What is the Purpose of an Extended Warranty – 2024 Guide

You get a warranty for a lot of things like you buy a new car, there will be a warranty for it. Likewise, you buy spare parts or a battery, you will have a warranty for them too. This is the guarantee that manufacturers provide to their customers. Usually, the warranty for products is either one or two years. However, for certain things and objects, it goes beyond that.

For example, you bought a luxury car and got a warranty for it for 5 years. But you plan to use it for more years now. So after the warranty ends or is near to its end, you can extend it for further time.

What exactly is an extended warranty?

Thus, an extended warranty is an extension to the previous warranty that you got. These usually work for homes and luxury items.

We often call it by the name of a service agreement or contract. But you will also hear the words service plans or protection plans. In short, it is simply the provision of security and safety to your objects. You can get an extended warranty for cars.

For example, if you have Kia and you are thinking that whether it will come under this category or not. It definitely does. You can know more info here about the policy for Kia.

The purpose of extension?

The purpose is quite simple. It is the protection that your car will get. It gives financial coverage so even if you get in trouble with anything, you can ask them for compensation.

You must know that manufacturers provide a limited warranty for their products and services. Once that time period is over, there is nothing for you against them. So if your Kia breaks down or suffers from any problem, they are not liable for any sort of compensation.

However, if you get an extended warranty, they will replace the faulty pieces and provide valuable protection. Thus, you can drive safely on the road, with no need to worry about breakdowns or anything.

Any criteria?

You might be questioning yourself if these warranties have any criteria or not. And whether they work with manufacturers? Or if you can get it for a used car.

It is normal to ask such questions. So know that you can get it for both new and used cars. It is better that you get it for cars that you plan to use for 4 or more years.

What does it cover?

An extended warranty provides wide coverage for your cars.

Abnormalities caused by normal use

This is different from insurance. If you get the insurance for your car, it will only cover the damage caused by an accident or collision or if your car gets stolen. On the other hand, extended warranties cover the abnormalities caused by normal use.

Even if you drive carefully and only you drive your car, it still needs maintenance. Therefore, you will need to take it to the workshop for maintenance and tuning.

So if you get the extended warranty it will provide coverage for various occasions, these include;

1 – Coverage for stated components

If you want a warranty for certain parts of your vehicle, you can get it for them. For example, engine, carbonator, tires and brake system are some critical points. They need more protection and regular maintenance. So if you want, you can get a warranty for them.

2 – Powertrain coverage

In stated components, you choose the parts that you want to cover. On the other hand, if you choose the powertrain coverage, it will cover the vital parts of your vehicle. For example, the drive axle, transmission and the engine of your car. So if there is any problem with the power system, the warranty will cover the expenses.

3 – Bumper to bumper coverage

This category covers the maximum parts of your vehicle. The parts include electronics, heating and air conditioning system, suspension and even the steering. While you sign the warranty documents, you will also see the term “exclusionary”. This category will tell you about the parts that won’t come under this warranty. So you can get to know what parts it covers and whatnot.

So you will have these three options to choose from. You can either get one or more according to your choice.

The list of excluded things

Although an extended warranty covers a lot but there are still some parts that it won’t.

So here is a list of those. You can get their coverage through an insurance plan or any other option.

  1. Oil change, wheel alignment and other routine maintenance tasks, etc. You are likely to pay them from your pocket.
  2. Any damage caused by an accident or collision or theft. You can get it covered through an insurance policy.
  3. Any damage caused by weather. For example, you have been keeping your car under direct sunlight for months without any maintenance and care. This will naturally ruin your car or damage the exterior.
  4. If your car gets damaged by reckless driving, you will have to pay the cost for it. Because it will come under the accident category.
  5. If you damage your car through any modifications and alterations. A lot of people love stickers and paints on the car. So if you are doing something like that and damage your vehicle, you are responsible for the damage.
  6. Any damage caused by improper care or if you do not maintain it properly.


The benefits that you will get through an extended warranty include;

  1. A comprehensive and flexible coverage. You can choose what you want to cover under the warranty and whatnot.
  2. You will get protection and won’t have to pay a lot of amount from your budget.
  3. This will keep your vehicle in a good condition. So you can drive peacefully without worrying about any breakdown.