FAQ(Frequently Asked Questions)


Q1.   I can rely on the warranty the dealer sold to me, can’t I?

Some car warranties, sold by car dealers require you to have your repair work done by the dealer at their service cente. What do you do when the dealer or warranty goes out of business, and you’re left holding a useless warranty? You can be left without a safety net when your local dealer closes their doors . We often hear about people who bought a dealercar warranty at the dealership only to discover that they can’t make a claim against the warranty when the dealer is no longer in business. You are better off buying from a mainstream insurer or one of their authorized agents who can discount the pricing and ensure that if the dealer does go belly up you can still claim against your warranty. Another problem is that if you decide to move to another location you either have to make the long trek back to the dealer to attempt to get repairs done. What if you want to move interstate… you might as well just burn you money if you are too far away to make a claim.

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Q2.   Aren’t all extended car warranties the same; shouldn’t I just buy the cheapest coverage?

Nothing could be further from the truth. There are many different types and levels of coverage. Without the knowledge of how an extended warranty actually works, price is the only thing one can base a decision on. You should insist on reviewing the actual warranty contract before you purchase.

Buying a warranty is all about transferring your risk of costly repairs and having your claims paid. Low prices may look good up front but they are often coupled with low levels of service and many restrictive contract clauses which will lead to many out of pocket costs for you on each claim, especially clauses that include “parts may be used or recycled”

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Q3.   What is an Extended Manufacturer’s Warranty?

An Extended Vehicle Warranty can help you avoid large, unexpected repair bills and help you to protect one of your biggest investments – your car. Securing extended warranty coverage before your car’s manufacturer’s warranty runs out means that you’re covered for the mechanical or electrical failure of thousands of parts – repairs to which could cost thousands without cover.

Read on to find out more about manufacturer and statutory warranties, what an extended warranty is, how they work, and the potential benefits of an extended warranty as a car owner and as a private seller.

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Q4.   What is a Statutory Motor Vehicle Warranty?

A vehicle warranty is a guarantee that your vehicle will be repaired if certain problems occur during a fixed period of time. The Trade Practices Act (1974) protects buyers when they purchase goods in Australia, including vehicles, entitling purchasers to certain basic rights. These rights are known as statutory rights.

Additionally, all new cars come with a comprehensive manufacturer’s warranty, although the length of the warranty period varies in terms of kilometres driven and vehicle age – up to 150,000 kilometres or 5 years in some cases.

Used cars bought from a licensed motor vehicle dealer may also come with a statutory warranty. The conditions under which a statutory warranty is required by law vary by state, and depend on the age of the car and the kilometres it has travelled done. Warranty conditions are also be affected by the purchase price of the vehicle in some states.

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Q5.   What is an Extended Motor Vehicle Warranty?

An extended warranty gives you the chance to extend your original manufacturer’s warranty for an additional period of time.

There are a range of extended warranty products available at a range of different prices, but each of these warranties also comes with different conditions and inclusions. Ideally, your extended warranty coverage should cover a wide range of your vehicle’s components for mechanical and electrical failure. Other services such as roadside assistance may also be available.

Tip: It’s important to fully read and understand the terms of extended warranty coverage to ensure value for money, and confirm any queries in writing.

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Q6.   How does an Extended Car Warranty work?

A good quality extended warranty is your insurance against the cost of potential future repairs and labour. Extended warranty coverage can be arranged at the time of purchase when you arrange your car’s finance and insurance cover, or at any stage while the manufacturer’s warranty is still valid. Your extended warranty begins when your manufacturer’s warranty ends, so there’s no overlap – you only pay for the warranty extension period.

As vehicles become increasingly complex, with sophisticated computer-assisted driving aids and high-performance engineering, repairs are also less simple. Labour hours quickly mount up, not to mention parts. Before you know it, the cost of fixing the cause of one small warning light can quickly run into the thousands.

A good quality extended warranty product will protect thousands of your vehicle’s components from mechanical and electrical failure with only a minimal – or even zero – excess payable.

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Q7.   What are the benefits of an Extended Motor Vehicle Warranty?

High quality Extended Warranty cover offers a number of benefits for car owners and drivers:

  • Your investment protected – know that your car is covered for a wide range of mechanical and electrical faults with little or no excess to be paid.
  • Peace of mind – opt for extended warranty cover to limit your exposure to unexpected major repairs.
  • Cover for drivers like you – pay for high or low kilometre cover – it’s your choice.
  • Payment flexibility – make a single upfront payment or pay in easy monthly instalments.
  • If you decide to sell your vehicle privately with a transferable warranty – you can add to the resale value.
  • Rely on roadside assist – select optional roadside assistance with your extended warranty for everyday certainty.

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Q8.   Can I get an Extended Motor Vehicle Warranty on a Private Sale?

ENCW can arrange Day One Cover for used vehicle purchased via a private sale. If you have found the car of your dreams privately & you want to protect yourself from any unforeseen mechanical problems, secure an Extended Used Car Warranty at the time of purchase.Whether you buy a new or used vehicle, we have flexible packages to suit your needs. Our extended warranty packages are cost-effective and provide extensive protection for you and your car.

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Q9.   Can I have my Car serviced anywhere under an Extended Motor Vehicle Warranty?

Yes provided, you use a licensed Mechanic or Authorised Service Centre that is able to perform services in line with the Manufacturer’s Handbook. Exclusions do include having relatives service your vehicle, even if authorised.

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Q10.   Do I need an Extended Motor Vehicle Warranty?

You insure your car for accidents & you insure your house and contents, why wouldn’t you insure for mechanical breakdown? If you consider how many times you claim against your accident insurance & your home & contents, then consider how many times you pay for repairs to your vehicle & how much you pay each time then, you should consider an Extended Motor Vehicle Insurance.

If you plan to keep your new car for more than three years or drive further than 100,000kms we recommend you consider an extended warranty for your new car. This warranty will protect you against any unplanned repairs that may occur due to mechanical or electrical failure.

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Q11.   Is an Extended Motor Vehicle Warranty Worth it?

From my own personal experience I had a water pump replaced on my V8 Commodore, with a repair cost of $1000, a diff replaced for another $1000, a clock spring, electronic aerial, a wheel bearing & a strut all under an extended motor vehicle warranty. For the initial cost of the warranty against the repair costs, I am way in front & I still have coverage for any additional repairs that I may need.

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Q12.   Double Warranty Coverage?

Extended vehicle warranty coverage is just an extension of the factory warranty, not double coverage. The manufacturer’s warranty has been factored into your price quote.

A frequent misunderstanding is that by holding off buying an extended warranty, you will get coverage for a longer time.

That doesn’t work though, because the cost for a car warranty will increase as the car ages and mileage adds up.

You will be offered the longest terms and the lowest rates for newer vehicles with lower mileage.

The more factory warranty you have remaining, the lower the cost and greater the length of the warranty extension. In other words, you are paying for tomorrow’s coverage at today’s rates.

Insist on seeing the policy before you buy it.

In fact, get an extended vehicle warranty quote before you go to the dealer, and then compare.

Car dealers make a big markup above what they pay for extended warranty contracts. One study found that among a sample of contracts it examined, backed by a major manufacturer, 92 percent of the customers paid at least $200 above dealer cost, 24 percent paid at least $600 above dealer cost, and three percent paid at least $900 above dealer cost.

Your best option is to bypass the middleman and buy your warranty direct from a dependable extended vehicle warranty company online. By doing this you will save a lot of money and may well get a much better car warranty.

We will email you a PDF file of the warranty for you to review.

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Q13.   If I leave it a lengthy time between services will this impact my warranty?

Regular scheduled servicing is vital to maintain the performance of your car. You should always follow the recommended service intervals as outlined in your vehicle Warranty & Service Handbook, including any additional service requirements that your vehicle may need. Your Extended warranty does not cover damage caused by inadequate maintenance. Cars still need proper maintenance, as outlined in your vehicle’s owners manual. Be sure to keep accurate maintenance records and receipts. To neglect this responsibility to your car may not only jeopardize your claims getting paid, but will also put your investment at risk.

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Q14.   Does Towing a Trailer or Caravan affect my Extended Car Warranty?

Your motor vehicle is engineered to deliver excellent towing performance. So, naturally towing a caravan or trailer is covered by the Extended Car warranty as long as you follow the procedures recommended in the Owners manual and don’t overload your vehicle. The safest way to tow anything is to have your car fitted with Genuine towing equipment, only tow loads that are within the towing capacity of the vehicle and tow bar (including the towball download) and be a cautious, considerate driver. Remember, towing a caravan or trailer can have an adverse effect on the stability, safety, and operating economy of your vehicle. For further information refer to your State Motoring Authority.

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Q15.   Will my Extended Car Warranty become void if I modify my car?

Extended Motor Vehicle Warranties will continue to apply to original components of the vehicle providing they have not been altered from the manufacturer’s specification or impacted by the modifications. Also, the Warranty will continue to apply if your vehicle is fitted with Genuine Parts and Accessories. However, any damage resulting from non-genuine modifications will not be covered.

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Q16.   Can you only buy an extended motor vehicle warranty from the dealer who sold you the car?

Most car dealers are middlemen who make their highest commissions on the financing and extended warranties they sell. They are going to want you to purchase your warranty from them when you buy your car, so it can be included with your financing. Finance charges can increase the overall warranty cost by hundreds, or even thousands of dollars. You should try to buy your warranty direct from the source or an agent who can offer different warranties to suit your needs, if you can. Why not look for the best price for the extended warranty, just like you did on your vehicle?

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