We Are Proud To Recommend Only Products From Australia's Genuine Insurers, Whose Policies, Processes & CLaims Are Regulated & Overseen By The Industry Ombudsmen


Q1. The dealer sold me a warranty when I bought the car, isn’t that sufficient?

While a dealer’s warranty offers comparable protection in the event of service or vehicle repairs, they typically necessitate that such services be done by their service centre. Warranties are only valuable if you can access the benefits when you need them. In the event that the dealer or warranty is no longer in business, you are left with a worthless warranty and no safety net.

In addition, there may come a time when the specified service centre is no longer convenient. If you relocate, it may cost more to travel to the vicinity of the dealer’s service centre than it would to simply pay for your repairs out of pocket. This is why it is in your best interest to consider obtaining a warranty from a mainstream insurer or an authorised agent. Buying a warranty in this fashion ensures that you will receive discount pricing and maintain protection after the dealer’s business ceases.

Q2. All extended car warranties are created equally, so why not just buy the cheapest coverage?

Unfortunately, warranty coverage is not so simple. As with insurance, warranties are available in a variety of types and coverage levels. Therefore, you need to base your decision on more than price alone. To guarantee you are getting the best coverage for the price, review the entire warranty contract prior to your final purchase.

A warranty is your protection from costly repairs and while lower rates may seem better at first glance, the lower level of service and limitations often associated with lower priced policies will force you to pay more out of pocket costs on your claims, surpassing any initial savings you achieved.

Q3. What is an Extended Manufacturer’s Warranty?

This vital protection helps you combat costly, unforeseen repair bills for your car. It is crucial to secure this coverage before your car’s manufacturer’s warranty expires so that you are covered in the event of the mechanical or electrical failure of countless of parts that potentially cost thousands out of your own pocket.

For more information about extended warranties, statutory and manufacturer warranties, as well as how they work and their potential benefits, continue reading.

Q4. What is a Statutory Motor Vehicle Warranty?

Vehicle warranties guarantee the repair of certain problems as long as they occur within a specified time. Buyers are protected by the Trade Practices Act (1974) when they purchase goods, including vehicles, in Australia. The rights that consumers are entitled to are known as statutory rights.

As part of this guarantee, all new cars carry a comprehensive manufacturer’s warranty, which can vary in length by seller, but offers protection for as long as 5 years or 150,000 kilometres. Conversely, the regulations for used cars are not as rigid. While many come with a statutory warranty, the conditions differ between states and depend largely on the age and kilometres of the car. Moreover, the purchase price of the vehicle may affect the warranty conditions in some states, as well.

Q5. What is an Extended Motor Vehicle Warranty?

Extended warranties offer car owners the opportunity to extend their original manufacturer’s warranty for an additional period of time.

Although many extended warranty products can be attained for a variety of prices, each has individual terms, conditions and inclusions. Extended warranty coverage should cover a broad spectrum of mechanical and electrical elements and may even cover roadside assistance. Furthermore, because intimate comprehension of the terms of your extended warranty ensures the best value for the price, be sure to fully read all of the information and request written confirmation of any questions.

Q6. How does an Extended Car Warranty work?

A good quality extended warranty is the key to preventing astonishingly costly repairs from depleting your savings. You can arrange for an extended warranty as early as the day you purchase your car, even if the manufacturer’s warranty is still valid. You will merely set it up to begin as soon as the manufacturer’s warranty expires so there is no lapse in coverage. To prevent an overlap, you will only have to pay for the warranty extension period.

As technology in vehicles improves, repairs become more complex and costly. Not only do the parts cost more, but the cost of labour can quickly compound, driving the cost of a comparatively simple repair into the thousands. However, with the coverage of a warranty, the cost to you will be significantly less and in some cases nothing at all.

Q7. How can I benefit from an Extended Motor Vehicle Warranty?

Quality Extended Warranties offer numerous benefits to car owners:

Secure your investment
With the amount of money that you are likely to pay for your car, it just makes sense to be certain that you are covered against all of the potential electrical and mechanical problems that you could encounter in the future.

It is inevitable that something will go wrong with virtually every car at some point; why pay more than necessary to have it repaired?

Peace of mind
Opt for extended warranty coverage to limit the impact of unexpected major repairs: Do not risk further damage to your car by putting off vital repairs because the financial burden is too much.
Optional roadside assistance coverage with your extended warranty provides everyday certainty.

Choose your coverage; pay for high or low kilometre coverage.
Choose a single upfront payment or easy monthly installments.

Increased resale value
A transferable warranty adds to the resale value of the car because it is a valuable asset to the next owner.

Q8. Is it possible to get an Extended Motor Vehicle Warranty with a Private Sale?
Day One Cover for a used vehicle that is purchased through a private sale can be arranged. If you choose to buy your vehicle privately, but still want protection from the unexpected, request an Extended Used Car Warranty at the time of purchase. Regardless of used or new condition, we have a flexible package that will meet your needs. Not only are our extended warranty packages cost-effective, but they provide the comprehensive defense you want and need.

Q9. Does an Extended Motor Vehicle Warranty restrict where I can have my car repaired?
No. As long as you choose an Authorised Service Centre or a licensed Mechanic who is capable of performing all services in accordance with the Vehicle Manufacturer’s Handbook. However, this provision excludes the use of relatives, even if they are authorised.

Q10. Is an Extended Motor Vehicle Warranty a necessity?
Although you may not utilize the benefits frequently, you still make certain that you have adequate insurance coverage to protect your vehicle from accidents and your home and other assets from damage, loss or theft. However, if you consider the money you have invested in vehicle repairs over the years, the cost is likely considerably higher than any claim on your property. So, why would you not insure your vehicle against electrical or mechanical issues?

Q11. Is an Extended Motor Vehicle Warranty Worth the price?
During the time you own your car, an extended warranty will pay for itself on more than one occasion. In fact, the repair of just one electrical or mechanical problem could cost nearly the worth of a used car, which is considerably more than the price of an Extended Motor Vehicle Warranty. The question is not can you afford the warranty, but can you afford the cost of not having it?

Q12. Does an Extended Vehicle Warranty offer Double Warranty Coverage?
Extended vehicle warranty coverage is, as it sounds: a way to extend the factory warranty. When you request a price quote, the factory warranty if already figured in. In addition, many people erroneously assume that if they delay the purchase of an extended warranty, it will cover the vehicle for a longer period of time. However, since there are numerous factors involved in calculating the cost of the warranty, this line of reasoning is not rational and may actually cost you more.

Two key issues that increase the cost of a warranty are the car’s age and mileage. Thus, the best deals, such as longer terms and lower rates will be offered for newer vehicles that have lower mileage. In fact, the longer you have remaining on your original factory warranty, the better off you are in terms of comparison shopping; you are securing the current price for coverage in the future.

Q13. Do lapses in scheduled maintenance impact the warranty?

It is crucial to maintain your vehicle so you can extend its life and prevent many costly repairs later. As such, vehicle warranties do not provide coverage for repairs stemming from insufficient maintenance. You will still need to follow the manufacturer’s service guidelines as recommended in your vehicle’s owner’s manual. If it is suspected that a problem has developed due to inadequate maintenance, you will need to verify that scheduled maintenance and service have been carried out properly, or your claim could be delayed or even denied. So, it is important to keep a detailed log of maintenance, including records and receipts.

Q14. Will the act of towing a caravan or trailer affect my Warranty coverage?

Most vehicles are engineered to withstand a certain towing capacity. Therefore, as long as you properly follow the towing guidelines in your owner’s manual and do not exceed the vehicle’s specified limits, you will be covered. However, it is important to use due care when towing and the safest, most effective way to tow is with the appropriate towing gear for your vehicle.

Q15. Can car modifications void my Extended Car Warranty?

While the specific modifications will not be covered under your warranty, all of the original components will still be covered, as long as they have not been affected or damaged by the modifications and the alterations do not defy the manufacturer’s specifications or employ non-genuine or after-market parts and accessories.

Q16. Do I need to get my Extended Car Warranty directly from the original dealer who sold it to me?

No a genuine extended warranty is able to be purchased from any authorised agent when purchasing a vehicle. However don’t leave it until after you have purchased the vehicle, especially when buying a used vehicle. If you have found and decided on a vehicle you like, make sure you contact an authorised warranty agent to finalise and ensure warranty is available for that vehicle under that method of purchase transaction.

Buying from auctions, private sales etc all have different rules around when warranty needs to be one the vehicle or can be given to the vehicle. If you are thinking of purchasing contact your authorised agent first to tailor a warranty solution to suit your needs.


Warranty & Insurance is wholly owned and operated by CoverU Pty Ltd (ABN 19164789593). CoverU Pty Ltd arranges insurance as an authorised representative of the insurers; Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708; Eric Insurance Limited (Eric) ABN 18 009 129 793 AFSL 238 279 and Australian Warranty Network (ABN 78 075 483 206) AFSL: 246469.

Get a Quote

Terms and Conditions
Happy customer

View All
Recent Posts
Should I Buy a Used Car Without a Warranty?

August 9, 2017

The main attraction of buying a used car privately is that the initial cost is usually less than buying a

buying new vs used cars infographic
Points To Consider When Buying New vs Used Cars [Infographic]

February 16, 2017

Choosing between buying a new and used car isn’t as clear cut as you might first think. To get the

Who Pays For My Tyre And Rim Damage After Hitting A Pot Hole?

January 16, 2017

As well as being dangerous, pot holes can cause significant damage to your car’s steering, tyres and rims.  If you