When you purchase an item, there may already be an Australian warranty in place. This is where the manufacturer guarantees it will repair or replace the purchased item if it is found to be faulty within a certain period of time. It usually only lasts a matter of months or a few years.
If you make the purchase with your credit card, you may be eligible for extended warranty insurance. This is a benefit which extends the manufacturer's warranty on eligible purchases on your credit card. While it is offered through your bank, it is backed by a separate insurer like Allianz or Zurich.
The extended warranty does not affect your rights against a manufacturer in the event a law is violated under Australian legislation.
There is only 1 type of extended warranty, but it is the period of the warranty that differs.
For example:
If the manufacturer warranty period is: | You'll be covered for an additional: |
|---|---|
30 days | 30 days |
90 days | 90 days |
6 months | 6 months |
1 to 5 years | 1 year |
Over 5 years | No cover |
If you are eligible, the extended warranty from your credit card will begin after the manufacturer's warranty ends. This may take place automatically, but you may also need to register your purchase with the card provider.
There are other factors to consider as well:
Credit card providers will typically have a maximum amount they will pay back in a 12-month period as part of their extended warranty. You will need to check the terms and conditions for not only your credit card company but also the exact credit card you have. For example, NAB's original warranty is up to 12 months.
While extended warranty itself might not cost you anything, there can be an excess fee if you make a claim. This varies depending on the bank, but is usually between $100 and $300 per person per claim. It will be taken out of the cost given back to you. Depending on the original cost of the item you are claiming against, you will need to consider if the claim is worth lodging.
This depends on the terms and conditions of your extended warranty insurance. Some providers, like Westpac and its subsidiaries, do offer 24 months' extended warranty, as long as your existing warranty is for less than 5 years.
It is common for high annual fee and reward credit cards to have both travel insurance and extended warranty insurance. To check, please read our review on the particular credit card you're interested in.
You can contact the American Express concierge, or Chubb Insurance to request this.
You can contact the insurer of your credit card provider to request this.
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