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Extended warranties come in many shapes and sizes. But what makes a great policy, and what should buyers look out for? We asked ALA Insurance to explain

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.

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

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.”

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What else should you look out for?

Before purchasing any policy, you should read all the documentation to ensure you know exactly what’s covered. It’s also hugely important to choose a company offering insured warranties. “A lot of companies offer non-insured policies,” explains Jason. “What that means is they don’t have to follow the strict regulations that brokers selling insured policies do.”

In short, companies offering non-insured warranties aren’t governed or regulated by the strict guidelines of the Financial Conduct Authority (FCA) – meaning that if a customer believes they’ve been mis-sold a policy, or if they’re unhappy with the way they’ve been handled by the broker, there’s no legal action they can take. So, always make sure you buy through a broker with insured cover.

There are also company specific perks one should look out for to ensure their policy is as comprehensive as it can be. “Zero excess costs, labour up to £60-per-hour, day one cover, no pre-inspection and a host of RAC specific perks are all things offered through ALA Insurance” says Jason. “Some other brokers won’t offer such a wide range of additional benefits.”

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

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