Other damages such as mechanical failure or electrical failures are however not covered by insurance. For these damages, you would need a motor warranty plan.

“Vehicle owners are familiar with vehicle warranties, but which warranty is best suited to your needs and pocket? Now you can compare them on our site,” says Derek Wilson, head of the free online comparison site, Hippo.co.za.

“We have extended our online quote and benefits comparison offering by including comparisons on extended and pre-owned motor warranty plans.”

Extended Warranty

If one wants to extend one’s current manufacturer’s warranty cover, this warranty is the one to get. One gets the benefit of an unlimited repair/replacement value on the components covered.

The warranty term payment is based on a two-year warranty value, paid monthly over a 24-month period. The prerequisites for this waranty is that one’s vehicle must have a full service history in place, as per the manufacturer's specification and it must currently be under a manufacturer’s warranty cover or maintenance plan.

Cover commences on the date/mileage that one’s manufacturer's warranty or maintenance plan expires and provides warranty cover for a further 24 months or until a total of a certain km’s is recorded on the odometer from the date of first registration.The vehicle must be serviced and maintained as per manufacturer's specifications, by the manufacturers franchised outlets.

Premium is payable in 24 months installments, the option of a pre-owned warranty is then available.

Pre-owned Warranty

If one’s vehicle manufacturer’s warranty has already expired, one can take out this warranty to cover one’s vehicle. One’s policy will cover one for the repair and/or replacement of components, specifically listed under the respective policy’s specifications, arising from a mechanical and/or electrical failure during the cover period of one’s policy.

This is a true monthly warranty, not fixed to a set period, but influenced by the maximum term/mileage as is applicable.

The prerequisite for the pre-owned warranty is that one’s vehicle must have an established service history through regular service intervals. The vehicle must be serviced and maintained as per manufacturer's specifications, by the manufacturers franchised outlets.

Cover will commence 30 days after the first successful premium collection, and continues on a monthly basis until one’s policy is cancelled or the vehicle reaches the age of 15 years from date of first registration or the vehicles odometer reaches a certain amount of km’s.

The premiums are paid monthly in advance, until the vehicle is 15 years old or reaches a certain amount of km’s, whichever comes first. One is obliged to advise the administrator once the odometer reading on one’s vehicle reaches 300 000 km’s.