Short answer
A manufacturer's or seller's warranty that comes with the product is halal: it is part of what you paid for. A separately bought extended warranty or protection plan is questioned by many Hanafi muftis, because it works like insurance: you pay a fixed fee for an uncertain payout. A service plan for set maintenance is allowed.
A warranty included in the sale is a lawful condition that custom accepts. A paid extended warranty that only pays for repair or replacement if something goes wrong is treated by many contemporary Hanafi muftis like conventional insurance, so it is avoided unless required. A plan that buys definite services, such as scheduled servicing, is a valid hire contract.
The four schools agree on this.
Explanation
There are three different things sold under the name "warranty":
- Included warranty: the manufacturer or shop promises to fix or replace a faulty item for a period. This is a condition of the sale, the price already covers it, and custom accepts it. It is halal.
- Paid extended warranty or protection plan: you pay extra, often to a third-party insurer, and they pay for repairs only if something breaks. If nothing breaks, you get nothing. This has the same gharar as insurance, and many Hanafi muftis say to avoid it.
- Service plan: you pay for definite services, such as two services a year or a battery replacement. That is ijarah, payment for known work, and it is halal.
Some scholars are more lenient when the seller itself offers the extended warranty with the product at the time of sale, treating it as part of a single price for a product with longer cover. Others see no difference. Because of this disagreement, the safe course is to rely on the included warranty and your legal consumer rights, and set aside money for repairs yourself.
If a phone contract, car deal or lease requires a protection plan, it falls under the same allowance as other required insurance. See Is insurance haram? and What is gharar? Branded protection plans should be judged by their actual terms.
Ask a mufti about your own case. This answer explains the general ruling. When the details of your situation matter, as they do here, ask a qualified mufti and give them the full facts. Where to ask a scholar.
The evidence
Quran, Surah Al-Maaida 5:1
بِسْمِ ٱللَّهِ ٱلرَّحْمَٰنِ ٱلرَّحِيمِ يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ أَوْفُوا۟ بِٱلْعُقُودِ ۚ أُحِلَّتْ لَكُم بَهِيمَةُ ٱلْأَنْعَٰمِ إِلَّا مَا يُتْلَىٰ عَلَيْكُمْ غَيْرَ مُحِلِّى ٱلصَّيْدِ وَأَنتُمْ حُرُمٌ ۗ إِنَّ ٱللَّهَ يَحْكُمُ مَا يُرِيدُ ﴿١﴾
O you who have believed, fulfill [all] contracts. Lawful for you are the animals of grazing livestock except for that which is recited to you [in this Qur'an] - hunting not being permitted while you are in the state of ihram. Indeed, Allah ordains what He intends.
A seller must honour the warranty he gave.
Quran, Surah An-Nisaa 4:29
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍۢ مِّنكُمْ ۚ وَلَا تَقْتُلُوٓا۟ أَنفُسَكُمْ ۚ إِنَّ ٱللَّهَ كَانَ بِكُمْ رَحِيمًۭا ﴿٢٩﴾
O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allah is to you ever Merciful.
Payments should buy something definite, not a chance of a payout.
Sahih Muslim 1513
Sahih... نهى رسول الله صلى الله عليه وسلم عن بيع الحصاة وعن بيع الغرر ...
"The Messenger of Allah forbade the pebble sale and the gharar sale."
Paying for an uncertain payout is the concern with extended warranties.
Where the ruling is recorded
- Radd al-Muhtar (Ibn Abidin), Kitab al-Buyu', on conditions accepted by custom (shart muta'araf). Conditions that custom accepts do not spoil a sale.
- AAOIFI Shari'ah Standards, Standard on Islamic insurance. Why commercial insurance is not permitted.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.