The courts, and in this case Small Claims in the County Court, will determine what price level for what car was too low for a consumer to "reasonably" expect protection, not just by statutory law but by case law. No, those three month insured warranties are basically junk. A dealer is liable for any significant fault that could have been present or developing on date of sale for six months from the date of sale and, to get out of that, the burden of proof is on him to prove it wasn't. An insured warranty cannot cover any fault that was present or developing when the warranty was taken out because that would be insurance fraud. Even if you buy an aftermarket warranty you only get very limited cover for the first three months for that reason.