Don’t Assume Car Insurance in South Africa is Comprehensive

Don’t just assume that your car insurance in South Africa is Comprehensive. If you are looking for a new car take note that the warranty that is offered as part of the deal normally plays a prominent role in your decision – or so it should. People often automatically presume that a warranty will cover anything that is considered failure of a product – but it does not.

Read the contract really carefully before signing on the dotted line and if there are any “etc’s” that creep into the contract then take note that these need to be questioned.

In the past ten years or so a service of maintenance plan built into the final costing of the vehicle has become part and parcel of the deal, with the latter being high up on the pricing scale. Service plans have a more limited range of cover and can be an “either or” option.

BMW developed the very first motor plan in SA 25 years ago which was a comprehensive plan covering almost everything on the car but not the tyres and fluids that needed topping up.

When you are offered coverage you presume the cover is comprehensive, but what you need to take into account is the range and extent of the cover. Car manufacturers are using maintenance contracts and service plans to assist in the sale of their vehicles.

If your warranty is for three year or 100 000km take note – at the risk of stating the obvious – that the warranty expires when either parameter is reached. If you have purchased a new vehicle and you are only travelling 2 000 km every month you will only be on 72 000 kms when the three year time limit has been reached.

Get clarity by reading the handbook or contract from your dealer.

When looking for car insurance in South Africa take into account that a maintenance plan includes everything a service plan offers, but with extra benefits.