Car Warranty Explained: Coverage, Cost & Validity in India

Purchasing a car is a significant investment, and protecting that investment is crucial. A car warranty would therefore be offered by manufacturers or dealers, guaranteeing that the vehicle is free from defects for a specified period or distance.

Though car warranties sound quite similar everywhere, there are definite differences in their coverage, duration, costs, and transferability, particularly in such markets as India.

Knowing how a warranty works, what is covered, and which extended warranty options are available enables car owners in India to make informed decisions with peace of mind.

What is a Car Warranty?

Primarily, a car warranty is a contract issued by the vehicle manufacturer that guarantees against defects in materials or workmanship for a certain period and distance. After the authorised repair of the defect or its replacement, the manufacturer or warranty provider is to bear the monetary costs that the owner would have otherwise incurred.

Overall, warranties cover manufacturing defects, while damage arising from accidents, improper use, or normal wear and tear is not covered and leaves complaints outside the scope. They focus on the intrinsic mechanical or electrical reliability of the faulting part, not on external risks such as theft or collision damage.

In general, the manufacturer’s warranty covers mechanical parts, electronic components, and other specialised systems, such as emissions or safety features, providing buyers with essential coverage until the warranty period expires.

How Long Does a Car Warranty Last?

Car warranties vary by manufacturer, market, and vehicle variant. Generally, the standard warranty worldwide covers 3-6 years or around 36,000 miles (roughly 58,000 kilometres).

However, in India, trendsetters typically have a 3- to 5-year or 100,000-kilometre warranty, whichever comes first, reflecting usage patterns and the level of confidence a manufacturer offers. Some manufacturers cover more than one type of component under warranty for an extended period, such as powertrains or electric batteries.

For example, in India, most electric vehicle batteries are found to offer an 8-year or 160,000-kilometre guarantee to balance high replacement costs and performance assurance. Beyond such comprehensive or bumper-to-bumper warranties, powertrain warranties, which cover the engine, transmission, and drivetrain, often offer a longer period.

How Much Does a New Car Warranty Cost?

A new-car warranty is usually included in the vehicle’s price. New car buyers in India typically do not pay any amount added separately for the manufacturer’s warranty when they purchase the vehicle. The warranty is a built-in benefit that covers repair costs for defects that are indirectly included in the price.

Still, the duration and scope of the warranty would also affect a vehicle’s value. For example, long, broad warranties are sometimes effective sales motivators and can justify a slight increase in expenditure for consumers who desire insurance against reliability issues.

How Much Does a Second-Hand Car Warranty Cost?

Warranty terms vary for used cars in India. Unlike new-car warranties that are normally bundled with the purchase of a new vehicle, warranties for used vehicles are usually purchased separately. They can get extended warranties or certified pre-owned (CPO) warranties from dealers or third-party companies to help minimise the expected cost of unplanned repairs.

The costs vary considerably depending on the vehicle’s age, mileage, and warranty coverage. Some offer unpaid extended warranties, which usually extend coverage on engine, transmission, and other integral parts for 1-3 additional years beyond the expiration of the factory warranty.

In India, certified pre-owned warranties may offer limited duration, usually about 1 to 2 years, in terms of coverage for significant repairs, thus making it a lot more reliable than typical used cars.

What Does a Car Warranty Cover?

Usually, car warranties cover the repairs and replacements of defective parts essential to vehicle operation. Typical warranties under the coverage include:

• Engine and Transmission: Internal components of the engine, parts in fuel systems, oil and water pumps, and turbochargers when applicable.
• Electrical Systems: Wiring, power windows, lights, sensors, and central locking.
• Safety Systems: Airbags, seat belts, and their restraint systems.
• Emission Components: Catalytic converters and emission control systems.
• Body Corrosion: Some manufacturers include body panels in their rust-through warranty.
• Hybrid and Electric Components: Battery packs, electric motors, and related electronics.

What is Excluded?

Standard exclusions include:

• Normal wear-and-tear parts include brake pads, tyres, wiper blades, and clutch plates.
• Accidents, neglect, vandalism, or misuse cause damage.
• Routine service, oil changes, coolant replacement, and other scheduled maintenance.
• Modification or use of aftermarket parts that the manufacturer does not approve.

Will Warranty Transfer to a New Owner if I Sell My Car?

In most cases, a manufacturer’s warranty is transferable to the new owner during the warranty period. This would make the used cars more appealing in the market, especially those with active warranties. However, some manufacturers state new conditions for warranty coverage or duration once the product is resold.

For instance, while Maruti Suzuki usually transfers the warranty in full, Hyundai extends it under certain conditions. Before purchasing, buyers of second-hand cars should check the warranty terms, including, but not limited to, transfer fees or conditions.

How to Know if Your Car Warranty is Still Valid?

To ascertain warranty validity in India, you can do the following:

• Consult the vehicle’s owner’s manual or warranty booklet.
• Contact dealerships authorised to use the Vehicle Identification Number (VIN) or the chassis number.
• Use the online portals available on the manufacturers’ websites or apps specifically designed to check the warranty status.
• Review service records and purchase receipts for information about your warranty.

What are Extended Warranties?

Extended warranties extend coverage beyond the manufacturer’s standard warranty term. They are quite common in India for owners who want extended protection from unexpected breakage repairs.

Coverage under usual extended warranty plans extends to key systems, such as the engine, transmission, and other components, as well as electronics. Most excluded are the parts that get affected by wear and tear. The terms vary widely:

• Duration: Typically 2 to 3 more years after the original warranty period.
• Cost: Varies from ₹12,000 to ₹40,000 or more, depending on the brand, plan, and vehicle.
• Terms: Possibly including deductibles; it is necessary to read the fine print.

Maruti Suzuki, Hyundai, Honda, Tata, and Kia offer official extended warranty packages, along with coverage and pricing clarity that give one peace of mind when owning older vehicles.

Summary

Understanding car warranties is especially important for car buyers in India and around the world. New car warranties are a valuable part of the purchase price, covering most major repairs during the first years and kilometres of use.

Car owners should also remain aware of warranty covers, maintenance commitments, what is not included, and transfer policies when buying or selling. Knowledge ensures the best use of the warranty benefits and financial safety against unforeseen vehicle repair costs.

FAQs about Car Warranty