When Buying A Used Car Warranty or Extending Your Current Warranty 4 Private Cars And Other Vehicles You Should Know The Facts..
There is a wide range of mechanical breakdown policies ( Car Warranty ) on the market today. All are designed to protect buyers against the costs of sudden and unforeseen failure of a specified list of components on your motor vehicle. The components covered may vary according to the age and mileage of the vehicle, ranging from policies that provide wide protection on newer motors or used vehicles that are only a few years old, through to more limited covers for much older or higher mileage vehicles ( 50 000 miles or 60 000 miles is a fairly common benchmark here ). It is very important that you are offered the correct policy for the vehicle you are buying. It stands to reason that it is just as important that you understand the product you are buying to ensure that you actually ask the right questions in this regard ). Generally, with a used car warranty the more extensive the level of cover ie. protection includes a big range of components, the more you should expect to pay. You should generally pay less for a policy with a restricted list of parts covered. Find out what the weaknesses are for the model of vehicle you are buying and get a policy to protect yourself armed with this knowledge.
Mechanical Breakdown Cover or a Used Car Warranty Policy will usually pay for both the parts and labour charges incurred should any one of a number of moving parts fail while operating the vehicle. The list of parts will vary according to the level of cover you pick and the price will generally increase with the cover. Traditionally a vehicles Turbo or Super Charger would not be included as standard in a warranty, but they can be added relatively easily. Click4Warranty policies cover apply strictly to the failure of specified components listed in your warranty policy only; naturally if the component is not listed for cover in the policy, then as with any used car warranty provider the claim will not be paid.
When buying a new car you will automatically be given a manufacturer’s warranty. A Manufacturer’s warranty can be valid for a period of between one to three years. This is a point which can often cause confusion so please realise that under your standard manufacturers warranty you are free to get your car serviced at any service station / garage in the UK and still benefit from the manufacturer’s new car warranty, providing the service is carried out to the car manufacturer’s recommendations. The car dealer who you buy the car from could also offer a warranty which extends a two year warranty to three years for you. Such a dealer based warranty may have many more restrictions in the small print over the original manufacturer’s warranty, so be aware of this. Some of the restrictions could be things like limiting the mileage to a maximum of 60 000 miles or that services must be done by the same dealer who has given you the warranty. Policies May Also Have Other Limits. Warranty Policies will often have a maximum amount payable for any claim; this may range from a few hundred to a few thousand pounds. You are advised to check the adequacy of these limits in view of the cost of breakdown for major components when deciding on the upper limits of your cover. Some warranty policies have a betterment clause, in which case you would have to pay something if your vehicle was improved following repair. They may also have a maximum amount payable during the life of the policy. There may be an excess that you will need to pay yourself if you have to make a claim. Some automotive components may have specific claim limits or excesses applied to the as well.
The majority of Used Car Warranty Policies or Mechanical Breakdown Insurance Policies as you may well have heard it referred to are NOT maintenance contracts and therefore do not cover breakdown costs that arise through normal wear and tear on your vehicle. "Wear and tear" is the expected reduction in performance of a part due to the cars age, mileage and/or use. Many of not only the smaller independent warranty providers but also the larger ones have specific exclusion clauses for wear and tear. This means that even when the part is covered, the provider has the right to refuse the claim should they find dependent on the mileage and age of a vehicle the breakdown can be attributed to wear and tear of specific non covered components. For this reason we would like to make it abundantly clear that you should be aware that an engine failure can often be attributed to ’wear and tear’ as parts often wear down rather than break. If you do not want your warranty provider to reject a claim on these grounds you should ensure that it is clearly stated in the terms and conditions that both "mechanical breakdown" and "wear and tear" are covered by your policy. CLICK4WARRANTY POLICIES INCLUDE COVER FOR WEAR AND TEAR AS STANDARD. This means that our warranty policy is sold including protection against both "mechanical breakdown" and "wear and tear". We will therefore pay toward the cost of repairs if a part fails as a result of ’wear and tear’.
You may be wondering just why that is. This is because some components will require replacement during the expected life of a car as part of the regular servicing that the manufacturer recommends. The insurer protects you against unexpected failure. The policy should make these points clear. For new cars, cover is usually offered for an additional 12 or 24 months after the manufacturer's guarantee expires, but longer periods of cover are available on some vehicles. For used cars, periods of cover offered will vary from 3 to 36 months from the time of purchase. Sometimes, policies include a mileage limit and cover will cease if this mileage is exceeded while the policy is in force, so you need to consider carefully whether this limit will be enough for your expected use of the vehicle.
Mechanical breakdown policies may also include additional benefits, such as towing-in charges, overnight accommodation or a contribution to the cost of a replacement vehicle during repairs. These benefits only apply in conjunction with a valid mechanical breakdown claim and are often subject to separate conditions and limits. In some cases, though, the policy claim limits will include payments made under the additional benefits section of the policy.
A total of 7.2 million used cars were sold in the UK in 2004 alone at an estimated value of £32 billion reportedly the highest value ever recorded for used car sales. The figures represent an increase of around 637,000 cars year on year. The same report which was published in the 2004 Used Car Market Report is published by BCA suggested that motorists in the UK still mainly buy their vehicles from a dealer, with car dealers selling almost 72% of all cars aged 8 years old and under. Private-to-Private sales accounted for just under 3 million units, around a quarter of the value of sales from dealers. The average private sale price fell to £2,094 which is was a drop of approximately £200 per car. Also of interest was that cars which exchange hands privately were aged over nine years old on average. Saying all this the report also showed that the average age of a car has started to fall and is at its lowest point in 10 years. British drivers it seems are not keeping their cars as long as they used and thanks to a society who disposes of more goods than ever before our cars are not being kept on the road as long anymore. Technology has made vehicle manufacture cheaper and although newer metals and alloys mean less rust, damage to a vehicle is now extreme in an accident thanks to crumple zones and other safety standards. These cars are being sent for crushing today where as ten years ago they were probably repaired. The percentage of cars surviving 15 years or more has fallen to 37.5% having been 40% plus throughout the late 1990s. Increased new car diesel sales are making their mark on the UK's roads too. © Copyright 2006 BCA. All Right Reserved. Just as new car buyers are protected by consumer rights so are used car buyers but to a much lower extent. To truly protect yourself you need to consider extended warranties which are designed protect the owners of used cars. After all, you can’t ever really know the car’s complete history can you. Things you really should know like who drove the vehicle, how the motor was actually driven and in what conditions it was stored, has the car become less reliable over the past few months? It is most likely that this is the case as the car you are looking at is getting on in years isn't it? It would be great if you could foresee what problems might go unnoticed at the sale, only to come back and attack your wallet 6 months after you buy the car. Unless you are buying a cheaper (economy priced) motor vehicle there is very little chance of you simply lifting the bonnet to have a quick look at the engine. Most newer cars engines are enclosed in metal and plastic covers, light units are pushed into corners that only a child's hands can get into and a gearbox oil change requires specialist tools. Yes today’s modern cars need a computer chip and sensors to start, run, charge the battery and manage the fuel settings. Only a manufacturer trained professional mechanic can diagnose and fix your car when something goes wrong, and these guys charge the earth if you go to them. Many have labor rates ranging from £45 to £95 an hour before tax. Well we don’t think it is hard to see how quickly your repair bills can escalate to vast sums of money in just one bad day for you and your car. Please realise that all this has not yet taken breakdown costs into consideration yet!
Important Conditions and Servicing Stipulations On Car Warranty Policies All insurance policies require you to comply with conditions and, if you fail to do so, claims may be refused. Most mechanical breakdown policies require the vehicle to be serviced, by an authorised dealer, at intervals laid down in the policy. This is a crucial condition of the policy and the policyholder is entirely responsible for making sure that correct servicing is carried out at the intervals specified.
When you buy a new car through a dealer, you will get details of the policies they offer. Cover may also be available from the manufacturer and the dealer may be able to provide details of this too. For a used vehicle, the cover available will depend on the age and mileage. Your dealer will be able to provide details of the policies he has for sale. Alternatively you are also free to seek out expert advice from other insurance suppliers such as Click4Warranty. They will provide you with expert advice on used car warranty products, policy options and details on the levels of cover provided. Click4Warranty provide cover at competitive rates with clear information on the depth of cover your policy will provide. Cover is also available from some insurance companies, brokers, motoring organisations, banks or other financial institutions (especially if you are borrowing money to buy the car). Some mechanical breakdown insurances have an option to renew the cover for 12 months when your policy runs out.
Some other companies don’t pay for breakdowns that occur in the first 30, 60 or even 90 days of cover! This means the 12 month policy you bought actually only provides cover for as little as 9 months, worth checking the small print. With Click4Warranty there are no hidden clauses imposing waiting periods. Your car is covered from day one and you can submit a valid claim immediately after inception of the policy.
All you need to do is pick up the phone and call us. To keep the process quick and simple we process everything over the phone. Wherever possible, to avoid your being out of pocket, we will settle authorised claims directly with the repairer. We’ll let you know where your nearest repairer is, then you choose a convenient time and book your car in. Once the repairer has the car, they will call us for authority, complete the work and invoice us. We’ll settle the cost with them directly. If you prefer to use your own repairer please remember that you ’must’ still obtain authority before work starts, we cannot accept notification of a claim by a repairer. If you use your own repairer, we are unable to negotiate their fees for you and you'll need to pay for the work and claim the authorised costs back from us. For a more in depth answer please refer to section 12 of the policy terms and conditions or see our how to claim page.
There are three Codes of Practice which are relevant to extended warranty and mechanical breakdown insurance. The "Guidance Notes on the General Business Code of Practice" which seeks to ensure that good selling practices are applied by insurers. Other relevant Codes of Practice are the Society of Motor Manufacturers and Traders’ Code of Practice for mechanical breakdown insurance schemes which covers a range of matters including car insurance. You can obtain details respectively from The Association of British Insurers, 51 Gresham Street, London EC2V 7HQ; The British Retail Consortium, Bedford House, 69/79 Fulham High Street, London SW6 3JW; the Society of Motor Manufacturers and Traders Limited, Forbes House, Halkin Street, London SW1X 7DS.
Further Information On Used and Extended Car Warranty Products All insurance policies are important documents. Read your policy carefully as soon as you receive it. If you do not understand, you should ask the person who sold you the policy, or the insurer, to explain. You may also wish to check that the insurer is a member of the Insurance Ombudsman Bureau or the Personal Insurance Arbitration Service. These bodies can help you if you have a dispute about the insurance that you cannot resolve. Your policy will have details of the procedure.
Click4Warranty provide used car warranties for all the following car makes: Alfa Romeo, Audi, Austin, Chrysler, Citroen, Daewoo, Daihatsu, Fiat, ford, Honda, Hyundai, Isuzu, jaguar, Jeep, Kia, Lada, Landrover, Lexus, Mazda, Mercedes, MG, Rover MG, Mini, BMW Mini, Mitsubishi, Nissan, Opel, Perodua, Peugeot, Porsche, Proton, Renault, Rover, SAAB, Seat, Skoda, SMART, Ssangyong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen and Volvo