The three types of car warranty you'll encounter
- Manufacturer warranty. comes free with a new car, typically three years, sometimes five or seven — covers manufacturing defects and usually transfers to a new owner.
- Dealer warranty. supplied by or arranged through the seller of a used car, often three to six months — quality varies enormously between dealerships.
- Extended or independent warranty. bought separately once manufacturer or dealer cover ends, sometimes called mechanical breakdown insurance (MBI) — subject to age, mileage and condition requirements.
- The four numbers that define any policy. claim limit (ClearPath: £3,000), excess (£100), labour rate (£100/hr), and whether claims are capped (ClearPath: no cap).
- What it isn't. not car insurance, not breakdown recovery, not a service plan, and it doesn't replace your Consumer Rights Act protections.
What you're buying with a warranty is not cheaper repairs or a more reliable car — it's predictability, converting an unpredictable, badly timed bill into a fixed cost you can plan around. A long list of covered components against a low claim limit is worth less than a shorter list against a realistic one, so the four numbers that actually define a policy are the claim limit, the excess, the labour rate, and whether total claims are capped across the term. ClearPath covers up to £3,000 per claim with a £100 excess, labour up to £100 an hour, and no limit on the number of claims during the policy — plus a 14-day cooling-off period with a full refund provided no claim has been made.
The numbers, in full
£3,000Per claim
UnlimitedEligible claims
£100/hrLabour rate covered
15 yrs/ 150,000 miles eligibility
14 daysTo change your mind
UK-wideGarage network
Frequently Asked Questions
What is a car warranty in simple terms?
A contract that pays to repair certain mechanical and electrical failures during an agreed period, up to the limits set out in the policy. It covers sudden, unexpected failure rather than wear, servicing or accident damage.
What is the difference between a car warranty and car insurance?
Insurance covers damage from events such as collisions, fire and theft, and is a legal requirement. A warranty covers mechanical and electrical failure and is optional. They protect against different risks, which is why most drivers hold both.
Is a warranty the same as breakdown cover?
No. Breakdown cover moves you and the car when you're stranded but doesn't pay for the repair. A warranty pays for the repair. Some policies reimburse part of the recovery cost on an authorised claim — ClearPath covers up to £60 including VAT.
What are the main types of car warranty?
Manufacturer cover that comes with a new car, dealer cover supplied with a used car, and extended or independent cover bought separately once the earlier protection ends. The third is also called mechanical breakdown insurance.
How do I know if a car warranty is worth it?
It comes down to how comfortably you could absorb a sudden four-figure repair bill, and whether the car is out of manufacturer cover, carrying miles, and fitted with the kind of complex systems that are expensive to put right. Get an instant quote to see the real numbers for your car.
How much does a car warranty cost?
Cover starts from £21.67 a month with code CP25 at checkout on a 3-year plan. Your exact price depends on your vehicle's age, mileage and fuel type.
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Important information. This page is general information only. Warranty eligibility, covered components, exclusions, waiting periods, claim limits, excess, labour-rate limits and claim procedures are governed by the applicable ClearPath Protection terms and conditions. Pricing shown is indicative and your actual price depends on your vehicle's age, mileage, fuel type and the cover length you choose.
