You can find the cover you need by:

  • Comparing quotes to save money

  • Checking what cover you can get

Save money by shopping around

You may be offered a parts and labour warranty by the dealership when you buy your car, but you could save money by waiting to compare policies.

Compare as many quotes as possible to make sure you get the best cover at the cheapest price.

Check the limits

The main limits to look for are:

  • Claims limit: This is the most an insurer will pay per claim. Check exactly what is covered here.

  • Maximum hourly rate: This is the most an insurer will pay for labour costs. Check the policy documents, because if a garage charges more than the maximum rate, you may have to pay towards the cost.

  • Age limit: Most policies do not cover cars over 12 years old, and some only cover vehicles under 5 years old. Check the terms before you buy to make sure your car can be covered.

  • Mileage limit: This is usually between 60,000 and 100,000 miles. If your car exceeds this limit, your warranty will not be valid. If you have a car with high mileage, look for a warranty that can cover you.

Service plan vs insurance

The main differences between service plans and insurance policies are:

  • Service plans can be offered by car manufacturers, dealerships or warranty providers. They are not regulated by the FCA, and you will not be able to go to the Financial Ombudsman Service (FOS) with any complaints.

  • Insurance policies can only be offered by FCA regulated financial companies. This means any complaints you have can be escalated to the FOS, and you have a 14 day cooling off period in which you can change your mind.

Check the type of warranty before you buy, as insurance policies offer more consumer protection.