Warranty Company Issues

alancal1973

Hi, My vehicle recently broke down & requires £1300 worth of repairs.
I contacted my warranty company (AU Warranties, 12 months into a 15 month warranty) & was asked to provide a quote for parts & labour.
After this information was passed on, AU Warranties informed me that as the company that I bought the vehicle from had gone into receivership, that they would not honor the warranty.

Do we have any experts that can help me out with this please?

TIA Cal

foxy-stoat

This is a third party warranty so no connection with the supplying dealer, what does your policy say about supplying dealer still being in business?

Car_54

That sounds as if the dealer has taken the money from the OP, but hasn't paid AU for a policy.

facade

You might find that they went into receivership without paying the warranty provider, so the warranty never started.


Edit: Car 54 beat me to it. Happened to a colleague a few years ago, apparently the trader had been using the warranty money to keep afloat for an extra few months, leaving my colleague with warranty paperwork, but no warranty. I was surprised that the warranty company never informed him, but I guess the warranty paperwork was never validated- they write to you and tell you you have one I suppose.


Doubt if it would have made any difference, the warranty usually won't pay out even if it is valid.

Car_54

facade wrote: »

You might find that they went into receivership without paying the warranty provider, so the warranty never started.


Edit: Car 54 beat me to it. Happened to a colleague a few years ago, apparently the trader had been using the warranty money to keep afloat for an extra few months, leaving my colleague with warranty paperwork, but no warranty. I was surprised that the warranty company never informed him, but I guess the warranty paperwork was never validated- they write to you and tell you you have one I suppose.


Doubt if it would have made any difference, the warranty usually won't pay out even if it is valid.

If that is indeed what happened, the OP can lodge a claim with the receiver if he has the paperwork. He probably won't get much, if anything, but it must be worth the cost of a stamp.

alancal1973

I have contacted the finance company, who are looking into it also, can only hope to get some money back to pay for repairs!

Car_54

alancal1973 wrote: »

I have contacted the finance company, who are looking into it also, can only hope to get some money back to pay for repairs!

OK that adds a new dimension. The finance company may be jointly liable with the dealer (others more expert than me will comment). However, I think the most you can ever expect to get will be the cost of the warranty, not the £1,300.

shaun_from_Africa

Car_54 wrote: »

However, I think the most you can ever expect to get will be the cost of the warranty, not the £1,300.

If the finance company is jointly liable for the warranty then they are liable for the performance of that warranty and not just the initial purchase price.
If the T&C's state that the £1300 worth of repairs are covered then this is what the finance company should be expected to pay.

marlot

Some 'warranties' are simply claims management services.

Have a read of this https://www.autoexpress.co.uk/car-news/consumer-news/61672/watchdog-warranty-woe-provider-goes-bust