Friday, November 30, 2007

Car warranties are getting cheaper

UK car warranty prices have started to fall, though you could be forgiven if you had failed to notice. There have been some quiet changes taking place within the industry that could soon start to have a big impact for car owners.

Most of us will be relieved to hear that we could soon be paying less for car warranty. This is a product that many people consider to be over-priced.

Unfortunately, a lack of public awareness has often meant that many of us have been paying higher prices than we really should be doing.

A significant problem has been the way in which policies have been sold. This has been a sector that has been almost completely dominated by car dealerships, manufacturers, car supermarkets and other such retailers.

These retailers have had good access to car owners, allowing them to sell the products easily. Many of us, as consumers, have assumed that we can only buy car warranties from such car retailers.

This has had two large effects on the way in which policies are sold. The first has been that consumers have not been shopping around and comparing prices. This has largely been because of a lack of awareness of the alternatives available.

Following on from this is that car retailers, realising that consumers were not really shopping around, have been able to price policies at relatively high levels.

In recent months the situation has started to change.

Independent car warranty specialists have started to sell policies direct to car owners. This should lead to lower warranty prices and will also allow consumers to compare prices more easily.

This increased transparency has to be good news. It's important that we take advantage of the new situation.

If you need to buy an extended car warranty then compare prices online before making your purchase. You might save yourself a considerable amount of money.

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