Car Warranty

Many people ask the question “is a car warranty really worth it?” The short answer of it is – yes. A car warranty gives the car buyer peace of mind in knowing that, if anything should go wrong with the car, it is taken care of at no extra cost. A car warranty protects the car owner from the additional cost of repairs if they are covered by the warranty. While new cars usually come with a warranty, buyers can purchase warranties for used cars in many cases as well.

In order to understand why a car warranty is so worth it, it is a good idea to understand what a car warranty actually is. Simply put, a car warranty is a form of insurance policy for your car. If your car breaks down due to an electrical or mechanical problem of a covered part, the warranty will cover the cost of repair, including labour and replacement parts. A car warranty can end up saving you a lot of money in the long run.

There are a few different types of car warranties available. Almost every new car comes equipped with a 3-year, or similar, manufacturer warranty. Usually, used cars from authorised or franchised dealers will also be backed by the manufacturer warranty. Independent dealerships offer dealer warranties on the new and used cars in their lots. However, in addition to the manufacturer warranty, many dealers and car garages will include a separate, or extended, warranty. Another type of car warranty that exists, that many car buyers are unaware of, is the after-market, or personal, warranty. After-market warranties offer a broad base of coverage and are sold privately to car owners.

The cover levels of car warranties vary widely between manufacturers, dealers, and private warranty companies. The excesses, claim limits, and conditions also vary, so research is always a good idea, even if the warranty comes with the car you are buying. Coverage can also be broken down into different divisions such as Parts & Labour and Breakdown Repair Cover.

In order to get the best warranty, if purchasing it separately from the manufacturer warranty, you must read all the fine print and be aware of what you are getting for your money. The best car warranties will cover all major mechanical components including the cooling system, engine, fuel and ignition systems, gearbox, electrical system, steering, transmission system, suspension and clutch systems, and brake systems. Be careful, because not all warranties will cover every system.

Good car warranties will cover a certain amount of normal wear and tear. Inferior car warranties will not. Always choose a car warranty that is upfront about its level of cover and how it handles normal wear and tear. Usually, good coverage will require that you pay a percentage of the labour and replacement cost. This is where betterment comes into play. Whenever a replacement part is used, it is usually better than the old one. Always be aware of how much you will be expected to pay in this case.

Before buying a car warranty, also be sure that the warranty provider abides by the Association of British Insurers’ (ABI) code. The ABI lays down the guidelines on how warranties may be sold throughout the United Kingdom. The warranty company should also be regulated by the Financial Services Authority (FSA).