Extended warranty on a new car in India: what it covers, what it costs and when it is worth buying
By Arjun Ramanarayanan, IndiCar · Published 22 October 2026 · Tips
Extended car warranties cost Rs 7,000 to Rs 50,000 or more plus 18% GST, according to one 2026 guide. Here is what they cover, what they exclude and when one is worth buying.
An extended warranty is an optional add-on that continues factory-style cover against mechanical and electrical failures after your standard warranty ends. One 2026 guide puts the price at Rs 7,000 to Rs 50,000 or more, depending on brand and model, with 18% GST added on top. It is worth buying if you plan to keep the car beyond its standard warranty. If you will sell before then, you can usually skip it.
What does an extended warranty cover?
It covers repair or replacement of parts that fail because of a mechanical or electrical fault, according to Tata AIG, which links that cover to manufacturing defects. Kia India says its own extended warranty gives almost the same coverage as the factory warranty, protecting against mechanical and electrical failures under normal use and maintenance, subject to terms and conditions.
Length varies. One 2026 guide says extended plans add similar coverage for 1 to 4 more years. Kia lets you extend by up to 4 years, and you can buy it at any time before 58 months from the date your new car was delivered.
What does an extended warranty not cover?
The exclusions are where most buyers get caught out, so read them before you pay. Across the sources, these are listed as not covered:
- Wear and tear, including parts such as brake pads, clutches and suspension (GoMechanic, Tata AIG)
- Routine maintenance (GoMechanic)
- Accidental damage, theft and natural calamities (Tata AIG)
- Diagnostic charges and consumables such as coolants and lubricants (Tata AIG)
- Software issues not directly related to hardware (Tata AIG)
- Modifications (GoMechanic)
Brand plans have their own lists. Kia, for example, does not cover tie rod ends, steering ball joints, rear shockers, front struts, tail door lifters, or wheel bearings and hubs beyond 80,000 km.
Car insurance is mandatory by law, with third-party cover as the minimum. An extended warranty is optional and does not replace it.
How much does an extended warranty cost in India?
Most published averages fall between Rs 10,000 and Rs 50,000, depending on the size of the car and the length of the plan. Premium and luxury cars cost more. Kia and a 2026 guide both say 18% GST is charged on top of extended warranty prices, so check whether a quoted figure includes it.
| Source | Plan | Average price |
|---|---|---|
| GoMechanic | 2-year, hatchback | Rs 10,000 to Rs 20,000 |
| GoMechanic | 3-year, sedan | Rs 25,000 to Rs 35,000 |
| GoMechanic | 5-year, SUV | Rs 40,000 to Rs 50,000 |
| Tata AIG | 5-year, hatchbacks and SUVs | Rs 40,000 to Rs 50,000 |
| Tata AIG | Premium and luxury vehicles | Over Rs 1 to 2 lakh |
| 2026 guide (Motomotar) | All brands and models | Rs 7,000 to Rs 50,000 or more |
Is an extended warranty part of the on-road price?
No. Your on-road price is made up of the ex-showroom price, registration and road tax, first-year insurance and FASTag. Take the Toyota Rumion E Petrol Manual on IndiCar's price list dated 12 October 2026, registered to an individual in Mumbai:
| Item | Amount |
|---|---|
| Ex-showroom price | Rs 9,79,000 |
| RTO registration and road tax (Mumbai, individual) | Rs 1,27,144 |
| Insurance (first-year comprehensive) | Rs 89,604 |
| FASTag | Rs 1,500 |
| On-road price | Rs 11,97,248 |
That is Rs 2,18,248 above the ex-showroom price, and none of it is an extended warranty. Any extended plan you add is a separate, optional cost on top.
Across the eight Rumion variant and powertrain combinations IndiCar prices, petrol and CNG, manual and automatic, on-road prices run from Rs 11,97,248 to Rs 17,42,599 for the V Petrol Automatic. You can see every one on the Toyota Rumion prices and configurator page, or work out the breakup for another car with the on-road price calculator.
When is an extended warranty worth buying?
Buy it if you will keep the car past its standard warranty. Autocar India says the extended warranty is clearly beneficial in that case. It says you can skip it if you sell within the standard warranty period, though it adds that an extended warranty can help resale.
The type of car matters too. One 2026 guide says a naturally aspirated petrol car with a manual or torque-converter automatic gearbox can probably skip it, because the standard 3-year cover usually suffices for that combination.
Not everyone thinks the numbers work out. NxCar claims a typical 3-year extended warranty costs Rs 40,000 to Rs 60,000, while average claims come to Rs 15,000 to Rs 25,000. That is one company's claim, not an industry figure. It still makes a fair point: you are paying in advance for repairs that may never happen, and wear parts are excluded.
Our view: if you change cars within the standard warranty, keep the money. If you keep cars for many years, buy it, but only after you have read the exclusion list for your brand.
What happens to the warranty if you sell the car?
With Kia, the extended warranty moves to the next owner for whatever period is left. It has no surrender value, so you get no refund of the premium. You also cannot move it to another car. Terms differ by brand, which is one more reason to read the plan document before you buy.
How to buy your next car through IndiCar
Pick your car and variant from all new cars with Mumbai on-road prices and book on indicar.in at IndiCar's itemised on-road price with a refundable reservation. Before you book, IndiCar confirms in writing the stock, the delivery date and the itemised price breakup, including which items are compulsory and which are optional.
IndiCar sources the car from partner dealer stock, and the authorised dealer invoices it. IndiCar handles registration, insurance and delivery in Mumbai, Navi Mumbai and Thane. You deal only with IndiCar from booking to handover.
Sources
- Your Kia Extended Warranty After Manufacturer Cover Ends
- Car Warranty Explained: What It Covers in India (2026 Guide)
- Comprehensive Guide to Extended Car Warranties Explained
- Car Extended Warranty and Insurance
- Extended warranty: everything you need to know
- The Truth About Extended Warranties: A Numbers Game You're Losing
Buying a new car through IndiCar
IndiCar arranges new-car purchases in Mumbai, Navi Mumbai and Thane. You book a new car on IndiCar at the on-road price shown on its car page, with the full price breakup: ex-showroom, RTO registration, insurance, TCS and FASTag. You book online with a refundable reservation, and IndiCar sources the car from partner dealer stock and handles the registration, insurance, paperwork and delivery.
You deal only with IndiCar from quote to delivery. Your phone number is never passed to a dealer, and you do not need to take the quote to a showroom to negotiate. See on-road prices and book or get a WhatsApp quote on +91 85916 41004.
Frequently asked questions
How much does an extended car warranty cost in India?
One 2026 guide puts it at Rs 7,000 to Rs 50,000 or more, depending on brand and model. GoMechanic lists averages of Rs 10,000 to Rs 20,000 for a 2-year hatchback plan and Rs 40,000 to Rs 50,000 for a 5-year SUV plan. Tata AIG says premium and luxury cars can cost over Rs 1 to 2 lakh. Kia and one guide say 18% GST is added on top.
Does an extended warranty cover brake pads and clutches?
No. GoMechanic lists wear-and-tear parts such as brake pads, clutches and suspension as typical exclusions. Tata AIG also excludes consumables such as coolants and lubricants, as well as diagnostic charges.
Is an extended warranty compulsory when buying a new car?
No. Car insurance is mandatory by law, with third-party cover as the minimum, but an extended warranty is optional. IndiCar gives you a written itemised breakup before you book that shows which items are compulsory.
Can I skip the extended warranty?
Autocar India says you can skip it if you sell within the standard warranty period, though it can help resale. One 2026 guide says a naturally aspirated petrol car with a manual or torque-converter automatic can probably skip it, as the standard 3-year cover usually suffices.
Does the extended warranty transfer when I sell the car?
With Kia, it transfers to the next owner for the remaining period. It has no surrender value, gives no refund of the premium and cannot be moved to another vehicle. Terms vary by brand.
When can I buy an extended warranty on a Kia?
Kia lets you extend by up to 4 years, at any time before 58 months from the date of new vehicle delivery.
Tags: extended warranty, car warranty, new car buying, car ownership costs, mumbai