Tesco launches car warranty scheme
by Gill Montia
Story link: Tesco launches car warranty scheme
Tesco Personal Finance has expanded its car insurance offering with a new warranty scheme.
Tesco Car Warranty aims to help spread the cost of car ownership by paying out on certain repairs.
To qualify, a vehicle needs to be under ten years old and have less than 100,000 miles on the clock.
Premiums start at £9.90 per month and the warranty covers the cost of labour and parts for unexpected mechanical, electrical or electronic failures.
Under the plan, customers can appoint their own mechanic to carry out work.
Motorist can opt for a “Value”, “Standard” or “Finest” warranty, any of which can be purchased well beyond the expiry date of the manufacturer’s original guarantee.
The product has been developed with the credit crisis in mind. According to Tesco Personal Finance, large numbers of motorists will be delaying the purchase of a new vehicle until the economic outlook improves.
In a survey, Tesco found that over 50% of drivers questioned intend to keep their vehicle for longer than they originally expected.
One-third of respondents thought they would be driving around in their existing car for an extra two years.
Tesco’s head of insurance, Allan Burns, is predicted a strong demand for the new warranty because there are few such products available.