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Who needs an extended warranty?

An extended warranty can be a great investment should anything go wrong with a big-ticket purchase, but many people simply don’t know how they work. So here’s a quick guide to the product and how an extended warranty could come in handy.

How do warranties work?

A warranty is a form of insurance policy. If an item breaks down due to the mechanical or electrical failure of an insured part, the warranty will cover the costs of replacement parts and labour.

Many buyers buy new because a new car, van or bike is usually more reliable than a used equivalent. It also comes with a manufacturer’s warranty (normally lasting 3 years), so if anything goes wrong it is repaired at no extra cost.

An extended warranty serves the same purpose – it need not cost the earth and could prove to be money well spent should your vehicle or appliance let you down.

Why would I need it?

For motorists, it is impossible to predict when a vehicle might break down, but unexpected repairs can be very expensive.

One common example is overheating due to the failure of a head gasket, which can easily cost as much as £1,000 for parts and labour.

This is why Confused.com has teamed up with Warranty Direct to offer Confused customers comprehensive mechanical and electrical insurance.

The warranty covers parts and labour up to the value of the car – the most paid on one claim is more than £7,000.

This policy will also cover repairs that arise due to the wear and tear of covered parts – this is rare in warranty insurance. Another key point is that it insures repairs required to covered parts as a result of the failure of uninsured items.

Simply visit Warranty Direct to see how much peace of mind could cost you. A no-obligation quote is free, quick and easy.

Confused.com’s Van Insurance Checklist

Hi, I’m Steve Best – head of van insurance at Confused.com. Comparing van insurance with us is a pretty simple process, but a lot of our customers might be unsure about just how much cover you need.

To try and deal with those niggling questions, I’ve put together this checklist, which should help you to work out not only what cover you need for your vehicle, but also how much, and what you need to look out for when choosing your policy.

Why do you need legal cover?

Legal cover can help protect your finances by making sure you’re not out of pocket if you have an accident. 
 
If you claim from a third party insurance policy because your van is damaged or written off, they will pay to repair or replace your vehicle. Generally speaking, legal cover will also help compensate for other losses such as loss of earnings, private medical treatments for personal injury or even a courtesy or hire vehicle to help keep you on the road and in business while your van is being repaired. This is considered a ‘must-have’ and can help you and your business with any unexpected expenses resulting from an accident.

Why do you need breakdown cover?

Your business relies on your van, so imagine the disruption, inconvenience and possible loss of income that a breakdown would cause. In this instance, specialist breakdown cover will make sure your vehicle is properly protected.

Make sure, though, that you check what’s included in the cover - for example, do you need home start or help with any onward travel? It’s important that you know what is included in your policy before your purchase, so ensure the breakdown cover is suitable for your needs.

Tools cover

Your tools are your work, and any loss or theft would mean not only a hefty replacement cost, but potentially a loss of earnings while they’re missing.

When purchasing cover for your tools, check the limit on the tools cover to see if there’s a single article limit, as some policies only cover items up to £50 or £100. If you have expensive tools then a policy containing single articles many not be the best one for you.

Some policies also place territorial limits restricted to the UK. So check if you’re covered if you use your van abroad and take your tools with you.

Van hire

This allows you to carry on with your business while you are temporarily without a van of your own. Van hire can generally be used if you’ve been involved in an accident and can help get you back on the road while you are without your own vehicle.
 
Many polices do not guarantee a van similar to your own, so check the policies to see what type of van you’d be receiving, as you’d need a suitable vehicle to carry your tools and equipment while your van is in the garage.

Driving other vehicles

Check your policy covers you to drive other vehicles if this is necessary. Many commercial vehicle policies do not extend cover to other vehicles, so check for any driving restrictions before you buy and don’t just assume you’re covered.

Voluntary excess

Usually, taking voluntary excess on top of your compulsory excess results in a reduced premium, as insurers consider this to discourage low value claims. However, in the event of a claim these excesses will need to be paid.

Many insurers now state the total excess to you at the quote/sale stage rather than splitting the amounts up, but it is well worth checking this with your provider.

European cover

Check the exclusions on your van insurance policy. This can vary from insurer to insurer, so if you regularly take your van abroad, state this at quote stage as not all insurers extend their cover to include this.

When enquiring about cover for any vehicle, many insurers ask the period of time the vehicle is out of the UK for, the destination and also the countries you need to travel through to get to your destination. Make sure you have all this information so you can receive an accurate quote and ensure that you are suitably covered on your travels.

Public liability

If your work means you come into contact with members of the public and their property, then, ideally, you should have this cover. In short, it allows you be covered if you injure a customer or member of the public - or even someone’s property - and they sue you for compensation. This can help you meet any expensive legal costs which may result from an accident or damage to someone’s property.

Employer’s liability

If you employ anyone, then employer’s liability is a legal requirement. This will help compensate if any of your employees are killed, injured or become ill as a direct result of their work. So protect your business and protect yourself against the costs involved, as claims can tend to become quite expensive.

Reasons to be accurate with your policy

•    You may be charged an additional premium if your policy needs to be changed to accommodate hidden information not previously mentioned.
•    Some insurers may also cancel cover if your details are found to be inaccurate.
•    Once a policy is on cover, many insurance companies check claims and convictions, so it is always worth being honest from the start.

Make sure all the details you put in your quote are correct. Factors such as address, occupation and mileage are all details that are assessed when reviewing the overall risk. If you are unfortunate enough to have to claim and have declared such factors incorrectly, then you could find your policy declared void and you may be liable for any costs incurred yourself.

Comparing is easy

Now you know what you need and what to do, why not compare van insurance today? It’s quick and easy, and you might even find yourself making significant savings on your existing cover.

Got any more questions about van cover? Post them below and we'll try to find you the answer.

Do I need legal & tools cover when I take out van insurance?

QUESTION:  When I take out van insurance why do I also need legal & tools cover?
 
ANSWER: This is not always the case and one of the features of the Confused.com quotation process for van insurance is that customers can make decisions about whether or not they actually need extra protection for themselves and their van in the form of legal cover and tools cover.
 
Both legal and tools cover can be selected as optional extras during the Confused.com quotation process and are important decisions because there is an additional charge for adding the extra cover.

At the same time it’s worth remembering that such additional cover can provide considerable value and peace of mind so it’s worth taking the time to understand exactly what your extra spend buys you.

Legal cover- In the case of legal cover, it could realistically add around £26.99 to your policy but that could buy you up to £100,000 worth of legal cover should you need legal assistance. If you are involved in a van accident, even if it isn’t your fault you may have costs to pay such as policy excesses, replacement van hire charges and personal injury so it’s something you need to weigh up the pros and cons over. 

Tools cover- Many Confused.com customers use their vehicle for commercial reasons, with their van and tools being a vital part of running their businesses smoothly and protecting their income.

It's important to fully understand the potential downsides and then make informed decisions about how much you spend on insurance to protect yourself. Tools cover can provide you with up to £6,000 worth of cover 24 hours a day, seven days a week with prices for this additional cover starting at around £44.50.

Answer provided by Steve Best, head of van insurance at Confused.com