Motor warranty cover is essential if you don’t want to find yourself burdened by heavy expenses.

If you’ve got a new or relatively new model car, you usually will be provided with a warranty and a service or maintenance plan. With a warranty, the manufacturer pledges to repair or replace a damaged piece of equipment within a certain time period or amount of mileage. The warranty, most importantly, does not include services, something many buyers erroneously assume.

Warranties, service plans, extended warranties and maintenance plans are all offered, and it could become quite a complex field. It is always best to consult an insurance company and find out exactly what each one of the above plans entails. The costs of each plan, incidentally, vary, so it will pay to do your homework and find one that suits your budget.

Breaking down the plans

Motor plan insurance commonly refers to a motor maintenance plan, service plan (both are non-insurance products ironically) and a car warranty, which is an insurance product. Many of the motor plan insurance providers offer all three products, some as a combined product. Confused? Well, it seems most people are. A lot of education is deemed necessary here.

Then there is also a guarantee. What is the difference between a warranty and guarantee? A guarantee means that the car will live up to the claims made about it. A warranty means that certain mechanical or electronic will be covered for replacement.

Here are three reasons to take out a vehicle warranty:

• Peace of mind to know you are covered.
• Affordable monthly payments.
• Improve the lifespan of your vehicle.
• The warranty is underpinned by an established company.
• Financial assistance for the expensive parts of the car – mechanical and electronic items.

Dreaded mechanical breakdown

Regardless of the type of vehicle or the make, or how cautious a driver you are, it is highly likely that at some time or another you’re going to have a mechanical breakdown.

The only time that a driver is normally most aware of this is when that dreaded red light starts flashing on the control panel. Your heart sinks, you’re not insured, and you know you’re in for a lot of money! If you can’t afford the repairs, you really are in trouble.

This is when you need a motor warranty. It’s an unexpected happening, and not only is this expense looming, but there are other expenses, like the mortgage and health bills which still need attention.

Having a motor warranty will provide options like a wide range of products to see that you get the exact cover you need at the right price. Make sure of these options when you get the warranty to see if everything you need to be covered is in order.

There are normally also bonus features, like roadside assistance or towing. Consult with your insurer to see what bonus features are available to you. Also, make sure you read all the fine print. This often contains important advice.