What you need to consider before buying extended car warranty

If your original manufacturer warranty is coming to an end, there are a few things to consider and questions to ask before extending your policy. How long is your warranty valid for? What’s covered? And what extras are included. If you want to save yourself the stress from paying out-of-pocket for major repairs, then it would make financial sense to take out a policy that is best suited to you.

Motor Tip: Everything You Need to Know Before Taking Out an Extended Car Warranty Policy

There will come a time when you will be asked whether or not you would like to extend your car warranty. In fact, if you’re planning to sell your vehicle and you still have a few months left, some believe it’s a good idea to sell with warranty left on the car to maximise its resale value. However, if you plan to keep your vehicle for the next few years or you’ve bought a pre-owned vehicle that doesn’t have car warranty, you’ll want coverage in case something goes wrong.

Take a closer look at the fine print

It’s your responsibility to ensure you understand and note the important details of your policy, just as it is the provider’s responsibility to include them all. Just to name a few, this includes things like when the vehicle should be serviced, payment terms, what is covered, and what factors may void the contract

Check the service history and intervals of the vehicle

In the event you’re buying a car, you should check the service history of the vehicle to determine if it’s due for a service or not.  Has it kept its regular servicing on time? Are there gaps? Will I be eligible for a policy? One way to safeguard yourself is by checking the intervals, whether it’s every 10 000 km or 15 000 km or term, whichever comes first.

The provider might not cover the total cost

Even though warranties are there to financially assist you when your vehicle breaks down. Depending on the provider, chances are that the claim you make for replacements and labour might have to be covered in full (rarely the case) or partial payment will be covered by the warranty. Be sure to check with your chosen provider whether or not you have to pay the difference after costs are covered.

Only one claim can be made per incident

When it comes to filing a claim on your Extended Car Warranty, it’s important to understand the limitations of what can be claimed. For example, if you file a claim for a repair or replacement of CV joints, you may not be able to submit another claim for a different part under the same warranty for that particular repair period.

In other words, Extended Warranties often restrict the number of claims you can make within a given period of time. As a result, if you need multiple repairs, you may need to prioritise which needs to be addressed first or possibly pay for additional repairs not covered by your warranty.

A car warranty isn’t a maintenance or service plan

The coverage provided by every car warranty is intended to address electrical failures and mechanical breakdowns, not routine maintenance. To be eligible for a warranty, you need to have your car serviced regularly, and you shouldn’t wait until something goes wrong before doing so. If you require upkeep or replacements of parts, it would be best to look at a comprehensive maintenance or service plan.

Know what voids your car’s warranty

What’s considered a ‘no-no’ to providers?

• Performing repairs yourself or using an unauthorised workshop.
• Failing to follow regular services.
• History of road accidents.
• Misuse of your vehicle.
• Any modifications.

Comparing warranty policies and quotes through MotorHappy

Taking out an Extended Warranty policy for your car is the best way to guarantee its reliability and quality. It provides financial security, ensures high-quality repairs, offers valuable additional services, increases resale value, and encourages regular maintenance. All of which contribute to a safer, more reliable, and well-maintained vehicle.

Comparing policies and quotes through MotorHappy is the most efficient way to make sure you are getting the best deal.

Choose an Extended Car Warranty through MotorHappy today.