Third-party car warranty/insurance

nichall

I'm buying a used car and have been offered third-party warranty. It's the first time I've bought a used car for 15 years - company cars then one bought off the company for the last 4 years, so I'm not well-versed on this sort of thing.

I know that this is basically an insurance policy, and that I need to read the small print, and it could lead to claims wrangles etc.

Has anyone got any experience of this type of thing - usefulness, claims hassles, alternatives or even something positive ?

Thanks in advance

Nick

lisyloo

In my opinion you are better to self-insure i.e. pay for repairs yourself as they come up.

Cons with this insurance are

1) company will be making a profit so on average you will pay more
2) There may be terms and conditions like regular servicing etc and possibly at a dealer.
3) Won't cover "wear & tear" so plenty of possibility for wrangles over claims.

Pros are simply that is might save you some money if you are unlucly with repairs.

If you are buying from a business (as opposed to private sale) then you should have some comeback if the car turns out to be a complete heap.
Buying privately you have very little protection at all.

Personally I wouldn't buy it (unless it being thrown in or heavily discounted) because I wouldn't buy a car if I coulnd't afford to jeep it on the road.
Sometimes you might get a good deal because the garage might have targets for this sort of thing and sometimes you can get a good deal.

A classic one is getting a discount at currys/Dixons because you buy an overpriced warranty. The cancel the warranty within the cooling off period (but keep the discount).

Overall not worth bothering with in my opinion.