Deciding if extended car warranty is for you
What is the difference between Dealer (Powertrain) vs Auto Auto Comprehensive Extended Car Warranty?
A dealership warranty product (sometimes referred to as a PowerTrain warranty) is often offered at the time of the purchase of your vehicle. Make sure you ask what is covered as these policies often have limitations attached such as claim limits, the need to service your vehicle exclusively at the selling dealer and only covering the engine (powertrain) and not other mechanical or electric failures.
Auto Auto only offers a comprehensive extended car warranty administered by AWN, who have been around for 30 years. With this, you are covered up to the market value of your vehicle for components that otherwise would have been under the original manufacturer warranty.
Why does an extended car warranty for one vehicle make or model cost differntly to another?
In short, risk. Some makes and models are historically more or less reliable than others. This is taken into account when pricing your vehicle’s eligibility and price of warranty insurance.
Should I buy an extended car warranty?
Things to consider when deciding if buying an extended car warranty cover is right for you:
Type of car you own
Amount of driving you do
How long you plan to own your vehicle for
The type of car you own will impact the value proposition of taking out extended car warranty cover. If you own a more expensive or unreliable vehicle, then having extended warranty coverage for that vehicle could pay for itself many times over in the event of a claim. However, if you own a more reliable vehicle, you may not require any claims at all. If you drive your vehicle infrequently, your risk of failure naturally declines as well.
Whilst new vehicles overall are more reliable these days, repair costs are higher than ever as the more advanced vehicles have complex electrical components and your standard mechanical issues.
Finally, if you are planning to hold on to your vehicle past the manufacturer warranty – it could make sense to get extended car warranty cover. Currently, we are in an environment with long wait times for new cars and increasing used car prices. This has resulted in more Australians holding on to their vehicle for a bit longer. Extended car warranty cover can help limit your financial risk if you keep your vehicle for longer.
