Insuring against expensive repair bills

Used car warranty

During the 1990’s, upselling customers to an extended car warranty was a hard sell. Motorists had a good instinct that an extended warranty was often not worth the associated costs.

Uncertainty arose due to poor UK warranty providers and a lousy industry reputation for making successful claims.

Things have improved a lot in the last 15 years and some firms are now regulated by the Financial Conduct Authority. I’ll only discuss one such company in this blurb.

 

Rights to used car repair

When you buy from a dealership in the UK, you have a mandatory 30 days rock-solid provision of consumer rights. These rights cover ‘fit for purpose’ regarding car condition and mechanical wear and tear, in keeping with the price paid for the vehicle.

Sold as seen does not exist when buying from a dealer regardless of how much you paid for the car (unless sold for spares and repair).

After 30 days, your rights quickly diminish and getting repairs for mechanical or electrical failure become more difficult.

This is where steps in.

I have worked with and subsequently reviewed most of the leading used car warranty brands. In this article, I’m going to discuss my preferred and most reputable one, Warranty Direct. Check out their .

Use the links to for more information

I’ll surmise the cover you get with Warranty Direct extended guarantee and indicate if this cover is in keeping with the money it costs to buy.

In general, there is a disparity in knowing what is and is not covered on any used car warranty.

Mechanical breakdown insurance is a type of car warranty, designed to cover you for financial loss should your car fail either mechanically or electrically. Most dealers provide a free car warranty for 3 months parts and labour with a £100 claim limit. Newer cars have a mandatory manufacturer’s warranty often 3 years or 60,000 miles, depending on the car brand.

Buying an extended car warranty provides you with instant cover and ensures you are insured at all times.

Getting a car warranty quote

Warranty Direct now tailor a quote based on car make, model, age and mileage. Broadly speaking, you’re looking at £250+ per year for some good mechanical and electrical insurance.

Handily, there is a pay monthly car warranty option.

There are various ‘add on’s’ to choose from based on the level of cover you want and the monthly amount you can afford.

 

Core warranty cover includes:

Engine, gearbox, transmission, turbo, flywheels, casings and Electronic Control Unit (ECU).

Further warranty options

If you are happy to pay the monthly cost, almost all of the working parts of your car can be insured. Some options are worth every penny whilst others seem so unlikely to break that I would not pay to insure them.

 

Core Plus includes:

Air con, clutch, electrics and fuel system – this is recommended coverage for just a few pounds extra to your monthly payment

 

Safety System Protection includes:

Steering, brakes and suspension units – these items are worth covering due to their probability of breakage

 

Emissions System Protection includes:

Catalytic converter and DPF filter (diesel particulate filter) – your cat converter is an expensive part to buy whilst a DPF is expensive to fit (this warranty covers 100% labour!). I would buy this.

 

Multimedia Systems Protection includes:

Amps, audio etc. – In 30 years of buying and selling used cars I’ve had few audio failures so this is not cover that I’d consider buying.

Depending on the vehicle and cover recommended, your additional monthly fee can be less than £8.00, so it’s a good deal.

Go to and choose your add on’s.

Exclusions to beware of

Look at what is insured on a typical warranty, what is not insured and restrictions with Warranty Direct.

Used car warranty industry standards are often described by the items that are not covered, this includes:

 

• Serviceable items including tyres, exhausts, breaks, batteries
• Bodywork including paint scratches, dents, cosmetics
• Trim including upholstery, carpets, glass

 

Any/all other items may be guaranteed depending on the individual cover chosen.

 

Franchised dealer warranty repair insurance

When purchasing your car warranty, see the option to have your car repaired at a franchised dealer. If you want to use a franchised repair centre, make sure to add this option at checkout else you risk part entitlement to your claim.

Wear and tear and mechanical or electrical breakdown arising, for example, through age or use are covered (see terms and conditions).

 

Approved claims are settled as per the payment table below:

Age and mileage play a crucial role in any claim:

 

Structured Claim Payment Table

 

• Under 60,000 or 6 years = Labour: 100% Parts: 100%
• Over 60,000 or 6 years = Labour: 100% Parts: 80%
• Over 70,000 or 7 years = Labour: 100% Parts: 70%
• Over 80,000 or 8 years = Labour: 100% Parts: 60%
• Over 90,000 or 9 years = Labour: 100% Parts: 50%
• Over 100,000 or 10 years = Labour: 100% Parts: 50%

 

This means that labour is always paid in full, but parts may not be.

A nice feature here with the option to choose your contribution percentage toward car parts:

 

 

 

 

If you make a claim, ensure the workshop repair centre is not adding a profit margin to parts. If you raise this with a technician, they may well remove any such charge.

Critical stipulations for a valid claim

 

1. The car must have been serviced to manufacturers guidelines or within 12 months from the start date of the warranty
2. The car must be serviced every 12 months or within manufacturers guidelines
3. The car must be repaired at a VAT registered repair centre
4. You must pay the repair garage and claim directly from Warranty Direct

 

In order to complete your claim you need to provide:

 

• The receipted invoice from the garage
• The Warranty Direct claim form fully completed (use this link to see the claim form)
• Proof of servicing and a copy of the MOT certificate

 

Get an online quotation and choose the warranty cover that suits your needs.

Alternatively, see my guides on buying a second-hand car from a dealer, privately or at auction.

 

Marcus Rockey
Used Car Guy