Like any other form of insurance in life, car warranties are there to give you peace of mind if the worst should happen or something goes wrong.

When you buy a new car, you will be offered a warranty on the vehicle, usually somewhere between three and seven years. Not only will you be feeling safe driving a brand-new car, but you’ll also have the added benefit of knowing you are covered for a while.

That being said, what about if you buy a second-hand vehicle? Will you get a warrant with that too? Luckily there is such a thing as an extended car warranty that will keep you covered for longer.

The different types of warranty

First things first, we need to talk about what exactly a car warranty is. To break it down, a car warranty is a form of insurance deal between you, the driver and either the warranty company or the vehicle manufacturer.

In essence, you are paying the warranty to cover the repair of any systems, as well as the costs of parts and labour. If you’re considering an extended warranty, there are three types to consider:

Manufacturer’s Warranty – When you buy a new car from a dealership, you will be offered your typical warranty, plus the option to extend it with a manufacturer’s warranty. This is basically an extension of the original warranty that you can purchase at the time of buying or during the period of the original warranty being valid.

Independent warranty – If you want to do some research to find a better deal, you can also look at extended warranties from independent providers. Several private companies will offer their own form of extended warranty to save you money or give you better perks.

Dealership warranty– if you are purchasing a second-hand car from a dealership or car supermarket, they might offer their own extended warranty policy. These policies come in different lengths and could be worth discussing when you go to purchase a vehicle.

What should an extended warranty cover?

Before purchasing an extended warranty, it is essential to know what exactly you should be covered by so you aren’t getting caught out if something does go wrong.

Most insurance policies generally have a similar standard; you will be covered for large parts of the vehicle that could have an unexpected failure, such as the engine.

However, general wear and tear, such as changing the Oil Catch Can, aren’t offered covered. In-regard to extended warranties, you can choose to pay more depending on how much you want to be covered like most insurance policies.

The policy’s costs will vary depending on the level of cover you desire, along with the age of the vehicle and what your annual mileage is. Basic policies often cover the engine’s failure, electrics, steering and suspension, but it is important to note what isn’t covered in your policy.

Things to consider…

If an extended warranty is something that you want to consider purchasing, you’ll need to do your homework beforehand. You will have to think about what exactly it is that you want to be covered and how much you are willing to spend, from here you can choose what the best policy is for you.

One of the best ways to do so is through price comparison websites.

When you’re choosing a warranty, it is also important to look at the terms and conditions to fully understand what is expected of both parties. For example, if you have told the company how many miles you do, your warranty may be cancelled if you exceed this number. Likewise, you need to be aware of what isn’t covered under warranty, so you aren’t hit with a nasty bill if something goes wrong.