Show me an Example
Let’s make some assumptions for the purposes of this example.
Let's assume you own a 4 year old Jaguar S Type which has covered 50,000 miles. Its manufacturers warranty has expired, you forgot to renew it when the reminder arrived.
During an internet search you find the car2cover Platinum Warranty and like the level of cover it offers. Your car's age and mileage meets the eligibility criteria and fortunately you have maintained a full service history in accordance with manufacturer’s recommendations. You buy the warranty and enjoy the financial peace of mind.
Three months later, the water pump breaks up and requires replacement. You call the claims team and describe the problem. They give you a claim reference number and ask you to take it to your preferred or chosen repairer for an estimate. Your repairer calls the claim's team quoting the reference number and breaks the news that the cost of supplying and fitting a new water pump will cost £625.00. The claims team are happy that the labour rate quoted is in keeping with the geographical area, make and model of car and type of repairing garage. Authorisation is given and the work commences.
The claim limit under your Platinum Warranty is your vehicle purchase invoice price. In this case, £11,500.00. So, even after having the water pump replaced under your Platinum Warranty, you still have a remaining claim limit of £10,850.00. eg, Value of car = £11,500.00 less repair cost £650.00 = £10,850.00.
Five months months later you are unfortunate enough to experience a gearbox failure. The claims team again talk you through the process and you have your car taken to your preferred repairer. The repairer advises the claims team of the cost of rectification and authorisation is given to proceed. This repair is costly. Your repairer has quoted a cost of £2,750.00. This second claim means that your available claim limit is now £8,100.00. This is calculated as;
| Value of car at time of buying your warranty | £11,500.00 |
| Less first claim for water pump | -£650.00 |
| Less second claim for gearbox failure | -£2,750.00 |
| Remaining claim limit | £8,100.00 |
With four months of warranty remaining you still have the peace of mind that the remaining claim limit is sufficient for most unexpected expenses.