Get the right warranty cover

Extended warranties - what's covered
Hold off from signing that documentation just a little longer before you put pen to paper because you need to know exactly what your warranty covers you for. Remember, you should never sign any legal documentation before reading the text thoroughly.

A good warranty should cover the engine, fuel and ignition systems, cooling system, electrics, gearbox, clutch transmission, steering, suspension and brakes. However, most exclude damage to paintwork, glass or headlamps and normal wear and tear is not usually covered. This excludes wheels, tyres, exhausts, catalytic convertors, clutch and brakes.

Aftermarket electronic items will usually not be covered. This means hands-free kits and MP3 connections may be excluded.

Most manufacturers' warranties cover you for two years with unlimited mileage, but the third year is limited to 60,000 miles. So, you'll be out of warranty if you car has done over 60k miles even if it is just two and half years old.

Aftermarket warranty
If you are buying a used car that is out of the manufacturer's warranty period you can opt to take out an aftermarket or ‘extended' warranty, from an independent company. The level of cover varies: on some you're covered for failure of mechanical parts but others include electrical parts too. Some may cover you for replacement of parts only and not the labour costs. Be sure to check the terms and conditions.

If you break down, are you covered?
Clearly, the higher premium you pay the more cover you get. If you want you can go for a full cover that may include recovery, emergency travel, overnight accommodation, direct settlement with the garage and timing belt failures. If you regularly use your car for holiday travel then these extras should give real peace of mind.

Transfer of extended warranties
The manufacturer's warranty is automatically transferrable but if you want to transfer the extended warranty you will probably have to pay an administration charge, which is usually between £17 and £25 depending on the warranty provider.

Maximum claim limit
Read the small print. This is usually where the maximum value of a single claim appears. If the limit is £5,000 you cannot make a claim higher than this amount.

Find out how much a warranty could be by getting a warranty quote.