UK Car Lending

Repair insurance under surveillance for “underhanded tactics”

He added that many customers who pay for body repair coverage do not realize that their car will be repaired by a mobile technician using the Smart (Small and Medium Area Repair Technology) system rather than, as they might assume , the official dealer. body.

“Not only is their car’s paint and corrosion warranty potentially invalidated using this procedure, but the quality of Smart repairs also varies significantly,” Kelly said.

An FCA spokesperson said: “No one should be coerced or pressured into taking out insurance that is not right for them, and we would be very concerned if we saw evidence of this.

“Anyone who thinks they have been mis-sold an insurance product should complain to the company they bought it from. If they are not satisfied with the response, they can also complain to the Financial Ombudsman.

Do you need repair insurance?

There are several questions you should ask yourself before purchasing a policy, but the most important is: “Do I really need this?” »

Those who sell repair insurance will tell you that leaving even slight damage unrepaired is not only unsightly, but will also cost you dearly when you return your car after a lease or PCP finance agreement.

This may be true at the end of a lease, but at the end of a PCP deal, most people trade in one part of their car for another, with the dealership being as eager to have it as they are to sell its replacement. .

If you’re concerned about dents and scratches, you can still save the typical £400 insurance premium for minor bodily damage and pay to have the more unsightly ones repaired for around £50 per panel. A good polish will hide most light scratches.

Where repair coverage can pay off is in the repair of diamond cut alloy wheels and the replacement of flat tires.