What Is an Extended Warranty for Vehicles in Australia?
Updated: 1 hour ago
An extended vehicle warranty provides cover for certain mechanical, electrical and electronic faults, subject to the terms, conditions, exclusions and claim limits of the warranty.
In Australia, extended warranties can take different forms. They may be offered when you purchase a vehicle from a motor dealer or arranged separately for an eligible vehicle you already own. Importantly, an extended warranty does not necessarily simply “extend” the original manufacturer’s warranty. The cover, exclusions, limits, commencement conditions and claims process can be quite different.
The term can also apply to more than just cars. Depending on the warranty provider and available products, extended warranty options may be available for SUVs, vans and commercial vehicles, electric and hybrid vehicles, motorcycles and scooters, caravans and motorhomes, boats and jet skis.
This guide explains what an extended vehicle warranty is, how it generally works in Australia and the questions worth asking before choosing cover.
How Does an Extended Vehicle Warranty Work?
In simple terms, an extended warranty may contribute towards the cost of repairing an eligible mechanical, electrical or electronic failure that occurs during the warranty period.
The exact process depends on the product. A vehicle normally needs to meet eligibility requirements when the warranty is arranged. Once cover has commenced, the vehicle must also be maintained in accordance with the applicable servicing requirements.
If a fault develops, the warranty provider’s claims procedure should be followed before repairs are authorised. The repairer may need to diagnose the fault and provide information or a quotation so the provider can determine whether the failure is covered and what amount, if any, can be authorised.
A mechanic diagnosing a failed component does not automatically mean the repair is covered. The warranty terms and claims authorisation still apply.
Is an Extended Warranty the Same as a Manufacturer’s Warranty?
No. An extended warranty arranged through a dealer, broker or third-party provider should not automatically be assumed to provide the same cover as the vehicle manufacturer’s original warranty.
A manufacturer’s warranty is provided by the vehicle manufacturer and generally applies to a new vehicle for a specified period or distance. An extended warranty may be issued or provided under a different product structure and can have different covered items, exclusions, claim limits, servicing requirements and claims procedures.
This is why the actual warranty documentation matters more than the words “extended warranty”. Two products with the same term can provide very different levels of protection.
Is an Extended Warranty the Same as a Statutory Warranty?
No. A statutory warranty that applies to an eligible used vehicle purchased from a licensed motor dealer is different from an optional extended warranty.
The statutory protections applying to a vehicle purchase depend on the circumstances and relevant state or territory law. Separately, Australian Consumer Law may provide consumer guarantees that cannot be excluded simply because an extended warranty has been purchased.
An extended warranty is additional to any rights that may already exist under applicable law. It should not be presented as replacing or removing those rights.
Are All Extended Vehicle Warranties the Same?
No. Extended vehicle warranties can differ substantially in what they cover, how much they will pay and how a claim is assessed.
Some products are offered as part of a motor dealer transaction, while others can be arranged independently. Different products can also use different warranty documentation and product structures.
When comparing warranties, look beyond the headline term and price. Check the covered components or events, exclusions, individual and aggregate claim limits, servicing obligations, kilometre limits, repair requirements, commencement conditions, cancellation provisions and the organisation responsible for claims.
What Does an Extended Vehicle Warranty Cover?
Coverage depends on the warranty selected. Depending on the product, cover may extend to a range of mechanical, electrical and electronic components and systems.
Examples can include major drivetrain components such as the engine and transmission, as well as cooling, steering, braking, air-conditioning and electrical or electronic systems. Higher levels of cover may include substantially more components than entry-level products.
Modern vehicles rely heavily on electronics, so it is worth checking electronic and safety-related systems rather than comparing warranties only by traditional mechanical components.
Related guide: What Does an Extended Car Warranty Cover?
What Isn’t Covered by an Extended Warranty?
An extended warranty does not cover every problem that can occur with a vehicle.
Common areas to check include pre-existing faults, routine servicing and maintenance items, consumable components, accident or external damage, modifications, misuse and wear-related failures where these are excluded by the particular product.
The exclusions are just as important as the list of covered items. Always read the applicable warranty documentation rather than assuming a component will be covered because another warranty includes it.
What Types of Vehicles Can Have an Extended Warranty?
Extended warranty options are available for more than just passenger cars, although eligibility and available cover vary by vehicle and product.
Depending on the provider, options may be available for cars and SUVs, vans and some commercial vehicles, electric and hybrid vehicles, motorcycles and scooters, caravans and motorhomes, boats and jet skis.
Vehicle age, kilometres or hours, make and model, usage and other eligibility criteria can affect what cover is available. A warranty suitable for one type of vehicle should not automatically be assumed to suit another.
Can I Buy an Extended Warranty After Buying My Vehicle?
Yes. Depending on the vehicle and product eligibility, an extended warranty may be arranged after you have already purchased the vehicle.
You do not necessarily need to buy an extended warranty from the motor dealer at the same time as the vehicle. Independent options may be available for a vehicle purchased from a dealer, privately or through a motor vehicle auction, and in some cases for a vehicle you have owned for some time.
Existing faults are not covered, and eligibility can change as a vehicle becomes older or travels more kilometres. For that reason, waiting until the original warranty is about to expire is not always necessary or advantageous.
Related guide: Can You Buy an Extended Warranty After Buying a Car?
Can I Buy an Extended Vehicle Warranty Online in Australia?
Yes. An extended vehicle warranty can be arranged online in Australia, subject to vehicle and product eligibility.
The process does not have to mean choosing a generic warranty from an online shopping cart. With MrWarranty, vehicle details such as age, kilometres and usage are reviewed first so the warranty options currently available for that vehicle can be identified.
You can request a quote online, review the available cover, price and applicable warranty documentation, ask questions and then complete the purchase process electronically if you decide to proceed.
How Much Does an Extended Vehicle Warranty Cost?
There is no single standard price for an extended vehicle warranty in Australia.
The cost can depend on factors such as the vehicle, its age and kilometres, the level and type of cover, the warranty term and the product available for that particular vehicle.
Price should be considered alongside the actual cover. A cheaper warranty may have narrower coverage or lower claim limits, while a more expensive product is not automatically the right choice for every vehicle or owner.
Related guide: How Much Does an Extended Car Warranty Cost in Australia?
How Long Does an Extended Vehicle Warranty Last?
Warranty terms vary between products, so there is no universal extended warranty period.
Available terms can depend on the vehicle’s eligibility and the particular warranty product. It is also important to distinguish between the length of the warranty and any kilometre limitation that may apply during the warranty period.
If the vehicle still has an existing manufacturer’s or other applicable warranty, some products may allow the extended warranty to commence at a future date, subject to the relevant product terms and eligibility.
How Do I Make an Extended Warranty Claim?
If your vehicle develops a fault, follow the claims procedure in your warranty documentation before authorising repairs.
The vehicle will usually need to be diagnosed by a repairer, and the warranty provider may require a quotation, diagnostic information, photographs or service history before deciding whether the failure is covered and what amount can be authorised.
Repair arrangements and payment procedures can differ, particularly if you choose your own repairer, so these should be confirmed with the warranty provider before work begins.
Is an Extended Vehicle Warranty Worth It?
An extended vehicle warranty can be worthwhile for some owners, but it is not automatically the right choice for everyone.
The decision depends on factors including the vehicle, the level of cover available, the exclusions and claim limits, the warranty price and how comfortable you would be meeting an unexpected repair bill yourself.
Rather than asking only whether extended warranties are “worth it”, compare what the particular warranty would cover on your vehicle and what financial exposure would remain with you.
Related guide: Is an Extended Car Warranty Worth It in Australia?
How Do I Choose an Extended Vehicle Warranty?
Start by comparing the actual warranty terms rather than choosing only by price, duration or the name of the cover level.
Look at what is covered, what is excluded, claim limits, electronic components, servicing requirements, kilometre restrictions, commencement conditions, cancellation provisions and how claims are handled.
It is also worth checking who provides or issues the warranty and who you will deal with if a claim arises. If anything is unclear, ask for an explanation before purchasing.
Related guide: How to Choose the Best Extended Car Warranty in Australia
Where Can I Buy an Extended Vehicle Warranty in Australia?
Many Australian consumers associate extended vehicle warranties with motor dealers because dealerships have traditionally been a common place for these products to be offered. However, you do not necessarily need to buy an extended warranty from a motor dealer or at the same time you purchase your vehicle.
Depending on the vehicle and product eligibility, extended warranty cover may also be arranged independently through a warranty broker or warranty provider, including for a vehicle you already own.
When comparing where to buy, consider more than just the price. Check who provides or issues the warranty, what level of cover is available for your particular vehicle, the applicable warranty documentation and who you can speak with if you have questions or need assistance with a claim.
MrWarranty is an independent vehicle warranty broker and can arrange extended warranty options for eligible vehicles throughout Australia. Rather than asking you to select a generic warranty from an online shopping cart, we review your vehicle details and identify the available warranty options before providing a quote.
Related guide: Can You Buy an Extended Warranty After Buying a Car?
Frequently Asked Questions
Does an extended warranty start when the manufacturer’s warranty ends?
Not always. Commencement depends on the product. Some warranties can be arranged for a future start date, while others may commence earlier. Check the applicable terms before purchasing.
Can I get an extended warranty for a used vehicle?
Yes, subject to the vehicle and product eligibility. Options may be available for used vehicles purchased from a dealer, privately or through a motor vehicle auction, as well as vehicles already owned.
Can I choose my own mechanic for warranty repairs?
This depends on the warranty. Some products allow you to nominate your own licensed repairer, but the claims and authorisation process still needs to be followed before repairs are carried out.
Are existing problems covered by an extended warranty?
No. An extended warranty is not intended to cover faults that already exist when the warranty is arranged or commences.
Does an extended warranty replace my Australian Consumer Law rights?
No. An extended warranty is additional to any rights or consumer guarantees that may apply under Australian Consumer Law and other applicable legislation.
Getting an Extended Vehicle Warranty Quote
If you are considering an extended warranty, the first step is to identify what options are actually available for your vehicle. MrWarranty reviews the vehicle details and eligibility before providing available warranty options, rather than asking customers to choose a generic product without first considering the vehicle.
You can request a quote online and review the available cover, price and warranty documentation before deciding whether to proceed.
Related guide: Can You Buy an Extended Warranty After Buying a Car?
Important Information
Warranty availability, eligibility, cover, exclusions, limits, commencement and claims requirements vary between products and vehicles. Always read the applicable warranty documentation before purchasing and ask questions about anything you do not understand.
MrWarranty is a trading name of Skilled Promotions Pty Ltd, Authorised Representative No. 1308861 of Integrity Car Care Pty Ltd, AFSL 247069. Information is factual and general in nature and does not take into account your personal objectives, financial situation or needs.
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