What you need to know: Car warranty vs car insurance.

Simply put: car insurance deals with accidents and theft, while a car warranty protects against mechanical or electrical failures. Both are important drivers, but they deal with very different risks.

In this guide, we’ll break down how each works, what they include, and why many UK drivers choose to have both.

Key facts at a glance:

• Car insurance is a legal requirement in the UK

• Insurance includes accidents, theft, damage and third-party liability

• Car warranty protects against mechanical and electrical failures once the manufacturer’s ends

• Insurance deals with external events (collisions, theft, vandalism)

• Without a warranty, repair bills can be costly

• A YouGov survey found that 68% of motorists worry about breakdowns

• The same study found that 78% of motorists do not have an extended warranty

• The best protection is a combination of both – insurance for accidents and damage, warranty for mechanical or electrical breakdowns

• Warrantywise offers flexible extended warranties, developed with motoring expert Quentin Wilson and overseen by Edd China for complete peace of mind

What is an extended car warranty?

An extended car warranty – sometimes called a used car warranty – is an agreement that helps protect against the cost of unexpected repairs or part failures once the manufacturer’s warranty has expired.

An extended car warranty:

• Protects against sudden or electrical breakdowns

• Offers peace of mind when keeping a car for longer

• Can be tailored with add-ons to suit your vehicle and driving needs

For example, a gearbox failure or hybrid battery replacement can cost thousands, but an having an extended warranty can help reduce the financial burden.

What is car insurance? 

Car insurance is a legal requirement in the UK and protects you financially in the event of:

• Road accidents or collisions

• Theft or vandalism

• Damage to other people’s property or injury to others

• Natural events like flooding or storms (depending on your plan)

Why an extended car warranty matters:

A recent YouGov survey revealed that:

• 68% of motorists worry about potential breakdowns in their used cars
• 78% of drivers don’t have an extended warranty in place

With repair costs at record highs, this leaves many drivers financially exposed. An extended warranty acts as a safety net, helping to avoid surprise repair bills.

Always review the terms, limitations, and exclusions of any warranty to understand exactly what’s included in your plan.

Take note: Extended warranties vary so it’s important to review the warranty terms, limitations, and exclusions of the warranty plan to understand how the warranty operates. 

Why choose Warrantywise?

With over 25 years of expertise, Warrantywise offers one of the most trusted and transparent extended car warranties in the UK. Our plans were developed with motoring expert Quentin Wilson and overseen by Edd China, ensuring fairness and high repair standards.

Start your Warrantywise quote today and drive with confidence knowing you’re protected against costly repair bills.

Sources  

**All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 4,469 adults with 2,102 of those confirmed to own a used car between three to 12 years old. Fieldwork was undertaken between 12th – 14th July 2023.  The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).