A vehicle warranty (also called mechanical breakdown insurance) is a type of insurance policy that protects you from the cost of fixing certain mechanical problems and electrical faults

At their most simplistic, motor warranty policies will cover basic issues to do with the engine and transmission system. However, warranties can be as comprehensive as you like - with the premiums paid adjusted according to the amount of cover you get.

Do you have a vehicle that is at – or approaching – the end of its manufacturer warranty? Or perhaps you have an even older vehicle? An extended warranty could be a sensible precaution against unexpected and potentially expensive repair bills.

The nature of these policies varies, but they generally provide cover for 12 months – with options to extend it even further.

Most new vehicles come with a manufacturer’s warranty as standard, but you may wish to consider extending your warranty for extra protection.

Some vehicles are expensive to repair; therefore, it makes sense to protect yourself from unexpected costs.

Some things to consider before taking out an extended warranty:

• What's your car, van or motorbikes value and the average cost of repairs?
• Do you own a vehicle that is likely to suffer expensive breakdowns?
• How frequently might your vehicle break down?

Premiums will vary depending on the length of the policy, and are based on:

• the type of vehicle
• the size of the engine
• your annual mileage