If you’re in the process of buying a new car, or even if you own a new one, you have probably already heard the term extended car warranty. A motor extended warranty can cost you a little more when you’re purchasing a car or if you add it at a later stage, but in most cases it is worth it In the article below we’ll discuss the pros and cons of motor warranty and help you decide.
What is an Extended Car Warranty?
When you buy a car, that vehicle comes with a motor warranty. That means that should anything go wrong within a certain amount of time, or within a certain number of driving kilometres , the manufacturer of the vehicle will fix the problem for free. Additionally, many insurance companies offer a type of motor warranty insurance which you can get even for second hand cars.
An extended car warranty simply means that you are paying more to have that car’s warranty last for a longer period of time, or to include more driving kilometres. In many cases you can pay your car dealership for an extended car warranty, whether that dealership is for new or for second hand vehicles. There is also the possibility to add an extended car warranty later in your ownership period, by going with a third party vehicle warranty company.
An extended car warranty is part of your motor plan insurance. Motor plan insurance is simply a way to make sure that you spend as little money on repairing your vehicle as possible. There are three parts to your motor plan insurance: a maintenance plan (how often you change the oil and check the tyres, for example), a service plan (how often you need to get your vehicle serviced), and a car warranty.
Why Would I Want a Motor Extended Warranty?
The main reason that you would want to invest in an extended car warranty is simply to save money. A regular car warranty will generally cover your vehicle for 2-3 years or X amount of kilometres (anywhere between 30,000 – 60,000 – depending on the company that the warranty comes from). Any problems that occur within that period may be paid for by your warranty, but outside of that period you’ll be paying for repairs out of your own pocket.
An extended car warranty will let you extend that period, meaning that your warranty will cover you for longer and therefore you won’t need to pay out of pocket for repairs. That’s really all there is to it! So, if for example you have a problem with your car gear after say 3.5 years, then you would end up paying thousands of Rands to fix this, and in some cases even closer to tens of thousands (depending on the car). If on the other hand you had extended your motor warranty, or got new motor warranty insurance if it’s a second hand car, then your policy would most probably cover this and all it would cost you is a couple of Rands each month in addition to a small excess payment (kind of your participation fee for making a claim).
Why Would I NOT Want an Extended Car Warranty?
An extended car warranty isn’t always the best idea for all customers. If you frequently change your car, or if you don’t drive very much (and are unlikely to reach the kilometre driving limit), then you’ll probably be better off not purchasing an extended warranty. In these cases, you’ll probably end up spending more than you save.
What Do I Need to Know Before Buying?
Before getting motor warranty insurance, there are a few questions that you should be asking yourself and your dealer (or the company providing the car warranty):
- How long am I thinking about keeping this vehicle? Will the regular car warranty run out before I’m ready to sell?;
- How far am I likely to be driving? Again, will the regular car warranty run out before I’m ready to sell?;
- What does the extended car warranty cover? Be aware that not all kinds of repairs are covered, and warranties can vary a lot in what they do and do not cover;
- Who is backing the extended warranty? Extended car warranties can come from a variety of sources, you want to know which company is financially responsible for the product/service that you’re buying, so that you can find out whether or not they’re dependable;
- Are there restrictions about which mechanic I can use? In some cases you’ll be required to use certain repair shops to get your car fixed, and may not be able to use your normal mechanic – this isn’t necessarily a bad thing, assuming the coverage includes a mechanic relatively nearby;
- What kind of deductible is there? You will generally be required to pay a deductible (a small part of the fee for the repair, whilst the company covers the remainder). This deductible can be per visit or per repair. Obviously a per visit deductible will usually be cheaper, since many repairs can be done during one visit and per repair deductibles add up fast.
So, Is an Extended Car Warranty Worth It?
The answer to that question depends on your specific circumstances! But, if you don’t change cars regularly and you drive an above average amount of kilometres, then yes, an extended car warranty can be worth the price. Remember that whilst your motor vehicle insurance will pay for damage caused by accidents, it generally won’t pay for damage caused by everyday wear and tear. An extended car warranty will usually pay for the repairs that your motor insurance won’t cover because they’re not accident related.
An extended car warranty is definitely worth considering. Shop carefully, ask the right questions, and you could end up saving a bunch of Rands when it comes to keeping your car safe and roadworthy. The decision is yours, but now you should be equipped to make it with the right tools.
Main subject: extended car warranty
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