Extended car warranty insurance
Want help covering the cost of mechanical or electrical repairs? Extended car warranty insurance can help.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
In Australia, all new cars come with a manufacturer's warranty, which helps cover the cost of any defects, as well as certain mechanical and electrical repairs, within a set period.
Some brands have longer warranties than others but usually they last 5 - 7 years or until the car has been driven 100,000km (unlimited kilometres for some brands), whichever comes first.
But what about when that manufacturer's warranty comes to an end?
Well, extended car warranty insurance can help, giving you a similar level of protection, for a longer period of time.
This guide will help you understand what's typically covered by extended car warranty insurance in Australia and how much you can expect to pay for a policy.
We also explain some pros and cons, so you can make a more informed decision about whether it's right for you.
What does extended car warranty cover?
Extended car warranties typically cover what was included in the original manufacturer's warranty, for a longer period of time. The exact details will vary between different car brands and insurance companies, but some common features include:
- Repair of covered parts
- Replacement of covered parts
- The cost of towing
- Accommodation expenses
- Vehicle rental costs
- Locksmith services
As there are differences between specific brands and insurers, it's really important to read both your original manufacturer's warranty, and the product disclosure statement of your extended car warranty, to be sure of the details. If you're unsure about anything, ask the insurer.
Compare car warranty insurance policies
What isn't covered by car warranty insurance?
Not all repairs are covered by car warranty insurance. One important factor to be aware of is that an extended car warranty isn't a replacement for car insurance. It doesn't cover any costs associated with a car accident, hail damage, fire or theft.
The specifics will be detailed in your original manufacturer's warranty and the subsequent extended car warranty policy, but some common exclusions are:
- Certain parts and components aren't covered
- Any mechanical or electrical issue that was due to damage, rather than a fault
- Damage which is the result of a crash, impact, fire or theft
- Consumable items such as oil, lubricants and coolant
- Mechanical failure caused by neglect or misuse
- Mechanical failure if you don't service or maintain your car
- Repairs to modified components of your car
- Parts that frequently require replacement, including spark plugs, brake pads and batteries
- Any repairs that are required after the set period, or kilometre limit, set out in the policy
How much does extended car warranty insurance cost?
The price of an extended car warranty can vary from hundreds of dollars to thousands of dollars, depending on the type of car and length of warranty.
To find out exactly how much an extended warranty would be for your car, it's best to speak to an insurer directly. You can compare benefits on this page, and request a quote from one of our partners.
Is extended car warranty insurance worth it?
When deciding whether car warranty insurance is right for you, you should consider the benefits and weigh them against the costs. Some other points to think about include:
- Inherent defects. Is your car known to frequently have inherent defects? More than half of all Australians have car problems within a few years of buying, and most of them go right back to their dealer first.
- Replacement costs. Is your car known to have expensive parts or be difficult to repair? If so, extended car warranty insurance may be worth considering.
- Driving habits. How quickly will you hit the kilometre limit of your warranty? If you're driving significantly more than the average person, your warranty might not cover you for long.
More guides on Finder
RelayPay cryptocurrency card and app
FInd out about how RelayPay works, what cryptos and fiat currencies it supports, the fees for using it and safety information.
Business car loans
If you're after a business car, compare your vehicle finance and car loan options and get your business on the road.
2021 MG ZS Review
It seems the ZST is really a jack of all trades kind of car. It looks good, is specced well, drives nicely and is acceptably practical.
2021 MG HS Plug-In Hybrid Review
After launching its first fully electric vehicle, MG has launched what it believes to be a good compromise: the MG HS Plug-In Hybrid.
Find out about the different types of warehouse storage solutions, how much they cost and where to find them.
How to find the best car storage facility to keep your set of wheels safe and secure.
BMW X7 car insurance
Thinking about buying a BMW X7? See average car insurance costs and find out about prestige car insurance
Bentley Continental car insurance
Learn about insuring a Bentley Continental with a prestige car insurance broker
Porsche 911 car insurance
Want to insure a Porsche 911? Here are things we think you should know.
Mercedes-Benz G-Class luxury car insurance
Find out about how to insure the luxury Mercedes-AMG G 63 4x4 SUV.
Ask an Expert