We reveal everything you need to know about new and used car warranty.

What is car warranty?

Visit Auto Trader’s Warranty Centre to get the best deals online for new and used vehicles

A car warranty is simply a form of insurance policy which covers the cost of replacement parts and labour.

The motorist will usually receive a three-year or 30,000-mile warranty from a manufacturer when they buy a new car. There’s also the option to buy used car warranty for a used car, payable monthly or annually.

Find out how to pass your MOT first time:

What does a warranty cover?

A good warranty will cover major mechanical components such as the:

• Engine
• Fuel and ignition systems
• Cooling system
• Electrical system
• Gearbox
• Clutch
• Transmission system
• Steering
• Suspension
• Brakes

Most warranties also include breakdown recovery if a covered part fails. Sometimes car hire, emergency travel and hotel accommodation may also be covered.

Most car warranties offer roadside assistance and recovery, accident recovery and vehicle collection. Double-check that these are included as part of the package or if they’re optional extras.

What types of warranty are there?

Manufacturer warranties

Most new cars will come with a manufacturer warranty scheme, which are usually the most comprehensive.

Three-year warranties are the standard, but look around first. There are some five-year warranties available with optional breakdown and accident cover, and other special deals to look out for.

The industry-best is the Kia C’eed, which comes with a seven-year warranty on the engine and gearbox, and five years, or 100,000 miles, for the rest of the car.

Personal warranties

Personal warranties can be bought to cover new and used cars. Make sure the warranty company covers your particular manufacturer’s model before buying.

Imports

European imports usually come with a one-year manufacturer warranty, but buyers can be extended with a personal warranty.
Visit Auto Trader’s Warranty Centre to get the best deals online for new and used vehicles

Visit Auto Trader’s Warranty Centre to get the best deals online for new and used vehicles

How can I keep my warranty valid?

Most new car warranties are only valid if an approved dealer has serviced the car to the manufacturer’s schedule – but they don’t have to be serviced by the manufacturer.

Servicing tolerances are often between 500 and 1,000 miles or 30 days over the scheduled mileage or dates. Service records are needed to maintain warranty terms and original paperwork will be required in the event of a claim.

Fitting non-standard parts could invalidate your cover, as could the amount of times your car breaks down. The total claim amount is usually limited to the value of the car or a specific limit for each car part.

Other exclusions include misuse, neglect, and faults subject to recall. Current mechanical or electrical faults are also excluded, so there’s no point signing up for a warranty if your car is already on the verge of a breakdown.

What should I look out for?

Any company can sell warranties, provided they’re approved and regulated by the Financial Services Authority (FSA). These can include:

• Private warranty companies
• Car dealers
• Garages and car repairers
• Insurers

1. The Association of British Insurers (ABI) has guidelines on how to sell warranties. Wherever you decide to buy your warranty from, make sure they abide to ABI code.

2. Ensure the company you buy warranty from is the same company you deal with when you have a claim, otherwise you may have no comeback with the people who sold you the cover.

3. Check the terms and conditions for transfer of the policy and any administration charges, which are usually between £25 and £50.

4. Find out if there is a ‘betterment’ clause. If a repair or replacement part improves the value of your car, you may have to contribute towards the cost.

5. Make sure you have the option to choose where your car can be serviced and repaired. New cars can be taken to a main dealer, or elsewhere, but older cars may be better off in an independent garage with lower hourly rates.

6. Always read the small print. Find out exactly what’s covered and excluded, and which circumstances could invalidate the policy.

7. All warranties are different, so take care to find a policy that works for you. Shop around and ask friends, family and colleagues for any recommendations.

8. Warranty companies will often have a single claims limit for older cars. New cars usually have a claims limit up to the car’s value. Check for limitations before taking out a policy.

9. Make sure there’s a cooling off period where you can decide if the warranty is right for you. If it’s not you can claim a refund. Usually you can’t make a claim within this period – if your car suffers a failure you may have to pay for it, or your warranty period could be shortened.

10. When changing keeper or selling, bear in mind not all car warranties are transferable – check first

Where can I get warranty from?

Visit Auto Trader’s Warranty Centre to get the best deals online for new and used vehicles