When deciding whether or not to take out warranty cover, it’s worth bearing in mind that car warranties pay the cost of repairing defects, and arranging appropriate levels of cover ensures peace of mind. When it comes to buying a warranty for a used car, whether you’ve owned it from new or it has been pre-owned, there are several options.
What you need to consider
If the cost of warranty coverage is putting you off taking out this type of protection, it’s a good idea to think about what you would do if there was a problem with your car that made it unusable. For example, if you use your car to get to work or for other important commitments, it’s worth thinking about how you would manage your travel if you couldn’t afford to pay for repairs to keep it on the road.
To prevent your life from being disrupted by unexpected repair bills or having to make do without a car, the safest course of action may be to take out a warranty. It then becomes a case of the type of cover that is most suitable and affordable. Choosing a shorter period of cover can ensure it fits your budget.
The different types of cover
New cars benefit from a manufacturer’s policy. The cover typically lasts for 12 months. After that, the owner must decide whether it’s worth extending the cover by taking out a replacement warranty.
The car dealership that sold the car will offer the opportunity to take out a new warranty. That’s the simplest option, but it may not be the cheapest or the most comprehensive in terms of the levels of cover it provides. A good warranty will offer cover that is effectively a continuation of the manufacturer’s warranty.
These days, onboard electronics mean that cars are more complex and trickier to repair. Of course, that means that it’s often expensive to fix faults, so you’ll want to have the reassurance that you can claim back the cost.
However, all warranties are not the same. Although it’s worth considering the terms offered by the dealership, it’s also worth shopping around and comparing what’s available elsewhere, as well as what’s the most appropriate level of cover. By doing that, it will be easier to tailor the cover to ensure that the protection matches your needs.
What the warranty covers
Most companies will offer various levels of cover. These will include factors such as the maximum amount you can claim, the items excluded, and the number of miles you are allowed to drive. So, while the cost of cover is an important consideration, it’s also important to check the terms and conditions of the cover.
Some warranties will only protect against specific faults. The average car has more than 5,000 parts, so it’s worth checking what’s covered and what’s excluded to make sure the most common problems will be repaired. Otherwise, cheaper warranties may not be the great value deals they appear to be. However, older vehicles, or those with higher mileage, may have some restrictions.
What you need to do
It’s important to ensure you keep your car in good condition. A warranty will not pay for any repairs that are needed at the time you take out the cover.
You will also need to be able to prove that you have had the car serviced regularly. You won’t necessarily need to have the full service history but you’ll need to be able to show is that there has been a comprehensive service carried out within the previous 12 months.