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Car Insurance

Car Warranty Insurance

Car warranty insurance is a special programme that is growing in popularity in the UK and around the world. Car warranty insurance doesn’t replace the original manufacturer’s warranty on a new auto mobile but extends warranty protection beyond that time under an independent arrangement. Not an extended warranty, this special insurance plan covers repairs on older vehicles whose warranties on parts and labour have expired. Just as a normal warranty does, this protection provides low- or no-cost repair if your older vehicle breaks down and may include towing service as well.

If your luck in used vehicles is like so many others’, your car runs just fine until right after the manufacturer’s warranty ends. Then your car starts having problem after problem, and unless you have a friend in the repair business, those mechanical issues can cost you plenty! Car warranty insurance helps take that financial risk off your shoulders. In exchange for a monthly fee, a car warranty insurance company will pay for at least the bulk of major repairs. It doesn’t usually pay for routine maintenance but focuses on actual mechanical breakdown.

This speciality cover is not accident insurance, so purchasing this protection will not meet the minimal cover guidelines under UK law. This is an optional, additional cover that is separate from breakdown cover issued via your auto mobile insurance. Even comprehensive cover won’t pay for a new transmission or a new engine, for example, should your older car drive train break. That’s why more and more motorists are purchasing this specialised cover in addition to accident protection.

Some car warranty insurance schemes may pay for repairs only to the amount of premiums paid by the insured, whilst others operate in a more standard measure: The policy holder pays monthly, and the insurance company adjust rates according to how much financial outlay is required of them. Premiums are determined by how old the car is and its repair history as registered against its Vehicle Identification Number or VIN. Whether your car warranty information would cover one-car accident damage would depend on the wording of the policy. Those expenses may not be considered mechanical failure.

Warranty Insurance for Used Cars

Car warranty covers would be issued on newer cars, but to save money, most car owners don’t buy this protection whilst the manufacturer’s warranties are still valid. Therefore, generally, used or “pre-owned” vehicles are the covered auto mobiles in these policies. Knowing exactly what parts are still under manufacturer’s warranty when you purchase a used car and their expiration dates or mileage points may help determine whether you are interested in these policies or not.

The more reliable the running history a car make and model has, the lower the premiums should be because the risk of repair needs are less than for a make and model that is known to break down often. This insurance, just as regular auto cover is, is based on risk. This cover, however, focuses almost solely on the repair aspect and not so much on a driver’s age and other factors that standard insurance does.

Tailoring a Policy

As with any auto insurance, you can pick options and add-ons to your base plan, tailoring a policy to fit your needs more fully. Before you change plan parameters, though, be aware there are two types or base levels of auto warrant insurance policies. The foundational policy covers major end-item repairs like the engine block and the transmission. Parts outside the covered repair areas, even if related to the breakdown, are not covered. It’s similar to the third-party cover in regular insurance: It covers only limited items, and nothing beyond them will be paid by the insurance company.

The second type of auto warrant protection is an extended vehicle warranty insurance. As its name implies, it offers more services and coverage than its smaller-option brother. Premiums are higher for this protection, but there is greater in-born value of service and coverage provided, similar to the idea of comprehensive coverage on standard auto policies: More benefits that are included cause basic rates to escalate for the greater protection.

Both types of auto warranty protection usually allow tailoring of specific items, allowing cutting benefits you may not want or adding single features you do want.


In a perfect world, auto warranty cover would never find a foothold with consumers, for it would never be needed. Alas, reality dictates otherwise, though, and for those who would prefer a small, monthly payment and peace of mind, car warranty cover has become almost invaluable to many car owners. Just like with other insurance, though, it’s a wise course of action to find the cheapest policy with the most amount of included benefits as possible and not pick the first one you find. As you source quotes for this type of mechanical protection, read each set of terms and conditions carefully. Whilst much of the wording is similar, each company has its own set of qualifying repair conditions and even timing. Some specifically deny benefits whilst any manufacturer’s or part warranty is in effect, whether it relates to the needed and otherwise-covered repair or not. Admittedly, policies that restrictive are rare, but they do exist.

Know what coverage you want and will accept before you start looking. You’ll find it is much easier to spot specialised warranty cover that does or does not meet your requirements. These special policies can be extremely valuable to consumers who want less worry about used cars and their eventual repair costs, for there is no car made that is not designed to eventually experience worn-out parts or breakage. If you own a used or older auto mobile, strongly consider purchasing car warranty insurance to protect your finances and keep your ageing vehicle in good mechanical shape as long as possible.

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