Is an Extended Car Warranty Really Worth It?

An extended car warranty is used to help cover the cost of particular vehicle repairs when the manufacturer guarantee expires, this is available for both and used cars in NI. They are optional service contracts from third-party vendors. 

However, that being said, these plans are not for everyone and it’s important for the car-buyer to know what type of protection they need for their vehicle.

When you think about it, warranties are investments with the reward of financial peace of mind. In this article, we will discuss what are extended warranties and if it’s something you as a consumer need to invest in. 

Extended warranties do cost quite a sum of money. This is due to the fact that the individuals that sell them must make a commission too. As a car owner, you need to be responsible for the car’s performance and therefore, if you can’t afford car repairs (a necessary evil to owning a car), then maybe owning a car is something to reconsider.

Different Types of Extended Warranties

  • Pay for an extension to the cover that came with the vehicle
  • Buy a policy from the dealership that sold you the vehicle. 
  • Use a comparison website to contact various vendors. This option may be cheaper than the manufacturer’s cover, however it is the 

What do Extended Warranties Cover? 

Extended warranties will cover the essential mechanical components of your vehicle such as the engine, the suspension, the electrical systems and the transmission. Additionally, extended warranties also cover 24/7 road assistance and tyre protection.

However, extended warranties do not cover day-to-day routine maintenance such as new tyres, oil changes and brake replacements. Not all warranties cover the same things and thus, it is important to read the contract’s fine print carefully. 

Are Extended Warranties Worth it?

Before you take the leap extending your car warranty, you need to consider both the advantages and disadvantages. 


  1. Can save you money, if the repair is costly. You will only spend a deductible instead of the full payout. 
  2. You can choose to pay for an extended warranty at any given time and not just when you first buy the vehicle. 
  3. There is financial peace of mind when it comes to inevitable costly repairs.


  1. Repairs can only be covered if it’s included in the service contract.
  2. Those who pay for extra coverage often don’t use it and if they do, the cost of the repair is often less than the cost of the warranty.
  3. If your previous warranty and your extended warranty overlap, you may be paying for coverage that already exists. Additionally, with new vehicles, the extended warranty won’t be in use until the manufacturer’s warranty expires. 
  4. Depending on the warranty’s provider, there is a risk with buying an extended warranty as if its from a dealer or third party and their business goes to bust, then you may end up with coverage that is unusable

Ensure you are Aware of the Extended Warranty Payments

To summarise this article, extended warranty can become costly and add zeros to your final purchase price. If you choose to pay for a warranty and budget that into your monthly spending, then overall it might not seem like a large sum at first, but over time the money could still result in a significant amount.

Additionally, you need to consider if a warranty is worth it on the vehicle you own. If it is a reliable model with a reliable track record, there may be no need to own a warranty. You could save that money on the side and spend it on what may be more expensive than repairs, cars do cost, and it is important to factor this is. 

Finally, it is up to the consumer to truly decide whether or not extending their warranty is worth it. It is also the consumer’s responsibility to be knowledgeable about the pros and cons of warranties. If you do decide to extend your warranty, make sure to  weigh out your options, work with credible suppliers and look out for warranty scams.

David is one of the Co-founders at Carlover. He has an extensive background as a product designer & manager, spending the last 5 years leading teams in designing and building apps for multiple industries. He is a self confessed car fanatic and a lover of all things tech. When he's not working on the amazing set of Carlover products, you can usually find him working on his own cars!