An extended warranty is an agreement between you and a warrantor (either the retailer or another business) to provide specific warranties or guarantees for a set period of time — usually to replace or repair products or services you have just bought. You pay extra for an extended warranty.
When to consider an extended warranty
The Consumer Guarantees Act (CGA) offers long-lasting guarantees on products and services bought for personal or household use in New Zealand. So in most circumstances, buying an extended warranty probably isn't worth the cost.
Carefully check what the extended warranty covers. Does it offer extra protection you don't already get with the CGA? Examples of extra protection include:
- cover for accidental damage — but check if your home or contents insurance also covers this
- you buy something for business use, as the CGA will not apply.
Read the terms and conditions carefully to check it gives you the protection you need.
Some extended warranties expire once you make a claim — the terms must state if this will happen or not.
Extended warranty documents must include a comparison of the warranty with the CGA, so read this carefully. Don't be afraid to question the seller.
If you buy an extended warranty
Before you sign or pay, the seller must tell you:
- about your right to cancel the extended warranty — unless it's a condition of buying a product on credit
- how to cancel it.
When you buy an extended warranty, you must be given a written, dated copy that sets out:
- its total price
- all terms and conditions, eg your rights and obligations, duration and expiry date
- a comparison of protections offered by the Consumer Guarantees Act (CGA) and the extended warranty
- a summary of your rights and remedies under the CGA
- a summary of your right to cancel the warranty
- the warrantor’s name, street address, phone number and email address.
How to cancel
You can cancel the extended warranty by giving notice verbally or in writing:
- within five working days of being given a copy of the warranty
- at any time if you weren’t given full or complete disclosure — even after the warranty has expired.
The seller must then repay you the full price.
Selling extended warranties(external link) — Commerce Commission