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What is an extended car warranty?

An extended car warranty is an insurance policy that covers the cost of your car’s wear and tear for a set period.

It guarantees that the car you have bought is in good condition. If it isn’t, the extended warranty provider covers the repair costs for parts and labour linked to the car’s general mechanics. Even if you have breakdown cover, car warranty insurance could still be useful.

When you buy a new car, it comes with a standard manufacturer’s warranty, which tends to last between three and seven years. Once it ends, an aftermarket warranty, also known as an extended warranty, to continue your cover.

You can get an extended car warranty from the manufacturer when you buy a new car. If you purchase a used vehicle, you can get a used car warranty from another provider.

Types of warranty insurance

There are many different types of extended warranties. It’s important to find a policy that fulfils your needs.

You could look at:

What’s included with extended warranty car insurance?

Depending on the level of cover you have, your policy usually includes repairs to your:

It’s important to check the claims limit. This is the most an insurer pays if you make a claim. You can check exactly what’s covered here.

The best car warranty policies include extra features such as hire car cover while your car is being repaired, or breakdown recovery. Extras can push up the cost of your premiums, though.

What an extended car warranty covers

What’s not covered by your extended warranty?

Every policy is different, but most exclude:

All extended car warranty policies include an insurance product information document (IPID). This is a simple two-page document that gives clear information about all levels of cover, restrictions and exclusions. Check your policy terms to get full details on all the benefits and limitations.

Do I need car warranty insurance?

Perhaps your new car warranty is coming to an end, or you might be thinking about taking out a used car warranty. Either way, you can save money and reduce worry with an extended car warranty. But it’s important to check exactly what’s covered. You might think it’s not worth it if certain things are excluded. 

Is car warranty insurance worth it?

How to find the best car warranty insurance

It’s a good idea to shop around and find a policy that meets your needs. 

First, check the labour rate. That’s the maximum amount the extended warranty provider pays towards labour costs if your car ends up in a garage. Also, see what the age and mileage limits are on the insurance you’re considering.

Then consider: 

Compare policies which offer the level of cover you need, then select the package with the best price.