Even if the car you have just
bought has been subjected to an independent vehicle inspection there are
still potentially a number of things that could go wrong.
Extended Car Warranty Coverage Plans
There are two types of
used car warranty: i) Inclusion Warranty and, ii)
Exclusion Warranty.
Inclusion car warranties list all of the items that
are covered under the policy. At first glance it might seem that this is the
better type of car warranty to take out. However, from the pages of items that
are listed as being covered it can sometimes be difficult to see exactly what
is not covered.
Exclusion car warranties list all of the items that are
not covered under the car
warranty e.g. gearbox. From this type of
policy it might be easier to see exactly what items are being covered.
Are There Any Clauses That Will Invalidate A Car Warranty?
Usually the terms of an
extended car warranty will state that the car
must be serviced at intervals as specified by the manufacturer. e.g. an
Intermediate service at 10 000 miles. The
car warranty may also specify
that only standard parts can be fitted to the vehicle and that engine or system
modifications should not be carried out. It is also important to keep a record
of all servicing work that has been done (check that the
Vehicle Identification Number has been recorded correctly). This may
be needed when making a claim.
The use of a vehicle may also be restricted. For
instance, exclusions might apply if the car is used at a track day or for off
roading. Be aware that any pre-existing known
car problems will not be covered by a
used car warranty.
Additionally, any
car warranty claim arising from
flood water damage may not be approved.
Note: If you continue to drive your vehicle after an approved warranty item has failed, then you may no longer be able to claim for this item, or for any other resulting damage that has occured due to continued usage of the vehicle.
What Items Are Covered By A Used Car Warranty?
A comprehensive
used car warranty should cover failure of the following
items: Engine, gearbox, brakes, suspension, steering, ignition system, cooling
system and electrical system. Car
warranties do not normally cover wear
and tear items such as tyres.
Are There Any Car Warranty Claim Limits?
The total amount of any claims made will usually be limited to the value of the
vehicle. Additionally, there may be claim limits applied to specific components
or systems. It is important to check this out before buying a
used car warranty,
Where Should I Buy An Extended Car Warranty?
Many
used car
dealers will offer you a
used car warranty with the
car you plan to buy. Given that the dealer will be getting commission
on the
car warranty insurance, it might be worth investigating how much
it would cost for you to buy a
car warranty directly and then offering
the dealer a correspondingly reduced amount for the car. If you decide to do
this then be sure to compare what is on offer between the
auto car warranty
companies that you approach.
