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Click4Warranty Smart Buyer Checklist for Extended Warranty

Purchasing an extended warranty for your vehicle can be a smart investment, but it’s important to approach this decision with caution and knowledge.

An extended warranty can help cover the cost of repairs after your original manufacturer’s warranty expires. However, not all warranties are created equal, and it’s crucial to know what to look for to ensure you’re getting value for money. Here’s a checklist to guide you through the process:

1. Understand the Coverage

Comprehensive vs. Powertrain: Know whether the warranty covers only the engine and transmission, known as the powertrain, or if it includes the electrical systems, air conditioning, and various other components.

Transparency: Make sure there’s a comprehensive list of covered components that you can check and that the repairs are guaranteed.

2. Check the Eligibility Criteria

Cover requirements: Ensure that your vehicle qualifies for cover. Eligibility criteria may include the vehicle’s age and/or the mileage travelled since it was first registered.

Cover termination: Check if your vehicle cover ends on reaching a certain age and/or mileage threshold, or if it remains effective until the end of the policy term.

3. Know the Length of Coverage

Duration: Determine how many years or miles the warranty will cover your vehicle for, to ensure this meets with your expected ownership period.

Select your cover duration: Check to see if you can decide on the duration of your cover, which will allow you to tailor this to your requirements.

4. Wear & Tear Cover

Check wear & tear cover: When considering an extended warranty for your vehicle, it’s crucial to understand if the policy covers claims for failure of covered components as a result of wear & tear.

Not included: This can significantly impact your ability to claim from the policy and could drastically increase the costs you will have to pay for yourself if it’s not covered.

5. Claims excess charges

Cost to you: It’s important to determine whether an excess applies to your claims, as this amount will be subtracted from any payout you receive. This could result in higher out-of-pocket expenses for repairs than initially expected.

Excess escalation: Enquire if the excess amount increases with the vehicle’s age or mileage. Understanding how the deductible escalates over time can help you anticipate future costs associated with claims.

6. Consider the Cost

Price Comparison: Shop around and compare prices and cover details, to see where you get the best value for money.

Payment Options: Find out if you can pay in instalments, or in a lump sum payment, allowing you to select what best suits your pocket.

7. Reputation of the Provider

Company History: Look at the warranty provider’s history and stability and how long they have been around for.

Customer Reviews: Look for customer feedback and ratings to gauge satisfaction and service quality. This is also a good indicator of claims payouts meeting expectations.

8. Refunds & Transfers

Cancellations: Check if the warranty offers a pro-rata refund on cancellation or if can be transferred to a new owner, which can increase the resale value of your car.

Cooling off period: Ensure you have the freedom to cancel within the cooling off period with full return of premium.

9. Additional Benefits

Roadside Assistance: Some warranties offer added perks like roadside assistance, rental car contribution, and trip interruption.

Cover abroad: Find out if you’ll be covered in the Republic of Ireland and Europe if you’re travelling there on holiday.

10. Read the Small Print

Contract Details: Carefully read the contract, not just the brochure or website.

Exclusions: Be aware of any specific exclusions.

11. Policyholder Obligations

Requirements: Understand if there are any requirements that you need to fulfil for coverage, such as providing a service history or a vehicle pre-inspection for instance.

Claims Process: Be sure there’s a transparent claims process so that you understand what you need to do in the event of a claim, and if there’s a waiting period before you can make a claim.

Lastly, check if the product is insured or not. Insured warranties are regulated by the Financial Conduct Authority, who manage and ensure that the consumer receives fair value. A provider that offers uninsured warranties does not have to demonstrate that they have the financial stability to payout claims and this could result in you having to cover the cost of repair yourself…. just when you need the financial cover the most.


An extended warranty can provide peace of mind, but it’s essential to do your homework. Use this checklist to navigate the complexities of vehicle extended warranties, so you can make an informed decision that suits your needs and budget.

Remember, the key to making an informed warranty purchase is to thoroughly research and understand the terms, costs, and coverage. Happy motoring!