The Complete Guide to Adding an Extended Car Warranty

When purchasing a car—whether it’s new or used, electric or conventional —having an extended warranty policy can offer peace of mind and financial security against unexpected repair costs. While manufacturer warranties cover up to the first five years of ownership, an extended warranty adds long-term protection once your factory warranty expires. In this guide, we explore the key considerations when adding an extended warranty to your vehicle, helping you choose the best coverage for your needs and budget.

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Why consider extended car warranty?

Adding extended warranty to a new car

Adding extended warranty to a used car

Adding extended warranty to an electric vehicle

How to purchase extended car warranty

Why Consider an Extended Car Warranty?

A car warranty protects you against the high costs of repairs due to mechanical or electrical failures. While a manufacturer’s warranty protects new cars for the first three to five years, an extended warranty protects you for longer, and you can buy a policy up until your car reaches 16 years or 150,000 miles.

Key Benefits of an Extended Warranty

Financial Security – Avoid costly repairs, especially for major components like the engine, battery, gears, transmission or electrical systems. Explore what’s covered on extended warranty.
Increased Resale Value – A car with an active extended warranty is more attractive to buyers. Explore whether extended warranty policies are transferrable
Customisation Options – Choose from different levels of coverage, duration, and claim limits to suit your needs and budget.

1. Adding an Extended Warranty to a New Car

A new car typically comes with a manufacturer’s warranty, which lasts for a set period (usually 3-5 years). Once this expires, you will have to pay for any repairs yourself. An extended warranty comes in handy for when your original warranty is set to expire and you want financial peace of mind for longer.

When Should You Buy an Extended Warranty for a New Car?

Before the Manufacturer’s Warranty Expires – We recommend getting a policy to start 28 days before the end of your factory warranty as many providers have a waiting period to ensure the car doesn’t have any existing faults. This approach gives you seamless coverage during your transition to extended warranty.
Proactiveness Gives you Better Access – Buying extended warranty early gives you better access to comprehensive warranty coverage. You might even save on your insurance premium. Full, Platinum cover from ALA can be purchased up until the car reaches 8 years or 80,000 miles. Additionally, the sooner you start a policy, the higher the likelihood of a like-for-like renewal.

How Much Does an Extended Warranty Cost for New Cars?

The cost depends on several factors, including:

Vehicle Type – High-performance or luxury cars tend to have higher warranty costs. Some of the more unreliable models include the Range Rover Sport, the BMW I8 and the Range Rover Evoque. Explore the top 5 most unreliable cars.
Coverage Level – More comprehensive plans, like ALA’s Platinum policy, offer additional protection but may cost more.
Claim Limit – You can choose your coverage limit from either £2,000, £5,000, or the car’s market value. The higher the claim limit, the higher the policy premium.
Policy Duration – Extended warranties are typically available for 1-3 years, the longer your buy cover for the more expensive the policy. However, you may save money compared to multiple shorter policies.

Read about adding extended warranty to a new car

2. Adding an Extended Warranty to a Used Car

Used cars can be a great investment, but they often come with higher risks of repairs. If the manufacturer’s warranty has expired or is about to, getting an extended warranty can protect you from unexpected costs.

When Can You Get an Extended Warranty for a Used Car?

Right After Purchase – If you’ve just bought a used car without an existing warranty, you can secure coverage immediately for peace of mind. You should consider that some providers have a waiting period to prevent fraud.
After the Manufacturer’s Warranty Expires – Many providers allow you to extend coverage once the original warranty runs out. Aim to have an extended warranty policy start 28 days before your original warranty ends so you have no coverage gaps.
For Older Vehicles – ALA offers warranty coverage for cars up to 16 years old and 150,000 miles—a rare offering compared to other providers.
Cars from Private Sellers – You can cover almost any car under 16 years and 150,000 miles even if you bought it from a private seller.

Where Can You Buy an Extended Warranty for a Used Car?

Manufacturer’s Warranty Extension – Some car brands offer extended coverage but it can be expensive and may not offer the same cover you had before.
Dealership Warranties – These are often offered at the point of sale and although convenient, they can be costly and there are often better warranty policies available online.

Independent Providers – Companies like ALA Insurance provide flexible, insured warranties that often offer better value and broader coverage than manufacturer or dealership options.

Read about adding extended warranty for used cars

3. Adding an Extended Warranty to an Electric Vehicle (EV)

Electric vehicles are known for their efficiency and lower maintenance costs, but repairs—particularly for the battery and charging systems—can be expensive. Making sure your extended warranty policy covers crucial EV parts is essential to avoid expensive repairs.

Types of Extended Warranties for EVs

Manufacturer Extended Warranty
Dealership Warranty
Independent EV Warranty
EV-Specific Warranty

Choosing the Right EV Warranty Provider

With the different options available, deciding on the best option for your EV is essential. Insured warranties offer greater peace of mind because they protect consumer rights. Checking online reviews, testimonials and credentials can be reassuring.

Good customer service, claims handling and zero hidden fees are key features of a trustworthy extended warranty provider. Ultimately, if a policy seems too good to be true, it could be a risky move.

Finally, ensure you check that the component cover includes Ev parts. Read about ALA’s EV cover. Platinum extended warranty is the most comprehensive, covering most EV parts.

Read about adding extended warranty to your EV

How to Purchase an Extended Car Warranty

Enter your car’s registration in an online quote tool to check eligibility and coverage options.
Choose the right policy level, such as Platinum for comprehensive coverage, Gold and Silver policies are great for older cars with over 100,000 miles.
Select the duration (1-3 years) – longer periods ensure the most comprehensive cover for longer.
Pick a claim limit (£2,000, £5,000, or the market value).
Add extras like Breakdown Cover or Keycare if needed.
Buy securely online—with ALA, you can pay in full or via monthly instalments. Warranty policies are available to buy with 0% APR finance.