Most of us insure our cars against accidents, theft and damage. But what about when something simply stops working? An electrical fault, gearbox failure, or major mechanical problem can quickly become an expensive surprise. This is why some drivers choose to obtain an extended motor warranty.
But is it something every driver needs? Whether an extended warranty makes sense will depend on your vehicle, your finances and how much you rely on your car. The important thing is understanding your own risk and what you’d do if you were suddenly faced with a significant repair bill.
Not sure where you stand?
I suggest you take this quiz:
Is your vehicle still covered by its manufacturer’s warranty?
A. No, it’s already expired.
B. Yes, but it’s coming to an end soon.
C. Yes, there’s still plenty of time left on it.
If your car needed a major unexpected repair next month, could you afford it?
A. It would put serious pressure on my monthly budget.
B. I could probably cover it, but it would leave me with no cushion.
C. I have savings specifically set aside for unexpected vehicle expenses.
How much do you rely on your car?
A. Completely. I need it for work, school runs, family commitments and everyday life.
B. Quite a lot, although I could make another plan temporarily.
C. Not that much. I have easy access to another vehicle or alternative transport.
How long are you planning to keep your current vehicle?
A. I’m not planning to replace it for a few years still.
B. I’m not sure yet.
C. I’ll probably sell or trade it in relatively soon.
Which sounds most like you when it comes to financial surprises?
A. I’d rather pay a predictable amount for protection than risk a large unexpected expense.
B. It depends on the cost and what I’m actually covered for.
C. I’m comfortable carrying the risk myself.
Results
Mostly As – it’s down to your circumstances
What would you do if something went wrong and you had no cover? Your car is an important part of everyday life. An unexpected mechanical or electrical repair could put real pressure on your finances.
This is where a motor warranty can help. It protects against a potentially hefty repair bill. It can also provide greater financial certainty when unexpected repairs arise. Our Motor Warranty, for example, covers over 100 mechanical and electrical parts. Different levels of cover apply, depending on the plan you choose.
Mostly Bs – it’s down to the numbers
You might be sitting on the fence, wondering whether paying for motor warranty is worth it. The question is whether you’re comfortable taking the financial risk of not having it.
Do the maths. Compare the monthly cost of the cover with what a major mechanical or electrical repair could mean for your finances. Also, factor in your car’s age, mileage, service history and how long you’re planning to keep it. This can help you assess the potential financial impact of unexpected repairs.
For example, our Motor Warranty plans currently start from R429 per month and include 24-hour roadside assistance.
Understanding what’s covered and the cost of the cover can help you make an informed decision. You should also consider how that cost compares with the financial risk you’re comfortable carrying.
Mostly Cs – it’s down to the buffer
You’ve probably got a little more breathing room. Maybe your car is still under its manufacturer’s warranty. You may also have money put aside for emergencies. Alternatively, an unexpected repair may simply not affect you financially. However, that doesn’t make you immune to the inconvenience or cost of something going wrong. Even a healthy emergency fund can take a knock when a major vehicle component suddenly needs repairing or replacing.
Moreover, if your manufacturer’s warranty is nearing its end, now might be a good time to start thinking about what happens next. Planning ahead can help you prepare for unexpected repairs before they become an immediate financial concern.
You may not feel that cover is necessary right now. However, your circumstances may change, or your manufacturer’s warranty may come to an end. If either happens, motor warranty remains available, subject to the applicable terms and conditions.
Keagan Sloman | Head | Product and Commercial | The Unlimited | mail me |
