Why Should I Buy A Used Car Warranty?
Even if the car you have just bought has been subjected to an independent vehicle inspection there are still potentially a large number of things that could go wrong. Car warranty insurance is intended to cover the cost of repairs due to electrical or mechanical failure. Ultimately it is up to the buyer to decide whether or not to take out a used car warranty. There is a risk that if you buy the wrong car warranty or that if you do not need to make a claim then you will lose out. On the other hand, if you buy the right used car warranty and do need to make a claim you will be very pleased that you took one out.
What Types Of Used Car Warranty Are Available?
There are two types of used car warranty: i) Inclusion Warranty and ii) Exclusion Warranty. Inclusion car warranties list all of the items that are covered under the warranty. At first glance it might seem that this is the better type of car warranty to take out. However, from the pages of items that are listed as being covered it can sometimes be difficult to see exactly what is not covered. Exclusion car warranties list all of the items that are not covered under the car warranty. From this type of policy it might be easier to see exactly what items are being covered.
Are There Any Clauses That Will Invalidate A Warranty?
Usually the terms of the car warranty will state that the car must be serviced at intervals as specified by the manufacturer. e.g. an Intermediate service at 10 000 miles. The car warranty may also specify that only standard parts can be fitted to the vehicle and that engine or system modifications should not be carried out. It is also important to keep a record of all servicing work that has been done. This will be needed when making a claim. The use of a vehicle may also be restricted. For instance, exclusions might apply if the car is used at a track day or for off roading. Be aware that any pre-existing/ known faults will not be covered by a used car warranty.
What Items Are Covered By A Used Car Warranty?
A comprehensive used car warranty will cover failure of the following items: Engine, gearbox, brakes, suspension, steering, ignition system, cooling system and electrical system. Car warranties do not normally cover wear and tear items such as tyres.
Are There Any Claim Limits?
The total amount of any claims made will usually be limited to the value of the vehicle. Additionally, there may be claim limits applied to specific components or systems. It is important to check this out before buying a used car warranty.
Where Should I Buy A Used Car Warranty?
Many used car dealers will offer you a used car warranty with the car you plan to buy. Given that the dealer will be getting commission on the car warranty insurance, it might be worth investigating how much it would cost for you to buy a car warranty directly and then offering the dealer a correspondingly reduced amount for the car. If you decide to do this then be sure to compare what is on offer between the car warranty companies that you approach. |
