‘Greying car population’ set to cause a headache for motorists

As the UK population ages, so too does its vehicle car park, leaving owners with the prospect of mounting repair costs.

That’s the warning from independent advice site, WarrantyGuide.co.uk, as the economic downturn looks set to amplify an already marked trend of people keeping their cars for longer.

Between 2004 and 2007, there was a 10% increase in cars aged three to six years on UK roads, while cars aged under three years reduced by a similar amount.

With new car sales dropping by almost 20% in the second half of 2008, this ‘ageing process’ is accelerating, leaving more and more cars outside the protection of the manufacturer’s warranty.

Research suggests that on average 1 in 3 cars will suffer a mechanical failure every year – a figure that naturally rises with age. Further research shows that, while a one-year old car has a failure incidence of just 19 percent, that figure leaps to 28 percent for a seven-year old vehicle.

Extended warranties or Mechanical Breakdown Insurance offers protection against these unforeseen and unwanted repair bills once the manufacturer’s traditional three-year cover has elapsed.

Today, the choice of cover and provider is greater than ever before, but like any insurance, it can be a minefield and the difference between a good and bad policy stark.

That’s why WarrantyGuide.co.uk has developed a unique Checklist and Scorecard for motorists to compare and rate the various warranties on the market.

Amongst the top tips for choosing the best cover for you, WarrantyGuide.co.uk says: Make sure you are covered for “general wear and tear”. Some policies may claim to protect against this, but include wording in their contracts which contradict the headline promise.

Check the Excess and Claims Limit on the policy – the average claim may be £350-400, but could easily rise into the thousands for engine, transmission or suspension failures.

Check your policy covers consequential loss – if an uninsured part of your car breaks, causing an insured part to fail, not all policies will cover it.

Find out when your policy “allows” faults to be found. Some warranty companies will try to avoid paying out for faults discovered during MOT tests and servicing, apparently expecting you only to claim when your car stops at the side of the road.

Read a good sample of online reviews to see how different warranty companies really treat their customers when they need to claim.