Insured v Non- Insured
What is an insured warranty and why does it matter?
As an insurance broker, Warranty Direct only provide insurance based and backed warranties to our customers.
Not all warranties are insured – but if you buy a non-insured warranty what does it mean for you?
At Warranty Direct we are dedicated to making our warranty contract clear and simple to understand so please take a look at the table below and if you have any questions please don't hesitate to get in touch.
| FCA Regulated | |
|---|---|
| Insured | Non-Insured |
| We are authorised and regulated by the Financial Conduct Authority and the insurance company who underwrites the policy is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. | Whilst service contracts providers have to comply with a variety of consumer protection standards, there is not a similar overseeing and active regulator such as the Financial Conduct Authority. |
| Selling standards | |
| Insured | Non-Insured |
| There are very high standards applied to regulated firms by the Financial Conduct Authority in respect to selling practices. These standards ensure that you are provided with clear, honest and not misleading information about the product before you make the decision to purchase an insurance contract. | Whilst service contracts providers have to comply with a variety of consumer protection standards, there is not a similar active regulator such as the Financial Conduct Authority ensuring that sales practices are of a high standard. |
| Making a Complaint | |
| Insured | Non-Insured |
| There are specific rules set out for regulated firms to follow when assessing a complaint. If the regulated firm is unable to close your complaint to your satisfaction you will have the right to refer your complaint to the Financial Ombudsman Service without charge. | Whilst the service contract provider would make every attempt to address your complaint, you will not necessarily have access to a free independent arbitration service if the service provider is unable to close your complaint to your satisfaction. |
| Insolvency | |
| Insured | Non-Insured |
| We and our insurer are covered by the Financial Services Compensation Scheme ('FSCS'). The FSCS is the UK's compensation fund for customers of authorised financial services firms. The FSCS may pay compensation to a customer if a firm is unable, or likely to be unable, to pay claims made against it. | In order to protect their customers in the event of insolvency, some service contract providers set aside funds to cover their non-insured schemes. However, this may not always be the case, so it is important to check your contract document carefully. Our warranty product covers mechanical or electrical breakdown of insured parts due to wear and tear from day 1, as long as your policy is starting immediately after the expiry of your manufacturer’s original warranty, or you’re renewing your existing Warranty Direct policy. Otherwise, wear and tear cover will start 90 days after the policy start date. |
Why Choose Us?
Insured Contracts
All Warranty Direct policies are insurance contracts, we are authorised and regulated by the Financial Conduct Authority (FCA).
Trusted Garage Network
Warranty Direct offers a trusted network of 2200 repairers. Warranty Direct can book you in and will deal with the garage directly throughout your claim, so that you don't have to.
- Repair costs covered up to the value of the vehicle.
- Unlimited number of repairs
Comprehensive Coverage, which includes:
- Parts & labour
- 27/7 AA Roadside Assistance with Home Start
- Multimedia cover
- MOT Test Insurance.
- Wear &Tear (*some exclusions apply).
- Car-hire where the car is being repaired (*and the qualifying criteria met)
Flexible Commercial Terms:
- No cancellation fees.
- You can opt for annual payments or monthly payments (with no interest charge)
- Choice of amount of excess to pay, to suit your budget.
