You may have heard the terms “motor plan” and “motor warranty” thrown about fairly often, when looking at insurance solutions for your car. However, is there a difference between an extended motor plan and an extended motor warranty? And what do either of these options do for your car and for your wallet?

What Is A Motor Plan?

A motor plan is also known as a maintenance plan or “bumper-to-bumper” benefit. This type of car cover assists in paying the price tag associated with repairing your car after a breakdown. This might include some elements similar to a service plan. However, this cover may not extend to some minor running expenses like fuel, tyres, water replacement and oil.

This car insurance option remains attached to the car regardless of whether said car has changed hands. That means you can enjoy the benefits of a motor plan, even if you’re buying a good-as-new car second-hand.

Your average motor plan is typically only valid for a period of 5 years of 100,000km. However, these conditions can vary based on your car’s brand and model.

What Is A Motor Warranty?

Much like your motor plan, a motor warranty covers the cost of repairing your car after an electrical or mechanical breakdown. However, while a motor warranty’s lump sum cash benefit covers a variety of repairs, it will not cover damages caused by everyday wear and tear.

Motor warranty plans are common add-ons to new cars purchased from a dealership. However, in the event that the manufacturer’s warranty runs out, you can purchase an extended motor warranty. This warranty plan will cover you for a certain number of years or an agreed mileage. This is provided that your car is less than 10 years old or has less than 200,000 km on the clock.

Depending on your chosen insurance provider or your selected warranty plan, you could take advantage of extra perks such as roadside assistance and car hire benefits.

As you can see, motor plans and motor warranties are quite similar in terms of what is covered. Both of these car insurance options cover the repairs made to your vehicle after an electrical or mechanical breakdown. However, motor warranty plans, being more likely to offer comprehensive cover in emergency breakdown situations, can prove the more affordable of the two, especially if you’re looking to cover a trusty, older model.