Motor Warranty vs Service Plan

Caring for your car is one of the most important things you can do to save yourself money. Regular maintenance has so many benefits – it makes your car safer, saves you money, can increase your fuel efficiency and keeps your car’s value high. But how do you know if you need a motor warranty or a service plan? We break down the differences between the two so you can make the decision that’s right for you.

Motor Warranty

All new vehicles come with a warranty from the manufacturer which guarantees that any manufacturer’s faults or problems with the car that occur within a specific period of time – so long as they are not caused by driver negligence or misuse/abuse –  will be taken care of at no expense to you.

It usually includes items like the engine, gearbox, electrical components, fuel systems, audio systems and sensors. Differ

ent manufacturers offer different warranties for their vehicles, but on average, a motor warranty is for three to five years or for a specific kilometre distance, whichever comes first. Once your warranty is up, you are left vulnerable to the potentially high cost of breakdowns and repairs.

You may be able to budget for a car service, but electrical and mechanical breakdowns are expensive, which is why many people take out extended warranties on their cars. A motor warranty covers the cost of major mechanical and electrical components listed on your motor plan, as well as the cost of labour at RMI-approved workshops. It does not, however, include services. It’s basically a safety net for if something big goes wrong with your car.

Service Plan

A service plan, on the other hand, is about regularly maintaining your car to avoid serious breakdowns and major repairs in the first place.

This is especially important if you own an older vehicle, as the parts could be harder to find, which then becomes costly for you. Having a regular, documented service history for your car is also important when you want to sell, as most buyers will ask for this and will opt for the car with a good service history because it usually means less surprise repairs down the line. If you don’t service your car regularly, you run the risk of an unexpected breakdown while driving, which is not only unsafe because of the car itself breaking down but also because you could be left stranded somewhere unsafe.

It covers the cost of regular services, as well as the cost of parts and labour at an RMI-approved vehicle workshop.

Quick Comparison 

Depending on you and your vehicles preferences and needs, a Motor Warranty or Service Plan can benefit you. If you would like to receive a free no-obligation quote for a Motor Warranty plan, click HERE. If you would like to get a quote for a Service Plan rather, click HERE.