Signing up for an extended warranty or care package
Find out what an extended warranty is, the pros and cons of buying a products and services care or concierge package, and the questions you should ask if you are thinking of buying one.
An introduction to extended warranty
An extended warranty (sometimes called a 'care package') is an additional warranty that provides repair and maintenance for a specified period. It may or may not extend the manufacturer’s warranty.
An extended warranty does not replace your rights under consumer guarantees. You may still be entitled to a repair, refund or replacement if a consumer guarantee is broken even when a manufacturer’s or extended warranty has ended.
Always read the terms and conditions of the extended warranty
Always read the terms and conditions of the extended warranty brochure carefully. The details in the brochure are legally binding so you should rely on what it says, not on what the salesperson says.
You do not have to buy an extended warranty, and it is completely optional. Suppliers risk breaching the law if they:
put too much pressure on you or use unfair tactics to get you to buy an extended warranty
mislead you into paying for the rights that you already have under the consumer guarantees.
Extended warranties checklist
If you’re thinking about purchasing an extended warranty for a product or service, you should read the extended warranty brochure for the product or service and use this checklist to help you decide if the extra money is worth it.
Extended warranty provider
Is the provider a manufacturer, an insurance company or a retailer?
Extended warranty period
When does the extended warranty start? Is it from the date of purchase or after the voluntary or manufacturer’s warranty expires?
Terms and conditions
- Are there any special requirements you need to follow for the extended warranty to be valid? For example, are there requirements for regular maintenance or servicing?
- What does the extended warranty cover? For example, does it cover labour and parts?
- What are the exclusions or restrictions? Typical exclusions may be transport or freight costs.
- Does annual depreciation apply to the product if you replace or refund?
Extended warranty claim limits
- Are there any claim limits?
- Are there excess fees for each claim you make?
- Where and how do you lodge a claim? You may be restricted to a specific repairer and number of claims you can make.
The product
- What is the life expectancy of the product?
- Is the product expensive?
- Is it likely to break during the period of the extended warranty?
General questions about extended warranties
- How much does the extended warranty cost in relation to the cost of the product?
- Are you planning to move? This may cause problems if you are required to take the product to a particular location for servicing.
- Is the extended warranty worth the extra money? Consider whether the statutory and the voluntary warranties will provide enough protection.
Making a complaint
When making a complaint, you should include:
- details of the issues you are experiencing
- copies of any correspondence that shows how you have tried to resolve the matter.
How Fair Trading will handle your complaint
Your complaint will be reviewed to determine the most appropriate resolution. This may include:
- providing you with information to help resolve your complaint
- recording the complaint issues to assist in future compliance programs, or
- contacting the other party to try and resolve the dispute.
You can lodge a complaint:
Online
If you cannot resolve your matter, submit your complaint by using our form.
By mail
Post your complaint form and documentation to:
NSW Fair Trading
PO Box 972
Parramatta NSW 2124
Ask a question
If you are unable to find the information you need, you can call us between 8:30am to 5pm on Monday to Friday. You can also use our form to make an enquiry.