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Should I Get Extended Warranty for a New Car?

21 May 2024

Written by Simon England

|  3 Minutes

Are you considering whether to invest in an extended warranty for your brand-new car? It’s a question that many new car owners grapple with, but the decision doesn’t have to be a complicated one. An extended car warranty can protect your vehicle after your manufacturer warranty runs out. However, your new car might already have a manufacturer warranty in place, so extended warranty coverage might not be necessary.

In this guide, we’ll explore the pros and cons of getting an extended warranty for your new car, what these warranties typically cover that factory warranties do not, and provide you with valuable information to help you make an informed choice.

Is it a good idea to get extended warranty on a new car?

First things first, let’s address the fundamental question: Is it a good idea to get an extended warranty for your new car? The answer depends on various factors, including your driving habits, your personal preferences, and whether or not your brand new car comes with a manufacturer warranty.

Manufacturer warranties, also known as a factory warranty, are provided by all car manufacturers for a limited warranty period; these warranties usually last for around 12 months to two years, so choosing an extended warranty once this period ends can save on costly repairs and parts should anything happen to your car. A powertrain warranty and other coverage may also be included in your manufacturer warranty.

Our warranty policies can be paid for upfront or monthly to suit your needs, and are available on three levels; silver, gold and platinum. You can start building your bespoke warranty quote here.

A car on an open road

Advantages of getting extended warranty on a new car

Peace of mind

One of the most significant advantages of an extended warranty is the peace of mind it offers. Knowing that you’re covered for unexpected repairs can alleviate stress and uncertainty.

Cost savings

Repairing modern vehicles can be expensive, especially if high-tech components fail. An extended warranty can save you money in the long run by covering these costly repairs.

Enhanced resale value

Some extended warranties are transferable, which can boost your car’s resale value. Potential buyers may be more willing to pay a premium for a vehicle with an extended warranty. Our extended warranty coverage at ALA is fully transferable, so you don’t need to worry if you buy a new car before the end of your warranty cover.


Extended warranties often come with options to tailor coverage to your specific needs. You can choose the level of protection that suits your budget and driving habits. With our warranty cover at ALA, you can choose the best level of cover for you, as well as the length of your policy, the labour rate and your claim limit.

Disadvantages of getting extended warranty on a new car


Extended warranties aren’t free, and the upfront cost can be high. You’ll need to weigh this expense against potential future repair costs. However, with ALA, you can pay monthly for your warranty, easing the pressure when protecting your vehicle.

Limited coverage

Not all repairs may be covered by an extended warranty, and some warranties have specific exclusions. You need to understand the terms and conditions thoroughly. With ALA, you can choose between a silver, gold and platinum policy to suit your specific needs.

Double coverage

Sometimes, your extended warranty may overlap with the manufacturer’s warranty, leading to double coverage for a portion of your vehicle’s life. It is important to research when your manufacturer warranty runs out before opting for an extended warranty.

2 people in a car

What do extended warranties cover that factory warranties do not?

Now that we’ve explored the pros and cons, let’s delve into what extended warranties typically cover that factory warranties do not. Extended warranties are designed to fill in the gaps and provide added protection. Here are some common items covered by extended warranties:

  • Wear and tear: While factory warranties typically cover defects and faulty components, extended warranties often include coverage for wear and tear, which is not covered by most factory warranties. Wear and tear is included in our platinum policy for vehicles up to eight years old and with up to 80,000 miles on the clock.

  • Diagnostics: Extended warranties, such as our gold and platinum policies, will cover diagnostics of components such as the engine, exhaust and oil tank, meaning you could pay nothing towards an unexpected repair.

  • Roadside assistance: Many extended warranties offer additional perks like roadside assistance, which can be a lifesaver in case of a breakdown. ALA will pay £50 towards your roadside rescue.

  • Renewability: Some extended warranties are renewable, so you’ll never lose out on protection for you and your vehicle.

You can find out more about what is covered in your extended warranty policy with ALA here.

New car warranty with ALA

ALA offers a range of vehicle warranty plans tailored to your needs. With ALA, you can enjoy the following benefits:

  • Comprehensive coverage: ALA’s extended warranty plans provide extensive coverage for your vehicle, ensuring you’re protected against unexpected repairs.

  • Flexible plans: ALA offers a variety of plans, allowing you to choose the coverage that suits your budget and driving habits. You can also choose to pay monthly if it suits your budget.

  • No pre-inspection: unlike most providers, ALA requires no pre-inspection of your vehicle before you start your policy. There is also no age or mileage limit when starting your policy either.

  • Transferable warranty: ALA warranties are often transferable, which can enhance your car’s resale value.

  • Excellent customer service: ALA is known for its exceptional customer service, providing assistance when you need it the most.

To find out more about your extended car warranty policy, get in touch with our team today.

Frequently asked questions

What is covered in an extended warranty?

Extended warranties typically cover a wide range of components and systems in your vehicle, including the engine, transmission, drivetrain, electrical systems, air conditioning, and more. It’s essential to review the warranty terms and conditions to understand precisely what is covered and any exclusions.

How long is extended warranty available?

The length of extended warranty coverage can vary; our extended warranty policies at ALA can last for one to three years depending on your preferences

Is warranty transferable?

Some extended warranties are transferable to a new owner if you sell your vehicle, which can be an attractive feature for potential buyers.

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