Aftermarket warranties

koru

What do other MSEs think about aftermarket warranties, such as https://www.warrantydirect.co.uk? (How about an article, Martin?)

I am normally sceptical about buying warranties for things like appliances, as they cost more than most likely repairs. If you bought a really duff appliance which needed several repairs in a year, then you might be better off, but most things don't break down that often, so it will probably be cheaper to pay for repairs when they happen or just buy a new appliance.

But my car is about 8 years old, now, and although I have had very few problems so far, it seems inevitable that something will break down over the next year or two. Cover costs £200-300, which compares pretty favourably with the cost of all but the simplest repairs.

Anyone agree or disagree that this is a good idea?

Anyone got any recommendations for good value warranty providers, or special offers on prices?

malolo

If people were thinking of buying that sort of thing I'd advise them to seriously look at the small print.

I remember something on Watchdog about health insurance and how they wouldn't pay out for certain types of illnesses but it was all lost in the small print so I wouldn't be surprised if these companies do the same sort of thing... afterall, surely if they would pay for any sort of repair then we'd all be taking it out when our car got to a certain age.

koru

Thanks. I will indeed scan the small print.

But I don't think it necessarily follows that this can't be a good idea simply because if it were we would all be doing it. After all, most people are still using British Gas for their gas, British Telecom for their phone calls, and have high street bank current accounts that pay them less than 1% interest, but that doesn't mean this is the smart thing to do.

mr_accountant

after market warranties-AVOID!

go to https://www.honesjohn.co.uk, go to the back room and type warranty in the search box, plenty of unhappy people and non paying warranties there.

not worth the money nor the hassle, if youre really concerned about your car put £30 a month into a high interest direct access savings account and then if you need a repair use this money. if you don't need to use it (on the balance of probabilities the most likely scenario) pat youself on the back and congraulate youself on saving circa £300 a year.

koru

You mean https://www.HonestJohn.co.uk.

I am sure there are bad warranties companies, just as there are bad insurance companies, but I and most people still choose to buy house insurance. Perhaps the secret is to pick a good one.

WarrantyDirect, specifically, seem to get good reports in HonestJohn.

I freely admit to knowing little about cars. Do you have any evidence to support your statement that on the balance of probabilities an 8 year old car will not need a repair over the next 2-3 years? If that is right, then I agree that it is better to just take the risk.

Dave_G_5

I haven't used them myself, but from what I have seen warrantydirect.co.uk do seem to offer one of the better deals. What you have to be careful of is age and mileage limitations, especially on an older car. Also the claim might also have a lower limit.