Pros and cons

Here are the main pros and cons of taking out car warranty insurance:

  • Peace of mind

  • Tailored cover

  • Breakdown recovery included

  • Discounts on MOT and servicing

  • Claim limits

  • High monthly cost

  • Conditions of cover

  • Often lots of exclusions

How much does it cost?

The price of your warranty depends on your insurer, so compare quotes to find the best deal.

Most insurers offer three levels of cover, with basic policies being cheaper and premium cover costing more. The cost of warranty insurance is also based on:

  • The age of the car

  • The make and model

  • The value of the car

  • Your annual mileage

  • How your car is used, e.g. social or business

Cheaper warranties usually provide less cover, so you may need to spend more to get the protection you want. But check that the cost of a warranty is not more expensive than paying the cost of repairs yourself.

What if your mileage is high?

You may struggle to find a warranty if you have a second hand car, or a classic car with high mileage.

What can it cover?

A vehicle warranty policy usually covers repairs to the:

  • Engine

  • Transmission system

  • Fuel and ignition system

  • Air conditioning or cooling system

  • Electrics

  • Gearbox

  • Steering

  • Suspension

  • Non-frictional clutch and brakes

It is important to check your documents because exclusions may restrict what you can claim for. For example, some insurers cover electrics but not in-car stereo systems.

As well as cover for repairs, it may also include:

  • Vehicle breakdown recovery

  • Car hire, while yours is being fixed

  • Hotel expenses, for overnight stays if an insured part breaks down

  • Emergency travel expenses, e.g. taxis, trains or buses

  • Driving your car abroad

Cover levels vary widely depending on the policy you choose, so check the insurer's summary of cover before you buy.

Beware of conditions

Warranties come with conditions that mean your cover is invalidated if they are not met, like:

  • Age limit: Cars older than 10 years are usually not covered

  • Mileage limit: For example, no more than 60,000 miles

  • Claim limit: This is the most your insurer will pay for repairs usually the value of the car

  • Pre-existing faults: Problems that were there before your policy started are not covered

  • Warning lights: You cannot claim if you have ignored warnings to a problem

  • Maximum hourly rate: This is the most your insurer will pay for labour costs

  • Regular servicing and MOT: This must be recorded by an approved garage

  • Insurer authorisation: Repairs must be approved before claims are paid

  • Authorised garages: All repairs must be carried out at a garage approved by your insurer

  • Car modifications: Any changes to the original vehicle may void your insurance

  • Maintenance: You must look after your car in line with the manufacturer's handbook

  • Time limit for claims: You must tell your insurer of any problems within 7 days

Read the insurer's policy documents for a full list of conditions before you pay for cover. If you fail to meet them, your insurer can refuse to pay any claims.

Here is more information about how to make a claim on your warranty insurance.

What is excluded?

It varies between insurers but some of the things normally excluded by a car warranty are:

  • General wear and tear (you may be able to include this for an added price)

  • Batteries, wheels, tyres, exhausts, catalytic converters, worn out clutches and brakes

  • Damage caused by oil leaks

  • Cars used for competitions, commercial deliveries or as taxis

  • Repairs to parts that are not broken, i.e. improvements

  • Damage caused by frost, worn friction materials, blockages, contamination or sludge

  • Poor workmanship or faulty components

Check policy documents when you compare warranty insurance, because the full list of exclusions will vary depending on the insurer.

Are you already covered?

You may not need separate cover if you already have a manufacturer's warranty in place:

  • New cars: All new cars come with a manufacturer's warranty, usually lasting between 3 and 7 years.

  • Used cars: If you buy your car from a second hand car dealership, it may come with a 12 month warranty. You could also look for a used car that is still within its manufacturer's warranty, which could last up to 7 years.

Check your purchase documents to see if your car is still under its manufacturer's warranty before you buy insurance.

Do you need a warranty?

This depends on whether you can afford the costs of repairing your car yourself.

You may find the price of a warranty is more than the cost of paying for repairs yourself, in which case you should avoid paying the unnecessary price of insurance.

However, warranty insurance could save you money if your car needs expensive repairs.

Where can you get cover?

You may be offered a warranty by the dealership where you buy your car, but this is usually the most expensive way to get cover.

Compare as many different quotes as possible and always read the small print in the policy documents. This will help you find the right cover for your car.