Vehicle dealers often provide free add-ons to encourage buyers. From free window tint offering smash and grab protection to roadside assistance for the first year, buyers should always consider these add-ons when making a vehicle purchase. Scratch and dent cover has become another add-on that you could receive for free when you purchase a new vehicle. Sometimes it comes with additional rim and tyre cover. While it may seem like a good deal, it is important to read the fine print to ensure that you are not paying for these add-ons as well to understand when the cover is applicable and for how long.
New Car Scratch and Dent Cover
Many new car owners may wonder if they need the cover. It is important to understand what it is and how scratch and dent cover works. Comprehensive car insurance is mandatory for a financed vehicle. However, scratch and dent cover is a matter of choice. It is is a useful financial protection that will cover minor dents and scratches with many policies now offering exterior and interior cover in one plan. If the cover is free, usually for the first 2 to 3 years, then any vehicle buyer should take advantage of the added protection.
Consider the fact that scratches and dents can affect the resale value of your car. Also consider that you are proud of your new wheels and would not want to have it tarnished with minor dents or scratches. However, these unfortunate circumstances can arise and the repairs can be expensive. Claiming from your car insurance may be an option but with a high excessive and the risk of losing your no claim bonus, scratch and dent cover may be the better choice.
Is the scratch dent cover really free?
Add-ons like scratch and dent cover may not always be free. It is not uncommon for it to be added to your vehicle finance as a value added product. You will be paying for the cover upfront for a 2 to 3 year term policy. Ultimately this increases the loan value and when you consider the interest that you pay over the repayment period, you could be paying back a lot more than the collective premiums for the policy. Alternatively you may be signed up for the scratch and dent cover separately and be debited every month for the premium.
It is always important to speak to the in-house finance team about whether value added products like scratch and dent cover have been included in your loan agreement or if they have signed you up for this cover. You will be informed about the cover before they take either of these actions. However, new car owners are sometimes so excited to take possession of their new vehicle that they overlook these extras that can cost them in the long run. It is important to scrutinize every document that you sign.
Remember that the scratch and dent cover is usually not ongoing for free. The policy will either lapse after a certain period of time or your will have to start paying for it separately after the free period ends. Understand the terms and conditions of the scratch and dent policy if you do get it for free or if you decide to sign up for the cover. Not all car damage is covered and you may have to revert to your car insurance in some instances. However, scratch and dent cover is a useful value added product to your vehicle cover.