Research reveals warranty blind spot
More than half of drivers don’t know their rights when it comes to vehicle warranties, with research finding that 53% of car owners are unaware they can extend their warranties, and what components are covered if they do.
The number of new cars sold in the UK reached close to 2.7 million in 2016, an all-time high, and more than 500,000 of these vehicles were registered in March of that year alone.
Many of these initial three-year vehicle manufacturer warranties will now be starting to expire, leaving thousands of motorists with the decision as to how and whether to continue to protect themselves against potentially costly repair bills, or risk being out of pocket.
A YouGov poll of 1,293 car owners commissioned by The Motor Ombudsman, the automotive dispute resolution provider, revealed that just over half (53%) of respondents were aware that they could extend their new car warranty when it came to an end.
An even smaller proportion of all of those surveyed (32%), knew that they could purchase a policy from a third party provider to cover their vehicle for another set period beyond that supplied by the carmaker. The research also showed that male drivers, and those aged 35 years and over, are the most likely to know that an agreement can be prolonged via the manufacturer of their car, or that a new policy can be taken out using an independent warranty administrator.
The study equally found that around one in two car drivers (53%) would be unable to name the parts of their vehicle that an extended warranty agreement is likely to pay out for in the event of a failure, such as an engine or radiator.
Bill Fennell, chief ombudsman and managing director of The Motor Ombudsman, said, ‘As with any legal agreement, a warranty policy must be read carefully and in its entirety by vehicle owners to ensure that they are clear as to the level of cover being provided, as well as any exclusions such as wear and tear items.
‘Both this study, and some of the cases that we have worked on in relation to our New Car and Vehicle Warranty Products Codes of Practice, have highlighted that there remains an element of misunderstanding amongst consumers as to the availability of extended warranties, their purpose, and the protection that they provide.’
‘To increase the amount of information available to vehicle owners, and to help clarify when they will be able to make a claim, we have recently introduced a page on our website dedicated to some of the most frequently asked questions on warranties. These complement the bite-sized articles on our Knowledge Base, and the comprehensive library of online case studies. We will be looking to expand these resources going forward as they have so far proved very popular.’
