An Extended Car Warranty Guide
After buying a new or used car in the U.K., there are still some other things that you’ll need to address, one of these being the car’s warranty. Also known as a Mechanical Breakdown Insurance (MBI), a car warranty is an insurance policy that provides drivers protection against the cost of any repairs or parts that they might acquire while in ownership of the car. We have come up with a guide to highlight the advantages of getting a warranty, the parts of your car that is covered in the warranty, and the parts that are not.
If you are buying a new car, it will come with a manufacturer’s warranty. These warranties can last 3 to 7 years after purchase and should cover almost any fault except regular wear and tear of parts like the tires and pads. To make sure your warranty doesn’t become void, you must follow the rules of maintenance that are detailed in the warranty hand book, like regular servicing at reputable dealers. After the manufacturer’s warranty expires, although not required, drivers are encouraged to purchase a new warranty policy or extend their old policy to save money on repair and maintenance costs.
Before purchasing a used car, you will need to decide if you want to take the risk on unforeseen repair costs or take out used car insurance. If you do decide to take out used car insurance, you’ll need to decide between the two main levels: simple mechanical breakdown coverage and comprehensive mechanical breakdown coverage. There are slight differences between the two coverages, but the general rule is that the cheaper it costs, the less it will cover. If you can, you should try to find a used car with a couple more years left on its warranty policy to leave you enough time to research and pick a new one.
Before taking out coverage on your new or used car, make sure you read the small print and familiarize yourself with these basic checks:
- Does the warranty have an excess?
- Is there a limit per day?
- Does the policy cover ‘full repair costs’?
- Is there a servicing schedule?
- Is the warranty company registered with the Association of British Insurers (Credibility)?
- What garages are on the list of approved repairers?
- Is there a set period where you can make claims?
Most warranties cover a clear majority of your car but exclude coverage on tires and wheels, exhausts, brakes and clutch, audio equipment, catalytic converter, and more. In situations like this, you are better off insuring the individual parts; for example, if you bought new car tires online, you can consider taking out insurance on them. It is also worth remembering that if your car is approaching the maximum age allowed, it might not be worth renewing the warranty.
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