Different Types Of Warranties

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    Warranties come in many different shapes and sizes. For example, one may be specifically tailored towards a business in the fashion industry, whereas another could work better for a company based in the transport industry. Whatever it may be, there are plenty of different options you can choose to suit your business. That is why we are here to explain them in detail, giving you a clear indication of what to expect and finding the right warranty for you.

    However, before we continue, it is essential to note that warranties are entirely separate from guarantees. The latter is a comprehensive promise to the customer that the product in question is of excellent quality; otherwise, it can be repaired or replaced. Moreover, they are almost always free and offered by the manufacturer as an incentive.

    On the other hand, the former is a commitment to customers that if their product defects in any way, the manufacturer will provide a free repair. There is, however, no offer of replacement. For more on these differences, please refer to our previous blog, ‘Warranty v Guarantee: What Do I Need?’

    Standard Warranties

    These are your industry standard, run-of-the-mill variations that are usually included with the purchase of a product. The manufacturer or seller will repair the item for free during the period the warranty is active or if the warranty has been registered. However, if the company cannot fix the problem, they have to give the customer a refund or replace the item instead.

    A warranty (insurance) does not cover accidental damage, though. Accidental damage can be bought additionally or included with the warranty as an added extra. This addition is a financial loss risk as opposed to a warranty. Standard warranties, instead, cover ‘the unforeseen failure of a mechanical or electrical component that is part of the manufacturer’s original specification.’

    Furthermore, they do not tend to cover wear and tear; since it does not impact the product’s performance and is in part down to the customer who must protect their item from this happening.

    The length of the warranty depends on what you are selling. A car manufacturer’s warranty will be vastly different to an electrical goods warranty or an item of clothing, for example. One may last for a month or two, while another could be as long as a year. It is all relative to the situation.

    Standard warranties can be found in almost every product or industry across the country.

    Limited Warranties

    These are unique in their own way. For example, a manufacturer will include clauses in the contract that link to specific parts, types of defects, or other conditions relating to the product. These limited warranties allow the manufacturer or seller to decide exactly what is covered – usually, these include parts and problems with an easy fix.

    Electronic products are perfect examples as they are made up of a whole catalogue of different parts and components. The monitor of a laptop can be protected, whereas the keys of a keyboard may not be. The same could go for the mousepad or the built-in camera. Strategies can be put in place by the manufacturer/seller that makes sure they are covered legally.

    Exclusions and limitations will, therefore, more than likely apply. Suppose a product has been damaged or defected as a result of abuse, neglect or improper use. The manufacturer would be cleared of having to cover this for free under the limited warranty. Instead, this would need to be paid for by the consumer as it is their responsibility.

    Often, it may even just cover the parts and not the actual labour required to fix the product comprehensively. It may even state that the manufacturer and consumer split the cost of any necessary repairs.

    Extended Warranties

    Lastly, these types of warranties are usually offered in addition to the standard warranty. They essentially prolong the warranty and cost extra for the consumer based on the product’s retail price. However, the terms and conditions may not precisely match those of the standard warranty, meaning the manufacturer can plan exactly what is covered in their strategy.

    Extended warranties are designed to replace or provide a cash compensation if the appliance is ‘beyond economic repair’ – if the repair costs exceed the value of a ‘used’ appliance that is. Insurance aims to put the policyholder back in the same position as they were before the failure.

    A typical example of an extended warranty on a product would be a car. The length can last up to 12 months or even ten years, depending on the manufacturer, and the prices will vary. For example, one manufacturer may offer a 12 month extended warranty for £500 while another may double that to £1000. These figures would take into account the retail price of the car as well as the length of the warranty. Of course, this would all be affected based on the age of the vehicle – if it is new or used.

    Check out our last blog on extended warranties for a more detailed exploration. 

    Get in touch with Victis Corp today.

    To receive our expertise in all the warranties available to you, contact us today by calling 0844 967 2600 or emailing info@victis-corp.com. Firstly, we can help eliminate any problems you are experiencing by providing a comprehensive rundown of the process. Following this, we can then work with you to craft and attach the warranties that will consider all the recent law changes brought in by the UK Government. We look forward to speaking with you soon.

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