At some point or another we’ve all experienced that awful knocking sound a car makes when something is about to pack up! It sounds like, well it sound like “cash”! Cash we don’t really have lying around, which we’re going to need to find in order to sort the issue out. But thankfully there is a way to avoid this anxiety altogether, and it’s not going to break the bank either.
Unless you are driving a new car, with a motor plan, there is always a chance that your car is going to suffer a mechanical breakdown of some sorts. Gradual wear and tear always leads to some type of part breaking or giving away eventually, right? It could be a gearbox, the electrics, or even an issue with the engine.
And so you are left with a decision to make:
- Do you accept the risk, and if you experience a mechanical failure you deal with it?
- Or you decide to cover that risk?
But the problem with trying to run the risk (Option A), is that if something does go wrong with the car, that unplanned cost could be R50 000. The question then is, do you have the money to get the car fixed? Most of us don’t have that type of cash lying around, and if we do, we certainly don’t want to be spending it on a new engine part.
A much smarter option is to look at a Motor Warranty Plan.
In this blog post we are going to look at the Bidvest Insurance warranty product, but before we do that, let’s quickly have a look at what a Motor Warranty Plan actually is.
A Motor Warranty Plan is an insurance product designed to mitigate exactly the type of risk we are talking about – your car experiencing an unforeseen mechanical breakdown that ends up costing you money you didn’t bargain on.
The cool thing is that it’s not an overly complicated type of insurance product. The policy is broken down into basic sections of cover and the policy is priced according to the age of your vehicle, the mileage you have on the odometer and the level of coverage you want.
Provided you keep your vehicle serviced, on a regular basis (this is key otherwise the insurer could argue that the mechanical failure was due to negligence) and the component that has failed is covered in your policy, you have a valid claim.
Let’s take a closer look at what he Bidvest Insurance warranty product offers:
First off the product comes in 5 different plan types but we’ve decided to focus on the “older vehicle” plans below.
- Econo – R289 per month
This covers vehicles older than 8 years (or have mileage between 160,000 km and 250,000 km). On this plan you get an additional 2 years coverage or 50,000km (whichever comes first).
- Luxi – R389 per month
This plan covers vehicles that are less than 8 years old and have less than 160,000 km on the dial. You get an additional 2 years coverage or 60,000 km (whichever comes first).
- Maxi – R429 per month
This is a step up from the Luxi plan and covers vehicles that are less than 5 years old and have less than 120,000km (need to have a full service history). You get an additional 2 years cover as well as unlimited mileage.
Are there any other additional benefits added into the product?
Each Bidvest Insurance warranty product comes with:
- 24 Hour Emergency Road Assistance
- 24 Hour Emergency Medical Assistance
You get to use the Road Assistance benefits when:
- You run out of fuel
- You break down
- You need a tow
- Courtesy transport
- Overnight accommodation
- Car rental
- Flat tyre assistance
- Flat battery assistance
- Your keys are locked in the vehicle (arrgh)
You get to use the Emergency Medical Assistance benefit when:
- You need medical advice or assistance
- You need medical transportation
- You need an inter-hospital transfer
- You need medical repatriation
- Escorted return of minors
A few disqualifying items:
- A vehicle used as a taxi will not be covered
- Vehicles with a GVM exceeding 3500kgs will not be covered
- Vehicles with mileage over 250 000kms will not be covered
Perhaps you’ve decided a new car isn’t a good idea at the moment and you are going to get as much mileage out of your current vehicle as possible. If that is your decision, driving an older vehicle will put you at risk of having a mechanical failure. For a couple of hundred bucks a month, wouldn’t it be a wiser choice to cover that risk?
Leave your detail below and we will get the guys from Bidvest Insurance warranty to call you back.
The InsuranceFundi Team