Doesn’t my Motor Comprehensive Insurance cover me for everything that can go wrong with a car?
Unfortunately, no. Comprehensive Insurance covers for accident, theft, or other damage. It doesn’t provide cover for mechanic or electrical failure or breakdown.
I'm buying a Used Car from a dealer and they're telling me that if I don't purchase the extended warranty now, I will not be able to later.
Some or most dealers are primarily driven by income. In some cases, these dealers are receiving up to 60% commission on warranty and other after-market products. You cannot purchase their contract warranty because it can only be sold at point of sale. In fact, these contract warranty’s are not insurance products at all. They’re a contract between you and the dealer to hopefully have a claim approved in the future. Some contracts force you back to the dealership for servicing too. If you’re not being offered an insurance product (financial product), what are you really purchasing?
Can I have the vehicle serviced anywhere I choose?
Yes, you most certainly can. As long as it’s a registered mechanic and the servicing is not done by yourself or a family member, then the flexibility is all yours.
Can I have my vehicle repaired (as part of a claim) at the Manufacturers Dealership?
Yes you can. In fact, the insurer prefers the vehicle be repaired at the Manufacturers dealer. All you need to do is take your vehicle, along with your warranty policy schedule to the service centre and tell them you have a warranty. They’ll do everything else.
Do I have to pay a claims excess like Comprehensive Insurance?
No. Unlike motor comprehensive insurance, there is no excess per claim. Any, depending on the cover you have, there may be no limit per claim. Please check the relevant PDS’ for more information.