As a vehicle owner, you want to do everything in your power to keep your vehicle in the best condition possible and, most importantly, on the road. After all, you’ve worked hard to buy your car. It’s only natural that you want to preserve its value, and protect your wallet at the same time. That’s where products like Warranties, Service Plans, and Maintenance Plans, are essential.
Many vehicle owners often think that the terms Warranty, ServicePlan, and Maintenance Plan, mean the same thing. These three products, however, serve very different purposes. To avoid confusion when it comes time to claim, we’re going to explore these three products, highlighting their key differences.
Why do you need a Warranty, Service Plan, or Maintenance Plan?
Keeping your car in tip-top shape is an important part of your car ownership journey. Regular services, maintenance, and staying covered for any emergency breakdowns is important, for your car, and your budget. In tough economic times, unexpected expenses can easily derail even the most conscientious budget-keeper and careful driver.
Most often, when your car needs to be fixed, it needs to be fixed now. You can’t wait to save up to cover the expensive repairs or services. A Warranty, Service Plan, or Maintenance Plan helps you keep your car’s value, and prevent unexpected expenses. You can also combine your cover, and select to have a Warranty and Service Plan.
These plans give you a level of financial predictability and quality repairs, enabling you to manage your budget effectively while ensuring your vehicle receives top-notch maintenance. These plans cover planned costs, helping you avoid unexpected expenses and providing cost savings compared to paying for each repair or service in cash. You’re also able to use reputable repair shops and service centres that use high-quality aftermarket parts, eliminating the need to settle for subpar components or untrained technicians. Choosing the right type of cover for your car, you’re assured that your vehicle is safe to drive and covered in case of an emergency. A well-maintained vehicle typically commands a higher resale value when it’s time to sell or trade in.
What is a Warranty?
A Warranty is a policy that covers the repair and replacement of certain components that fail when your car has a mechanical or electrical failure/breakdown. A Warranty covers a range of components that are critical for ensuring your car runs well. This cover includes all the associated labour costs. A Warranty helps you avoid the burden of unexpected financial expenses if your car breaks down.
When your car begins to age, breakdowns and component failures start to become more common. You may find yourself in a situation where you need a new engine, or gearbox. This comes along with expensive repair bills. The worst thing about mechanical or electrical failures is that they can happen anywhere, at any time, requiring your immediate attention, and payment. Where will you get the cash to pay for that? Thanks to the cover provided by your Warranty, you can get your car fixed immediately, without having to wait months to come up with the cash to pay for expensive repairs.
Key features of a Warranty
- Cover for breakdown repairs: If your vehicle has a mechanical or electrical breakdown, your warranty covers the costs of the repair or replacement of the component/s that have failed.
- Cover for specific components: Your warranty covers a wide range of mechanical and electrical components. These often include the engine, gearbox, infotainment system, air conditioning and other essential systems. The list of covered components will depend on the warranty option and plan you select.
- Labour costs: You’re covered for the costs associated with parts and labour.
- Additional benefits: Many warranties also include value added benefits. These can include emergency towing and roadside assistance services.
- A variety of warranty options: No matter the age or mileage of your car, there is a warranty for everyone. For example, you can buy an extended warranty that kicks in when your car’s original manufacturer warranty expires. You can also sign up for a warranty at any time that best suits your vehicle’s age and mileage. Different warranties also cover different levels of cover and cover different components.
What is a Service Plan?
A Service Plan covers the costs of your vehicle’s routine services at intervals specified by your car’s manufacturer. Regular services are an essential part of maintaining your car’s performance and value. Your Service Plan will cover your car’s regular services for a predetermined time period or mileage.
During a regular service, various safety checks are conducted. As part of your regular service important vehicle components, like filters, spark plugs, and cambelts are also replaced. Your vehicle fluids are checked and replaced as required by the manufacturer’s service schedule.. A Service Plan helps you ensure you’re not having to shell out for your vehicle’s services, and helps you manage the costs of keeping your car running optimally. Skipping your car’s regular service intervals can lead to significant damages, unexpected expenses, and affect your Warranty too. A Service Plan helps keep your services on schedule by taking care of the costs. There are many types of Service Plan options you can choose from, depending on the age and mileage of your vehicle.
Key features of a Service Plan
- Routine service costs: Service Plans cover the costs of your car’s routine services at the intervals specified by your vehicle manufacturer.
- Component Replacement: Covers the replacement of components that are scheduled to be replaced, like filters, spark plugs, and cambelts.
- Fluid Checks and Replacements: Replacement of vehicle fluids, such as engine oil, as per the service schedule.
- Cost Management: Helps manage and spread out the cost of services, preventing unexpected large service bills.
- Scheduled services: Service Plans are structured to cover services for a specific time period, or a set number of kilometres travelled, whichever comes first.
- Servicing kept in check: Without having to worry about the service fees, you will be able to complete all services on time, reducing the risk of further costly breakdowns, and protecting your warranty cover.
What is a Maintenance Plan?
A Maintenance Plan is designed to cover the costs associated with keeping your vehicle in peak operating condition. A Maintenance Plan covers your car’s routine servicing, mechanical and electrical breakdowns, and the replacement of certain wear and tear items. Maintenance Plans ensure that your car receives the necessary routine maintenance and replacement of essential components to keep it running smoothly and efficiently. A Maintenance Plan essentially covers everything you need to keep your car in perfect running condition, all in one package. The initial cost of a Maintenance Plan is generally higher than a Warranty or a Service Plan. Your overall savings and additional benefits, however, can make it worthwhile for your car and your budget.
Key features of a Maintenance Plan
- Routine services: Maintenance Plans cover your scheduled services outlined in the vehicle’s service book. This includes oil changes, filter replacements,
- Cover for mechanical and electrical breakdowns: Covers the cost of repair and replacement of components due to mechanical or electrical failures or breakdowns.
- Cover for wear and tear items: Maintenance Plans also cover the costs to replace wear and tear items like brake pads, wiper blades, and shock absorbers and more.
Key differences Between Warranty, Service Plan, and Maintenance Plan
To effectively manage your vehicle’s maintenance and repair costs, it’s important to understand the distinct difference between Warranties, Service Plans, and Maintenance Plans.Each of the products offer vehicle owners much needed financial relief in managing the inevitable costs of maintaining a vehicle. In the table below, we’ve compared these options across various key aspects, no matter your car make, model, or mileage:
How to choose the best option for your car
Choosing between a Warranty, Maintenance Plan, or Service Plan, involves weighing up their benefits. By understanding these options and their implications for vehicle maintenance and repair costs, you can make a well-informed decision that aligns with your vehicle’s needs and your budget.
If you’re looking for an affordable Warranty for your vehicle, explore a Motor Warranty from Bidvest Insurance. Our Warranty products give you comprehensive coverage to protect your wallet against an unexpected electrical or mechanical breakdown. Protect what matters most, your car, with a Mechanical Warranty from Bidvest Insurance.
