Most motorists insure their vehicles against accidents, theft and damage. But what happens when a gearbox, electrical component or another major part simply stops working?
An unexpected mechanical or electrical failure can quickly become an expensive problem, particularly for motorists who rely on their cars for work, school runs and everyday family commitments.
An extended motor warranty may help cover certain repair costs after a manufacturer’s warranty has expired, but it is not necessarily the right choice for every driver.
“Whether an extended warranty makes sense will depend on your vehicle, your finances and how much you rely on your car,” says Keagan Sloman, Head of Product at The Unlimited.
“The important thing is understanding your own risk and what you would do if you were suddenly faced with a significant repair bill.”
Take this quick quiz to see whether an extended motor warranty may be worth considering.
1. Is your vehicle still covered by its manufacturer’s warranty?
A. No, it has already expired.
B. Yes, but it is coming to an end soon.
C. Yes, there is still plenty of time left on it.
2. 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 financial cushion.
C. I have savings specifically set aside for unexpected vehicle expenses.
3. 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 very much. I have easy access to another vehicle or alternative transport.
4. How long are you planning to keep your current vehicle?
A. I am not planning to replace it for a few years.
B. I am not sure yet.
C. I will probably sell or trade it in relatively soon.
5. Which statement best describes your approach to financial surprises?
A. I would rather pay a predictable amount for protection than risk a large, unexpected expense.
B. It depends on the cost and exactly what is covered.
C. I am comfortable carrying the financial risk myself.
Your results
Mostly As: Your circumstances may make cover worth considering
Your car is an important part of your everyday life and an unexpected repair bill could place real pressure on your finances.
Ask yourself what you would do if a major component failed and you did not have cover. If paying for the repair would disrupt your monthly budget or leave you without reliable transport, an extended motor warranty may be worth investigating.
The Unlimited says its motor warranty covers more than 100 mechanical and electrical parts, with different levels of cover available depending on the plan selected.
Before signing up, check the policy’s limits, exclusions, waiting periods and servicing requirements so you understand exactly what is covered.
Mostly Bs: It comes down to the numbers
You may be sitting on the fence about whether an extended motor warranty is worth the monthly expense.
Start by comparing the cost of cover with the effect a major mechanical or electrical repair could have on your finances. You should also consider your vehicle’s age, mileage, service history and how long you intend to keep it.
The Unlimited’s motor warranty plans currently start from R429 per month and include 24-hour roadside assistance, according to the company.
Prices, benefits and eligibility requirements may vary, so compare available plans and read the full terms and conditions before making a decision.
Mostly Cs: You may already have a financial buffer
You probably have a little more breathing room. Your vehicle may still be protected by its manufacturer’s warranty, you may have money set aside for emergencies, or you may have access to alternative transport.
However, even a healthy emergency fund can take a knock when a major vehicle component suddenly needs to be repaired or replaced.
If your manufacturer’s warranty is nearing its end, this may be a good time to research your options. You do not necessarily need to purchase additional cover immediately, but knowing what is available can help you prepare.
What should you check before choosing a motor warranty?
Not all motor warranties offer the same protection. Before agreeing to a plan, check:
- Which mechanical and electrical components are covered
- The maximum amount that can be claimed
- Whether waiting periods apply
- The required service history
- Which repair centres may be used
- Any exclusions relating to the vehicle’s age or mileage
- Whether roadside assistance is included
- The cancellation terms
The Unlimited offers motor warranty options covering more than 100 mechanical and electrical parts, along with 24-hour roadside assistance.
For more information about its plans and the applicable terms and conditions, visit The Unlimited Motor Warranty.
This quiz provides general information and should not be considered personalised financial advice. Product pricing, benefits and eligibility are subject to the provider’s applicable terms and conditions.
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