Insurance Vs Warranty

A Warranty

Can only be provided by the original manufacturer of item - not FCA regulated

Repair or replacement of goods if defective it does NOT cover accidental damage. (NB exclusions may be included and will vary from policy to policy). An Extended Warranty is for when the manufacturers warranty expires and is generally purchased from the retailer where the goods are bought.

An Insurance Policy

Can only be purchased from a FCA regulated company.

Protects against an uncertain event that may or may not occur in the future e.g.

• Accidental Damage
• Fire and theft

(NB exclusions may be included and will vary from policy to policy).

A Service Agreement/Service Plan/Maintenance Contract

Can be provided by anyone but only covers regular servicing/maintenance

If Terms and Conditions state, repair, replacement, accidental damage etc it is Insurance and needs to be FCA regulated.

A Membership Agreement

Take care of companies offering a membership/repair agreement/plan they could be offering an Insurance product without being regulated by the FCA.

The product could be illegal and uneforceable - which means the company does not have to do anything (apart from take your money!!)