What is and where to buy extended car warranties – what they are and where to buy them

By Julia Serrao

You’ve made an exciting decision, probably the second-biggest purchasing decision of your life, after buying a house. You’ve decided to buy a car! Whether you are buying a new or used car, the subject of an extended car warranty is sure to come up, but what exactly does this mean?

Extended car warranties - what are they really?

An extended car warranty is not compulsory but is available to you as a consumer, should you choose to purchase additional cover. You needn’t make the decision on the dealership floor, you can “sleep" on it and decide later. However, if you have decided ahead of time, the dealership can often work this into your finance costs. In simple terms, an extended car warranty is like an additional insurance policy you can purchase for your new or used car. This additional cover is there to protect your car against unexpected mechanical or electrical failures, generally those affecting your gearbox or engine. These types of repairs tend to be highly costly and what’s worse, they are usually unanticipated to boot!

Generally speaking, there are three main types of extended car warranties:

Vehicle manufacturer warranties:

These are offered by the OEM’s or Original Equipment Manufacturers. When purchasing your vehicle, you usually have the option to take up the manufacturer’s extended warranty. The benefit of this is that the manufacturer knows better than anyone how to repair mechanical and electrical failures specific to your make and model. Bear in mind that this kind of warranty is mainly offered when purchasing new vehicles. Manufacturer warranties are also known as factory warranties.

Insurance/bank warranties:

Manufacturer warranties expire, however, other providers such as insurance companies offer their own extended warranty products. Hollard offers a product called Motor Xtender; this will cover you even if the manufacturer warranty has expired. This is a great option for you if you are buying or own a used car. An added bonus is that these are often integrated within the car insurance policy. This means if you have your car insurance policy with Hollard, the cost of your premiums may be reduced, as you have an extended warranty in place with the same insurer. Something to certainly think about and enquire when shopping for insurance for your new or used car.

Bespoke warranty companies such as Motorite or SA Warranties:

These service providers offer specialist and custom warranties for your needs, many also work with OEMS and other providers while offering products of their own. Indeed, some also have partnerships with the bigger insurance companies (such as AWP Warranty who have a partnership with Hollard for example). These service providers offer different plans to suit your cover needs. 

All of the above extended warranty service providers will have their own “rules” or requirements for cover. Some only cover cars under 10 years of age, while others will provide cover for cars 15 years and under. Cover also varies, so be sure to read up on and request exactly what is covered by the policy. Shop around and compare to ensure that the plan you choose is right for your needs and those of your vehicle.

So where can you buy extended car warranty?

• At the dealership, you can enquire about OEM extended warranty on the dealership floor, especially when buying a new car.
• With your insurance service provider or bank. Contact your provider and ask them about their extended warranty packages. Don’t forget to find out what a purchase from them will mean for your insurance or car repayments.
• Via a bespoke warranty company such as Motorite, visit their site here for details on the plans they offer, the cost involved and what you are covered for.

As with any cover you purchase, ensure you compare what is on offer. Compare not only the cost but what you will be covered for, should you be in the unfortunate position of needing to claim.