The transition to Warranties of Software, which rely on centralized computing and software for a majority of their functions—from braking to infotainment—has shattered the traditional warranty model. Where warranties once covered only parts and labor for mechanical defects, they now must contend with intangible failures like software bugs, cybersecurity risks, and the consequences of missed updates.
Traditional vs. SDV Warranty Focus
The increasing reliance on software means that a defect might not be a faulty Warranties of Software, but a corrupted line of code. Determining who is responsible—the OEM, the third-party software developer, or the cloud provider—is a new challenge that warranty terms are rapidly trying to address. This change has put immense pressure on OEMs to evolve their warranty architecture, a trend we will see accelerating in 2025.
The Over-the-Air Warranties of Software: A Critical Obligation
Perhaps the most significant change in the 2025 automotive warranty is the imposition of owner responsibility regarding software updates. OTA updates are a core benefit of the SDV, allowing manufacturers to fix security vulnerabilities, improve performance, and even add new features remotely. However, many automakers are now making the timely installation of these updates a mandatory condition of your warranty coverage.
The 45-Day Deadline: A Growing Industry Standard
Certain major automakers, like General Motors (GM), have introduced clauses in their 2025 and 2026 model warranty manuals that mandate owners install available OTA updates within a specific timeframe—sometimes as short as 45 days from the date of availability.
The critical takeaway: Failure to perform an update within this specified window, which subsequently leads to a failure, could result in a denied warranty claim.
For example, if the manufacturer releases a stability control software patch to prevent a known issue, and you neglect to install it, a subsequent failure of that system might not be covered. This shifts the burden of digital maintenance directly onto the car owner, creating a paradigm shift from traditional vehicle ownership.
The Silver Lining: Manufacturer Liability for Update Damage
Fortunately for consumers, this new clause is typically a two-way street. Most updated warranty documents clarify that if an OTA software update, when properly installed, causes damage or a system failure, that resulting damage will be covered under the applicable warranty period. This offers some peace of mind for owners who worry about the stability of new code being pushed to their vehicle.
Owners must now treat software updates with the same seriousness as an oil change or tire rotation. Ignoring the digital maintenance is now a direct warranty risk.
Understanding the Hardware vs. Software Liability Split
Modern vehicles are a complex mash-up of physical and digital components. Differentiating between a hardware failure and a software defect is increasingly difficult, yet crucial for warranty claims.
Integrated Systems and Shared Liability
Consider an Advanced Driver-Assistance System (ADAS), like automatic emergency braking. If the system fails, is the cause:
The Hardware: A faulty radar sensor or camera unit? (Likely covered under a standard hardware/bumper-to-bumper warranty).
The Software: A bug in the ADAS control module’s code? (Coverage depends entirely on the new software clauses).
The challenge lies in the root cause analysis. Telematics data and onboard logs, which are constantly generated by the vehicle, become the key to resolving disputes. Manufacturers are leveraging this data-driven accountability to pinpoint the exact moment and reason for a failure. This data is what the manufacturer will use to determine if the failure was a manufacturing defect, or an issue stemming from the customer’s failure to update.
Aftermarket Modifications and Third-Party Software
The warranty becomes particularly complicated when aftermarket modifications are involved. If you install an unauthorized performance tune or a non-OEM infotainment app, and a vehicle system subsequently fails, the manufacturer can—and likely will—use the digital logs to prove the third-party software was the cause, thereby voiding that part of your warranty. The Magnuson-Moss Warranty Act still protects consumers, requiring the manufacturer to prove the aftermarket part caused the failure, but the wealth of data in an SDV makes that proof easier for OEMs to acquire.
Cybersecurity and The Warranty Landscape
As SDVs become more connected, the risk of a cyberattack or security breach is a new, serious concern that extends to the warranty.
Manufacturer Obligation for Security
Manufacturers are facing mounting regulatory pressure, such as the UN ECE R-155 regulation, to implement robust cybersecurity management systems in their vehicles. A core aspect of this is the manufacturer’s commitment to releasing patches and security-critical updates throughout the vehicle’s lifecycle.
If a failure or malfunction is directly caused by a documented, unpatched security vulnerability that the manufacturer was aware of but failed to address, the resulting damage should be covered under the warranty. However, this is still a new and developing area of warranty law.
Owner Responsibility for Security
The owner’s role here is to ensure their vehicle is connected and accepts all security-related updates in a timely manner, as per the OTA clause. Furthermore, any unauthorized attempt to “hack” or modify the vehicle’s core software systems for personal gain (e.g., overriding speed limitations or performance settings) will almost certainly immediately void the corresponding system’s warranty coverage and could lead to major safety risks.
Legal and Regulatory Shifts: Consumer Protection in the SDV Era
Warranty law is playing catch-up with the speed of automotive innovation. However, consumer protection is beginning to catch up in critical ways.
Extended Liability for Software
In jurisdictions like the European Union, the revised Product Liability Directive (2024/2853) explicitly extends product liability to software and AI-based products. This means manufacturers are liable for defects in integrated or connected digital services, and this liability can extend beyond the initial sale to cover subsequent updates. This legislation makes it easier for consumers to bring product liability claims related to faulty software and potentially mandates that manufacturers provide warranty-related updates over the product’s typical useful lifespan, regardless of fixed periods.
The Right to Repair and Data Access
The Right to Repair movement is gaining traction, with a key debate revolving around access to the diagnostic data and software tools required to fix modern vehicles. While not a direct warranty clause, policies that restrict independent repair shops’ access to this crucial information may indirectly force consumers back to dealership service centers, even for non-warranty work, thus impacting the cost and ease of vehicle maintenance. As an owner, supporting efforts for data access can lead to a more competitive and consumer-friendly repair market down the line.
Actionable Steps for the SDV Owner
Navigating the new reality of software-defined car warranties requires a proactive approach. Here are six essential steps for any owner of a 2025 model year vehicle:
Read the Fine Print: The Digital Maintenance Clause
Do not assume your new car is covered the same way your last one was. Search your owner’s manual or warranty booklet for terms like “Over-the-Air updates,” “customer responsibility,” and “software failure.” Note any specified timeframes (e.g., 45 days) for installing updates.
Ensure Connectivity and Proactivity
Maintain an active connection (Wi-Fi or cellular) to your vehicle’s system to ensure you receive update notifications promptly. Do not delay installation. Treat the software update notification with the same urgency as a low-fuel warning if you want to maintain your warranty.
Monitor and Log Updates
Keep a personal record of all major software updates installed, including the date and the version number. This simple step can serve as proof of compliance should a warranty claim dispute arise.
Be Wary of Non-OEM Software and Customizations
Avoid installing any third-party software, unauthorized performance chips, or making alterations to the vehicle’s core operating system. The extensive data logs in your SDV make it very easy for the manufacturer to pinpoint such modifications and use them to deny related claims.
Understand What You’re Subscribing To
Many SDVs offer features (like heated seats or performance boosts) on a subscription basis. Clarify the warranty terms for these features. If a subscription feature fails, is it a warranty claim or a service disruption? It’s often both, but the underlying hardware must still be covered.
When in Doubt, Consult the Dealer or OEM
If you receive an update notification that seems unusual, or you are uncomfortable installing it, contact your dealership’s service center immediately. Document the communication. Letting them perform the update on your behalf may be the safest way to ensure compliance and avoid accidental self-voidance of the warranty.
