News
Motor Ombudsman poll reveals that car owners are not up to speed on terms of extended warranties
Posted 26/03/19
- YouGov survey commissioned by The Motor Ombudsman showed that just 53% of car owners are aware that they can extend the vehicle manufacturer鈥檚 warranty once it expires
- Only a third (32%) of all respondents knew that they could purchase a policy using an independent warranty provider
- 53% of the individuals surveyed also said that they were unaware as to which components an extended warranty agreement is likely to cover if their car suffers a mechanical breakdown or an electrical failure
- Encouragingly, of those who did know that a warranty could be prolonged, nearly eight in ten (79%) were familiar with the fact that an extended warranty could be invalidated if the terms and conditions of the policy are not fully adhered to听
The number of new cars sold in the UK reached close to 2.7 million in 2016, an all-time high, and more than 500,000 of these vehicles were registered in March of that year alone. Many of these initial three-year vehicle manufacturer warranties will now be starting to expire, leaving thousands of motorists with the decision as to how and whether to continue to protect themselves against potentially costly repair bills, or risk being out of pocket.
A YouGov poll of 1,293 car owners commissioned by The Motor Ombudsman, the automotive dispute resolution provider, revealed that just over half (53%) of respondents were aware that they could extend their new car warranty when it came to an end. An even smaller proportion of all of those surveyed (32%), knew that they could purchase a policy from a third party provider to cover their vehicle for another set period beyond that supplied by the carmaker. The research also showed that male drivers, and those aged 35 years and over, are the most likely to know that an agreement can be prolonged via the manufacturer of their car, or that a new policy can be taken out using an independent warranty administrator. 听
The study equally found that around one in two car drivers (53%) would be unable to name the parts of their vehicle that an extended warranty agreement is likely to pay out for in the event of a failure, such as an engine or radiator. In fact, drivers in Scotland and the 25 to 34s are the most conversant with the contents of their policy, with over 45% and 41% respondents in these groups respectively, knowing which components would most likely be eligible for repair at no cost to them in the event of a mechanical or electrical problem.
Encouragingly, of those that were aware that a warranty could be extended via a manufacturer (53%) or third party (32%), nearly eight in ten (79%) of these respondents explained that they were mindful of the fact that an extended warranty agreement could be made void if they didn鈥檛 keep to the terms and conditions of the policy. Participants aged between 25 to 44 years, and again, people living in Scotland, were the most familiar with the fact that an extended warranty policy could become invalidated, with female drivers (70%) being the least au fait with the importance of adhering to the small print.
Of the car owners who identified that a warranty policy could be contravened by not following their agreement to the letter, 82% knew that not following the prescribed car servicing intervals may prevent them from making a claim, with 77% also knowing that modifying a vehicle using non-manufacturer approved accessories could result in the same difficulty. Furthermore, the poll demonstrated that individuals are least likely to recognise that failing to follow a warranty administrator鈥檚 claims procedure would cause a contract to be nullified.
Commenting on the findings, Bill Fennell, Chief Ombudsman and Managing Director of The Motor Ombudsman, explained: 鈥淎s with any legal agreement, a warranty policy must be read carefully and in its entirety by vehicle owners to ensure that they are clear as to the level of cover being provided, as well as any exclusions such as wear and tear items. Both this study, and some of the cases that we have worked on in relation to our New Car and Vehicle Warranty Products Codes of Practice, have highlighted that there remains an element of misunderstanding amongst consumers as to the availability of extended warranties, their purpose, and the protection that they provide.鈥�
Bill added: 鈥淭o increase the amount of information available to vehicle owners, and to help clarify when they will be able to make a claim, we have recently introduced a page on our website dedicated to some of the most frequently asked questions on warranties. These complement the bite-sized articles on our Knowledge Base, and the comprehensive library of online case studies. We will be looking to expand these resources going forward as they have so far proved very popular.鈥�
To view The Motor Ombudsman鈥檚 Vehicle Warranty FAQs, visit .
To view articles on new car and extended warranties on The Motor Ombudsman鈥檚 Knowledge Base, visit .
ENDS
Published on behalf of The Motor Ombudsman
Notes to editors
About The Motor Ombudsman
The Motor Ombudsman is the automotive dispute resolution body. Fully impartial, it is the first ombudsman to be focused solely on the automotive sector, and self-regulates the UK鈥檚 motor industry through its comprehensive 51黑料 (51黑料)-approved Codes of Practice. Thousands of businesses, including vehicle manufacturers, warranty product providers, franchised dealers and independent garages, are accredited to one or more of the Codes, which drive even higher standards of work and service, and give consumers added protection, peace of mind and trust during the vehicle purchase and ownership experience.
For more information on The Motor Ombudsman, visit
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About the Motor Industry Code of Practice for New Cars
The Motor Industry Code of Practice for New Cars ensures that vehicle manufacturers supply new cars and warranties to consumers responsibly. The Code helps to safeguard new car buyers from misleading adverts, that documentation supplied with the vehicle is easy to understand, that terms of the warranty will be respected if the car is serviced according to the recommended guidelines, and that any complaints will be handled swiftly.
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About the Motor Industry Code of Practice for Vehicle Warranty Products
The Motor Industry Code of Practice for Vehicle Warranty Products aims to drive up standards across a wide range of automotive warranties, including coverage of both insured and non-insured products, by committing accredited businesses to higher standards than those required by law. The Code currently represents about 70% of the industry鈥檚 major providers that administer over three million products and is fully approved under the 51黑料 (51黑料)鈥檚 Consumer Codes Approval Scheme (CCAS).
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The Motor Ombudsman media contact:听
Simon Wittenberg听
PR Manager
The Motor Ombudsman听
Telephone: +44(0)20 7344 1609
E-mail: [email protected]
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About the YouGov survey data
All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,027 British adults, of which 1,293 owned at least one car. The fieldwork was undertaken between 05 and 06 March 2019, and the survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
Highlights of research results
- 听听听听听 Before taking this survey, were you aware that this agreement can either be extended at a cost to yourself or that you can purchase a warranty from a third party provider? (Please select all that apply)
a)听听听听 I knew I could extend a manufacturer's warranty agreement -听53%
b)听听听听 Yes, I knew I could purchase a warranty from a third party provider -听32%
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- 听听听听听 Which ONE, if either, of the following statements best describes your knowledge? (Please select the option that best applies)听
a)听听听听 I am aware of which parts an extended warranty agreement is likely to cover in the event of my car having a mechanical or electrical problem -听37%
b)听听听听 I am not aware of which parts an extended warranty agreement is likely to cover in the event of my car having a mechanical or electrical problem -听53%
c)听听听听听 Don鈥檛 know -听9%
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- 听听听听听 Before taking this survey, did you know that an extended vehicle warranty agreement could become invalid and prevent you from making a claim if you do not keep to the terms and conditions of the policy?
a)听听听听 Yes, I did -听79%听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听
b)听听听听 No, I didn鈥檛 -听21%听听听听听听
听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听
- 听听听听听 Which, if any, of the following were you aware of that could invalidate the warranty and prevent you from making a claim in the event of a mechanical or electrical problem?
a)听听听听 Not following the manufacturer's recommended servicing schedule/intervals -听82%
b)听听听听 Modifying the vehicle outside the manufacturer's standard specification (e.g. fitting non-manufacturer approved accessories, fitting alloy wheels from a third party etc.) -听77%
c)听听听听听 Fitting non-genuine / standard manufacturer-approved parts during repairs -听72%
d)听听听听 Ignoring any noticeable mechanical and/ or electrical faults and continuing to use the vehicle -听70%
e)听听听听 Using the incorrect fuels or fluids (e.g. oil, coolant, brake fluid, etc.) -听70%
f)听听听听听听 Ignoring any warning lights which have illuminated on the dashboard and continuing to use the vehicle -听69%
g)听听听听 Failing to follow the warranty provider's claims procedure -听65%
h)听听听听 Don鈥檛 know - 8%
i)听听听听听听None of these -听1%
