Vehicle Warranty FAQs: How Does a Car Warranty Work?

A vehicle warranty can help cover the cost of certain repairs if a mechanical or electrical component fails. The level of cover depends on the terms of the agreement, so it is important to understand how the warranty works, what is included, what may be excluded and what conditions could affect a claim.

These FAQs explain common points about vehicle manufacturer warranties, extended warranties, dealer warranties, EV warranties and battery warranty cover.

What is a vehicle warranty?

A vehicle warranty provides protection against having to pay for parts and labour following the mechanical or electrical failure of certain components, such as an engine, fuel pump or radiator. These can be expensive to repair or replace.

It is important to read the terms and conditions of the warranty carefully so that you are clear on what it does and does not cover, as not all components within a car are included.

How does a car warranty work?

A car warranty usually covers the repair or replacement of specified components if they fail during the agreed warranty period. Some warranties also include a mileage limit, with the cover ending when either the time period expires or the vehicle reaches the stated mileage, whichever comes first.

The agreement should explain what is covered, what is excluded, how to make a claim, whether repairs need to be authorised before work begins, and if the vehicle must be serviced in line with the manufacturer’s schedule.

What does a car warranty cover?

A car warranty may cover the cost of parts and labour if specified mechanical or electrical components fail. This can include the engine, fuel pump, radiator or other components listed in the policy.

The exact level of cover will depend on the warranty terms. Some policies encompass a wide range of components, while others are limited to named parts or certain types of failure.

What does a car warranty not cover?

Warranty policies often exclude consumable or wear and tear items, such as tyres, windscreen wipers, brakes and clutches. Standard 12V batteries may also be excluded under some vehicle warranties, although electric vehicle battery warranties are usually treated separately.

A warranty may also exclude damage caused by misuse, lack of servicing, non-approved modifications, incorrect fuel or fluids, or repairs carried out without prior authorisation from the warranty provider.

Do car dealers have to give a warranty?

Car dealers do not always have to provide a separate warranty when selling a used vehicle, unless one is included as part of the sale or advertised with the vehicle.

However, a warranty is separate from a consumer’s legal rights. When an individual buys a vehicle from a trader, it must meet the requirements set out under consumer law, including being of satisfactory quality, fit for purpose and as described. These rights may still apply even if the vehicle is sold without a separate warranty.

Vehicle manufacturer warranties

A vehicle manufacturer warranty is usually supplied with a new car. It is provided by the manufacturer and applies for a set period, mileage limit or both.

The warranty terms should explain which components are covered, how long the cover lasts, and what the owner must do to keep the warranty valid.

How long does a vehicle manufacturer’s warranty last?

Most new cars come with a three-year warranty, but some vehicle manufacturers offer longer terms, such as five or seven years. Some warranties also apply up to a certain mileage limit, such as 60,000 miles.

Most warranties will expire once either the time period or mileage limit has been reached, whichever comes first. For example, if a car has a three-year warranty with a 60,000-mile limit, and it reaches 60,000 miles after two years, the warranty may end at that point.

Cars that are still under the initial manufacturer’s warranty may be covered under The Motor Ombudsman’s New Car Code, depending on the nature of the complaint and whether the business is accredited to the relevant Code.

Is a manufacturer warranty still valid if the car is sold?

If you are buying a used car, and it is still within the mileage or time limit specified by the manufacturer, the warranty will usually continue to apply.

When purchasing a second-hand vehicle, it is worth checking the paperwork to see how long is left on any applicable warranties and whether any terms and conditions need to be met for the warranty to remain valid.

EV warranties and battery warranties

Electric vehicles (EVs) are usually covered by a manufacturer warranty in a similar way to petrol or diesel vehicles, but the battery and electric drivetrain may have separate warranty terms. This means the vehicle warranty, electric motor warranty and high-voltage battery warranty may not all last for the same period.

How do EV warranties work?

An EV warranty may cover mechanical and electrical components, including parts linked to the electric motor, charging system or other vehicle systems, depending on the manufacturer’s terms.

As with any vehicle warranty, the agreement should explain how long the cover lasts, whether a mileage limit applies, which components are included and what the consumer must do to keep the warranty valid.

What does an EV battery warranty cover?

EV battery warranties usually relate to the high-voltage battery rather than the smaller 12V battery used for standard electrical functions. The terms may cover certain battery defects or a reduction in battery capacity below a stated level during the warranty period.

Consumers should check the warranty wording carefully, as battery warranty cover can vary between manufacturers. The policy should explain the length of cover, mileage limit, battery capacity threshold, the claims process, as well as any exclusions.

What can affect an EV battery warranty claim?

An EV battery warranty claim may be affected if the vehicle has not been maintained, i.e. serviced, in line with the manufacturer’s requirements, has been modified, has suffered accident damage or has been used in a way that falls outside the warranty terms.

Before buying a used EV, it is worth checking the remaining battery warranty, service history, charging history where available, and any documents showing previous battery health checks.

Extended car warranties

An extended car warranty provides cover after the original manufacturer warranty has ended. It may be supplied by the vehicle manufacturer, a dealer, a third-party warranty provider or an independent provider.

The level of cover can vary, so it is important to compare the terms carefully before buying an extended warranty.

What is an extended vehicle warranty?

Once the manufacturer warranty expires, there may be an option to purchase a new policy from the vehicle manufacturer, extend the existing agreement or buy an extended warranty from a third-party provider.

Even if you have an extended warranty, you will still need valid car insurance to stay legal on the road.

If a claim is rejected or there are problems with extended car warranties, it is important to check the policy wording, the reason given by the warranty provider and any evidence that may support the claim.

How much does an extended warranty cost?

The cost of an extended warranty varies by provider, vehicle age, mileage, the level of cover and the length of the agreement. It is worth comparing different policies to make sure the warranty meets your needs and budget.

What should I check before buying an extended warranty?

Before buying an extended warranty, check whether:

• Specific components are covered and which are excluded;
• There is an excess, age-related contribution or other cost to pay;
• If wear and tear failures are included;
• There is a waiting period before cover starts;
• Pre-existing faults are excluded;
• If repairs must be carried out through an approved repairer;
• The maximum labour rate covered by the policy;
• Diagnosis, dismantling or exploratory work is included;
• The warranty can be cancelled or transferred; and
• Consequential damage is covered.

What is The Motor Ombudsman’s Vehicle Warranty Products Code?

Introduced in 2009, the Motor Industry Code of Practice for Vehicle Warranty Products aims to drive up standards across a wide range of automotive warranties, including both insured and non-insured products, by committing accredited businesses to higher standards than those required by law.

These include service contracts, guarantees, and extended warranties, as well as insurance policies such as Guaranteed Asset Protection (GAP) and alloy wheel insurance.

What does the Code of Practice cover?

The Motor Ombudsman’s Motor Industry Code of Practice for Vehicle Warranty Products covers key areas including:

• Advertising;
• Point of sale obligations;
• The clarity of information provided to customers;
• The handling of claims;
• Service contracts, guarantees and non-insured products;
• Insured products; and
• Complaints handling.

Which businesses are accredited to the Vehicle Warranty Products Code?

To view the businesses that are accredited to The Motor Ombudsman’s Vehicle Warranty Products Code, click here.

How can a vehicle warranty be invalidated?

Consumers need to meet the requirements of a warranty policy to avoid claims being declined.

A warranty claim may be affected by:

• Not following the vehicle manufacturer’s recommended servicing schedule or intervals;
• Fitting non-genuine or non-approved parts during repairs;
• Ignoring dashboard warning lights or noticeable mechanical or electrical faults and continuing to use the vehicle;
• Modifying the vehicle outside of the manufacturer’s standard specification;
• Using incorrect fuel or fluids, such as oil, coolant or brake fluid; and
• Failing to follow the warranty provider’s claim procedure.

What types of warranty cases does The Motor Ombudsman see?

The Motor Ombudsman can receive disputes involving different types of vehicle warranty products, including manufacturer warranties, extended warranties and other warranty-related products.

For example, these can relate to complaints about rejected claims, the level of cover provided, whether a fault is excluded, delays in handling a claim, or even a disagreement over whether the warranty provider has followed the terms of the policy.

To view examples of disputes worked on by The Motor Ombudsman, see our latest case studies relating to our Vehicle Warranty Products Code.

Have a problem with a vehicle manufacturer warranty or extended warranty?

If you have a warranty-related problem, you may find our information on car warranty claim disputes helpful.

You can also take a look at our Knowledge Base to see if we can answer your question. Otherwise, you can contact us here.