What is a Motor plan in South Africa?

    What is a Motor plan in South Africa? This is an insurance product comprising three aspects; a car warranty, a car service plan and a car maintenance plan.

    Of these three, only the car warranty has an insurance component. Insurance providers offer all three as a single product or individually. So, is it better to have the whole package or just an individual component?

    Analysing a Motor plan in South Africa

    A car warranty is an insurance product. Therefore the insurer pays if your vehicle breaks down and needs repairing. All car owners are familiar with the mechanical issues that happen without warning.

    While some problems simply need minor adjustments, others require replacing major parts. Most people don’t have ready cash to fix a major issue, and this is where a car warranty comes in handy.

    The other two aspects; car service plans and car maintenance plans are not policies. With an insurance product, a specified risk has to happen before you get compensated. However a service and maintenance plan gets you paid-for service continuously, and your car doesn’t have to breakdown to get compensated.

    The plans are like paying for a service in advance, and you pay this directly to the manufacturer of the vehicle.

    With a service plan you give an upfront payment to the manufacturer, and whenever you reach the required mileage, you take your car in for a service. There’s no need to worry about finding the cash. A maintenance plan works more or less the same way.

    A Motor plan in South Africa continued

    Motor plan in south africa

    Many motorists choose individual plans because of the lower payments they require. Others prefer to take maintenance plans, service plans or a car warranty separately as their car had one or both of the other aspects when they purchased it.

    However, if cost is your main motivation for leaving out the other plans, you may be depriving yourself of benefits in the name of saving.

    Ideally, you should go for the full package in order to cover all service-related eventualities. If this is not possible, evaluate your needs and go for the plan that offers benefits most useful to you.

    If you are shopping for a vehicle, many new car sellers offer all-inclusive motor plans. Used car vendors are also increasingly making motor plans available to their customers. You can search and sign up for a motor plan online. There are websites where you just fill a form online and get cover.

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