Motor Ombudsman urges motorists to read extended warranties’ T&Cs

The Motor Ombudsman has urged motorists taking out an extended warranty to read the terms and conditions carefully and avoid skimming.

It commissioned an online YouGov study of over 500 UK driving licence holders on warranty issues.

The research revealed that the majority (51%) of those polled would ‘skim-read’ any accompanying terms and conditions.

Those aged between 25 and 34 years of age emerged as the most likely to adopt this approach (61%), according to the survey.

In contrast, a smaller proportion (42%) of the prospective warranty holders stated they would review the accompanying terms and conditions in their entirety, to fully understand the contents of the agreement before signing it.

A minority (5%) would not review the terms and conditions at all for an extended warranty.

The findings showed that only 57% of those who would read skim-read the paperwork were aware that a business may not pay out for the replacement of wear and tear items, such as brakes and tyres.

An identical proportion was also familiar with the fact that getting a car repaired without prior authorisation from the warranty provider may see an application turned down.

Motorists who did not read the terms properly were also unaware that pay ut could be withheld for the use of wrong or contaminated fuel, incomplete service history and the use of non approved parts.

In addition, the same respondents were least aware that a claim could be declined if failures had occurred due to external causes, such as a road accident or the weather (36%), or if repairs were conducted in association with a vehicle manufacturer recall.

Bill Fennell, Chief Ombudsman and managing director of the Motor Ombudsman, said: “Terms and conditions accompanying any kind of agreement are a vital piece of information, and a less than thorough read raises the risk of consumers missing crucial details, and ultimately accepting a product that may not meet their expectations.

“Motorists not fully understanding their policy and the level of cover provided, may find that, when they come to make a claim, some items are not covered under the warranty, leading to additional expense.”