Warranty vs Insurance: What You Need to Know
Legal warranty, dealer warranty and insurance warranty: three different tools. Learn the differences and which one to choose.
Legal warranty in Switzerland (Art. 197 CO)
The legal warranty in Switzerland is governed by the Code of Obligations (Art. 197–210 CO). It covers hidden defects present at the time of delivery.
- Duration: 2 years from delivery (new), often reduced to 1 year for used
- Coverage: only hidden defects present at the time of sale
- Burden of proof: the buyer must prove the pre-existing defect
- Contractual exclusion: possible for used cars ("as seen")
- Remedies: repair, price reduction or contract termination
- Not covered: normal wear, post-sale failures
Dealer warranty (commercial warranty)
The dealer warranty is offered voluntarily by the seller and goes beyond the legal warranty.
- Optional: offered as added value by the dealer
- Duration: typically 3–12 months, sometimes extendable
- Coverage: defined by contract, can be limited or extensive
- Advantage: dealer handles repairs directly
- Limitation: often valid only at that specific dealer
- Caution: read exclusions carefully
Insurance warranty (extended warranty)
The insurance warranty is underwritten by a specialised insurance company (Allianz, Helvetia, Zurich, etc.).
- Underwritten by FINMA-regulated insurers
- Duration: 12–36 months, renewable
- Coverage: from Base (engine/gearbox) to Premium (everything)
- Transferable to the new owner on resale
- Valid throughout Switzerland and Europe
- Workshop choice: free between authorised and partner workshops
- Fast claims handling with dedicated hotline
Direct comparison: which warranty to choose?
The choice depends on your specific situation.
- Limited budget → legal + dealer warranty (included in price)
- Standard protection → insurance Base (engine + gearbox)
- Full protection → insurance Premium (everything)
- Resale planned → transferable insurance warranty
- New/recent car → manufacturer warranty + insurance extension
- High-mileage car → insurance Plus or Premium (high risk)
- Our advice: combine legal + insurance for maximum protection
FAQ
Not sure which warranty to choose?
Our experts guide you between legal, dealer and insurance warranty to find the right protection.