Warranty
A warranty is a term of an insurance contract that must be strictly adhered to. In car insurance a warranty is a promise (or undertaking) to comply with a specific condition. Failing compliance of a warranty is very serious as it could invalidate the policy. A warranty is a common law principle that gives the insurer the right to cancel a contract, no matter how big or small the breach was.
As an example, your car insurance company promise to give you a discount on your monthly premium provided that your car is fitted with a tracking device. You are also responsible to ensure that the tracking device is in good working order at all times. If you fail to carry out the stipulation of the warranty the insurance company has the right to repudiate your claim should your car be stolen. This is called a promissory warranty – something the insured party must do or refrain from doing.
An affirmative warranty is giving a statement of fact. An example: You, as an insured, warrants (or promises) that all the information you have provided regarding the car insurance contract is correct.
A new car warranty is the promise, or guarantee, given by a car manufacturer for a certain period or condition (a specific number of kilometres travelled) during which time the car will be repaired free of charge.