How vehicle warranty businesses are adapting to the Covid-19 pandemic


April 17, 2020 By Mike
Last updated on April 17, 2020

The Covid-19 pandemic has changed life as we know it. As governments and authorities around the world do everything they can to halt the spread of the virus, members of the UK public are being asked to stay inside other than for food, health reasons, or work.

Sporting, social, and cultural events are being cancelled or postponed, while all non-essential domestic and international travel has been put on hold. Beyond the obvious personal distress and disappointment, what does this mean for the running and maintenance of our vehicles?

The UK’s roads are now far quieter as many people’s cars sit untouched for an indefinite period. Yet key workers are relying on them more than ever with public transport services significantly reduced.

One key update came from the Driver and Vehicle Standards Agency (DVSA), after it was announced that any car, van, or motorcycle MOT due on or after March 20th 2020 would be automatically extended by six months. Insurance will remain valid providing vehicles are kept safe to drive.  

But with many garages temporarily closed, questions have been raised over how the situation will impact warranties. Below are some of the ways businesses are responding to the ongoing crisis.

Honouring warranties

Many vehicle owners will be concerned that their manufacturers warranties won’t be honoured due to late or missed services that were due to take place in the coming weeks.

Thankfully, lots of car manufacturers have communicated that their warranties will still stand if servicing is delayed due to the pandemic. This growing list includes the likes of BMW, Toyota, and Vauxhall.

Consistent with the Government’s guidelines, drivers are being advised to continue using their cars but only when absolutely necessary. It is still recommended to book services in as they are due, even if only to log it on their dealer’s system without a confirmed date.     

Supporting key workers

From NHS frontline staff to supermarket employees, the UK’s key workers will be using their vehicles more than most during the lockdown period. As a recognition of how vital they’ve been in keeping the country going, the warranty provider Warrantywise has offered to help key workers out in any way it can.

According to Warrantywise CEO Lawrence Whittaker, their supportive measures include assistance finding working garages, sourcing hire cars, answering any car-related queries, and the offer of cost price warranties to help drivers stay protected.      

Supporting dealerships

Like businesses in many industries, car dealerships face significant disruption and an uncertain future. But as a consumer and trade provider, Warrantywise has also stepped in to support its registered car dealers.

Among several other measures, the company is offering dealers 12 months’ free Home Cover, upgrading any warranties they sell in April to include free MOT Cover, sourcing vehicles for those struggling to find stock, and lifting restrictions to allow dealers to sell warranties from their homes.

These actions should help to boost revenue and help car dealers make it through what is proving to be an extremely challenging period for everyone.