The current cost of living crisis dictates that families have less money to cover unexpected breakdowns of their vehicles, therefore, an extended warranty has become increasingly relevant.

Research shows that six in ten households have limited or no savings and more than a third have less than £1,000 saved for emergencies – a record high.

“While sales of extended warranties have increased in recent years, the continuing pressure on household incomes means that offering a warranty extension or building a longer warranty into the purchase price of a car is likely to appeal to a growing number of people, including higher-earning households who are also feeling the strain.” Joff Suter of AutoProtect Group comments, citing recently published research by credit management company Lowell and Opinium.

Typically, middle-income families have experienced a significant decrease in their financial security, with nearly two in five (38%) of households with an income of over £60,000 have insufficient emergency savings.

Nearly one in twenty households have no savings at all, as a result, if a car in their household suffered an unexpected fault many would find themselves unable to meet the cost without relying on credit solutions.