13 Questions to Ask Before Buying a Motor Warranty
Do you really need a motor warranty for your new car? Ask these questions before buying an extended warranty to avoid headaches down the road.
Before you buy an extended warranty for your car, ask the below questions to make sure you’re getting the best. These questions can help you avoid unpleasant surprises and buried costs when buying a motor warranty. Or you could just fill in our online form and get a FREE quote from a reputable company.
1. Do I Really Need a Vehicle Warranty?
An extended car warranty is most useful for vehicle owners who are not planning on selling their car before the manufacturer’s warranty expires. Manufacturers often cover faulty parts or mechanical breakdowns for a specific period. After this time, you will need cover for these parts from a different company.
Plans from an insurance company sometimes cover items that aren’t covered by the manufacturer’s warranty, saving drivers money if these parts break down. And once the manufacturer’s warranty period lapses, cover from your warranty company comes into play.
Warranties give drivers peace of mind, but they only get used if something that’s covered by the warranty happens. Mechanical breakdowns not caused by negligence and broken down parts because of manufacturer faults are covered, but wear and tear and accidents aren’t covered. Your warranty only becomes worth it if it gets used. The question is if you’re willing to bear the extensive costs if something happens and you aren’t covered.
2. What Do Extended Warranties Cover?
They can cover many things, and the extent of your cover will vary depending on the company you get it from. Your cover also depends on the type of warranty you purchase. Warranties typically cover mechanical faults and mechanical defects, electrical faults, and electrical defects. Cover is usually specific to some parts of your vehicle, such as the engine, differential, brakes, electrical components, and more.
A Mechanical warranty won’t cover accidents, theft, or maintenance and service costs. Sometimes, you can’t even change your own oil without voiding the warranty. An approved technician needs to do it. This protects the engine and lowers the risk of breakdowns occurring.
Types of Motor Warranties in South Africa
- Manufacturer Warranty. Offers cover for new cars.
- Unlimited Warranty. Covers you no matter how far your car has driven.
- Extended Warranty. Used after your first one expires to “extend” your cover period.
- Second-hand Car Warranty. Covers specific parts and events for cars bought second-hand.
- Top-Up Warranty. Covers the difference between what repairs cost and what your original warranty pays out when your payout isn’t the full amount.
3. How Long Will the Warranty Last?
The time period for your cover will be detailed in your policy. It can depend on the age of your car and your car’s odometer reading. Usually, warranties are valid either for several years or until you reach a specific odometer reading.
For example, your manufacturer warranty could cover your engine for the first 5 years or until your odometer reaches 250,000km. Some options are better than others, such as unlimited warranties that cover you no matter how far your car has driven or how high your odometer reading gets.
4. How Much Will It Cost?
The price often depends on the age of your car, its brand, make, model, and other factors. To find out how much a warranty will cost you, it’s best to compare quotes from different providers. More extensive warranties usually cost more. The basic options often exclude vital features, but they are usually more affordable.
5. Can We Negotiate a Better Price?
You can often negotiate a better price when working with a dealership, but insurers usually have fixed plans and prices that you can opt for. If you are getting cover through a dealership, some negotiation could end up saving you money.
6. Who’s Backing the Policy?
Not all warranties are alike. Just because a company offers you one, doesn’t mean they are reliable or reputable. You can avoid dodgy offers from companies that don’t pay out or stick to their contract with you.
Simply check the Better Business Bureau for the company’s ratings and contact other regulatory bodies. Doing this can help you decide whether the company is reliable enough to back your policy. You can also find out if they are charging you too much or not covering something they should be.
7. Are You Using New or Second-hand Parts for Repairs?
Reconditioned parts actually aren’t a negative. Car owners may want only new parts used in the repair of their vehicle, but if a mechanic recommends a used or reconditioned part, most reputable warranty companies allow it. What’s important here is checking whether your policy covers re-manufactured or “OEM” parts.
8. Who’s Paying the Repair Costs?
We know your plan is supposed to cover the costs of repairs when the repairs fall within the warranty. Ensure your policy details how payment will happen and whether you need to pay the mechanic and get reimbursed or whether the insurer pays them directly.
9. Who Will Do the Repairs?
Some companies let you choose a repair shop you prefer, but others insist on approved mechanics, workshops, or repair centres they trust or have an agreement with. If you prefer a specific mechanic, it’s best to choose cover that won’t force you to go elsewhere. That said, approved practitioners can often prove more reliable in the execution of repairs.
10. What is Your Claims Process?
Claims processes play an important role for any consumer purchasing a warranty. You’ll want a company that pays out fast and is trustworthy. They should stick to their promises and not use delaying or avoidance tactics to get out of paying out when they are legally obliged to.
You can look at online ratings sites like hellopeter.com and Google My Business to see how other customers have experienced the company. It’s also a great idea to choose a company with 24/7 helplines so you can get towed no matter what time of day or night it is. Remember to find out whether you need to get authorisation before towing your car or getting repairs done on the vehicle.
11. Can I Transfer or Cancel the Warranty?
Extended warranties add value to cars being resold. If you want to sell your car, make sure you get a policy that allows transfers, as some are strictly non-transferable. Should you wish to cancel it, find out if any cancellation fees will apply and what process you need to follow.
12. Is there an Excess or Deductible?
Warranties rarely have excesses, but the deductible that may apply works similarly. It’s a flat fee you will need to pay in before repairs or claims are processed. Deductibles vary depending on factors like the age of the car and the insurance company.
13. What Will I be Responsible for?
To maintain the validity of your warranty, you may be expected to do certain things, such as regular maintenance. It could be voided if the oil isn’t changed at specific measures of kilometres. It could also become void, in some cases, when you do maintenance and repairs with someone who isn’t approved or if you fail to do preventative maintenance at specific times. All these details will be in your policy documents.
DISCLAIMER: Information provided in this article is meant for informational purposes only and should not be construed as legal, medical, or financial advice. Facts stated in this article are correct at the time it was published.
Sources: bestcarwarrantyreviews; insurify.com;