Do you know the difference between the various types of car plans?

A poll conducted revealed 38% knew nothing about which plan they have.

When purchasing a car, you may be aware of various car plans that are offered. Do you know the difference between service, maintenance and warranty plans?

A poll conducted by MotorHappy, a third party provider of car plans, showed that 85% of the 900 motorists who took part in the survey, rated their understanding as 2/10. While 38% knew nothing about which plan they have.

Based on this poll it’s safe to say at the very least that the public’s general understanding between the different types of these car plans, is hazy at best.

Almost all new cars will come with some kind of after-sale car plan, but it’s important to know the differences between these, in order to know what you will be covered for. These car plans can be broken into three main categories, although within these categories they may differ depending on who you are purchasing your vehicle from.

Service Plan

This car plan will look after the daily running of your car. Services must be booked and performed in order to keep the mechanical components of your car running properly. These car plans usually include things like oil, air and fuel filters, spark plugs and fluid top-ups. Some also include cam belt replacements.

These services usually need to be scheduled within a certain mileage or time frame and if missed, will often void the car plan. It’s up to you to make sure you get the car to the workshop.

Maintenance Plan

This is usually more comprehensive than the service plan and will include things like additional wear and tear. Covering parts such as your brake pads, wiper blades, shocks and on some car plans even your clutch.

Like the service plan, these will also work on time or mileage intervals that need to be followed. Missing the appointments will often void the plan. You will also have to take your car to an approved workshop and not a private mechanic. Doing so may also void the car plan.

Warranty Plan

Almost all new cars will come with a warranty that covers any serious failures, both mechanical and electrical. So the warranty will not cover things that have deteriorated due to wear and tear, but will only cover parts of the car that have malfunctioned due to some kind of fault in the part.

Basically your warranty will only cover your car if something has broken or malfunctioned, that should not have. If you’ve misused the vehicle or it has broken due to anything that you have done to it, the warranty will most likely not cover this.

So basically in order of how beneficial these plans are to you it goes (with 3 being the most):

  1. All new cars will include a warranty.
  2. Added extra of service plan may be included.
  3. Even better than the service plan, the car may include a maintenance plan.

If the place you’re purchasing the car from doesn’t offer service or maintenance car plans, there are third-party services such as MotorHappy, that you can purchase them from.

Source: IOL