually only cover your car up until it reaches a certain age or a maximum mileage - so it will not be suitable for all cars.

MAIN TYPES OF CAR WARRANTY

There are a few main types of car warranty available, including:

New car warranties

These typically last for at least three years or until the car reaches 60,000 miles, whichever comes first.

Used car warranties

If the car’s original warranty has expired and you’re buying the car from a dealer, you might be offered the option of a used car warranty. This cover could come as part of the deal and usually lasts for three months.

Third party warranties

If you buy a car privately, instead of from a manufacturer or dealership, you can use an independent warranty provider to cover your car.

Extended warranties

You can pay to extend your cover for a year or more and either buy this from the manufacturer, dealer or an independent warranty provider.

Understanding your car warranty

A car warranty will provide you with cover that typically comes as either:

Mechanical and breakdown insurance (MBI)

MBI providers are regulated by the Financial Conduct Authority (FCA). This means that you can ask the Financial Ombudsman for help if you have a complaint about the provider.

You'll also benefit from Financial Services Compensation Scheme (FSCS) protection if your insurer goes bust. So you’ll not have to pay any extra cost if you're moved to a new policy with a different insurer. Or you'll get a refund if your policy isn't replaced.

Service and repair plans

Service and repair plans are not regulated. So you will not benefit from FSCS protection and you cannot go to the Financial Ombudsman with a complaint about your provider. But you might have some recourse with the Motor Ombudsman.

Before committing to a policy, it's important to shop around, check the terms and know exactly what type of warranty you're buying.

Two women driving their car and listening to music

What does a used car warranty cover?

This will vary depending on the provider and factors like the age and condition of the car, but typically a used car warranty will cover:

What's usually covered?

  • Mechanical and electrical breakdown - Once the manufacturer’s warranty expires, you’ll be covered if your car has an unexpected electrical or part failure.
  • Labour - The cost of labour and repairs to fix covered issues and parts, up to the claim limit stated in the policy wording.
  • Parts - The policy will list the parts that are included for repair and replacement, but typically you can expect the following to be covered - engine and transmission, fuel system, air conditioning and cooling systems, gearbox, steering, suspension, clutch and brake parts, electrics and diagnostics, multimedia.
  • Replacement hire car - Some used car warranty providers include cover for providing you with a replacement car while yours is being repaired.

What isn't usually covered?

A used car warranty will have limitations and you’ll need to watch out for terms and conditions around:

  • Pre-existing faults - Any faults that were present when you bought the car will not be covered, so make sure you check the car thoroughly when you buy it.
  • Wear and tear - You’re not covered for problems that are caused by general wear and tear of the car. It’s your job to make sure it’s well-maintained.
  • Age limits - The cover does not usually apply to cars that are more than ten years old, so check the age limit on the policy.
  • Mileage limits - Used car warranties are not usually eligible once a car reaches 100,000 miles or the mileage limit stated in the policy wording.
  • Items covered by car insurance - If the problem is covered by car insurance, you will not be able to claim on the car’s warranty.
  • Non-approved garages - It’s usually a condition of the cover that any work the car needs is done in a provider-approved garage.

What does an extended car warranty cover?

Depending on the provider and level of cover you choose, an extended warranty can cover your car for:

What's usually covered?

  • An increased length of time - It can extend the amount of time that your car is covered for.
  • An extended mileage - It could extend the number of miles your car can cover and still be protected by the warranty.
  • Electrical and mechanical failure - An extended warranty can cover the main components of your car for repair or replacement if they’re suddenly affected by an electrical or mechanical problem.
  • Diagnostics - Many extended warranties will cover the cost of diagnostic tests if they’re needed to identify or confirm the problem.

What's usually covered?

  • Normal wear and tear - You’ll usually be expected to take care of these issues yourself.
  • Exceeding the car’s age or mileage limit - Check your policy wording to find out what limits there are around these - once you go over them, your cover will no longer be valid.
  • Items covered by car insurance - Your warranty will not cover issues caused by events that motor insurance covers, like theft, accidents, flooding and fire damage.
  • Routine services - You will not be able to claim for the cost

Compare car warranty deals and safeguard your vehicle against unexpected repairs.

Compare now

What to look for when choosing a car warranty

Details can vary between car warranties, so you need to check the terms and conditions of the cover carefully as well as looking at price.

Find out whether there are any restrictions, such as limits for the car’s age or mileage. If your car’s close to reaching any of these, buying a warranty is unlikely to be good value for money.

There are often maximum claim limits for different elements of the warranty. This could mean that you might still face some costs if you made a claim. And the warranty might not cover any consequential damage (when the failure of a covered part directly causes another type of failure).

The warranty might also come with conditions, like requiring the car to be serviced regularly. Being aware of these from the outset can help you to avoid invalidating your cover.

Make sure you’re happy with the maximum number of claims you can make per year.

Finally, check whether the warranty specifies approved garages for repairs. If there aren’t any close by, you might want to consider an alternative warranty provider that offers more convenient repair locations.

How can I find the right car warranty?

There are a few simple steps you can take to help you find the right cover:

  1. Choose the right level of cover

    There are different types, lengths and levels of cover available, so take time to choose the right fit for your needs.

  2. Look for added value

    For a similar price, some warranties might also include cover for in-car entertainment systems, key remotes and roadside breakdown assistance.

  3. Find a reputable warranty provider

    Read online reviews and for extra protection, check the warranty provider is registered with the Association of British Insurers (ABI) and is regulated by the FCA.

  4. Read the small print

    Check what the cover includes, what restrictions there are and whether there are any conditions you’ll need to adhere to.

  5. Shop around

    Compare like-for-like warranties to find the right level of cover for your car at the lowest price.

How much does a used or extended car warranty cost?

The price will depend on a number of factors, including:

  • The car’s mileage - Cars with higher mileage are more likely to need repairs, so this is factored into the price.
  • The make and model - Typically, the more expensive the car, the higher the cost of the warranty.
  • The age of the car - Because older cars tend to experience more problems, their warranties usually cost more (but a maximum age limit will apply).
  • The level of cover - Warranties that provide comprehensive cover will be pricier.
  • The length of the cover - The longer the warranty, the more it will cost.
  • The excess - Agreeing to pay a higher excess towards a claim can reduce the cost of the warranty premium.
Senior couple watching the sunset from their car

Frequently asked questions

Although a warranty can help pay for the cost of expensive repairs, it will not cover every situation. Common reasons a claim could be rejected include:

  • It’s consequential damage - If something breaks and causes damage to another car part, the secondary damage might not be covered.
  • It’s a pre-existing fault - If the car already had this fault when you took out the warranty, your claim is likely to be rejected.
  • Your car wasn’t serviced - It’s a condition of most warranties that the car is properly maintained and serviced at regular intervals or according to the manufacturer's advice.
  • You ignored warning lights - You will not be covered for a fault if you ignored warning lights and continued to use the car.
  • It’s a part that isn’t covered - Your warranty will not cover every part or failure in your car, so you’ll need to check the small print.
  • It’s covered by car insurance - Car warranties will not pay out for damage that you can claim for on your car insurance.
  • Modifying your car - If you make changes to your car after taking out the warranty, any failure that relates to this is unlikely to be covered.

While car insurance is a legal requirement in the UK, taking out a warranty is not compulsory.

However, car insurance will only cover damage caused by situations like accidents, theft, fire and floods.

You cannot claim for problems that are down to a mechanical or electrical fault - this is where a warranty steps in.

New cars are provided with a warranty for a set period, but once this expires you’ll need to decide whether to pay to get continued financial protection.

Taking out a used car or extended warranty might be a good idea if you want extra peace of mind. However, it’s important to choose the right one.

Some only cover a limited range of parts whereas others could work out more expensive than the cost of future repairs.

But having a warranty could save you thousands of pounds if your car develops a major fault or multiple issues. So it’s worth considering if you’d like a financial safety net for unexpected costs like these.

Situations that can void your cover and result in a rejected claim include:

  • Exceeding the mileage limit on the warranty
  • Issues caused by driver negligence and misuse of the car
  • Not servicing your car regularly and ignoring the manufacturer's recommended service schedule
  • Ignoring dashboard warning lights and continuing to drive the car
  • Using non-standard parts on your car
  • Making car modifications after the warranty is taken out
  • Claiming for a pre-existing fault
  • Using the wrong fuel or unapproved fluids in your car

You might also be interested in...

All car insurance guides

Page last reviewed: 01 February 2024

Page reviewed by Gavin Richards

[1]Go.Compare introduces you to Loyalty Cover Software Limited who are an Introducer Appointed Representative (IAR) of Rest Ashored Ltd who are authorised and Regulated by the Financial Conduct Authority. Go.Compare's relationship with Loyalty Cover is limited to that of a business partnership, no common ownership or control rights exist between us.

You can find out more about our partner relationships and our due diligence process by visiting the 'Affiliates' section of our About us page.