What types of Car Warranty are there?
There are several types of car warranty out there and the one you’ll get will depend on whether you are buying a new car, a used car or looking for cover for the vehicle you currently own.
New car warranty
A new car warranty, popularly known as ‘manufacturer’s warranty’, is the one that’s usually included when you buy a brand new car. It depends on the carmaker and it can last from three to seven years. The majority of manufacturers opt for a three-year warranty. However, Hyundai and Mitsubishi offer a five-year car warranty and Kia goes further with its seven-year cover.
Some carmakers will also add a mileage limit to the warranty to ensure that the new car is covered for a fair amount of time. This means that the car warranty will last for the time period or the distance quoted, whichever comes first.
Extended warranty
By extended warranty, we mean the extra cover that new car buyers can pay for to have more peace of mind.
There are essentially two types of extended car warranty with different coverage. One is an option that some car manufacturers offer as an extra when you get a new car. The other is when your manufacturer allows you to extend your car’s warranty before it expires.
For example, when adding an extended warranty to a new car you should expect the same amount of coverage as the standard warranty but for a longer period of time and a higher mileage limit. Whilst the extended warranty added when the existing cover is nearly finished may not be as comprehensive and will vary depending on your car manufacturer and policy provider.
Electric car battery warranty
An electric car battery warranty is the one that covers an electric car’s battery. If you’re buying an electric or plug-in hybrid vehicle this is something you may be interested in, as an electric car battery warranty usually lasts longer than the standard warranty that covers the rest of the car.
Currently, most EV and PHEV manufacturers offer an eight-year battery warranty. But the mileage limit differs depending on the maker.
The purpose of having an electric car battery warranty is to protect you against the ability for the battery to stay fully charged – also called ‘battery degradation’. If the charge capacity dips below a certain point, depending on your car maker, they will replace the battery free of charge.
Paintwork and perforation warranties
Paintwork warranties guarantee the quality and finish of a car’s bodywork and they usually last for the same amount of time as the standard warranty – usually three years. That is because the paint is quite prone to get damaged by scratches or stone chips and after three years it can be tricky to establish whether paint damage happened because of poor production or the normal wear and tear of owning a car.
Perforation warranties usually accompany paintwork ones. What they do is guarantee the vehicle against any rust or corrosion related to poor manufacturing. This type of warranty will last for a longer period than paintwork warranties – depending on the carmaker – but will be worded clearly to make sure that the corrosion is not caused by external damage. As a reference, anti-perforation warranties can last for 12 years, although there are exceptions.
Approved used car warranty
When you buy a used car from a manufacturer approved dealer you may be able to get this type of cover. These vehicles will usually be less than three years old and most will still have some of their original warranty cover to run.
Franchised dealers will give anyone buying a used car from them a used car warranty for extra peace of mind. It will be included on an approved car once it has been thoroughly inspected so that it meets the manufacturer’s standards. As a norm, used car warranties will be valid for 12 months. In some cases, there may be a mileage limit so that you get the full year of cover.
What will an approved used car warranty cover? Overall, it will offer the same amount of cover as a new vehicle warranty. That is because the car will be nearly new and the risk of a claim is low. In any case, always check the small print because not all used car warranty cover will be the same.
Used car warranty
It may sound the same as an approved used car warranty but a used car warranty applies to cars bought outside of the UK’s franchised dealer network. It’s also the one you should get if you want to cover an older car you already own.
This type of used car warranty will depend entirely on where you buy your used car from. As a rule, used car dealers are not obliged to give you any warranty. However, some will do it to keep their customers happy and because they want to raise their profile and good reputation.
How do they do it? A favourite way is by offering a used car warranty provided by RAC. These firms will inspect the used vehicle before offering any cover. This type of used car warranty will last a minimum of six months and will come with a breakdown cover.
Private Warranty Cover
Those buying a car privately may be interested in getting private warranty cover. It’s a type of policy that you can take out so that if your new used car has a fault you’re not completely out of pocket.
How can you get a private car warranty cover? There are two main choices in the market:
- RAC – Provides car warranty directly to buyers and it can be tailored to suit any car, no matter its age, mileage or condition. Usually, the older the car, the more you pay. And what is covered is also likely to be limited to the major mechanical components.
- Companies like Warrantywise and Warranty Direct also offer warranty cover to older cars up to a certain age and mileage. You buy it like you buy car insurance: you can pay a lump sum or monthly repayments. These warranties are flexible and you can usually pick how long you want it to last. There are also different levels of cover depending on how old the car is, how many miles it has and its previous history.