When buying a second hand car, it’s important to understand the difference between vehicle insurance and a car warranty. Both cover you for expenses incurred due to unforeseen and unfortunate circumstances, but both are meant for very specific purposes.
This is a policy that covers the expenses incurred in the event of an accident. There are different types of vehicle insurance with varying costs associated with each. In South Africa, there are three:
Third Party, Fire and Theft
Accidents caused either by yourself or by another driver
Theft of your motor vehicle
damage caused by natural disasters such as floods or hail
Third parties involved in the accident and their property
Third Party, Fire,& Theft
Third parties in incidences that you are responsible for, whether a passenger in your car or a driver of another vehicle that was involved in the accident
Fire,natural disasters such as flooding, hail, or falling rocks
Theftof your motor vehicle
It excludes any accidental damage incurred to your vehicle.
Though it forms part of a vehicle insurance policy, it does not cover any part of the vehicle, only damage caused to someone else.
Also known as vehicle component cover, a motorcar warranty covers the expenses incurred should your car malfunction due to a mechanical breakdown. When buying a car from a reputable dealership, you might get a basic warranty for a specific period, but be aware that motor car warranties do not cover wear and tear of parts such as brakes and brake pads,wiper blades, tyres, batteries, or fan belts.
Car warranties can be extended should you wish to do so,but before committing to do so read the fine print and make sure you understand exactly what you’re buying, what percentage of the expense is contributed, and what parts are covered.
Warranty providers all have their own inclusions,exclusions, and terms and conditions. Remember that there’s a likelihood that you’ll need to service your car within a specific period of time or mileage clocked.
As you can see, vehicle insurance and car warranties are completely different types of cover. They both offer second hand car owners some peace-of-mind knowing that should anything go wrong they won’t be left without a car, or unable to pay for crucial expenses. By taking cover from both, this will help maintain and extend the life of your car and keep it running at optimal condition for as long as possible.
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