No-one likes the shock of receiving a hefty repair bill – and these days the costs can be astronomical because cars are so complicated that many tasks are way beyond the skill level of most owners and must to be left to the experts.
This can result in eye-wateringly high costs when you combine the various replacement parts required with the time of the qualified mechanic at your local garage that will have been assigned the task of fitting them to your pride and joy. However, there is a possible solution: an extended car warranty. Effectively this is an insurance policy that can be written to cover the cost of putting right the various mechanical or electrical faults that can occur on cars irrespective of their age.
It can be purchased either via the manufacturer after the original warranty expires or through a specialist personal car warranty company. The natures of these policies vary, of course, but they generally extend the cover provided by a further two years. The benefits are clear: in exchange for paying a set premium you will have the comfort of knowing that you will be protected should your car break down, and you won’t end up paying out thousands of pounds to get back on the road.
At their most simplistic, policies will cover basic issues to do with the engine and transmission system. However, warranties can be as detailed as you like, as long as you have the necessary money to pay the associated premium.
So do you need one?
The arguments in favour of warranties are clear but that still doesn’t automatically mean you should take one out. There are a whole host of issues you must think about before starting your search otherwise you may be buying something that’s totally unsuitable. First you must consider your car’s value and the cost of average repair bills for that particular marque. Some key jobs for example may be particularly expensive due to the design of certain cars or the prices charged by manufacturers for various parts. If you own a vehicle such as a performance car then it becomes an increasing incentive to take out a policy to extend the warranty.
You should also think about your car. How likely is it to break down? Of course this is impossible to answer accurately but you a car that’s been driven hard for thousands of miles may have more issues than one which has had a far easier life. Have you got spare cash in the bank? You may decide to gamble by not taking out a policy and covering the cost of any subsequent repair bills with your savings. These rainy day funds will also be earning interest for as long as they are not needed.
Finding out what’s available
You will need to do your homework to establish what types of warranties are available for your car and particular needs. Obviously the cost will be an influential factor. If, for example, the warranty costs more than the car is worth then it’s hardly going to be worth taking out. The best advice is to shop around. Find out who other people have gone with, talk to any motor dealers that can give you an inside track, and establish the experiences of people that have been forced to make claims in the past. Premiums will be based on a variety of factors, including the type of car, the size of its engine and how many miles you travel in an average year.
You will also need to check the small print and any terms and conditions carefully so you understand exactly what is covered by the policy and what is excluded especially if you have a sports or prestiege vehicle. Some warranty providers, for example, will only pay a capped sum towards the repairs. A
