Car Warranties
Made Easy

A warranty is a guarantee that covers the cost of repairs on a specified product.

Car warranties are specifically designed to pay the parts and labour costs to repair sudden and unexpected faults to the vehicle they cover.

A car warranty won’t cover accidental damage or work required resulting from an accident - this will be covered by a car insurance policy.

Neither will it cover consumable, frictional or service parts such as brake pads, wiper blades, clutch plates and filters, unless they are found to be faulty from new.

In contrast, car insurance is a legal requirement if you intend to drive on the road. It provides financial protection in the event of an accident, fire or theft.

As well as covering the cost of vehicle damage or a write-off, car insurance covers costs resulting from injuries to vehicle passengers, other drivers, pedestrians and property.

There are two types of warranties available for new and used cars.

Warranties for new cars

New cars will come with a manufacturer's warranty, usually covering you for three years or up to 60,000 miles. When this is coming to an end, contact MotorEasy for an extended warranty.

Usually, the cover provided by the manufacturer will be sufficient so you shouldn’t need any additional policies until this has expired. Once expired, you may be able to extend the warranty through the manufacturer, however, they usually don’t provide the same levels of cover as that from MotorEasy, don’t cover wear and tear and will likely be more expensive.

Warranties for used cars

Dealers and retailers will usually provide a warranty on second-hand cars - usually for a maximum of a year but often only for three months. This cover isn’t always very comprehensive so it may be worthwhile topping up your warranty cover.

Check what is covered by the dealer/retailer, how long you’re covered and if additional charges are applied should you need to claim. Usually, it’ll be cheaper to buy an extended warranty from MotorEasy and you’ll likely receive much higher levels of cover - including wear and tear.

Some retailers and dealers also charge a hefty excess when it comes to warranty repairs so make sure you’re not caught out with additional charges.

The main attraction of a car warranty is that it protects you from unexpected and sometimes very expensive repair costs should something go wrong with your vehicle.

Most manufacturers now include new car warranties as standard with the sale of brand-new cars. However, if you own a car without a car warranty or are about to buy second-hand and you think you might struggle to cover the cost if something major goes wrong, then a car warranty is likely to be a good idea.

When looking around, be aware that cover and price will vary, so be careful about the company and cover you choose so as not to end up with a car warranty that doesn’t pay out when you need it. Simply choosing the cheapest policy or getting your car warranty from the garage you purchased your car from, without considering the alternatives, could see you losing out.

Here’s our list of things to check so that you’ll have the best combination of price and cover if the worst happens.

Service, frictional, disposable or consumable parts won’t be covered. These are generally: wheels, tyres, exhausts, batteries, wiper blades, clutch plates and parts routinely replaced at a service.

You may find that the parts covered, or the provider’s contribution towards the repair costs, reduces as the car ages or completes higher mileages.

Even if the car warranty covers all mechanical and electrical failures, there may still be claim limitations that will stop you from getting paid for the engine or gearbox. So, knowing exactly which parts of your vehicle are covered by a car warranty is vital.

Some car warranties allow you to pick and mix or add to the basic cover levels. A good car warranty provider should be offering appropriate cover for the age and mileage of your car while not leaving you to create your own list. But, if you decide to build your own, check out all the parts that can be protected and check that your selected car warranty policy meets your needs before you buy.

Many repairs cost more in labour than they do for parts. A car warranty will often restrict you to a maximum labour rate for any work, particularly if this includes VAT, so you may find yourself having to contribute a significant amount to get your car back on the road.

Many companies will cover labour costs but cap the amount they are willing to pay. This means you need to check the maximum hourly rate that the car warranty company will pay and whether a maximum claim limit applies - either on a single repair job or as an annual cap. You’ll also need to double-check that this limit is sufficient to cover repair work at your preferred garage, otherwise, you’ll need to make up the difference.

Finding out exactly what is wrong with a car can also take considerable time and many car warranty policies don’t extend their coverage to pay for the labour costs involved with diagnostic testing. As a result, you need to check that this would be covered by the garage completing the repair work, or make sure it is covered by your car warranty, or you could face having to pay for several hours of labour costs before the repair work even begins.

Some car warranty companies restrict where you can take your car for repair work. This is usually due to business agreements companies have with certain garage networks that mean they get discount repair rates. However, more importantly, it can restrict where you can take your car to get it fixed.

For this reason, you must check whether you get to choose which garage you take your car to, or whether you are only able to use a garage that forms part of the car warranty company’s restricted network of garages. If the latter applies, then you’ll need to check that there is an approved garage near you and that the cover for labour charges provided by the car warranty company you are looking at is sufficient.

If you are unhappy with the choice of garages available through a car warranty provider, consider looking elsewhere for flexible cover.

Car warranties often stipulate an excess that you will need to pay each time you claim. The amount you’ll need to cough up will vary significantly from provider to provider and will ultimately affect whether a policy is worth having.

For example, if you have to pay the first £250 of any claim, then you are unlikely to see any real financial benefit should something go wrong, even if it is a cheap policy in the first place.

Instead, you need to look for a policy that offers suitable cover at an affordable price with the lowest excess; £50 or less is commonplace to make the cost of making a claim worthwhile.

When you take out the cover you will be asked for your current mileage. If it’s over 100,000 miles then getting suitable cover may be more difficult, although cover is available up to around 150,000 miles.

Once accepted, the annual mileage allowed may vary but any restrictions are normally generous and plenty enough for the average motorist.

Some car warranty providers also offer tiered levels of cover where the number of benefits you receive or the amount you would have to contribute to repairs depends on the number of miles you drive.

Most car warranties will stipulate minimum care criteria for your vehicle. Any car warranty you take out will only be valid if you have an up-to-date MOT and have had a service in the last 12 months.

Some providers, usually franchised dealers, will require you to have your MOT and service completed at a listed garage, rather than your choice of independent garage, for the duration of the car warranty. This is often a good way for the provider to guarantee repeat business but can mean that you pay more for these services than you would ordinarily.

Check if this is the case and whether you’re happy with the servicing arrangements before you buy. Some providers may even help you by providing low-cost service and MOT arrangements.

Many car warranty documents include a clause in their terms and conditions which specifically exclude claims deemed to be caused by wear and tear. As this can be applied to such a wide range of problems, it can be used by car warranty providers to avoid paying for repairs - it is estimated that some 70% of claims can be attributed to wear and tear.

However, in response to complaints about rejected claims received in the past, several of the UK’s leading car warranty providers now incorporate car warranty parts protection for wear and tear-related damage.

That said, you still need to carefully check each car warranty policy for conditions relating to wear and tear before you buy. To confuse, there are different definitions of wear and tear: ‘premature’, ‘gradual’, ‘general’, ‘usual’ and ‘normal’ wear and tear. They are often phrased to avoid claims by seemingly bona fide car warranty companies.

Everything is bound to wear out eventually and the best car warranty providers understand this and accommodate this risk, relying on age and mileage cover restrictions to protect them from a certainty of claims. If you are unsure exactly what would be covered, contact the company directly to check so you know exactly where you stand before you make your choice.

Consequential damage occurs when a non-covered part fails, causing a covered part to fail. A failed alternator belt tangling with a cambelt could result in a blown engine and a big bill. The car warranty is unlikely to cover the alternator belt so if consequential damage isn’t covered the bill is likely to be yours!

Some car warranties don’t cover these - amazing, but true! This may be your only annual trip to the garage so if the faults found here aren’t covered, you might be in trouble.

Diagnosis often takes longer than the actual repair. A car warranty that doesn’t allow for a reasonable amount of diagnostic time might therefore leave you with a hefty bill.

A good car warranty will cover overheating which can often result in catastrophic failure. If the cambelt snaps the engine is likely to overheat and ultimately fail. As long as the cambelt has been changed when recommended by the manufacturer, a good car warranty should pay for repairs.

If you buy a car warranty with a £500 claim limit it will be cheap but won’t cover many repairs. You may also find that an annual limit is set or that only a certain number of claims are allowable in a given period. Ideally, the claim limit should be as high as the value of your car.

Aside from repairing faults and paying for work needed for your car, many car warranty policies now include several other benefits. While these added extras can be beneficial and often make your life that little bit easier, you should avoid picking a car warranty solely on the additional features it offers.

Instead, you need to focus on what the car warranty covers, its costs and any exclusions, only looking at the following additional benefits as the final piece of the puzzle.

Breakdown cover

Several independent car warranty companies include a breakdown service with their cover. This is designed to extend the cover offered by a car warranty from the garage forecourt to the roadside and covers the costs of transporting your car to a garage for repairs.

As with other features, however, you need to check exactly what’s included and whether it truly stacks up to dedicated breakdown cover offered by mainstream providers.

You also need to be happy that the extra you have to pay for the cover represents value for money or whether you would save money by getting the extra cover elsewhere.

Car hire

Car hire for when your car is off the road is available with some policies. While this may be a nice extra, ask yourself if it is a benefit you would realistically use and whether it’s worth any extra cost.

Overnight accommodation

Some providers have extended their cover to include accommodation costs should your vehicle fail and you have to check into a hotel as a result. As with other extras you need to ask whether you are ever likely to use this feature or whether you would simply prefer to pay for a hotel room if you ever need to.

Many car warranties, especially from franchised dealers, can be quite expensive and sometimes cost more than many standard repair jobs.

An extended car warranty will probably prove excellent value if your engine blows up but less so if you never claim on it. The peace of mind, though, can be a real plus, just knowing that you won’t suddenly have to pay a big bill.

Of course, you may end up paying upfront for repair work that your car never actually needs. It’s not dissimilar to contents insurance for your home or taking out cover for your boiler, but probably much better value.

Getting the best car warranty for your car isn’t simply a matter of choosing the cheapest car warranty or most comprehensive policy. Instead, you need to consider what you need from your car warranty and how long you need cover.

You shouldn’t just buy it from the garage that sells you the car, instead, you need to compare the car warranty they offer with those available from independent car warranty providers.

Although you hope that you won’t encounter any problems when you own or are about to purchase a car, it makes sense to do a bit of research on the model involved. This research can be particularly useful when you come to compare car warranties.

Try to find out what are the most common problems other car owners have encountered in the past and at roughly what mileage they start to occur. This way you can list the most common faults that your car is susceptible to and check that car warranty repairs would cover the costs should you encounter the same problems.

The key benefit of an extended car warranty is the peace of mind that you’re covered should anything go wrong with your vehicle and you won’t be liable for expensive diagnosis, parts and labour.

A typical car repair will usually cost you around £438 based on MotorEasy reliability index this will be covered by your extended warranty saving you a huge amount of money.