As we have advised previously here at The Car Expert, it is well worth considering a used car warranty if you have bought yourself a new (to you) car.
You wouldn’t buy a brand new model and not expect at least three years of cover against something going wrong, so why think about doing that, just because your new wheels are second hand?
There are several warranty providers offering cover for parts and labour, and each has different terms and conditions, so it’s worth taking the time to read the small print to see exactly what you are signing up for and what you can expect in the future if something does go ‘bang’.
But what is it you’re looking at? And do you understand all the terms and jargon used in a warranty document? It’s important not to assume that, just because you have paid good money for your plan, every part of the car is going to be covered. That’s not the case, and the plan providers will outline, with specific clauses what is, and what isn’t covered by your agreement.
Here are some of the main items to look for and what they mean.
Age limit
Many warranties have an age limit for cars – perhaps 10 or 12 years – so if your motor is getting on, it might not be worth insuring against breakdown.
Betterment
If a repair makes your car worth more than it was, your provider might not pay for the whole bill, leaving you to find some of the money.
Claim limit
There will be set thresholds on how much you can expect back for each component and repair. It’s also worth checking at what point you can make a first claim. That could be weeks or even months after your policy’s start.
Consequential damage
If something fails and then damages another part, the warranty might not cover both components, so it’s important to get your car into the repair shop for a look-over as soon as you suspect there’s a fault developing.
Excess
Many policies will allow you to opt to pay for some of the damage yourself with the insurer topping up the final bill. The more you pay, the smaller your premium will be, so it’s a good consideration if you’re not sure about spending big money on a warranty. Some excesses are compulsory, especially in higher mileage cars.
Labour rate
Some repairers charge an hourly rate that insurers are simply not prepared to pay. The provider will have a maximum allowed labour rate. After that, you pay the rest.
Mileage allowance
Rather like age limit, the higher your total mileage gets, the less insurable your car becomes. You might have to stay within a set mileage range to keep your warranty operating.
Ombudsman
If you’re ever unhappy about the claim settlement you are being offered, or about the way you have been treated by a warranty provider, you can take your case to the Financial Ombudsman Service. They consider all the evidence and have powers to settle claims.
Previous faults
The warranty might not cover damaged parts that were already there when you took out the warranty.
Regulated
A regulated warranty is usually more expensive than an unregulated warranty, but there are benefits to the extra cost.
Regulated warranty providers must report to the Financial Conduct Authority (FCA) twice a year to give an account of their solvency situation, their financial resources and accountability, so it’s worth looking for this particular form of peace of mind.
Read more: Should my used car warranty be regulated?
Service book
Insurers expect you to keep your car serviced according to the manufacturer’s recommendations. Fail to do so, and you could invalidate your warranty.
Workshop choice
You can’t always go to whatever repair shop you choose. Many warranty providers have their own ‘approved’ garages.
Warning lights
Don’t ignore warnings on your dashboard. If you do, it’s another reason why you might not be covered just when you need it.
Wear and tear
Don’t expect brake pads, tyres and clutch plates to be covered. These, and other ‘consumables’, won’t count in your cover.
Here at The Car Expert, we have some fantastic warranty offers for our readers provided by our commercial partners. If you’re interested in a used car warranty, you should check these out:
- ALA Insurance provides used car warranties in conjunction with the RAC
- MotorEasy offers warranties and many other types of cover for car owners
- Warrantywise is a long-established and multi-award-winning warranty provider
