How Do Car Warranties Work? Here’s Everything You Need To Know

Category: Transportation

When you buy a new car, it usually comes with a car warranty. This warranty is the vehicle manufacturer’s guarantee that it will repair or replace defects in your car for a specific period of time or kilometres. If you’re getting a used car, you can also purchase a warranty plan from third-party providers.

Before we go any further, it’s important to know that a car warranty is different from car insurance, because each of them protects different aspects of your vehicle.

Car warranty vs car insurance

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A car warranty helps to pay for malfunctions due to manufacturing defects, while your car insurance could pay to repair your vehicle if it’s damaged in road accidents, or by other causes – such as theft, fire or natural disasters.

A car warranty helps to pay for certain types of malfunctions (parts and labour costs) due to manufacturing defects or issues with certain car parts. Meanwhile, your car insurance could pay to repair your vehicle if it’s damaged in a road accident, or by other causes – such as theft, fire or natural disasters. You can also make car insurance claims for injuries and fatalities as a result of a motor vehicle accident.

Related: 3 Main Types of Car Insurance Coverage (And What They Actually Cover)

Now that we’ve cleared up the differences between car warranties and insurance, let’s go into detail about how car warranties work.

Types of car warranties

A car manufacturer’s warranty is provided as part of the overall cost of a new vehicle. This warranty will usually last between three to five years, or 100,000 to 150,000km. This warranty will remain valid for the car regardless of change in ownership. So even if you sell the car during this period, the warranty is transferable to the new owner.

Once your car manufacturer’s warranty expires, it’s highly recommended that you purchase an extended warranty, which can save you money in the long run. As your vehicle ages, it may need costly repairs, and an extended warranty can offset those costs.

Manufacturer’s warranty

The duration of your warranty and the components it covers differ according to the brand of your car. Be sure to check with your car manufacturer for specific details regarding your manufacturer’s warranty. Here, we take a look at the warranties that are provided by four of the most popular car manufacturers in Malaysia:

Manufacturer Warranty period What does it cover?
Perodua

Basic warranty coverage: 3 years / 100,000km (whichever comes first).

Major parts coverage: 5 years or 150,000km (whichever comes first).

All parts (excluding naturally expendable parts and maintenance service parts) which are subject to Perodua warranty terms, conditions and limitations.
Proton

Basic warranty coverage: 5 years / 150,000 km (whichever comes first).

Parts warranty coverage: 6 months / 10,000km (whichever comes first).

Proton warrants that it will either repair or replace as it deems appropriate free of charge on any part of your Proton vehicle if there are any defects in material or workmanship under normal use. This coverage does not apply to the items listed under ‘Specific Warranty Coverage’ and ‘What Is Not Covered by the Warranty‘.
Toyota

All models except Hilux and Hiace: 5 years / unlimited mileage.

Hilux (all variants): 5 years / 150,000 km (whichever comes first).

Conversion, commercial and public usage vehicles: 3 years / 100,000 km (whichever comes first).

UMW Toyota Motor warrants that it will either repair or replace, at its option, free of charge, any part of the Toyota vehicle covered by this warranty that is defective in material or workmanship under normal use, for a period of 5 years from the date of first registration.
Nissan

Teana, Grand Livina, Livina X-Gear, X-Trail, Serena S-Hybrid and Almera: 7 years / unlimited mileage.

Navara and NV350 Urvan: 5 years / 150,000km (whichever comes first).

The first 5 years’ warranty conditions are identical to the manufacturer’s 3 years warranty, while 6th and 7th year warrants engine, transmission and selected parts coverage (terms & conditions apply).

Related: #BreakingItDown – The True Total Cost Of Car Ownership In Malaysia

Extended warranty

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As your vehicle ages, it may need costly repairs, and an extended warranty can offset those costs.

Once the initial manufacturer’s warranty for your car has expired, you can opt to buy an extended warranty from the manufacturer or a third-party company. Here are some of the more prominent extended auto warranty providers in Malaysia:

Extended Warranty Provider Packages
MyOpal

BASE-X
Coverage period: 1 year and unlimited mileage, or 6 months/10,000km.

Claims amount: RM8,000 per claim, RM50,000 in total.

Covered components: Engine, transmission, gearbox, ECM, ECU + additional cost for additional coverage.

XTEND
Coverage period: 1 year or 30,000km

Claims amount:RM15,000 per claim, RM50,000 in total

Covered components: Engine, transmission, gearbox, ECM, ECU, steering system + additional cost for additional coverage

SELECT
Coverage period: 1 year or 30,000km

Claims amount:RM15,000 per claim, RM80,000 in total

Covered components: Engine, transmission, gearbox, ECM, ECU, steering system + additional cost for additional coverage

Evo Club
Coverage period: 1 year / 25,000km
 
Claim amount: RM7,500 per claim, RM40,000 in total
 
Covered items: Engine, transmission, turbo/supercharger, sensors, electronic modules, braking system, labour
Warranty Smart

Smart Bronze+
Warranty period: 6 months / 13,000km, or 1 year / 25,000km  (whichever comes first).

Claims limit: RM2,000 per claim and RM7,500 in aggregate (6 months plan), RM4,000 per claim and RM15,000 in aggregate (1 year plan).

Covered items: Engine parts like the oil pump, variable cam timing, engine vacuum pump and more; transmission; ECU; ECM and braking system.

Smart Silver+
Warranty period: 1 year or up to 30,000km (whichever comes first).

Claims limit: RM5,000 per claim and RM20,000 in aggregate per vehicle.

Covered items: Engine parts like the cylinder head, camshaft bearing cap, valvetronic motor and more; transmission; fuel system; and cooling system.

Smart Gold+
Warranty period: 1 year or up to 30,000km (whichever comes first).

Claims limit: RM10,000 per claim and RM50,000 in aggregate per vehicle.

Covered items: Engine parts like the cylinder head, camshaft bearing cap, valvetronic motor and more; transmission; ECU; ECM; TCU; TCM, sensors; fuel system; cooling system; steering mechanism and turbo.

Smart Platinum+
Warranty period: 1 year or up to 30,000km (whichever comes first).

Claims limit: RM15,000 per claim and RM100,000 in aggregate per vehicle.

Covered items: Engine parts like the cylinder head, camshaft bearing cap, valvetronic motor and more; electrical parts; transmission; ECU; ECM; TCU; TCM, sensors; fuel system (petrol and diesel); cooling system; steering system;  turbo/supercharger system; air con; major oil leaks; braking system; rear axle and front axle and ignition system.

Factors that can void my car warranty

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Modifications made with approved parts and carried out by an approved technician will not void your warranty, but it’s best that you contact the manufacturer/warranty provider to check in detail. 

It’s important to service your car at regular intervals according to the manufacturer’s recommended service schedule. You should also service your vehicle at authorised service centres, as going to an unauthorised centre will void your warranty. (Even third party warranty providers have their own panel of authorised workshops.)

After a service session, the centre will usually place a sticker on your windscreen which indicates the date and mileage of your next service interval. This serves as a useful reminder to help you maintain your vehicle.

Your car warranty will also be voided if there’s any damage that was caused by, or resulting from, any modification made to your vehicle. Modifications made with approved parts and carried out by an approved mechanic/technician will not void your warranty, although it’s best that you refer to your warranty and service booklet, and contact the manufacturer/warranty provider to check in detail.

Related: How Will Car Modifications Affect Your Car Insurance Policy?

What’s not covered in a car warranty?

These components are not generally covered in a car warranty:

  • Regular maintenance – routine oil changes, tire rotations, etc. No matter what kind of warranty you have, it isn’t a licence to stop taking care of your car. So remember to book an appointment with your service centre!
  • “Wear and tear” items – brakes, brake pads, clutches, windshield wiper replacements, headlight bulbs, etc.
  • Exterior or body panel damage such as scratches in your car’s paint
  • Interior damage (e.g. holes in the seats or broken plastic)
  • Damage caused by improper car care – skipping regular maintenance, reckless driving, etc.
  • Damage from an accident – dents in the exterior, broken glass, etc.
  • Damage from environmental factors – flood, hail, wind, etc.

Your car’s manufacturer or warranty provider may have different levels of coverage, so you should also check with them for more specific details.

How to check if your car is still under warranty?

Most car warranties have a mileage limitation, so you should check your vehicle’s odometer to see if you’ve driven beyond the mileage limitation. You can also contact your car manufacturer’s helpline or authorised service centres to find out if your warranty has expired.

Factors that decide the price of your extended warranty

Most extended warranty providers will review the vehicles on a case-by-case basis. Here are certain factors that will be taken into consideration during the review:

  • Your car manufacturer: Extended warranty prices will vary for local, East Asian, American and continental models.
  • Car manufacturing date: Older cars may require older, harder-to-find parts.
  • Mileage: The further you’ve driven, the more likely your car is to experience wear and tear issues.
  • Your car’s condition: You may have to pay more if you’re buying a warranty plan for a car that isn’t in tip-top shape.
  • What the car warranty covers: The more parts your warranty covers, the more expensive it can be.

Besides getting a car warranty plan, applying for car insurance is just as important. Apply or renew your car insurance here and you can get a Petronas gift card that‘s worth up to RM300!

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