What is Excess Warranty Insurance?
Excess warranty insurance is a type of insurance that covers the cost of repairs and maintenance on a car. It protects the policy holder against unexpected and expensive repair costs should something go wrong with a vehicle, usually a second hand one.
Typically, car warranty is standard when you buy a brand new car. But when you purchase a second hand automobile you don’t get the same level of protection unless you pay extra for the extended warranty of the vehicle. By buying excess warranty insurance, you can continue to benefit from the cover beyond the first couple of years of owning the second hand car.
What Does Excess Warranty Insurance Cover Specifically?
The best extended warranty for used cars can protect you against replacement or repairs of any defective components of a car such as:
- Cooling system
- Air conditioner
- Electrical system
- Fuel system
- Seals & gaskets
The insurer will not only pay for the costs of replacing or repairing the defective car parts, but also pay for labour costs.
It will also cover tyre protection, and give you various benefits like rental car assistance which should come in handy if your car is being repaired. You are also covered should you require emergency roadside assistance.
What Does It Not Cover?
It’s unlikely the following will be covered in an extended warranty insurance policy so be sure to double check.
- Damage due to overheating
- Routine maintenance items like oil changes, brake pads, filters, spark plugs, tune ups, etc.
- Any vehicle that has been declared a lemon or a vehicle found to have various manufacturing defects that can affect safety and value of the car
- Cars in limited production
- Modified or concept vehicles
- Vehicle which has an altered odometer
- Vehicle with no valid manufacturer Vehicle Identification Number
- Vehicles with modifications in key parts like engine, suspension, and transmission
When Do I need Excess Warranty Insurance?
You would need excess warranty insurance if the car you’re getting has it’s manufacturer’s warranty set to expire. This would protect you in case something goes wrong with the car, and you have to send it to the garage for repair.
Getting excess warranty insurance is practical if you intend to keep your car for a long time.
Is It Worth It?
Extended service plans for used cars are worth it because this can provide you the peace of mind knowing you can be protected against expensive car repairs. With second hand cars, you don’t really know what you’re getting. It might exhibit engine troubles in a year or so. But by buying an extended warranty on a used car, you can save hundreds or even thousands of pounds as you won’t have to foot the bill.
What to Consider when Choosing Excess Warranty Insurance Provider
In choosing the best extended warranty for used cars, you will have to consider various things such as the parts covered and excluded in the coverage. While most warranties will cover major car parts like engine and breaks, not all will consider disposable items like cam belts. You must decide what you want to be protected by the warranty, and ensure that the policy meets your needs.
While most insurers will cover the labor costs, there are limits on the amount they are willing to pay. So you might have to check the hourly rate limits of the warranty company, and whether these limits would be enough to cover the repair work at your preferred repair shop.
You’ll also have to check with the insurer on whether your preferred garage is covered by their warranty insurance. Some providers are more strict than others about where their policy holders can bring their insured cars for repair work. Thus ask first if the garage where you usually bring your car to is covered by the excess warranty policy. If not, you might have to check if there’s an approved auto centre near you.
The excess of the warranty will also come into play. As with any type of insurance policy, you’ll have to pay an excess every time you claim. Excess pertains to the amount you’ll have to spend for every claim you make. The amount you’ll have to cough up every time you make a claim can be a difference maker in your buying decision. An excess of £250 may not be practical because of the amount you’ll have to shell out. But an excess of £50 is reasonable enough for most motorists.
Where is Best to Buy Excess Warranty Insurance?
The Internet provides the most convenient way of shopping for an excess warranty insurance. You can go directly to the website of the insurer, or visit third party websites to get and compare quotes as well as features.
How to Buy Excess Warranty Insurance
Aside from comparing features and quotes, you should also research for common problems that the second hand car you are getting is notorious for. This way, you’ll have an idea on which car parts you are more likely to deal with, and ensure that insurance company will pay for the repair of that car part in the event that it breaks down.
Additional benefits may sweeten the deal, so to speak. A car hire, for instance, gives you peace of mind that in the event that your car breaks down, you’ll be able to hire a vehicle with the insurer paying for the rental.
As any best car warranty review will tell you, it makes a lot of sense to buy extended warranty on used car. You’ll be protected against expensive car repairs in the future the best used car extended warranty companies also offer roadside assistance and car rental in the event that your car breaks down. So if you’re getting a second hand car, it is highly recommended that you shop for the best extended auto warranty for used cars as well.