I just had a cold call from AA warranties tonight and for the first time ever, have actually bought one.
The gist of the policy is that it covers everything except:-
Brakes
Tyres
Windscreen
Exhaust
All of the electrics, engine components and other greasy bits are covered.
The cost is £21 per month over 24 months for 2 years cover at 0% APR. (Total cost £525 inluding deposit)
I can take the car to any garage that I want, and am covered for problems occuring whilst away from home with associated recovery costs etc.
The only downside is that there is a £50 excess in the event of a claim.
So, is there a downside that I've missed or does it sound like a decent warranty? I specifically asked whether the head gasket was covered and they advised that it is (well obviously as I own an MG I am certain to experence HGF aren't I? :-)
I've got 14 days to cancel and get my money back, I'm going to have a read of the policy document when it arrives, the only nagging thought that I have is that I could just put an extra £20 in a savings account every month (I already set aside £60 per month to cover servicing and tyres) and that would pay for a lot of repairs, but would take a few months to build up to any meaningful level.
Blue
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Really I guess its a 'mechanical breakdown insurance' policy which has been put togther by an insurance company and 'branded' by the AA.
No doubt 'wear and tear' will be excluded - which has always been the bugbear of these type of policies. A part has to 'suddenly and unexpectedly' fail for you to successfully claim. Note also that until they have accepted the claim you will be responsible for the cost of investiagtion, stripping down etc. Almost everything can be attributed to 'wear and tear' if they try hard enough.
In the motor trade the policies offered by Lloyds/Black Horse are reckoned to be about the best because they don't have the wear and tear exclusion. Some traders offer these on their used motors - don't know if they are offered 'retail'.
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So is there a downside that I've missed or does it sound like a decent warranty? I specifically asked whether the head gasket was covered and they advised that it is (well obviously as I own an MG I am certain to experence HGF aren't I? :-)
Would have thought £150/year is nearer the mark.
I've got 14 days to cancel and get my money back
Suggest then you type warranty into google, and get some quotes for some cheaper ones.
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Suggest then you type warranty into google and get some quotes for some >>cheaper ones.
Suggest the OP saves a small amount each month to cover any problems.
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Suggest the OP saves a small amount each month to cover any problems.
This is what I now do and I am quids up
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What about suspension?
I'd be surprised if they pay out on worn bushes or shocks.
These are classed as wear and tear nowdays I guess.
Springs may even be a sticking point.
If your car is a model which is known to be unreliable and if the monthly payment is not excessive then go for it, but I'd get a list of what they class as wear and tear items.
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Yeah having slept on it, the chances are, anything that I need cover for will be classed as wear and tear.
So far the car hasn't given me any indiciation that I will need to have an insurance policy against something going wrong so I think I will just cancel the policy when I receive it and pocket the money instead.
If the car makes it two years without anything major going wrong then I should almost have saved enough to be able to pay for a HGF if one were to occur.
Thanks for your advice people!
Blue
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If you look at the AA website, they seem to be doing something similar for its members for only £65 as a one-off payment?
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2007 Seat Altea XL 2.0 TDI (140) Stylance
2005 Skoda Fabia vrS
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Can't say for AA but I had Warranty Direct policy earlier which was pretty useless when I claimed. After 3 times my claims were refused, I cancelled.
They expected me to pay everything upfront and then they would decide if it can be reimbursed. There are several wayout clauses.
Better invest the money in savings a/c.
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I would go else-where. I would not give these idiots a penny.
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For what it's worth, here's my view:
For any sort of catastrophy where you can't reasonably afford the repair or renewal bill, say house insurance for the structure in case of fire, subsidence, flood and so on - pay the money and get insured so you can sleep at night.
After that, don't bother (subject to legal requirements for the car) and just set aside the premium each month for all the other insurances you might want. Because in the real world any claim for the less critical matters in life will be manageable - that's what loans and credit cards are for.
Just decide what the maximum amount is that you really can't afford in any way at all and choose your insurance accordingly.
I abandonded private health care about 10 years ago when I got turned down on what I though was a simple case. Since then I've just paid the premium amount regularly into a savings account - there's a huge amount in it now.
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I abandonded private health care about 10 years ago when I got turned down on what I though was a simple case. Since then I've just paid the premium amount regularly into a savings account - there's a huge amount in it now.
I agree. I have as little to do with insurance companies as possible. Family was covered for many years with one of the big health insurers. Stuck with them despite rapidly rising premiums. My wife had to have a minor op, which they initially agreed to pay for and then at the last minute changed their minds. Very difficult to argue with them, just as with these mechnical breakdown policies. I cancelled the policy and now put the money into Building Soc.
I don't like the way they call them 'warranties' - they are in fact just an insurance policy.
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