DOES YOUR CAR NEED MEDICAL GAP COVER?

We look at the Genric Motor Warranty Plan From R129 per month

When it comes to cars with problems, I’ve had my fair share. Take the last 5 years for example:

A couple of years ago I got a really good deal on a used car. The only issue I had was the fact that the car was almost out of warranty. “No problem,” I get told, “We’ll just add an extended warranty.” What can I say? The guy was a fantastic salesman.

The first thing that went after about a year was the steering lock. If I can recall, the first quote came in at R10, 000. I managed to whittle them down to R5, 000. This also involved a tow-in to the dealer, but fortunately for me, the extended warranty took care of everything.

Then about a year ago my passenger door central locking system went. I still think it was my passenger’s fault for slamming the door too hard, but she swore she had nothing to do with it. That little episode set me back R4, 500 with labour. Why is it that things tend to break just after the warranty expires?

As I write this, my right hand rear brake light is on the blink (or rather, failing to blink) and the dealer was kind enough to inform me that the part costs R3, 750 without labour. Nice…

So asking me whether I think you need some sort of warranty cover is pointless. You bet you need it!

I don’t recommend you do it the way I did though

I was sold the extended warranty with a once-off payment which was worked into my finance agreement. I ended up paying interest on the insurance as well.

If only I’d known that I could have taken out the warranty cover on a month to month payment basis. But of course, it wasn’t in their best interests, was it?

  • I would have paid less back to the bank, and
  • If I ended up getting bad service, I could cancel and move somewhere else.

Which is why I like the Genric Motor Warranty

They make no bones about it:

  • They only insured cars less than 12 years old, and
  • Only cars with less than 220, 000 kilometres on the clock

They’ve also made it simple to choose a plan:

  • Bronze – R129 a month
  • Silver – R230 a month
  • Titanium – R308 a month, and
  • Platinum – R509 a month

Each plan is divided into 3 categories. Take the Bronze option for instance:

  • Less than 5 years old with less than 160, 000 kilometres on the clock – Category B
  • Less than 8 years old with less than 180, 000 kilometres on the clock – Category C
  • More than 10 years old with more than 180, 000 kilometres on the clock – Category D

If your car is younger than 5 years old, but with more than 160, 000 kilometres on the clock, then you plan jumps from category B to category C or D depending on the kilos. But regardless, everyone on the Bronze plan pays the same price.

So how do all the plans compare for a 5 year old car?

Less than 5 years Old
and/or
Mileage must be: Less than 160 000 Less than 110 000
Bronze Silver Titanium Platinum
Components covered Category B
Engine  17 500  17 500  30 000  50 000
Transmission  12 500  12 500  20 000  32 000
Diff  12 500  12 500  20 000  32 000
Diff Lock  4 500  4 500  9 000  32 000
Transfer Box  4 500  4 500  9 000  25 000
Turbo Assembly  4 500  9 000  15 000
Management System  4 500  9 000  15 000
Casings  3 500  3 500  6 000  12 000
Electronic Ignition  3 500  6 000  12 000
Air-Conditioner  3 500  6 000  12 000
Cooling System  3 500  6 000  12 000
Prop Shaft  3 000  –
Suspension  3 000  5 000  10 000
Wheel Bearings  3 000  5 000  10 000
CV Joints  3 000  –
Braking System  3 000  5 000  10 000
Fuel System  3 000  5 000  10 000
Electrical Components  3 000  5 000  10 000
Electrical Winch  3 000  5 000  10 000
Free Wheel Hubs  3 000  5 000  10 000
Drive Shafts  3 000  3 000  5 000  10 000
Steering Mechanism  3 000  5 000  10 000
Clutch  3 000  5 000  10 000
Drive Pulleys  2 500  5 000  7 500
Viscous and Electric Fans  1 400  3 000  4 000
Electric Motors (Sunroof)  1 400  3 000  4 000
Electric Mirrors  1 400  3 000  3 000
GPS Navigation  1 400  2 500  4 000
Entertainment System  1 400  2 500  4 000
Phone System  1 400  2 500  4 000
Transponder Key  1 400  2 500  1 500
Alarm, immobiliser, and central locking  1 400  2 500  1 500
Strip & Quote  500  500  1 000  1 000
Oils and Consumables  350  350  350  500
Overheating  3 000  3 500  6 000  12 000
Over fuelling  3 000  3 000  7 500  12 000
Under Fuelling  3 000  –
Cambelt Failure  3 000  3 000  5 000  12 000
Unspecified Failure  3 000  4 000  5 000
 –
Tow-in Charges  1 000  1 000  1 000  1 000
Overnight Accomodation  1 000  1 000  1 000  1 000
Roadside Assistance Included Included Included Included
Cost R 129 R 230 R 308 R 509
Additional R 101 R 78 R 201

And for an 8 year old car?

Less than 8 years old
and/or
Mileage must be: Less than 180 000 Less than 160 000
Bronze Silver Titanium Platinum
Components covered Category C
Engine  8 000  8 000  20 000  32 000
Transmission  7 000  7 000  12 500  24 000
Diff  7 000  7 000  12 500  20 000
Diff Lock  4 000  4 000  7 500  20 000
Transfer Box  4 000  4 000  7 500  17 000
Turbo Assembly  4 000  7 500  10 000
Management System  4 000  7 500  10 000
Casings  4 000  2 500  4 500  8 500
Electronic Ignition  2 500  4 500  8 500
Air-Conditioner  2 500  4 500  8 500
Cooling System  2 500  4 500  8 500
Prop Shaft  4 000  –
Suspension  2 000  4 000  8 000
Wheel Bearings  2 000  4 000  8 000
CV Joints  2 500  –
Braking System  2 000  4 000  8 000
Fuel System  2 000  4 000  8 000
Electrical Components  2 000  4 000  8 000
Electrical Winch  2 000  4 000  8 000
Free Wheel Hubs  2 000  4 000  8 000
Drive Shafts  4 000  2 000  4 000  8 000
Steering Mechanism  2 000  4 000  8 000
Clutch  2 000  4 000  8 000
Drive Pulleys  2 000  4 000  5 000
Viscous and Electric Fans  1 200  2 500  2 800
Electric Motors (Sunroof)  1 200  2 500  2 800
Electric Mirrors  1 200  2 500  2 500
GPS Navigation  1 200  2 000  2 800
Entertainment System  1 200  2 000  2 800
Phone System  1 200  2 000  2 800
Transponder Key  1 200  2 000  1 250
Alarm, immobiliser, and central locking  1 200  2 000  1 250
Strip & Quote  500  500  1 000  1 000
Oils and Consumables  2 500  350  350  500
Overheating  2 500  2 500  4 500  8 500
Over fuelling  2 000  2 000  5 000  8 500
Under Fuelling  2 000  –
Cambelt Failure  2 000  2 000  4 000  8 000
Unspecified Failure  2 000  3 000  4 000
 –
Tow-in Charges  1 000  1 000  1 000  1 000
Overnight Accomodation  1 000  1 000  1 000  1 000
Roadside Assistance Included Included Included Included
Cost R 129 R 230 R 308 R 509
Additional R 101 R 78 R 201

And a car older than 10 years?

More than 10 years old
and/or
Mileage must be: More than 180 000 More than 160 000
Bronze Silver Titanium Platinum
Components covered Category D
Engine  6 500  6 500  12 000  24 000
Transmission  5 000  5 000  8 000  16 000
Diff  5 000  5 000  8 000  16 000
Diff Lock  3 000  3 000  5 000  16 000
Transfer Box  3 000  3 000  5 000  11 000
Turbo Assembly  3 000  5 000  8 000
Management System  3 000  5 000  8 000
Casings  3 000  1 750  3 500  7 500
Electronic Ignition  1 750  3 500  7 500
Air-Conditioner  1 750  3 500  7 500
Cooling System  1 750  3 500  7 500
Prop Shaft 3000
Suspension  1 500  3 000  6 000
Wheel Bearings  1 500  3 000  6 000
CV Joints 1750
Braking System  1 500  3 000  6 000
Fuel System  1 500  3 000  6 000
Electrical Components  1 500  3 000  6 000
Electrical Winch  1 500  3 000  6 000
Free Wheel Hubs  1 500  3 000  6 000
Drive Shafts  3 000  1 500  3 000  6 000
Steering Mechanism  1 500  3 000  6 000
Clutch  1 500  3 000  6 000
Drive Pulleys  1 500  3 000  3 500
Viscous and Electric Fans  1 000  2 000  2 200
Electric Motors (Sunroof)  1 000  2 000  2 200
Electric Mirrors  1 000  2 000  2 000
GPS Navigation  1 000  2 000  2 200
Entertainment System  1 000  1 500  2 200
Phone System  1 000  1 500  2 200
Transponder Key  1 000  1 500  1 000
Alarm, immobiliser, and central locking  1 000  1 500  1 000
Strip & Quote  500  500  1 000  1 000
Oils and Consumables  1 750  350  350  500
Overheating  1 750  1 750  3 500  7 500
Over fuelling  1 500  1 500  3 000  7 500
Under Fuelling  1 500
Cambelt Failure  1 500  1 500  3 000  6 000
Unspecified Failure  1 500  2 000  3 000
Tow-in Charges  1 000  1 000  1 000  1 000
Overnight Accomodation  1 000  1 000  1 000  1 000
Roadside Assistance Included Included Included Included
Cost R 129 R 230 R 308 R 509
Additional R 101 R 78 R 201

So which is the best plan to choose?

As always it depends on your affordability. If R509 a month is pocket change to you, then the Platinum option is best, no question! But what if you’re tending more to the middle?

First thing I’d ask myself is, “How old is my car?”

If your car is less than 5 years old then it should be under some or other manufacturers warranty anyway. But if there’s no warranty, then hopefully general wear and tear shouldn’t be a problem at this stage; a Bronze package should do just fine at R120 a month. You can always upgrade later.

  • But there’s such a small difference in cost between Bronze and Silver that I’d choose Silver – R129 versus R230 a month
  • Then there’s the difference in benefits between the two – 13 benefits on Bronze versus 36 on Silver.

Second thing I’d ask myself is, “How expensive is my car?”

Last time I checked, a Mercedes Benz turbo charger costs close to R40, 000. The Bronze plan doesn’t cover a turbo charger at all, and the Silver option only pays R4, 500 at most.

Platinum pays R15, 000 at best, but combined with all the other benefits it offers, R509 a month – or R6, 048 a year – makes absolute sense. Think about it…let’s say you own the car for 3 years and it costs R6, 048 a year for 3 years. That’s what, R18, 144 over the 3 years?

What’s the chance of something BIG breaking during those 3 years?

It doesn’t even have to be big; what about those expensive screens on your dash or those mirrors which fold in everytime you park? There’s no way your car cannot have a problem after 5 years of driving on our roads.

 Third, I’d ask myself: “What’s the biggest concerns I have?”

My car has a few things which worry me:

  • It’s diesel, which means injectors
  • It’s turbo
  • It has a manual gearbox which also means clutch, and
  • It has a cambelt, which if it snaps, could mean bent valves
  • Oh, and it has a computer hidden somewhere

I’m not worried about things like wheel bearings and brake discs, but the things mentioned do.

I’m familiar with warranty plans. The one I was on costs just over R300 a month. I’d probably feel comfortable on the Titanium option, but my gut feeling says that the Silver option makes most sense, especially for those of us owning modern smaller cars. It covers things like electric mirrors, GPS, central locking, and transponder keys.

If you think spending R230 a month on a motor warranty is a waste of money, wait until something breaks and the quotation for repairs start rolling in. You’ll be thankful for the motor warranty – ask me, I was.

Please note that in order to qualify for this product your car needs to be less than 12 years old

And below 240,000 km on the clock

GENRIC Insurance Company Limited (FSP: 43638) is an Authorised Financial Services Provider and registered Short-term insurer.

Leave your details below and we’ll have someone from Genric call you.

Until next time.

The InsuranceFundi Team

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4 thoughts on “DOES YOUR CAR NEED MEDICAL GAP COVER?

    • Hi Francis,

      Pop your details in below the article and someone from Genric will point you in the right direction.

    • A warranty is not for car accidents. It is there to pay the unexpected expense of mechanical breakdown of your vehicle.