New cars come with a manufacturer's warranty that covers most major problems for anything from three to seven years. But what if your car – whether buying a sought-after used car, or keeping a well-loved car – is out of warranty?
An aftermarket extended warranty can offer extra peace of mind once a car's manufacturer warranty has lapsed, covering the potentially expensive cost of any major mechanical problems or mishaps. So, should you consider one if you're looking to extend your cover on your car? We've partnered with ALA Insurance to tell you everything you need to know.
What is an aftermarket extended warranty?
An aftermarket extended warranty is an insurance policy designed to cover the cost of mechanical repairs for your car, should anything go wrong. It's a way of protecting your much-loved investment from mechanical mishaps, rather than accident damage or theft. Like all insurance policies, however, you tend to get what you pay for – and the caveats and exclusions can be extensive.
Aftermarket extended warranties – also sometimes known as mechanical breakdown insurance, or MBI – are offered from a variety of providers and come in three forms.
First are the extended warranties offered by many car manufacturers as an extension of the original manufacturers’ warranty. These can be bought as an add-on when the car is new, or purchased before the original warranty runs out.
Secondly, there's a wide range of extended warranties available from independent providers. Finally, the big car supermarkets and used car dealers frequently offer their own aftermarket warranties, which can range in cover from just a few weeks to 12 months.
What does an aftermarket warranty offer?
Each policy is different, but generally a warranty should protect you against the failure of large components such as the engine, transmission, electrics, steering and suspension – but not consumables subject to normal wear and tear.
Aftermarket warranties usually let you pick the level of cover you want, with the cost depending on the car, its age and your annual mileage. But whichever policy you choose, make sure you understand what is and isn't covered.
What do you need to think about?
Once you know what kind of cover you want, make sure you read and fully understand the policy information. If you don't understand what is and isn't covered, you could be setting yourself up for nasty surprises should something go wrong. It’s also important to find out if labour costs are included and if they are, are they capped at a fixed upper level?
Once you've bought your warranty, make sure you follow the rules. That usually means abiding by the provider's service and maintenance schedule, not modifying the car and – as likely as not – steering clear of track days.
Add your comment