Extended Warranty

steve1955

My Renault Megane is just over 3 years old and I've been offered an extended warranty (not the manufacturer), it's £24.99 per month then £75.00 max charge to me per claim with the policy paying up to £3000 per claim. I know anything can go wrong as I work in the automotive industry but are these policies worth taking out?

Kilty_2

Very rarely worth taking out. Full of get out clauses.

McKneff

I agree with Kilty.

Just put the money aside each month into a sep. account if your bothered about costs for repairs.

AA or RAC for breakdowns you can get for as little as £15 nowadays.

Dippypud

As McKneff says put the monies into savings account for the car.

Much easier than all the hassle of 'phoning them up and listen to them wriggle out of covering whatever went wrong.

thenudeone

Kilty wrote: »

Very rarely worth taking out. Full of get out clauses.

A very one sided statement indeed!! I am happy to pay for a good warranty on my car and they have proved to be well worth it in my experience.

Like any insurance policy they have exclusions, and each person has to make their own decisions about whether they want to accept the risk of a major failure which could cost more to repair than the car's value, which happened to me once three months after deciding not to renew the warranty

Have a look at my posts in this thread for some things to look for in a car warranty:
https://forums.moneysavingexpert.com/discussion/comment/43401892#Comment_43401892

There are good warranties and bad warranties. You would probably be able to get a better warranty than the dealer-offered warranty for less money by buying direct, as there is no dealer profit margin on top.

Outpost

Have you had any problems with the car in the last three years?

As others have said, the problem with some of these extended warranties is that if or when something does go wrong the provider can (and does in a lot of cases) "weasel out" of paying for repairs by sighting some get out clause.

Strider590

steve1955 wrote: »

t's £24.99 per month then £75.00 max charge to me per claim with the policy paying up to £3000 per claim

And it won't cover anything over the value of £75

steve1955

Thanks to all for advice, think you're probably right when suggesting saving the money, modern cars should be expected to be reliable for a bit longer than 3 years. Will probably keep it another 12 months and look for a manufacturer with a 5 or 7 year warranty next.