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Extended warranty
Extended warranty

An extended warranty could save you from unexpected repair bills

All new cars come with some form of manufacturer warranty. Whether three, five or seven years, they give peace of mind during the first years of new car ownership. But what happens when the warranty expires?

That’s where extended warranties can help. Designed for cars coming to the end of their manufacturer cover or for sought-after used car purchases, extended warranties act as a safety net to support those outside of manufacturer warranty in the event of an expensive breakdown – with the potential to save you thousands of pounds in repair bills.


To find out more about the car-related insurance and warranty services that ALA Insurance offer, head to

Extended warranties: insured or non-insured?

There are a myriad of different policies from various providers, but the key thing to understand is the difference between insured and non-insured cover. “A lot of companies offer non-insured policies,” says Jason Allen of ALA Insurance. “What that means is they don’t have to follow the strict regulations that brokers selling insured policies do.”

Any broker selling an insured warranty product must be authorised and regulated by the Financial Conduct Authority (FCA) in the same way as banks, finance companies and general insurers. Companies selling non-insured warranties don’t have to follow such guidelines, meaning you would have no redress for poor selling standards – for example if the company mis-sold or mis-represented the policy in any way.

Additionally, the FOS (Financial Ombudsman Service) are a government run administration to which you can appeal if you’re unhappy with an insurer and haven’t had a satisfactory response using the company’s own complaints procedure. However, they can only intervene with a company selling insured policies – if you’ve bought non-insured cover there’s no external way to rectify a decision you feel is unfair.

ALA Insurance only sells fully insured warranties - they have to abide by high standards when selling policies and if anything happens that you're not happy with, you can ask the FOS to weigh in with their decision.

Istock 685796748
Istock 685796748

What do extended warranties cover?

Once the difference between insured and non-insured is understood, it’s time to look at what is actually covered under an extended warranty policy. ALA Insurance has teamed up with the RAC to provide some of the most comprehensive extended warranties available.

ALA Insurance offers three levels of cover – Standard, Premium and Premium Plus. Each of them differs in the components covered, the age of eligible vehicles and the maximum mileage.

The general idea, though, is that each policy will cover most of the mechanical and electric faults that your car could incur when outside of its manufacturer warranty. A Premium Plus policy even covers wear and tear – something not all other companies will include.

But extended warranties aren’t just for nearly-new cars. Standard and Premium policies from ALA Insurance cover cars up to eight years old or 80,000 miles – meaning an extended warranty can make as much sense for a six-year-old vehicle as for one just three years of age.

With other added benefits such as labour costs included, zero excess, no vehicle pre-inspection and immediate cover, the three levels of cover allow you to choose which policy best suits your vehicle – based on its mileage, value, model and age.

How much could an extended warranty save me?

Many people look at the risk of a breakdown versus the cost of cover. The ALA Insurance website gives examples of just a few of the expensive repairs that their warranties have covered.

One customer suffered a flywheel broken clutch failure. The total cost of repairs came to £1492.75, but their extended warranty policy covered it all. Another customer suffered an alternator issue, costing £583.19. Once again, their ALA Insurance cover sorted it.

For most drivers, unexpected repair bills aren’t something they plan or save for – meaning that when they come, it can leave a large hole in your finances or force you to take out loans or use credit cards to take the hit. With the safety net of an extended warranty, you can have peace of mind that whatever happens, you’ll be covered.

To find out more about the car-related insurance and warranty services that ALA Insurance offer, head to