Promoted | Extended warranties: What makes great cover?

Extended warranties are a safety net to support owners whose vehicles are no longer within a manufacturer warranty. Covering everything from electrical failures to mechanical faults, and diagnostics to labour costs, there’s a policy out there to suit every need.

But what differentiates a great policy from one that’s inferior? And what should you focus on when looking for your own extended warranty? We asked Jason Allen of ALA Insurance to break it down for us.

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What do different policies cover?

With hundreds of companies offering thousands of extended warranty options, it’s not easy to distinguish the intricacies of a policy and whether it’s any good. Some are more comprehensive, with full electrical and mechanical fault cover. Others only cover specific components. Mileage and vehicle age also play a part. Generally, the more comprehensive the cover, the stricter the age and mileage parameters.

Working with the RAC to provide some of the most comprehensive extended warranty cover available, ALA Insurance offers three simple-to-understand levels of policy: Standard, Premium and Premium Plus. By not clouding buyers with a myriad of similar products, it makes choosing the right policy easy.

Standard: The Standard policy is the most basic and affordable of the options available from ALA Insurance. “It’s a listed component policy,” explains Jason. “That means it will cover most electrical and mechanical components, but not all of them. It’s best-suited for older or more high-mileage vehicles – up to eight years old or 80,000 miles.”

Premium: If you want an extra layer of protection and confidence, a Premium policy could be the solution for you. “A Premium policy covers all electrical and mechanical failures, including factory-fitted infotainment systems,” says Jason. “It’s eligible for vehicles up to eight years old or up to 80,000 miles. It’s a more comprehensive policy for newer cars.”

Premium Plus: The most comprehensive policy from ALA Insurance – it covers all electrical and mechanical faults, as well as diagnostics, infotainment, remote key fobs and, crucially, wear-and-tear. “If a component comes to the end of its life and fails, the Premium Plus policy will cover the cost of replacement,” says Jason.

“While the Plus policy is only available for cars up to six years old or with up to 60,000 miles, the wear-and-tear element continues until the car reaches eight years old or up to 80,000 miles. This policy is really there to offer cover to drivers who are just coming out of their manufacturer warranty.”