Used Car Warranty
Whoever tells you that getting a used car warranty is a waste of time and money has no idea what they are talking about. You can treat the warranty as an extended insurance that covers various systems on your car. For example the engine and transmission system are most of the time placed under coverage but you can cover more systems, all the way up to covering your entire vehicle if you feel you can afford it. Here are some factors of interest to help you.
First of all is the excess charge which represents the payment you have to make each month for the miles your car has. Any excess charge on the warranty policy should be low, of less than 25 pounds. Be careful; don’t get a contract that has the excess clause represented in percentage. This will greatly affect the amount of money you’ll be paying as your mileage increases over time.
Another crucial factor is the warranty claim limit. Check the policy to see what the limits on various individual claims are. The ideal warranty should offer you a claim limit close to the value of your car. Most car warranties have claim limits that rarely exceed 1000 pounds which is clearly unfair. Make sure to pick a warranty that offers solid claims that could climb up to several thousand pounds (which looks more like reality when talking about major repairs).
The ability to choose the repair shop is another factor that needs to be checked. Make sure that your warranty allows you to take your car to whatever trusted (certified) mechanic you wish for possible repairs. Most insurance companies that offer extended warranties have solid knowledge about existent repair shops in most areas. So if you decide to take the car to a pricier repair shop, than you’ll be paying a little extra.
The car mileage is something you will have to check before getting any type of warranty because the company has a mileage limit. If that limit is crossed, they will not pay for any repairs. This also involves the car’s age. If it’s approaching the maximum allowed age, than you shouldn’t bother getting warranty (it is one of the few cases where warranty would be ill advised).
Pay attention to the warranty provider or insurance company you pick. Ask for some certificate or a document which proves that the insurance company is or has been checked by the Financial Services Authority and that you are entitled to a cooling off period of at least 14 days.
Another type of claim limit is the one placing on a designated “starter” period, which basically means that you need to be a client for a certain period of time before you can make any type of claims. Make sure that this period is as short as possible, because if you have a starter time of one year and your car needs repairs in let’s say 5 months, than you’ll be the one paying for the repairs.
The betterment factor is one of the most dangerous on this list. If you take your car to a repair shop and you get a better engine, or better transmission, which means that your car will be more valuable than before, you might have to pay some of the repairs.
And finally, the wear and tear factor. Items that get broken because of wear and tears such as tires, hoses, clutch friction plates, and other “contact” car parts are completely excluded from the protection of the warranty because there would be raining with claims.
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