You are paid for the cost of repairs of car when you buy car warranty policy. This is a very broad statement and has to be drilled down carefully to understand the exact coverage that is provided by the policy.
Repairs of what kind and arising from what kind of circumstances is covered by the warranty actually determines whether the repair that you have in mind will be paid by the warranty provider.
At the time of buying car warranty insurance, you have to pay careful attention to these facts so that at a later stage you do not land up with huge repair bills that the warranty provider refuses to pay for. The warranty document contains all the details of coverage including the repairs that are admissible by the warranty provider. Whatever is kept outside the purview of the warranty is also mentioned in the exclusion list.
Different from manufacturer’s warranty
Vehicle Insurance Company – Click4Warranty told us that people usually equate extended car warranty with the manufacturer’s warranty and assume both to be same. This is a mistake that has to be corrected, once and forever. The two warranties are quite different in the coverage that is provided. The extended warranty covers many things that the manufacturer’s warranty has but also excludes some of the features that new car owners had enjoyed. It is a modified warranty that comes with riders.
Terms and conditions with exclusions
If the warranty provider refuses to pay for repairs, the first thing that you should do is to refer to the terms and conditions and examine the exclusion list carefully. Try to figure out if the type of repair that you want to get done is included in the exclusion list or is there any other condition that can disqualify your claim.
Convince the warranty provider
If you are sure that your claim is within your rights, go ahead to take it up with the warranty provider. Point out the clauses that support your claim and prove that you are within your rights as the repairs are covered in the policy. In spite of it, if the warranty provider refuses to pay, ask for a written clarification for rejecting the claim.
Keep up the fight
The warranty provider may not respond at all or the reason that they might give for turning down your claim may be flimsy and not satisfy you. Get ready to fight it out at the next level. Obtain quotes for the repair and inform the warranty provider about your intention of getting the work done only to claim it from them later.
Take the next step
Before going to the court explore alternate methods of dispute resolution by contacting the trade association to which the warranty provider might belong. If an insurance company has underwritten the policy, then you can approach the Financial Ombudsman Service for resolution of the dispute. Guidance can also be sought from Practice Direction on Pre-Action Conduct, a body that operates in England and Wales.
If nothing works, then going to the court is the only option left with you.