The 3 Best Extended Motor Warranties For South African Car Owners

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kingr
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The 3 Best Extended Motor Warranties For South African Car Owners

Post by kingr »

When it comes to an extended warranty on your car, competition is fierce at the top end. No review can ever really definitively point to the top three options on extended motoring warranties in South Africa. For one thing, user needs vary too widely, and there are also several very good options out there. With that said, there is a definite top end in the market, with fairly regular competitors.

What is an extended warranty or extended motor warranty? A new car comes with a warranty valid for a period of time as agreed, as standard. That warranty will cover the engine, gearbox, suspension, electronics, approved accessories, the interior and the paintwork - basically the manufacturer or dealership warranty that guarantees you hassle-free motoring until the term of the factory warranty or guarantee has passed. An extended warranty is simply a continuation of this assurance, after the manufacturer’s warranty period has expired.

Related: What is covered with a new car warranty?

Get a great deal on your extended warranty
Unfortunately for the smaller operators, some big corporates have publicized their offers perhaps more and better, and have come to dominate the arena in the minds of consumers. It’s unfortunate as there are many great options among smaller companies too, but consumers now expect to read about it online, on a professional website, for one thing.

Because you still need to do your own homework, if you really want to know you’ve got the best deal for you on an extended warranty, a clear presentation of the policy and accompanying benefits should be available for you to peruse. Look for testimonials too online. Some bad press follows everyone and everything online, but be aware of unusually frequent complaints encountered in forums and the like, signaling a company that might disagree with you.

What are the payment options for your extended warranty?

1. Once-off
Although a once-off purchase startles some people as it’s usually several thousand rand, others value the tremendous peace of mind knowing that they have their car’s future covered without further thought. There’s another good reason to pay a once-off fee sometimes, but more on that below.

2. Monthly payments directly
If you’re going to pay monthly, the preferred option is to pay the warranty provider directly i.e. you buy the warranty from the warranty company, and pay the warranty company for it each month.

3. Pay the policy with your monthly car repayments
Adding or limping a warranty’s monthly cost in with your monthly car premiums is not recommended, as you’ll end up paying a lot more over the term.Doing this might suit some buyers for various reasons on occasion, but it’s unnecessary and insensible to be paying more for a warranty simply because it wasn’t individually identified in the finance arrangements.

Extended warranty policy criteria

All companies offering extended warranties will have different criterias that will need to met in order to start your extended warranty contract with them. Most will also have different categories, example these could be marked as Starter, Booster and Unlimited. You need to know what category your car will be in and also be aware if your category will drop as your car gets older and gains more mileage.

Listed below are popular extended warranty criterias:

1. Full service history of your car
You will need to provide the warranty issuer with proof that your car has a full service history, this information can be obtained by either getting the information from your dealership or showing them the stamps in your service book.

2. Your car’s year and mileage meets the stipulated minimum
Most extended warranties will require that your car meets the minimum defined criteria on year and mileage. An example would be that your car is less than 10 years old and has travelled less than 250,000km from the date of the first registration.

3. Previous mechanical repairs were done by an approved workshop
All servicing and maintenance work on your car should have been carried out by an RMI or approved dealership (OEM), and all suggested manufacturer’s guidelines have been followed.

Pro Tip: Always ask if your category will drop as the vehicle become older and adds more milage.

Extended warranty policy guidelines

Remember that you will be required to effect needed services and repairs at a Retail Motor Industry (RMI) workshop in terms of a warranty, or other approved dealerships (OEM). For most, that’s never a huge inconvenience, and some even find that they have always attended an RMI-approved workshop! Above all, when taking a warranty, read the fine print!

Why should you read the fine print

Under no circumstances feel dumb about asking the same question over and over again until a picture forms in your mind. No matter how many times the helpdesk sighs or rolls their eyes, it’s not fair nor professional to rush a client through something like a warranties terms and conditions, so take your time. If the helpdesk couldn’t be bothered, that’s nothing but a sample of the service you can expect if ever you need to call on them. Rather move on and take your business to an outfit that at least makes an attempt at pleasant, caring service. And - did we mention this already? Read the fine print.


NOTE: While it’s never good business practice to criminalise your clients, the warranty-stroke-insurance industry does suffer massive abuse on an annual basis. We’re still paying for it, make no mistake, but the point is that many consumers feel obliged to “use up” an extended warranty before it expires. This isn’t fair to the issuer, as they have kept their side of the deal, providing the assurance that they’ll be there when you need them. Rather than keep inflation on warranties steep due to fraudulent claims, a more egalitarian approach is to use the warranty to the full when it’s legitimate, but be happy that you never had to use it if you honestly didn’t. A maintenance policy will cover you for those items, whereas an extended warranty is an assurance that safeguards you, not necessarily a perk to be spent.

How to evaluate an extended warranty

There are really three metrics with which you can gauge any extended warranty you might be considering buying for your car’s longer-term well-being.

1. The first is the extent of coverage. It’s get a little tricky here, as wading through lists of items covered is not only laborious, it also might not give you a crystal clear end result, as different issuers use different language or format their offer differently. That said, it’s a worthwhile exercise. If you’re lucky, you’ll find an insurance or other broker who can encapsulate all of the most popular offers for you, with pros and cons. But if not, the intel is there, and will probably only take around an hour to assimilate, allowing you to form an overall understanding. If you’re talking to the agent, ask things like “Is my intercooler even covered?” and other direct questions like “Is my turbo fully covered for replacement?” Typically, the higher the cost of the warranty, the more the policy covers.

2. The second is the price - how much does the extended warranty cost? It’s easier to calculate total cost on a warranty for, say, a three year period, that it is with car repayments, for example.

3. The final metric is the term. How long is the warranty valid for?

Marrying these three considerations allows you to steer clear of obvious rip-offs, while keeping you in touch with your own needs of the policy too. Don’t be fooled by mixing and matching of terms or kilometers travelled - like five years or 500,000km, whichever happens first - but extrapolate it into your daily life. You might be surprised at how quickly your warranty will expire if you make a habit of long distance travel, so figure it out at least roughly before signing up.

Extended warranty exclusions

All of that said, nuances come in where warranties do or don’t cover certain items, and a few key points to look at, when you’re scrolling through the fine print for the third or fourth time, are:

1. Batteries that, especially on older cars, will probably die before the warranty is up.
2. Fan belts, aircon units and even clutches can be deemed wear and tear items and might not be covered.
3. Any accessories added after the sale that you naturally become accustomed to thinking of as part of your car, are unlikely to be covered.
4. Brake pads and tyres are usually excluded from extended warranties too, although maintenance plans will normally cover motorists on these items.
5. Car diagnostics and consumables aren’t covered by extended warranties.
6. Doing your own oil change or replacing parts can void a warranty, so be aware of such prohibitions. Perhaps the most difficult aspect of extended warranties to accept for some is the fact that even minor things need to be affected by approved agents. No more home fiddling, a sore point for many who would like to retain the right to effect light maintenance on their cars.
7. Labour - make sure your policy also covers labour and not just the parts!

3 Best Extended Motor Warranties For South African Car Owners

Hollard
One of the better options is represented by Hollard, as the company has made much of promoting a comprehensive or rather an easily-understood extended warranty to motorists. One of the joys with Hollard is the component of roadside assistance, although it’s not unique to the company. With Hollard, you enjoy the attention of a giant, streamlined outfit that has the capacity and protocols in place to make warranty claims painless and professional. Many consumers also enjoy having their warranties and other insurance policies issued by one company they can deal with.

M-sure
Previously known as SA Warranties, M-sure is a very targeted offer for SA motorists, and one you should look at when evaluating warranties. For years a refined warranty provider, the onsite intel is excellent and the great thing about this company is that they leave you in no doubt as to exactly what is covered and how. The insurer lists a detail breakdown on its homepage, itemising components covered and further details of warranties. They are also the underwriters for Liquid Capital, another great warranty outlet, and have years of experience and strong customer loyalty behind them.

Motorite
The final contender for the top of the pile is Motorite. A Wesbank partner, the company has huge credibility and a very efficient service in the arena. Being the partner of a household motor finance name, you can expect all the usual services and a professional approach from Motorite. For many, knowing that their vehicle finance and warranty is tied into the same highly reputable entity brings tremendous peace of mind. With its partner’s decades of car financing in SA behind it, the Motorite warranty hits the sweet spot for many consumers, as Wesbank has pools of data that allow Motorite’s warranties to hit the nail on the head for many.

These are all what are known as “aftermarket” extended warranties. The best providers are those that hand-hold you and walk you through every detail, if you’re a new customer. A singular consideration when choosing an extended warranty provider is the standing of the company. It’s always good to keep all your options open, and also contact your local dealership and find out what offers they might have. It’s often very difficult to get a better offering than that provided by the dealership (OEM). As an example the Mastercars warranty is known to cover almost everything on your car, with no exclusion.

Make sure you know the following about extended warranties

Very few charlatans operate out in the open in the warranty space, so you’re unlikely to encounter any but - without being paranoid about things - do look out for the following aspects of extended warranties too:

1. Do any of your benefits decrease over time?
2. Is there any excess applicable when claiming (the amount you might have to pay in first before the warranty kicks in)?
3. Is there any waiting period after you join before you can claim?
4. How many claims are you allowed per year and are there any limitations? If so, what exactly are those limitations?

Be aware that especially when buying a car from a dealership, the F&I (finance & insurance) agent might very well try to press an extended warranty on you. Even when you are obliged to have a warranty in place for the deal to go through, it doesn’t have to be theirs! Much like insurance - also a stipulation especially when buying a new, financed car - you might have to have it in place, but you never lose your right as a consumer, to choice! You’re entitled to your own service provider on warranties.

Also, be very aware that whatever plan you purchase at the point of sale on a financed car and don’t pay upfront and fully for, gets added to your monthly premiums. Unlike simple monthly premiums direct from the warranty supplier, those financed premiums attract interest. Sometimes a lot! A R5,000 motorplan can cost R10,000 after 54 months! Buy it outright if you fancy it, or get your own, but the last option should be to pay it as part of the monthly premium tied to the sale! No one is going to go out of their way to tell you this - except us of course!

If you’re unsure, be brutal about the legitimacy of a company’s offer, in terms of at least one reality that might lurk behind it. Many warranties nowadays come from service providers only tenuously linked to the distributor or manufacturer. It’s completely cheeky but also possible, that in the event of needed repairs, a dealership might be loathe to comply, as they never gleaned a benefit from the initial sale of the policy.

Further to the above point, also be aware that larger and more populous dealerships are simply easier to use, as they’re all over. Convenience is going to start counting when the nearest authorised repair agent is in the next town.

One last tip for those who value online sorters - by all means use Hippo to glean extended warranty quotes to peruse. At least you’ll have first-level assurance that all listed providers have met basic fiduciary and other business requirements. With that said, nothing beats an hour or two doing your own homework online. Other great service providers include motorvaps, Innovation Group, and even MotorHappy, but Google really comes into its own when perusing warranty offers online. Did we mention this? Read the fine print.
Kurt #3337

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