Question 1

Used Car Warranties Avoid Unforeseen Costs

Accepted Answer

Used Car Warranties Avoid Unforeseen CostsThe ultimate purpose of extended car warranties is to avoid you having to pay for what can be exorbitant repairs on your car's components and systems. And, let's face it, you never know when a part might develop a fault or break down, making these costs always unforeseen that inevitably come at the worst possible time, such as at Christmas or when you're about to pay the balance on your summer holiday—and who needs that. So, having a used car warranty in place can actually be a blessing in disguise to avoid unforeseen repair costs.

Question 2

Extended Car Warranty for Peace of Mind

Accepted Answer

Extended Car Warranty for Peace of MindFor a monthly payment or yearly premium, you can sit back and relax, knowing, for example, that if the suspension suddenly goes, the turbo develops a fault, or the timing belt breaks, your extended warranty will cover the cost. Of course, this coverage is subject to your chosen cover and any policy exclusions. Still, the ultimate goal is that the repair costs for the parts and systems covered by your extended car warranty won't be coming out of your pocket!

Question 3

Be Safer on the Road

Accepted Answer

Be Safer on the RoadRepairs to vehicle components can be expensive, often leading to drivers dragging out repairing the issue until funds are available but continuing to drive the car regardless. Similarly, some may simply be discouraged from driving the vehicle altogether until repair costs are on hand. Having an extended car warranty in place can, therefore, be the solution to every driver's breakdown nightmare. And this is especially so if you're looking to keep hold of the vehicle for a longer period, which is an important consideration when weighing up the positives and negatives of used car warranties.

Question 4

Car Warranty Checklist - What to Check before you Buy an Extended Warranty

Accepted Answer

Car Warranty Checklist - What to Check before you Buy an Extended WarrantyThere are a few tips and pointers to consider before signing on the dotted line if you've made your mind up and decided that an extended vehicle warranty could be advantageous, including: Age limit: Most warranty companies will have an upper car age limit, not offering coverage for vehicles over 10 to 12 years old or with high mileage of more than 100,000. Pre-existing faults: If your vehicle has a pre-existing defect, this may not be covered under the extended warranty, which will be at the warranty provider's discretion.  Betterment: If your warranty policy includes a betterment clause, sometimes called a contribution clause, you may be liable to contribute towards the repair if that repair means your vehicle is in a better condition than before the failure occurred. And, as expected, it is usually the warranty company who decides, so if you can avoid providers who include betterment clauses, the better it is for you. And companies such as RAC Warranty, WarrantyWise and co.uk don't have such clauses restricting claims, so be choosy with the warranty provider you go with. Claim limit: It doesn't matter whom you go with, your warranty policy will have a claim limit attached, so it's essential to discover the amount for each of the quotations you get. The claim limit will be the maximum value you can request per claim, in addition to a separate claim limit for the total amount that will be payable for the duration of the warranty policy. You need to be aware of both these limits and be sure it's the coverage you need. Some companies will offer as little as £300 per claim, with the quote looking rather competitive, but with most repairs likely exceeding this amount, it's vital to shop around for the highest claim limit within your budget. Maximum Labour Cost: In addition to claim limits, there are also labour rate limits to consider, with some providers requiring you to use only approved repairers. It's super important that you understand any restrictions on labour costs. For example, a local garage may charge £35 per hour, but if you require a main dealership, their hourly labour rates will be much higher.  Covering full repair costs - parts and labour: You should compare extended warranty policies checking for the claim and labour rate limits for each provider to ensure you're getting the coverage you need. For example, if your warranty covers you for £400 per claim, but the repair costs £600, you will be liable for the element not covered by the warranty. Similarly, check the policy wording for 'contribution' and 'betterment' clauses. If your warranty wording includes this, you may be liable to contribute to the repair if your provider considers the repair adding value to the vehicle. Consequential loss: Check your warranty wording for the term 'consequential loss'. Warranty companies use this clause to avoid paying out on repairs on insured parts that become faulty or damaged by an uninsured component. But, again, more reputable warranty providers won't include such clauses so reading the small print is essential. Limits on annual or total mileage: Most warranty providers don't cover vehicles with high mileage, typically more than 100,000 miles. In addition, any extended car warranty will expire once you meet the mileage limit within the covered warranty period. An example would be a warranty of two years with a 50,000 mileage limit which you hit at 18 months, automatically losing you the remaining six months of the warranty.  No-claim time periods: You should check your policy wording for any initial no claim periods. Typically, warranty providers won't allow you to claim within an initial period of the warranty starting in case of pre-existing faults. These initial no claim periods can sometimes be up to 90 days, so it's crucial that you know and understand the clause. Ensure the warranty company is UK and regulated: Another crucial thing to do is do your homework and research the company behind the warranty. Make sure the company is UK-based and FCA-regulated in the same way as banks and finance companies are. This way, if you encounter problems with your provider, there are processes to follow. Also, check out The Motor Ombudsman's Vehicle Warranty Code of Practice and Accredited businesses for additional information and see whom they deem reputable companies!

Used Car Warranties Avoid Unforeseen Costs

Used Car Warranties Avoid Unforeseen Costs

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