{"menuItems":[{"label":"What does extended car warranty cover?","anchorName":"#what-does-extended-car-warranty-cover"},{"label":"What isn't covered by car warranty insurance?","anchorName":"#what-isn-t-covered-by-car-warranty-insurance"},{"label":"How much does extended car warranty insurance cost?","anchorName":"#how-much-does-extended-car-warranty-insurance-cost"},{"label":"Is extended car warranty insurance worth it?","anchorName":"#is-extended-car-warranty-insurance-worth-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.
Finder does not currently have access to any Extended Car Warranty Insurance brands.
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.
Why you can trust Finder's car insurance experts
We're free
You pay the same as buying directly from the car insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of car insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 330+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of car insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 300,000+ people find car insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Nicola Middlemiss is a contributing writer at Finder, with a special interest in personal finance and insurance. Formerly a business and finance journalist, Nicola has written thousands of articles helping Australians better understand insurance and grow their personal wealth. She has contributed to a wide range of publications, including Domain, the Educator, Financy, Fundraising and Philanthropy, Insurance Business, MoneyMag, Mortgage Professional, Yahoo Finance, Your Investment Property, and Wealth Professional. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
