A YouGov survey commissioned by The Motor Ombudsman has revealed that 47% of car owners are unaware that they can extend the vehicle manufacturer’s warranty once it expires.
According to the results of the survey – conducted among of 1,293 motorists – just a third (32%) knew that they could purchase a policy using an independent warranty provider.
The results of the survey could be a clear indication that car retailers have not only a responsibility to better present the availability of extended warranties, but an opportunity to sell cover more effectively.
Commenting on the findings, Bill Fennell, chief ombudsman and managing director of The Motor Ombudsman, said: “As 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.”
Motor Ombudsman’s research 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.
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, it said.
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%) explained that they were mindful of the fact that an extended warranty agreement could be made void if they didn’t 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.
Fennell added: “To 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.”