Many of you may be aware of the basic principle behind a car warranty agreement. The general idea is that you pay a set fee and, in return, you receive for peace of mind for the period of the agreement.
Although policies vary, you should be able to expect that the warranty will cover most repairs that need to be carried out on your vehicle.
The idea behind warranties may be simple but prices are unfortunately relatively high. Understanding why this is the case involves looking a bit more deeply at the warranty market.
For some years the most popular way of acquiring policies has been via car retailers, such as dealerships and car supermarkets. They have always had policies to sell and have seemed like a sensible place to purchase from.
Given their domination of the market, few people have thought to look elsewhere, or even been aware that there were any other options available.
With consumers failing to shop around, warranty prices have remained high. This is at the very core of the problem that many car owners have been facing.
There have been some recent changes to the way in which warranties are sold, which could mean good news for car owners.
Independent vehicle warranty companies have started to change their sales strategy and are now looking to sell direct to consumers. They are approaching this task by looking to sell policies online.
This is potentially very good news for car owners. As well as introducing greater transparency, the increased competition should lead to falling prices.
The implications for all of us are clear.