Cars

Published on September 23rd, 2019 | by Daniel Sherman Fernandez

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Is your car warranty under-written by an insurance company?

Back in the good old days, manufacturers would sell you vehicles with just 3-year warranties but the cars themselves would last for decades problem-free. Nowadays, just about every product has some form of planned obsolesce baked into it. Cars today have either got too much plastic where metal ought to be, have parts built to last a very specific (and short) lifespan, and are just too computer-controlled to be cheaply diagnosed and fixed.

We don’t blame the manufacturers, as cars are also getting more comfortable, safer and more efficient. But this trend has made one thing clear: a warranty is now ESSENTIAL to owning any modern car, even one that’s a second-hand. But not all warranties are made equal, so we thought we’d help clear some myths about warranties to help you on your next purchase.

1. I have car insurance, so I won’t need a car warranty

Car insurance covers against damages when there is an accident.  Car warranty covers mechanical and electrical malfunction and breakdown, especially in your engine and transmission/gearbox. 

2. I will have problems with my claims on extended warranties

Warranties themselves come in at least a couple of forms: manufacturer and extended warranty. Both of these general types of warranties can vary in many ways but essentially it’s all about periodic and timely maintenance of your car at authorised panel workshops. At the end of the day, if a part fails within the extended warranty and if it’s a claimable part, it should be treated in the same way as a warranty claim through the manufacturer. 

3. The claims process will be troublesome on an extended warranty

Related to point 2 is the process of claiming an extended warranty. Again, the structure of the warranty is different, but the process for you, the end-user, is the same. You (or the panel workshop) will still have to go through the same steps for a successful claim whether the warranty comes from the manufacturer or a 3rd party insurer.  Timely service maintenance record will also ensure a smoother claim process.

4. Coverage will not be reliable since it’s via a third party

Every brand in the auto industry is supported by thousands of original equipment manufacturers. 3rd party warranties are serviced by those with about as much experience with cars as the manufacturer’s service centres. They have diagnostics and repair equipment of the same calibre, trained technicians and can order the same or equivalent parts as the manufacturer themselves. What’s more, their business is structured 100% around the repairing of cars.  When choosing a warranty provider, always ask for the following:

  • List of parts covered
  • If the warranty is underwritten by any insurance companies? Warranty that is underwritten by a licensed established insurance company will give you a better peace of mind for claims, from the processes up to the approval stage.
  • Workshop coverage nationwide. 
  • Company background.  This can be obtain via website, referrals and reference from various workshops.

THAT BEING SAID

Regardless of the type of warranty, certain things must be adhered to. Stick to your service intervals as tightly as possible and make sure to conduct ALL repairs and services at authorised workshops and service centres. Refrain from modifying parts yourself or outside. With these records, your claim shouldn’t be a problem at all. And if you’re the one choosing the 3rd party warranty, make sure it’s covered by an insurance underwriter of repute. MyOpal, for instance, has a proven track record, having administered countless warranty claims  and administering more than 1000 cars monthly, under a licensed established insurance company in Malaysia.


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