Warranty Direct

Warranty Direct

Type	UK private company, limited shares
Industry	Insurance
Founded	June 1997 (1997-06)
Founder	Duncan McClure Fisher, David McClure Fisher
Headquarters	UK
Services	Warranty (Car, Van, Bike, Household Appliance) Guaranteed Asset Protection (GAP) Breakdown Repair Insurance
Parent	Cardif Pinnacle, BNP Paribas
Website	WarrantyDirect.co.uk

Warranty Direct is a UK provider of direct consumer warranties. They specialise in used car warranty, new car warranty and extended warranty.

The first Motor Warranty Direct policy handbook

History

Extended warranties were the norm in North America^[1] and were growing in popularity at the time of Warranty Direct’s launch in 1997 due in part to changes in the Sale of Goods Act in 1979.^[2] With the typical manufacturer's warranty lasting only 3 years,^[3] a large number of cars did not hold any form of extended mechanical and electrical repair insurance.^[4][5][6]

When Warranty Direct began, its sole service was vehicle warranties, primarily for second-hand cars and private sales,^[7] until 1999 when Household Appliance warranties were launched.

In April 2008, a majority stake was sold to BNP Paribas' Assurance arm in the UK; Cardif Pinnacle, who purchased the remaining shares in July 2013.^[8]

Services

The Financial Ombudsman Service stated that, "as with most insurance polices, they (extended warranties) rarely cover 'wear and tear'"^[9] although Warranty Direct do cover wear&tear in their policies.^[10]

In 1999 Warranty Direct launched extended warranties for brown and white household goods.^[11] Warranty Direct also supplies GAP (Guaranteed Asset Protection) Insurance.^[12] Warranty Direct offers Performance & Prestige cover; designed for vehicles which are deemed high-end.^[13]

Underwriters

Since the launch of Warranty Direct, underwriters have varied. Originally with Lloyd's of London, the majority of current policies are now underwritten by Cardif Pinnacle, however, some products are underwritten by Jubilee Insurance.^[13]

Warranty Direct is authorised and regulated by the Financial Conduct Authority^[14] (FCA Register Number 309075) and as such, customers can seek help from the Financial Ombudsman Service (FOS) and Financial Services Compensation Scheme where necessary.^[15]

Affiliated Websites

The Reliability Index has been running since 2000. Data from Warranty Direct's paid claims is used to establish the reliability of cars. This information is used to rank the car manufacturers and models by reliability, and allocate a "Warranty Direct Rating". The results are released in association with What Car?^[16][17][18]

Potholes.co.uk allows the public to report potholes and highlights problem areas to local authorities.^{[19][20][21][22][23]}

References