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Comparing manufacturer warranty and extended car warranty

30 January 2024

Written by Simon England

|  5 Minutes

All new cars come with a factory warranty to cover car faults, usually lasting for between three and five years. After it ends, you’re potentially vulnerable to an expensive repair if parts fail suddenly. Many people buy extended car warranties to cover them for longer.

If the factory warranty on your car has ended or you have bought a used car which is not covered by a warranty, a used car warranty policy is helpful for additional peace of mind while driving. Learn the difference between a manufacturer warranty and an extended warranty and whether it’s worth buying an extended warranty from your car’s manufacturer.

Is a factory warranty or extended warranty better?

The two main types of car warranty you’ll encounter in the UK, are factory warranties and extended warranties for when your original warranty expires. In any case, a car warranty covers the repair cost of unexpected mechanical or electrical vehicle faults, so you aren’t faced with a considerable repair bill.

Your car’s manufacturer issues a warranty, as standard, to cover the initial ownership period of a new car. It usually lasts three to five years, yet, you’re still vulnerable to an expensive repair – after the standard warranty expires – if components suddenly fail.

You can buy an extended warranty from your manufacturer or a third-party provider. It covers component failures after the initial car warranty coverage ends. By opting with an independent warranty provider, you can find the best-value coverage and customisable plans to suit your needs and budget.

Comparing a factory warranty and extended warranty

Factory warranty

Extended warranty

Covers initial 3-5 years of new car ownership

Covers vehicles for 1-3 years after the initial warranty expires

Included as standard

Available to buy from manufacturers or third-party providers

Non-renewable

Renewable coverage (subject to eligibility)

Non-flexible coverage

Flexible coverage options available

Are extended warranties worth it?

You’re much more likely to break down than get into a car accident. However, comprehensive car insurance is widely used and accepted, Meanwhile, warranty continues to divide opinions. After your manufacturer warranty coverage expires, and you could face expensive repairs if something goes wrong with your vehicle. ALA offers excellent-value policies from just £13 per month, which is affordable for most drivers.

You can find third-party extended warranties at various price points, covering a range of car components. This way, you pay according to your budget and vehicle details.

ALA’s Platinum coverage is one of the best-value packages on the market, and Silver coverage is some of the most affordable. Read about whether extended warranty is worth the money.

Happy man driving a new car

When to buy an extended warranty from a manufacturer?

Extended warranties are available to buy from a manufacturer or a third-party provider but which is better?

Policies from your manufacturer can be simpler to take out because you will already have your vehicle and personal details registered with them. However, these are often more expensive and less flexible than third-party warranties and you’re limited to a policy with only your car’s manufacturer. Also, you may not be able to renew your policy after it ends.

On the other hand, third-party policies offer competitive prices and aren’t exclusive to a manufacturer. Moreover, you can choose different levels of coverage, according to your budget and vehicle details and tailor your policy to your requirements.

Pros

Cons

Manufacturer Extended Warranty

  • Simple to take out

  • Combine warranty and car finance (if applicable)

  • Not every provider is worth using

Third-Party Warranty

  • Usually more costly

  • Less flexible

  • Non-renewable

  • Tied to manufacturer

  • Competitive prices

  • Variety of plans and providers to choose from

  • Flexible plans

  • Renewable cover (subject to eligibility)

  • Available to all car makes and models

What does car warranty cover?

Generally, a car warranty covers unforeseen mechanical or electrical vehicle failures. Standard policies cover the engine, transmission and drive train, while a more comprehensive package can cover the whole vehicle, subject to policy exclusions.

ALA provide three levels of warranty cover. Silver is the most standard level for vehicles up to 150,000 miles and 16 years. Gold is the second-most comprehensive plan covering vehicles less than 100,000 miles or 12 years. Platinum coverage is the most comprehensive, available for cars less than 80,000 miles or 8 years.

Compare ALA Warranty coverage

Experience worry-free driving with ALA Warranty:

  • Zero excess

  • No pre-inspection

  • Day one cover

  • Roadside assistance contribution

  • Onward travel contribution

  • Replacement car hire contribution

  • European cover

  • Up to market value claim limit (Gold and Silver)

  • Diagnostics coverage (Gold and Silver)

  • Unlimited mileage after service contract initiation (exception of wear and tear cover)

  • Wear and tear cover (Platinum)

Our customers trust us to have their back if the unexpected happens. ALA Insurance is a trusted brand, rated 4.9 stars on Trustpilot. We’re the number one insurance company and over 15,000 people rated us 5 stars.

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