This service is provided by
Insuretec Ltd who are authorised and regulated by the Financial
Services Authority to provide online car breakdown insurance
cover and introductions to officially authorised third parties.
Mechanical breakdown insurance and warranties
If you have just bought a new car, you do not
need mechanical breakdown insurance – more commonly
referred to buy the car dealer as an ‘extended’
car warranty – because your car will be covered by the
manufacturer’s guarantee for the first year of so.
Many car manufacturers are now offering up to five years warranty.
If your manufacturer’s guarantee is due to expire or
you are buying a second-hand car, paying for mechanical breakdown
insurance can offer peace of mind for a limited list of possible
repairs.
If you are offered this sort of insurance at no extra cost
as part of the deal when you buy a second-hand car, you may
as well take it.
Every new car comes with a basic guarantee or warranty –
a statement by the manufacturer that it will not charge for
fixing most of the things that go wrong with the car, provided
that it is services properly and has not been misused.
Most new-car warranties last between one and three years,
depending on the type of car.
New- car warranties vary in their detail but they all include
an undertaking by the manufacturer to replace or repair, free
of charge, most faults that can be traced to a manufacturing
or assembly defect.
Some also offer cover for other things such as roadside
recovery or the loan of a vehicle if repairs take more
than a few days.
Very few warranties cover routine servicing costs or general
‘wear and tear’ and they may cover other repairs
only if the car is serviced by a franchised dealer while the
car is under warranty.
Once the new-car warranty expires, you can buy an ‘extended
warranty’ or ‘extended guarantee’, which
car makers and dealers typically use to mean mechanical breakdown
insurance.
Unlike a new-car warranty, which covers a broad range of defects,
mechanical breakdown insurance is very specific about what
is and is not covered. (see Cover
and Exclusions to cover)
As with extended warranties for domestic appliances, if you
buy this sort of insurance you risk spending more on insurance
than you would paying for repairs as they become necessary.
Also, like appliance insurance, you do not need to buy car
breakdown insurance from the car dealer or retailer: you can
buy a stand-alone policy from an insurer or recovery specialist.
(see Buying)
