Written by: Jen Wagner
Last updated: April 17, 2025
Submitting a claim for an automotive repair is a common scenario. With age and mileage, car parts break down and require a repair or replacement. Thankfully, having a comprehensive warranty can help pay for some or all of the bills for a covered repair. But what happens when you file a claim and discover your policy is void?
Whether you’re still within the vehicle manufacturer’s warranty period or you’ve invested in an extended service contract, the last thing you want is to invalidate your agreement and end up paying twice. Knowing your options, understanding the pros and cons of each type of vehicle protection plan, and being aware of what can void a car warranty can help prevent the termination of your contract. Where do you start? Keep reading.
Understand Your Contract: What It Includes and Excludes
Not all vehicle warranties are created equal. Extended coverage varies depending on your vehicle, driving habits, budget, and more. A clear understanding of each level can help you know what’s covered and what’s not.
There are two main types of warranty coverage:
Manufacturer Warranty
New cars come with original factory warranties, which cover replacements or repairs on almost every part of the car. Car manufacturers include these contracts within the vehicle’s sale price, and they usually last for 3 years or 36,000 miles of ownership. Protected components include the engine, transmission, and drivetrain.
Extended Warranty/Vehicle Service Contract
Extended vehicle protection, which can help pay for a breakdown repair bill, is commonly referred to as a warranty. However, federal law has a specific definition for these warranties and officially calls them vehicle service contracts (VSC). While they are similar to insurance policies, recognizing their distinctions is important.
If you’re unsure of the basics of an extended auto warranty, auto protection providers can happily explain the differences between each level to find the perfect match. You can also read reviews on the top 10 extended warranty providers here—ones we’ve personally tested to give you an accurate and fair assessment of their coverage, customer service, and more.
You can purchase an extended warranty when your manufacturer’s warranty expires. Some dealerships offer policies as add-ons; however, third-party providers sell extended contracts most often. In addition, as Edmunds notes, the provider can be the contract’s administrator or the reseller.
Depending on whether or not you choose a manufacturer warranty or the alternative, you can pick from several coverage levels. These include:
- Bumper-to-Bumper Warranty: Most manufacturers include comprehensive warranties with a brand-new automobile purchase. The contracts protect almost every part in between the bumpers. However, they do not always cover the bumpers themselves. Go figure.
- Powertrain Warranty: Providers design this type of contract to cover a vehicle’s basic mechanical parts needed to function.
- Stated Component Warranty: A step above powertrain warranties, these plans cover the basics plus several other components, such as brakes and suspension.
- Exclusionary Coverage Warranty: These warranties offer a higher level of coverage and only exclude the components explicitly exempted in the contract’s terms.
Taking careful note of any actions, inactions, or other circumstances that might lead to your provider canceling your warranty policy is also key to understanding your contract. Below are several reasons why an extended warranty provider will cancel a contract.
What Can Void Your Car Warranty?
The Magnuson-Moss Warranty Act is legislation that specifies what can wholly or partially void a car’s warranty. Extended warranties are legally considered vehicle service contracts (VSCs). As such, they are not subject to the same law. Therefore, checking the terms and conditions and understanding what could void your contract is critical. Consider nine of the most common examples:
#1 Getting Work Done at an Unauthorized Repair Shop
Factory Warranty: Having someone other than your dealer carry out work on your vehicle isn’t usually a cause to void your new car warranty. However, your contract may state a specific repair facility you must use if your automaker or dealer provides free repairs under the terms of the contract.
Extended Warranty: Some extended warranties or VSCs will specify where you can go for repair work. Consequently, going elsewhere is a common cause for claim denials. Always know where you can go before scheduling warranty work.
#2 Completing Repairs Yourself
Factory Warranty: According to the Federal Trade Commission, a provider can deny coverage if your car encounters a mechanical failure because you incorrectly repaired your vehicle. That said, the warranty provider must prove the fault before denying coverage. In addition, the provider cannot void your policy simply because you performed the job. Furthermore, all other car components covered under the warranty’s terms would remain covered regardless.
Extended Warranty: Completing repair work yourself is highly likely to invalidate a claim should you have to make one.
#3 Not Sticking to the Routine Maintenance Schedule
Factory Warranty: Your owner’s manual includes a detailed regular maintenance schedule for your car, which lists services like regular fluid level checks and oil changes. You risk voiding your warranty if you don’t keep up with this schedule.
Extended Warranty: In the same way, neglecting the essential upkeep jobs that keep you and your vehicle safe can invalidate the entire warranty.
#4 Lacking Proof with Paperwork
Factory Warranty: The Federal Trade Commission recommends keeping detailed records and receipts of all work carried out on your vehicle. Not having the paperwork—the receipts and invoices proving what was done and where/when it was completed—could invalidate your contract even if you rigorously stick to the routine maintenance schedule.
Extended Warranty: Always keep a thorough maintenance record when you invest in an extended warranty. Otherwise, you risk having your coverage denied without having proof of upkeep. Why? The provider will not know if you respected the maintenance schedule.
#5 Modifying Your Car with Aftermarket or Recycled Parts
Factory Warranty: Manufacturers may deny coverage if you use faulty or incorrectly installed recycled or aftermarket parts that damage your vehicle. However, this would only apply to the parts that are damaged. Additionally, the manufacturer must demonstrate that the aftermarket or recycled parts or the installation caused the problem. The manufacturer can specify which parts you must use because they provide them for free as part of the warranty contract.
Extended Warranty: Modifying your vehicle under an extended contract is a common cause for a claim’s denial. What car mods can void a warranty? These could be anything from installing turbochargers to upgrading the suspension. Safer modifications are unlikely to void your coverage and include manufacturer upgrades and those installed by approved dealers. Still, we recommend being careful and double-checking the terms of your contract. If you choose to modify, do so with caution.
#6 Altering Your Odometer
Factory Warranty: Any changes to your vehicle’s odometer can result in the warranty company terminating your contract. Examples include replacing, disconnecting, or tampering with the instrument. Why? Verifying the actual mileage becomes problematic when someone makes these alterations. If you can’t determine mileage, you can’t identify whether the vehicle’s mileage is legitimate.
Extended Warranty: The same applies to extended protection plans. Any odometer tampering can result in contract termination. Mileage fraud is illegal under state and federal consumer protection laws and can lead to criminal or civil liability.
#7 Misusing Your Vehicle
Factory Warranty: Drag racing, driving off-road, and overloading your car are just a few examples of vehicle misuse. If you aren’t sure what “misuse” means, consider anything that doesn’t fall under normal operation. If any of these examples apply to your driving, you risk voiding your warranty.
Extended Warranty: Situation-specific events, like those mentioned above, are also reasons for an extended protection provider to deny warranty repairs and cancel your policy. And while there may not be hard proof that shows vehicle abuse, there are ways providers can validate their suspicions. Manufacturers now design the computers inside modern vehicles to provide technicians with details like vehicle speed and location.
#8 Filling Up With Improper Fluids
Factory Warranty: Accidents happen. However, auto warranty companies do not design contracts to cover auto repairs caused by unintentional damage. For instance, driving your car after filling a gas tank with diesel fuel can cause the engine to stall. Diesel can also clog the fuel lines and damage the engine. The result will be a void warranty and out-of-pocket repair costs.
Extended Warranty: Using improper fuel is another situation-specific event that extended warranty providers exclude from their contracts. Any damage your vehicle sustains will be your responsibility.
#9 Suffering Damage From a Natural Disaster
Factory Warranty: If a natural disaster occurs and your vehicle sustains damage, your policy will likely not cover the repairs. Warranty providers consider natural disasters like floods, fires, and earthquakes as acts of nature. Therefore, repairing your vehicle will be your responsibility.
Extended Warranty: All of the above applies to extended coverage providers. Vehicle service contracts do not protect drivers from vehicle damage that an act of nature causes.
Recognize That Knowledge Can Be the Best Protection
Investing in a comprehensive extended car warranty is the best way to protect your budget and peace of mind from unexpected car repairs. However, studying the details in the contract’s fine print and sticking to the terms is critical. Otherwise, you could pay thousands of dollars out of pocket to get yourself back on the road. Anyone who has a warranty claim rejected and feels it was unfair can seek help from the FTC. Understand the basics of extended auto warranties or learn how to find the best deal starting here.
