Car Warranty

Quite simply, think of it as being similar to a form of insurance, in relation to your car suffering mechanical or electrical breakdown. When new cars are sold, they usually come with a car warranty provided by the manufacturer, which often lasts for the first 3 years or 60,000 miles. Having a car warranty like this means that if your car breaks down, you can take it to the dealer for them to repair, usually without any cost to yourself.

This is a car warranty plan (often called a ‘policy’) provided by a third party i.e. not the original manufacturer of your car. Extended warranties are for cars whose original manufacturer warranties have expired and not been renewed. Most manufacturers are unable to provide further warranty cover if the original warranty lapsed. This is where extended warranties come in, especially in the case of second hand or ‘used’ cars. Extended car warranty policies typically cover your car against any mechanical or electrical part(s) suffering a breakdown. They do not cover things like tyres or brakes, as these are annually serviceable items.

Some people think it’s better to set aside a certain amount per month, putting the money in a separate bank account, so it’s there just in case something goes wrong with their car. Such peoples’ rationale is often that nothing will go wrong with their car, so they can spend the money saved on something else instead. But this can sometimes prove dangerous, especially with modern cars which have such a complex array of mechanical and electrical components. If you saved £100 a month, for example, and then your gearbox develops a serious fault, you could be left facing a repair bill of well in excess of £1,000, potentially leaving you out of pocket.

An extended car warranty would likely pay for the gearbox repair/replacement, so would have made much better financial sense in such a case. It’s a fact that once they reach 3 years old, cars do usually start going wrong, whether it be a niggly and relatively minor issue which gets worse and worse, or a major problem which rears its head at an unexpected time. And please don’t assume that because your car is a relatively cheap, common make and model, that it will be cheap to repair. Gearbox faults on Vauxhall, Skoda and Volkswagen cars, for example, can run into £thousands to repair, as can systems like the Carminat sat nav hardware used in Renault cars, or suspension on Citroen models.

Once you have settled on the right car warranty for you, the next step is to simply sign the documentation you are issued and pay for the policy, either in one go or in instalments depending on what options are available. Don't forget that many warranties have an excess automatically built in so make sure you know what this is before you sign up.

It’s understandable that you may think it’s a bit daunting picking a car warranty provider for the first time. After all, it’s involving your cherished pride and joy, and your hard-earned cash. Do you go with a car warranty specialist like Lancashire-based Warrantywise whose warranties were designed by Quentin Willson, or do you go for an established motoring organisation such as the RAC? To help you navigate safely through the car warranty minefield, we advise that you read the different providers’ information carefully to find out: