Car warranty

Definition

A car warranty is a type of insurance policy that covers certain repair costs in the event of an unexpected component failure.

With a car warranty in place, you can enjoy the additional peace of mind of knowing that you’re covered should something unexpected go wrong with your vehicle.

New car warranty

If you’re buying a brand-new car, you’ll most likely be protected by a manufacturer’s warranty.

The length of warranty can vary between 1-7 years depending on the manufacturer, but it’s normally at least 1 year’s cover.

Used car warranty

If you’re looking to purchase a second-hand car warranty, it’s best to ensure that the manufacturer’s warranty has expired first.

Then you simply need to choose the length and level of your cover, to help avoid any expensive repairs further down the line.

When you finance a used car, Creditplus will let you know what warranty cover is being offered from the dealership as standard.

And if you wish to purchase additional cover or extend the term, we’ll help you find an extended warranty package suited to your requirements.

What does car warranty cover?

With a wide range of warranties available, you can choose your level of cover to suit your requirements.

Parts covered will vary depending on the policy you choose, but most warranties will protect you against faults with the engine, electrics, steering, transmission and suspension of your vehicle.

It’s important to remember that your warranty won’t cover everything.

Below are a few areas you should consider, before choosing your warranty.

Wear and tear
Faults may arise due to wear and tear. This cover is not always included in a standard warranty but can often be purchased for an additional premium.

Consequential failure
If a covered component fails as a consequence of a part that’s not covered, you may still be expected to pay for repair for the parts not covered by the warranty.

Labour costs
Most warranties will include labour costs as standard, but it’s worth checking. Otherwise you could find yourself with additional expense.

Betterment
Not always included as standard, but important to watch out for. If your car is fitted with a new part, and it’s more expensive than the original, this may increase the value of the car.

If the value increases significantly, your warranty provider may send you a bill.