Warranty schemes

Why do you need a warranty when you’ve got car insurance and maybe even a guarantee? Let us explain…

“Just after the last Olympics I bought a secondhand Jaguar for £9,000. It wasn’t so much the cost of the car but all the work I had done on it. The warranty had just run out so I had to foot the bill,” says GB long jumper Chris Tomlinson.

While car insurance covers damage to your car or to another driver’s car in an crash, a warranty covers the cost of replacing parts, and breakdowns any time. So, if you’ve bought a used motor, having a warranty could save you from forking out on repairs. New cars come with their own manufacturer’s warranty, which will cover some repairs, but you might still want a warranty to cover extras.

You can buy a warranty from the dealer who sold you the car, or from independent sellers – Tesco, or Warranty Direct for instance. A one-year warranty for a small car starts at around £100. And you’ll need to show an MOT certificate for your motor.

Ways to get a warranty:

  • Look for limits on the mileage and car’s age; any repairs after these limits won’t be covered.
  • What’s covered? Warranties don’t cover damage to bodywork, glass, lights, and wear and tear on things like tyres and brake pads.
  • Check for low limits on claims and for daftly high excess (the first chunk that you pay of any claim).
  • Check you can use a garage near you for repairs or service. Some warranties limit where you can go – in which case, compare the named garage’s costs.
  • Beware “consequential loss”. Stop yawning! This is a dodgy catch, which means the warranty won’t cover a part that goes wrong because another part has failed.
Posted in Owning.

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