Car Warranty Insurance Protects Drivers of Second-Hand Vehicles Facing Hefty Repair Bills

GlobeNewswire

MELBOURNE, Australia, July 26, 2022 (GLOBE NEWSWIRE) -- Modern cars deliver higher levels of comfort, fuel economy, safety and connectivity than ever before. However, this increased technological capability brings with it a high level of complexity that can result in costly repairs when things go wrong. eric Insurance Manager of Warranty Business Development and Operation Craig Barnard explains how modern cars can be both a blessing and a curse.

"Cars are better, safer and more comfortable to drive than ever. However, the high number of computer-controlled systems and sensors in modern cars makes them highly complex. The three enemies of computer and electronic components are heat, moisture and vibration, and in a car, you get all of those in spades so sooner or later something will fail. As a result, what might seem like a small issue can be quite complicated and cost thousands of dollars to repair," explains Barnard.

According to the comprehensive car insurance specialists, some of the costs for different claims from customers include electrical and electronic systems, with an average claim cost of over $1,000; cooling system claims averaging around $1,400; air conditioning systems claims averaging around $1,900; engine claims averaging over $2,500; while transmission claims averaged a massive $6,300.

Opting for warranty cover makes sense for many drivers as they would struggle to cover such huge costs when the unexpected happens. If a car has run out of its manufacturer's warranty, there are a range of warranty options available from eric, with terms ranging from 12 to 36 months.

Annual premiums for eric's 3-star warranty average just $378, while the average annual premium for the top-tier 5-star policy is $880. As well as covering the cost of repair, eric's warranty policies also include a towing costs provision, emergency accommodation, variable cover per claim, hire car and one-off total loss expense cover.

For drivers looking for the best car insurance policies to suit their needs, to apply for car insurance online or explore other options such as car warranty insurance, contact eric Insurance.

Motor Vehicle Warranty is issued by Eric Insurance Limited ABN 18 009 129 793 AFSL 238279 (eric). This article may contain general financial product advice that does not take into account your personal financial circumstance. Please read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for full terms, conditions, benefits and exclusions before considering this product. For more details, call us on 1800 999 977.