Question 1

Premium cover warranties can be costly

Accepted Answer

Premium cover warranties can be costlyLet's be honest; unless you cover all the major components and systems, a vehicle warranty may not be worth it. For instance, you could decide to get coverage for the gearbox saving you money on the warranty cost, hedging your bets that nothing else goes wrong. Still, chances are it'll probably be one of the many other components or systems that ends up giving you grief. And, if you do go for the top-of-the-range full coverage, it'll probably burn a significant hole in your wallet. Of course, the cost depends on many factors, including the model and make of the car, its age and mileage, and the expected mileage you intend to cover. Still, even on the smallest car with 30,000 miles, a premium policy will likely set you back around £500 or more.

Question 2

Numerous warranty rules need to be followed

Accepted Answer

Numerous warranty rules need to be followedAs well as providing you cover for vehicle repair costs, a used car warranty will also bring several rules to maintain its validity. For example, you'll be expected to service the car regularly and on time in accordance with the manufacturer's recommendations. You'll also most likely be expected to use a reputable dealer-approved garage to carry out the servicing.

Question 3

Warranty small print can be baffling and contradictory

Accepted Answer

Warranty small print can be baffling and contradictoryIn addition to warranty rules needing to be adhered to, car warranties usually have quite a bit of policy wording that can be confusing. Whether this is intentional is perhaps a debate for another day, but it is vital you read through all the policy documents properly to understand the cover, the limits and any exclusions that may apply. Look out for the terms 'betterment' and 'contribution', which reference your liability if your provider deems a repair adds value to the vehicle. Also, check the small print for the term 'consequential loss', which voids a claim if a faulty or damaged insured component occurred by an uninsured part. If you can, avoid warranty providers who include these clauses.

Question 4

Actions that can invalidate a vehicle warranty policy

Accepted Answer

Actions that can invalidate a vehicle warranty policyIn exchange for covering costly vehicle repairs, your warranty provider will expect you to undertake certain things in addition to not carrying out certain actions. The best way to avoid warranty invalidation is to read your car's warranty documents properly. Examples that could lead to your warranty becoming invalidated include the following: Failing to service your vehicle in accordance with the manufacturer's recommendations or not servicing it through an approved dealer Using the incorrect fuel Excessive off-road use Road racing Overloading the vehicle Vehicle modification Force majeure such as flood, earthquake, hurricane and fire

Question 5

Alternatives to car warranties

Accepted Answer

Alternatives to car warrantiesIf you've been unswayed about getting a used car warranty because of too many exclusions and conditions, it may be worth a look at the manufacturer or dealership warranties. These tend to have fewer exclusions than third-party rivals. Similarly, if you're sitting on the fence, consider whether a cheaper warranty is worth the money. More reasonably priced policies are unlikely to cover very much and will likely come with a long list of exclusions. The saying, "it's too good to be true", is often mentioned because it is more often than not accurate, and in these cases, a used car warranty is probably not worth it. Otherwise, if you've already decided an extended car warranty isn't for you, Motorscan has listed a few alternatives that you could consider: The most obvious one is to put an amount of money away each month into a savings account and build up a pot of funds, just in case of any unexpected vehicle trouble down the road. Depending on your level of cover, breakdown cover won't cover you for the cost of major repairs or parts, but it should get you out of the initial trouble. Lastly, consider selling your car and investing in one still covered by the manufacturer's warranty, as these are tied to the vehicle, not the owner.

Warranty small print can be baffling and contradictory

Warranty small print can be baffling and contradictory

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