Last updated: 13 August, 2020
An extended car warranty is an insurance policy that covers the cost of your car’s wear and tear for a set period of time.
It’s a guarantee that the car has been sold to you in good condition. But, if it hasn’t, you’ll have peace of mind that the extended warranty provider will pay out to cover the repair costs. With the best car warranty, UK car insurance providers cover you for parts and labour costs linked to the general mechanics of your car. Even if you have breakdown cover or are signed up to the AA, car warranty insurance could be an important policy for you.
When you buy a new car, it comes with a warranty for a set period of time. This standard warranty tends to last between three and seven years. Once the standard warranty comes to an end, you can get an aftermarket warranty. This is also known as an extended warranty and it’s for after your manufacturer’s warranty finishes.
You can get an extended car warranty from the car manufacturer if you’re buying a new car. If you’re buying a used car, you can get a used car warranty from another provider.
To find the best car warranty, UK wide, it’s a good idea to shop around and find a policy that meets your needs.
It’s important to check the labour rate. That’s the maximum amount the extended warranty provider will pay towards labour costs if your car ends up in a garage. It’s also helpful to see what the age and mileage limits are on the extended car warranty insurance you’re considering. If there are limits, even if you've bought the best car warranty, UK providers won’t pay out for repairs if your car is over those limits.
If you’re taking out extended car warranty cover, think carefully about your car. What type of car is it? What kind of maintenance does it need? How often do you use it? If you’ve got a used car, extended warranty insurance with wear and tear cover might be helpful. Not all warranty providers offer this.
Of course, you’ll want to find the cheapest extended car warranty policies out there. But remember that it’s important to find the best car warranty, UK wide, for your needs. Read the providers’ policies carefully to make sure they cover what you’re after.
Depending on the level of cover you have, extended warranty car insurance usually includes repairs to your:
Engine and suspension
Clutch and brakes
Fuel and ignition system
It’s important to check the claims limit when you’re looking to buy an extended warranty for cars. The claim limit is the most an insurer will pay if you make a claim. You can check exactly what’s covered here.
The best car warranty policies include extra features. This could be hire car cover while your car is being repaired or breakdown recovery, for example with the AA. Car warranty extras can push up the cost of your premiums, though.
Here’s some more information about what an extended car warranty covers.
Your extended warranty policy will list which parts are covered. Every extended car warranty is different. But most car warranty insurance policies will not cover:
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
Damage caused by frost, blockages, contamination or sludge
Poor workmanship or faulty components.
All extended car warranty policies will include an Insurance Product Information Document (IPID). It’s a simple, two-page document that gives clear information about all levels of cover, restrictions and exclusions. Check your extended warranty car insurance policy terms to get full details on all your policy benefits and limitations.
There are many different types of extended car warranty cover available. It’s important to find a policy that fulfils your particular needs.
You could look at:
Perhaps your new car warranty is coming to an end, or you might be thinking about taking out a used car warranty. Either way, you can save money and reduce worry with extended car warranty insurance.
But it’s important to check exactly what’s covered by extended warranty car insurance policy. You might think it’s not worth it if certain things aren’t covered. Here’s more advice on car warranty insurance.
In most cases but not all insurers require this so check. You may also need to provide proof of MOT if you claim.
Most warranty insurers do not cover cars with modifications. Check your policy documents for full details of what can be covered.
Not always, some warranties only cover repairs at authorised garages. Here is more information about what to do if you need to claim.
Yes, most warranties have an excess of around £50. You may need to pay your excess to your garage, if your insurer pays your claim straight to them.
Some policies include wear and tear, but this may not cover things like wheels or brakes. Check the cover options in the policy documents for details.
Yes, if breakdown recovery is included in your warranty cover.
No, your warranty will only cover parts that break down. If you have a car accident, you will need to report this to your car insurance company.