Watchdog: Stung by aftermarket warranty

Having a manufacturer’s warranty – and the knowledge that you’re covered if anything goes wrong – is a big comfort. But is it worth buying extended cover for a car that no longer has that original guarantee?

Patricia Jones, from Saltford, Bristol, thought it was – so she took out a policy with Warranty Direct. She paid £331 a year for four years to ensure she wouldn’t be left with a big bill if her 2002 Honda CR-V went wrong.

Unfortunately, things didn’t work out quite like that. The Honda’s air-con developed a fault that cost £1,641 to put right – £1,202 to sort out the compressor and a further £165 for the water pump, plus VAT.

But Warranty Direct agreed to pay only for the water pump. The compressor, which made up the bulk of the bill, wasn’t covered. Patricia told us: “It makes me so angry. Surely air-conditioning is an important component these days? It should be part of the warranty.”

When we called Warranty Direct, a spokesman said: “The car is 10 years old and would not be eligible for a higher level of cover due to its age and mileage. Very few, if any, warranties cover the air-con assembly at this stage.”

He added that the company does not offer an option for customers with a car as old as Patricia’s to pay extra to have the air-con covered – and said every component which is covered by a policy is specified in the documentation. However, Auto Express still managed to get a good result for Patricia.

Warranty Direct considered its position, and the spokesman came back to us, saying: “We’ve settled the claim in full, despite the parts not being covered – she’s been a good customer.”

We asked Warranty Direct what percentage of total claims it paid out on for vehicles aged from four to 10 years old, but it wouldn’t tell us. Yet it’s crucial that anyone buying an extended warranty understands what is and isn’t included before committing, and that as a vehicle gets older, fewer parts will be covered.

The problemPatricia paid more than £1,200 over four years for an extended warranty, only to find that when something did go wrong with her car, she wasn’t covered.

Warranty Direct's responseWarranty Direct said it honoured all valid claims, and made details of cover clear to all customers. But it agreed to settle Patricia’s full claim.

Legal adviceUnless you’ve been mis-sold an extended warranty – which can be difficult to prove – you’re unlikely to be able to take any legal action if your warranty company won’t pay out. Check the policy terms carefully first.

Our verdictExtended warranties can make sense on cars that are just outside the maker’s guarantee, but on a car this age you need to check the small print. It might make more sense to pay for any repairs yourself.

Do you have a motoring problem that needs investigating? We're here to help… E-mail mail@autoexpress.co.uk or Tweet us @AutoExpress.