Used Car Owners Who 'Leave it to Chance' Pay the Price

The survey of 2000 UK car owners*, commissioned by Allianz Global Assistance, reported that more than half of the cars in respondent households were over 5 years old, and a third had covered more than 60,000 miles. However, the overall findings suggest that owners of such cars are the least likely to purchase a manufacturer backed warranty to protect themselves from the cost of unexpected repairs.

Many of the car owners surveyed believed that the older the car, the higher the cost of cover, yet says Allianz Global Assistance, many manufacturer extended warranty schemes provide flexible cover and payment terms to accommodate older and/or higher mileage vehicles.

Liz Grindell, Head of Warranty at Allianz Global Assistance in the UK comments: “After your house, your car is often the second biggest investment you’ll make and one that you rely on pretty much every day. Leaving it to chance can be very costly and a warranty helps protect you against the unexpected expense of a mechanical or electrical component failure.”

To help car owners make an informed warranty purchase, Allianz Global Assistance is offering the following advice:

Top Tips from Allianz Global Assistance to buying a warranty
• Decide what your budget is and choose a level of cover that best fits your financial situation.
• Consider opting for a “Pay As You Go” type package, which provides you with cover for the length of time you need it and can be cancelled at any time.
• Check the product details to see the limit of each individual claim. Ideally, you should be able to claim up to the value of the car.
• Check that the warranty lets you take your car to the manufacturer’s authorised Dealer for repair. They have the expertise and experience to look after your car.
• Check to see if there are any mileage limits above which the warranty will not pay for repairs.
• Remember that a warranty doesn’t pay for routine service items or serviceable items such as brake pads or windscreen wiper blades. A warranty is there to protect you and pay for unexpected failures of electrical or mechanical items.
• Modern vehicles are generally reliable. However, they have many mechanical and electrical items which can fail. If you are not sure about whether to buy a warranty, ask your local Dealer to provide some indicative repair costs so you can decide if warranty protection is right for you.
• Ensure that your warranty provider is regulated by the Financial Conduct Authority and that you get a 14-day cooling off cancellation period in case you change your mind.