An “insured” vehicle warranty is in fact a non-investment insurance policy, with clearly defined terms and conditions that apply. The policy is underwritten by an insurance company and routinely will be either administered by the insurer itself or they will appoint their own administrator. Most importantly, the administration is not usually the company who introduced the policy or sold the policy to you.
The benefit to you is: The premium you paid for your vehicle warranty is fully protected under the Financial Service’s Compensation Scheme (FSCS) The actions of those involved in your purchase, administration and insurance underwriting are governed by regulations, as set out by the Financial Conduct Authority (FCA) If you are unhappy with any aspect of your insurance or the service’s provided under the agreement, you have the right to lodge a formal complaint with the Financial Ombudsman Service ( FOS) who are an independent body and who will adjudicate on your behalf. This is a free of charge service to you as the consumer. Very simply, if your vehicle warranty is not fully insured, then your premium may be at risk and your ability to successfully resolve any disputes maybe significantly reduced.