Cover for Vehicles

A motor warranty is basically an insurance policy that covers you for any likely repair costs if your car breaks down. The policy should cover all the major working components of a car from engine to suspension, but usually excludes items which undergo normal wear and tear such as exhausts, tyres, brakes and filters.

There are a huge range of motor warranties available to protect you against the expense of sudden and unforeseen failure of specified components of your car.

Policy Types

There are many different policies available; new or very young used vehicles will often attract plans with wide protection, whereas cover for older or higher mileage vehicles may be more limited. Generally, a policy covering a wide range of components will be more expensive than more restricted cover.

What a Policy Covers

A vehicle warranty protects you against unexpected failure of components, and so you will not be able to make claims for breakdowns that arise through normal wear and tear. Cover applies strictly to the failure of specified components only, which may vary according to the mileage and age of the vehicle.

Mechanical breakdown policies will usually pay for parts and labour charges incurred in the replacement or repair of the insured component. There will usually be a limit imposed on the amount you can claim; you should compare these limits to the cost of breakdown for major components.

Some plans may have a 'betterment' clause. Betterment is the term used when your vehicle is repaired, resulting in it being in a better condition than before the incident. In this case, your insurers may ask you to contribute to the cost of the repair.

Length of Cover

For new cars, cover will usually be offered for 1-2 years after the manufacturer's guarantee expires, although longer periods of cover may also be available.

For used cars, periods of cover offered will vary from 3 months to 3 years from purchase.

Additional Benefits

Motor warranties may include additional benefits, such as:

• Roadside breakdown assistance,
• At home assistance,
• Replacement car hire,
• Overnight accommodation.

These benefits may only apply in conjunction with a valid mechanical breakdown claim, and are often subject to separate conditions and limits.

Vehicle Servicing

Most vehicle warranties require you to get the car serviced at an appropriate dealership at minimum intervals as specified in the policy. Failure to do so could result in a claim being refused.

Buying a Warranty

If you buy a car through a dealer, they will give you full details of the policies they offer. Cover for new cars may also be available from the manufacturer; again, the dealer should be able to provide you with this information.

Cover is also available from motoring organisations, insurance companies, brokers, banks or other financial institutions - especially if you are borrowing money to buy the car.

After the warranty has run its full term, you may be given the option of renewing the cover for another year.