When you buy a new car, it’s likely going to come with a warranty and the dealership may even throw in a service plan with your purchase. Both of these products help to protect your pocket from the costs of unforeseen failures, while maintaining the condition and overall value of your car. That said, there are some subtle differences between them.
What Is A Service Plan?
A service plan can fall under a comprehensive motor plan or be a standalone insurance product. As to what a service plan is, to put it simply: service plans cover the costs that go into the regular servicing of your car according to the specifications of the vehicle’s manufacturer. However, these services will only be covered, if they are carried out by authorised service centre or dealer network.
What Does A Service Plan Cover?
A vehicle service assists in maintaining the longevity of your car. To that end, these services can include the routine replacement of parts like air, pollen, fuel, and oil filters, cam belts, brake fluid, oil and gearbox oil, sparkplugs, and coolant. A service plan covers the cost of, not only the replacement parts, but also the man hours that go into servicing your vehicle.
It’s important to note, however, a service plan will not cover
- Internal and external trim, bodywork and paint.
- All glass, tyres, wheels, wheel alignment, accessories, electrical wiring components.
- Additional maintenance that may be required as a result of the vehicle being operated in severe or unusual conditions.
- Additional maintenance that may be required as a result of an accident as well as any damage, abuse, or misuse or consequential damage as a result of such an action.
Your service plan also reserves the right to refuse to service your car if you fail to use your vehicle in accordance with the instruction contained within your car’s service book. Similarly, failure to ensure that the vehicle is properly, regularly and punctually serviced in accordance with the instruction and recommendation specified by the manufacturer can also void your service plan.
What Is A Motor Warranty?
In essence, a motor warranty is a promise made by your car’s manufacturer that what they’ve sold you will keep running as it should. This is true for every new vehicle that rolls out of a dealership. A warranty allows the car owner to claim against the manufacturer for failure or malfunctions that occur within a certain time period or mileage limit. General warranties typically cover you for 5 years or up to 150,000km. However, if something breaks unexpectedly, the dealer’s workshop must repair it at no additional cost. It’s important to note that warranties only remain valid, if vehicles are serviced or repaired by franchised dealers at pre-set times or mileage intervals.
In a nutshell, warranties will cover you against mechanical failures within a pre-set mileage/time period, unless such damage or failure is caused by poor driving or insufficient maintenance by the car owner.
What Does A Motor Warranty Cover?
A motor warranty covers the cost of repairing or replacing major car parts, including timing chain, cylinder block, head gasket, cylinder head, and crankcase. Also included under a warranty is the turbocharger, water pump, flywheel and engine mountings. Meanwhile, warranties also cover torque converters and pressure plates as part of the gearbox. Steering components are also covered, including steering pump, suspension parts, all braking components, the exhaust system, and electrical parts like alternators and starter motors.
However, motor warranties do not cover normal wear and tear, environmental damage (dents, paint chips, cracks), damage due to natural disasters or hail, fire, damages due to negligence, accidents or collisions.
What’s The Difference?
Think of it like this: your motor warranty will get your car going again after a mechanical breakdown, while a service plan will help you maintain the condition of your car so you can preserve its resale value. If you love your car and want to keep it running for many years to come, you may want to consider a combination of a service plan and motor warranty. If your car’s warranty and/or service plan have already run out, you can sign up for a new plan with warranties and plans underwritten by reliable car insurance providers.