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What are the Benefits of Extended Warranty?

21 May 2024

Written by Simon England

|  5 Minutes

Purchasing a car is often one of the most expensive investments we will make, no matter whether the vehicle was bought upfront, financed, or leased. Ensuring the longevity and reliability of your vehicle is not only essential for your peace of mind but also for your financial well-being. Having an extended car warranty in place can help protect you against any expensive repair costs you may face, but is it a necessity?

In this guide, we will explain more about extended warranties, including the advantages and disadvantages of taking out a policy. We will discuss why extended car warranties are worth acquiring, and how our car warranties at ALA could benefit you.

What is an Extended Warranty?

An extended warranty, also known as a vehicle service contract or protection plan, is coverage for your vehicle should you suffer any mechanical or electrical faults or a breakdown. Extended warranties typically kick in after the manufacturer’s warranty expires, offering an extension of coverage.

They can vary in terms of coverage duration, mileage limits, and what repairs or components are included. Some may only cover major systems like the engine and transmission, while others provide more comprehensive coverage, including electronics, suspension, and more.

At ALA, your extended warranty coverage won’t end once your vehicle reaches a certain age or mileage, and you can add labour coverage options to suit your personal budget. You can start building your bespoke car warranty quote here.

Lady driving a car

What are the Advantages of an Extended Warranty?

There are various advantages to choosing an extended warranty policy once your manufacturer warranty has expired. These include:

Peace of Mind

One of the most significant benefits of an extended warranty is peace of mind. Knowing that you’re protected against unexpected repair costs can relieve a considerable amount of stress. Car repairs can be unpredictable and expensive, and having a warranty in place ensures that you won’t be hit with hefty bills when you least expect them.

Financial Security

Car repairs can strain your budget, especially if they involve major components like the engine or transmission. With an extended warranty, you won’t have to dip into your savings or rely on high-interest loans to cover these costs. The warranty provider takes care of approved repairs, leaving your finances intact.

Protection Against Inflation

Over time, the cost of labour and parts for vehicle repairs tends to increase due to inflation. By purchasing an extended warranty, you lock in today’s rates for future repairs, effectively protecting yourself against the rising costs of automotive maintenance.

Enhanced Resale Value

If you decide to sell your car before the extended warranty expires, it can be a selling point for potential buyers. A well-maintained vehicle with an active warranty is more attractive to buyers, often commanding a higher resale value compared to similar cars without warranty coverage.

At ALA, our car warranty policies provide various benefits, such as zero excess and free transfer of cover, available on three levels of cover: Silver, Gold and Platinum. You can find out more about our car warranty benefits here.

What are the Disadvantages of an Extended Warranty?

There aren’t many disadvantages to choosing to protect your car with an extended warranty policy. However, there are some elements you may want to consider beforehand.


Extended warranties come at a price, and some people may find the upfront cost to be a drawback. However, it’s essential to weigh this cost against potential future repair expenses. Our extended warranty policies at ALA can be paid for in monthly instalments if paying upfront isn’t your preference, providing you with options.

Limited Coverage

Not all repairs or components may be covered by an extended warranty. It’s crucial to read the fine print and understand what is and isn’t included in your specific warranty plan. At ALA, you can choose either a Silver, Gold or Platinum warranty policy to suit your needs and meet your coverage expectations.

Manufacturer’s Warranty Overlap

In some cases, the manufacturer’s warranty may still cover certain repairs during the extended warranty period, making the added coverage redundant for those specific issues.

Want to know how much you could be paying for an extended warranty policy? Start building your quote with us today.

car in the country

Is an Extended Warranty Worth it?

The big question – is an extended warranty worth it? The answer depends on several factors, including your budget, the reliability of your vehicle, and your peace of mind.

If you have a brand-new car with a long manufacturer’s warranty and plan to trade it in or sell it before that warranty expires, an extended warranty might not be necessary. On the other hand, if you have an older car, a history of frequent repairs, or simply want the reassurance of financial security, an extended warranty can be a wise investment.

Before making a decision, consider the following:

  • Your Vehicle’s Reliability: Research the make and model of your car to assess its historical reliability. If it’s known for having frequent issues, an extended warranty might be a good idea.

  • Your Driving Habits: If you drive long distances regularly or use your car for business purposes, you may be more likely to encounter wear and tear, making an extended warranty more valuable.

  • Budget: Evaluate your financial situation and determine if you can comfortably handle unexpected repair costs or if you’d prefer the financial security of a warranty.

  • Warranty Terms: Review the terms and conditions of the extended warranty thoroughly, including what’s covered, deductibles, and any restrictions.

Ultimately, the decision to purchase an extended warranty should align with your individual circumstances and peace of mind. You can find out more about extended warranties in our previous guide.

Our Extended Car Warranty at ALA

At ALA, we understand the importance of protecting your investment and providing peace of mind for your automotive needs. Our extended car warranty policies are designed to offer comprehensive coverage, ensuring that you’re prepared for unexpected repairs without breaking the bank.

Key benefits of ALA’s extended car warranty include:

  • Flexible coverage options to suit your specific needs.

  • No pre-inspection, as our policies are insurance-based.

  • Competitive pricing with no hidden fees or surprises.

  • Expert customer support to guide you through the warranty process.

  • Assurance of financial security and protection against rising repair costs.

When considering an extended car warranty, remember that the peace of mind it offers can be invaluable. With ALA, you can rest assured that your vehicle is in safe hands, and you’re safeguarded against the uncertainties of automotive ownership. We also provide comprehensive GAP insurance to protect your vehicle against theft and total loss damage.

To find out more, you can get in touch with us here.

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