USED CAR WARRANTIES 

Tips on choosing a used car warranty

As mentioned above, we use Warrantywise but the choice of warranty cover however is entirely up to you, and so if you wish to use another warranty company here are some tips to help you when choosing your policy…

Excess

The best warranties let you choose your own garage

Any excess charges on the used car warranty should be low – ideally £25 or less. Look out for percentage excess clauses, which ramp up the amount you pay as your mileage increases.

Warranty claim limits

Check the warranty to see how much each individual claim is limited to. Ideally, you should be able to claim up to the value of the car.

Many used car warranties have a claim limit of just a few hundred pounds – which is clearly inadequate. Make sure the cover matches the likely costs of repair, which could be thousands of pounds.

Garage choice

Make sure to check whether the used car warranty lets you take your car where you want it to be repaired.

Usually there is a limit on the hourly rate, so if you want to use a more expensive repairer, you’ll pay the extra.

Some warranty providers may tie you into using specific garage networks, but the best providers will allow you the freedom to choose your own.

Car mileage

Check if there’s an annual or total mileage limit above which the used car warranty won’t pay for repairs.

Car age limit

If your car is approaching the maximum age allowed, it may not be worth buying the used car warranty.

Regulated warranty provider

Ensure that your warranty provider is regulated by the Financial Services Authority and that you get a 14-day cooling off period.

Conditions of the warranty

Some warranty providers state that you must be with a scheme for a period before being able to claim.

Keep your warranty

You need to keep the car serviced according to the manufacturer’s schedule, and keep all the paperwork.

Your used car warranty could be invalidated if you fit non-standard parts, and any pre-existing faults will also be excluded.

Additional benefits

Some warranties include breakdown cover while others may offer replacement car hire, cover in Europe and MOT test insurance cover.

 

What to avoid with used car warranties

Betterment

Watch out for warranties with these clauses. When a repair makes a car more valuable than before (eg a new engine), you may have to pay part of the cost.

Consequential loss

This is an exclusion where a part suffers damage as a result of another part failing, which is not covered by the warranty. The best used car warranties don’t have these.

Wear and tear

Items that fail because of wear and tear are commonly excluded from used car warranties, leaving you vulnerable to declined claims.

Most warranties exclude ‘wear and tear’ items such as tyres, exhausts, catalysts, hoses, clutch friction plates and brake pads.

The reason is that claims could be almost limitless.

What is covered on a used car warranty can be confusing – most car owners only know that their car has broken down, not what caused it.

The best warranties offer some wear and tear cover; a major benefit. You could still be asked to pay toward the cost of parts, and some items may not be covered.

Early claims

Some used car warranties don’t pay out if a claim is in the first few weeks, effectively cutting your warranty short.