When purchasing a car, whether it’s new or second hand, you can be assured that the subject of warranty and insurance will arise – do you know what they entail?
Being in-the-know of what your warranty and insurance actually cover can save you from financially disastrous bills. Here is what you need to know:
All new vehicles carry some kind of warranty, but they can differ from one brand to the next. They are, however, all restricted in terms of time and mileage. A new car warranty is basically a promise by the car’s manufacturer stating that manufacturing and factory defects will be repaired, or replaced, within a specific period of time. Common items covered by your warranty include engine, gearbox, electric components, fuel systems, audio systems and sensors – this does not cover computer diagnostics while terms and conditions apply to each warranty individually.
Items that are not covered include general wear-and-tear items such as tyres and brake pads, and any damage resulting from user abuse will also not be covered. Tyres, for instance, will come with their own manufacturer warranty or guarantee.
Interestingly, some vehicles manufacturers even offer roadside assistance that runs concurrently with the warranty. This could cover things such as tyre changes and locksmith services.
For a plan that covers wear-and-tear, you will be looking at either a service or maintenance plan, and most new cars are sold with them. The costs are usually included within your purchase price and therefore the benefit is that no other additional costs are involved, and you are able to budget exactly how much your car is going to cost you every month.
It is important to note that each case would have different terms and conditions.
On average there are about 12 million cars on the South African roads and according to the Automobile Association (AA), between 65 and 70% of them have no insurance. This is an alarming statistic considering the increase in accidents, hijackings and theft taking place on a daily basis, placing these motorists at exceptional financial risk.
Next time you are in traffic, look around. Most of the vehicles you see don’t have car insurance meaning if they damage your vehicle and you don’t have adequate insurance cover, you may not be compensated.
Vehicle insurance is your financial protection against unforeseen damages to your vehicle (be it motorbike, truck or car) in a traffic related incident. Vehicle insurance should be seen as a safety net, there to protect you and offer you financial security.
Car insurance policies vary in price and cover. They protect you from incidents such as theft or damage to your car or injuries to yourself in the event of a car accident.
There are many factors to consider in making sure you have the right insurance coverage for your car. Start by finding an insurance company that you are able to trust and feel comfortable with. The age, model, engine size and likeliness of being stolen will be an important influencer. If you own your car outright you may not want or need comprehensive cover. Your age and stage of life (single, married) will also play a role in influencing the premium.
It’s important to understand what you’re getting into and appreciate all the costs involved. The consequences of going without a warranty and insurance can be far-reaching and financially devastating. Weigh them up against the cost of your monthly premium, and you will see just why an investment in good, affordable insurance and a warranty deserves a spot in your budget.
For more help in understanding what service best suits you and your budget, contact Apex.