A car warranty, or mechanical breakdown insurance (MBI), will protect you from unexpected repair bills if your car experiences a mechanical breakdown or electrical failure. This means that if your vehicle requires any mechanical repairs that aren’t your fault, a warranty insurance policy will pay out for the cost of repairs.

All cars in the UK that are less than three years old are automatically be covered by the original manufacturer warranty. If you choose to buy a car that’s more than three years old, you may no longer be covered by the manufacturer warranty. Instead, you may want to consider purchasing your own warranty to cover the cost of any mechanical repairs or electrical failures. Warranties can run from one month to as long as five years, though many motorists opt for a twelve-month policy. This way, the warranty can be renewed each year alongside the traditional car insurance.

What does a car warranty cover?

As different policies cover different things, it’s crucial that you read the terms and conditions of your warranty so that you know exactly what protection it offers you. You should also check the claims limit, as this is the most the insurer will pay for repairs if you make a claim. You will normally find that a warranty policy will cover the cost of repairs to:

• Engine
• Brake system parts
• Gearbox
• Cool system
• Steering
• Fuel system
• Suspension
• Ignition system
• Clutch
• Transmission system

What’s excluded from a warranty?

A car warranty might not cover everything. For example, wear and tear is generally not included, though with some policies, you can pay extra for certain wear and tear problems to be covered too. Wear and tear could include batteries, wheels and tyres, exhausts and brakes. Not all policies cover air-conditioning systems, snd sat-navs, modifications and your radio may also be excluded.

Do I really need a car warranty?

Modern cars are increasingly sophisticated and complex, which can increase typical repair costs. You also need to consider the impact of potentially not having access to a car whilst your vehicle is being repaired. This can be a major inconvenience to some.

For these reasons, some drivers choose to protect themselves from the stress of not being able to afford one-off large repair bills or be without a car by taking out car warranty insurance. The cover can give you peace of mind, reassuring you that if you need to send your car to the garage, an unexpected repair bill can be avoided.

How much does a car warranty cost?

The price of a car warranty varies depending on the make, model and age of the car, how many miles it has done and the driver’s details. If you’re buying a warranty on a used car, providers will generally stipulate that the vehicle needs to have been serviced within the last 12 months. When the warranty is in place, drivers must adhere to the service intervals recommended by the manufacturer.

Comparing car warranties

It pays to shop around when looking for a warranty policy. If you get a number of quotations from different providers, you’ll be able to compare the costs and what’s covered more easily and make an informed choice.