We just tried to make a claim on our policy and had the small print read out to us down the phone. Autoguard Warranties will not pay for consequential damage of any kind, only the original failed component. Now, this might sound reasonable but Autoguard Warranties take this to the extreme as a method of avoiding significant claims.
For example: You are driving along in your low mileage, well cared for and fully serviced car covered by Autoguard Warranties. Inside the engine a defective bolt holding a piston fails and lets go. As a result the piston smashes into the valves, destroying them and the head and the impact debris in the cylinder bore damages the block beyond repair. All of this happens in a couple of seconds and results in an engine write-off requiring a complete new engine costing thousands of pounds to replace.
Autoguard Warranties will only pay for the bolt that failed.
They consider all the damage caused as a result of this bolt’s failure to be consequential damage and therefore not covered by their policy. Read the small print and consider alternative providers.