There are plenty of cases where a dealership will deny a repair claim, but it’s rare for a dealer to void a car warranty completely. Under federal law, your car’s manufacturer can’t just cancel your warranty because you used an unauthorized part or dealer.
However, extended warranties work differently. Because they’re technically vehicle service contracts, not true warranties, the provider may have more room to void your contract.
How federal law protects your factory warranty
Factory warranties are a promise from your car’s manufacturer that the car will work as expected. They guarantee certain repairs in case of mechanical failure or breakdown. They’re also called manufacturer warranties.
The Magnuson-Moss Warranty Act is a federal law that protects your factory warranty. It states that a manufacturer can’t deny a warranty claim (or void your warranty) because you used an aftermarket part or went to an independent mechanic for the repairs instead of the dealership.
Under this law, the manufacturer must prove that the alternative part or service caused the issue. For example, if you install fun custom wheels, your manufacturer needs to prove that the wheels damaged the car’s wheel bearings to deny your claim.
🤓 Nerdy Tip
Under factory warranty, you can have your car serviced anywhere, including at home. Just make sure to keep the fluid receipts and service records to make future claims easier.
Common reasons your car warranty claim could be denied
These factors typically won’t void your entire factory warranty, but there are a few reasons your manufacturer could deny a warranty repair claim:
Neglect. If you don’t have proof that you maintain your vehicle at regular intervals, your claim might be denied. For example, if your engine fails, but you don’t have records of oil changes, the manufacturer may assume that the failure is due to neglect.
Misuse. If the dealership can tell that you used the car in extreme ways, such as racing, over-revving, off-roading and ignoring towing capacity, they might deny a warranty claim.
Modifications. Some modifications, like a new stereo system or window tint, don’t tend to affect the rest of your car. However, if you install an aftermarket part that causes engine or transmission problems, for example, your warranty may not cover repairs.
Rare cases where your factory warranty could be voided
Your entire car warranty is unlikely to be voided in most cases. However, a few unique circumstances could get your warranty cancelled:
Salvage title. If your car is declared a “total loss” by your insurance company, the manufacturer warranty ends. This can happen from environmental damage or an accident.
Tampering. If your dealership finds that the odometer was altered, the manufacturer can’t verify the car’s mileage. Mileage is needed to guarantee the warranty period, so your manufacturer won’t be able to continue your warranty.
🤓 Nerdy Tip
Just because a dealer says your modification or lack of maintenance voids your warranty doesn’t mean it’s true. Ask them to put the reason for the cancellation in writing, because federal law protects your warranty. From there, you can contact the dealer’s general manager or the manufacturer’s claims department. If you don’t get a resolution, you can escalate the issue to your state’s Attorney General’s consumer protection agency and report the problem to the FTC.
Extended warranties don’t offer the same legal protections
Extended warranties aren’t actually “warranties” in the legal sense. They’re not protected by federal law like manufacturer warranties are. They’re private service contracts, and the company can decide what voids the contracts.
There are likely to be quite a few cancellation or denial clauses in the fine print of your warranty contract. Several issues that won’t void a manufacturer warranty could void an extended warranty. These might include:
Aftermarket parts.
Lack of regular maintenance.
Towing, offroading or other unauthorized use.
Commercial use, like driving for DoorDash.
Common reasons your extended warranty claim could be denied
Extended warranty companies, like insurance companies, can make it challenging to approve your repair claim. They make a profit if they don’t have to pay for your repair.
There are plenty of reasons your extended warranty claim could be denied:
A “too soon” repair. If you have a breakdown or failure a few weeks after you purchase an extended warranty, the company may deny your claim as a “pre-existing condition.” Typically, your extended warranty will require a pre-coverage inspection or a waiting period before coverage starts.
One part affecting another. If the part you’re submitting a claim for was damaged by a “non-covered part,” your claim might be denied.
Lack of maintenance records. If you can’t prove that you’ve been getting oil changes and other necessary maintenance at regular intervals, your extended warranty company might deny your claim.
🤓 Nerdy Tip
Normal wear and tear typically isn’t covered by a car warranty. This includes regular maintenance like oil changes, and parts that are meant to be replaced, like tires and brake pads.
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About the author
Dalia Ramirez writes about home and car services for NerdWallet. She has previously written about estate planning, cryptocurrencies, small business software and other personal finance topics. Dalia has a B.A. in science and technology studies from Wesleyan University. Her work has appeared in publications including The Washington Post, the Los Angeles Times, Bloomberg and The Associated Press. She is based in San Francisco.
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