Don’t Get Caught Out: Warranty Insurance for your Motor Vehicle
Your brand-new car might come with a manufacturer’s warranty to protect you if it breaks down. But did you know that you can get similar protection for older and second-hand cars?
It’s called Warranty Insurance, and when your original warranty runs out or if you buy a used car, you may be able to purchase warranty insurance. Unlike other forms of insurance, which cover you in the case of damage and theft, Warranty Insurance helps to cover the costs of a fault in your car or a mechanical breakdown of parts. With eric, you can even get Warranty Insurance on a car that’s up to 12 years old.
How does it work?
A vehicle purchase will usually come with a manufacturer, dealer, or statutory warranty. If your car experiences a mechanical or electrical fault during this warranty period, your dealer or manufacturer will cover the costs of getting your car fixed and back on the road.
However, once this warranty runs out, your car is no longer protected. A breakdown could cost you thousands of dollars out-of-pocket.
That’s where Warranty Insurance comes in. Warranty Insurance can help to minimise the inconvenience and financial costs of your car breaking down.
With eric insurance, you can purchase a 5, 4 or 3-star warranty, depending on the age of your car and how many kilometres it’s done.
|eric’s 3 Star Cover||eric’s 4 Star Cover||eric’s 5 Star Cover|
|The car must be no older than 12 years of age||The car must be no older than 8 years of age||The car must be no older than 5 years of age|
|For 12, 24 or 36 month cover, the car’s odometer reading must be less than 200,000km||For 12, 24 or 36 month cover, the car’s odometer reading must be less than 200,000km||12 Month Cover – Odometer reading must be less than 200,000km|
24 Month Cover – Odometer reading must be less than 175,000km
36 Month Cover – Odometer reading mustbe less than 100,000km
Visit our car Warranty Insurance page to see full eligibility requirements for each level of cover.
What does Warranty Insurance cover?
A car is more likely to experience issues as it ages, so Warranty Insurance will typically cover less than a new car warranty.
Still, even a 3-star warranty covers many of the common problems you might run into. This includes replacing or repairing parts of the engine, transmission, clutch, front steering, brakes, electrical air conditioning, fuel system, front suspension, radiator, water pump and more.
At eric insurance, the 3-star Warranty Insurance will pay a benefit of up to $2,500 per claim, the 4-star Warranty Insurance will pay a benefit of up to $5,000 per claim, and the 5-star Warranty Insurance will pay up to market value.
You’ll also be covered for:
- Towing costs – if your car breaks down and needs to be towed, we can reimburse you up to $100 for any one claim, up to a maximum of $300 throughout the duration of your policy.
- Accommodation – if you’re more than 100km from your home and repairs won’t be completed on the same day, we can reimburse you for accommodation costs up to $500 in total throughout the duration of your policy.
- Car hire – if your car will be out of action for more than 2 days you can be reimbursed for the costs of your rental car, up to $500 in total throughout the duration of your policy.
As well as covering electrical and mechanical faults in your car, Warranty Insurance can cover additional benefits up to $5,000 if your car is a write-off.
- Travelling expenses
- Car hire
- Meals, and
- Phone calls
The amount paid will be based on the market value of your vehicle.
Costs can add up in the event of a breakdown. With eric insurance, our fast and easy claims process will ensure you’re not out-of-pocket for long, and you’ll be back on the road in no time.
What cover option is best for you
There are a number of different warranty insurance options to select from, so consider which warranty option would suit your specific circumstances and the eligibility criteria of each.
Not everything is covered by Warranty Insurance, so make sure you read all the information about the product so you know what you will and won’t be covered for. At eric, we’re not trying to hide the fine print. We’ll be up front and let you know what’s covered and what’s not.
You’ll also need to meet our main eligibility criteria, such as:
- You must be at least 18 years of age
- Your car must be both registered and roadworthy
- Your car must not be used for excluded purposes (see the Product Disclosure Statements for the full list), and
- Your car is not a repairable or statutory write-off
You can find out more about eligibility requirements in our Product Disclosure Statement.
Whether your car warranty has run out or you’re buying a second-hand car, Warranty Insurance can protect you so that even if something does break down, you won’t be lumped with a big repair bill.
To find out more and get a quote, visit our car Warranty Insurance page or contact us on 1800 999 977.
Warranty Insurance is issued by Eric Insurance Limited ABN 18 009 129 793 AFSL 238279 (eric). This article may contain general financial product advice that does not take into account your personal financial circumstances. Please consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about this product and note there is a 21-day cooling off period.