Countless amounts of South Africans have purchased a motor warranty (often when purchasing a vehicle) only to have their claims rejected upon claiming. Why is that?
Well, the first problem is that many people tend to confuse a motor warranty with a service plan or maintenance policy. What’s the difference?
A motor warranty is specifically designed to cover mechanical breakdowns. It is, essentially, insurance for your car’s most vital components. A warranty doesn’t cover consumables, the cost of computer diagnostics, and does not cover any aspect of the service or maintenance. For that, of course, you need a service plan.
So, while a motor warranty covers the replacement costs related to mechanical (or even electrical) breakdowns, a service plan covers the cost of a service. This commonly entails the replacement or maintenance of your vehicle’s oil, oil filter, fuel filter, air filter, spark plugs, etc.
Service plans, then, ensure that your car remains in good working order. Motor warranties are there for when things go terribly, terribly wrong. It’s common knowledge that the older a vehicle gets, the higher the likelihood of a (very expensive) mechanical or electrical breakdown occurring, and this is where motor warranties have proven themselves a saving grace.
But, of course, many people still struggle with them. A lot of this confusion has to do with the simple misinterpretation of terms and conditions, or a misunderstanding of what a motor warranty is, how it works, and how to use it.
As the owner of the vehicle, you’re solely responsible for keeping it in good health. Not only will this keep you and your loved ones far, far safer on the roads, but it could also save you from having to foot a massive repair bill one day.
So, you need to ask a couple of very important questions before purchasing a warranty.
Which vehicle parts are covered by this warranty? How long is the warranty valid for? If the vehicle isn’t serviced on time, how long until your warranty is cancelled?
It’s very, very important to know the terms and conditions you’re agreeing to. Understanding the policies you own is just as crucial as understanding your vehicle.
So, let’s take a look at two very important things you should know about a motor warranty.