Vehicle insurance vs motor car warranty

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.

Vehicle Insurance

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:

  1. Comprehensive
  2. Third Party, Fire and Theft
  3. Third Party

Comprehensive Insurance


  1. Accidents caused either by yourself or by another driver
  2. Theft of your motor vehicle
  3. damage caused by natural disasters such as floods or hail
  4. Third parties involved in the accident and their property

Third Party, Fire,& Theft


  1. 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
  2. Fire,natural disasters such as flooding, hail, or falling rocks
  3. Theftof your motor vehicle

It excludes any accidental damage incurred to your vehicle.

Third Party

Though it forms part of a vehicle insurance policy, it does not cover any part of the vehicle, only damage caused to someone else.

Car Warranties

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.

In Summary

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.

When you buy a second hand car from Auto Pedigree, you get the option to choose our Vehicle Insurance or Vehicle Component CoverContact us for a free quote.


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