There’s a great deal of confusion between a motor maintenance plan and a service plan. That’s understandable because these sort of contracts only became mainstream in the past ten years or so in South Africa. And what makes them even more confusing is that the sellers of these products usually combine them into one contract. This article is here to demystify the two.
The subject motor plan vs service plan can be answered as simply as:
(1) a motor plan, usually encompasses more benefits for the buyer than a service plan by including a maintenance plan and sometimes a car warranty. Under the maintenance plan section, your contact would possibly include the regular maintenance of the wear and tear of your motor vehicle parts. These components could be the gearbox, clutch, suspension; brake pads and discs. Usually, whatever is not covered in a service plan, is covered in a motor maintenance plan. With a maintenance plan, the various companies require that your car be not older than five years or have more than 120,000 km on its odometer.
(2) a service plan works similar to a maintenance plan, but can as mentioned above, can both be part of an all-inclusive motor plan. The service plan covers all the costs involved with the regular servicing of your car as stipulated by the vehicle’s manufacturer. Basically, when the car has to be serviced, this section of the plan kicks in, and you do not have to worry about the costs involved. Usually, the service plan runs for cars that are not older than 8 years or have been on the road for longer than 180,000 km.
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NOTE: Your personal information is confidential, and we will never rent or resell it to anyone. It will only be used to call you back and then provide you with a motor warranty solution.
Both motor and service plans are non-insurance products. This means that you do not have to claim on the event of a uncertain occurrence. The payout for the money you purchased either plan for is payable at pre-determined, certain times/occurrences. A car warranty on the other hand is a special insurance product. And when all three are grouped together, they are sometimes referred to as motor plan insurance (the insurance part owing to the inclusion of a car warranty).
We hope that clears some blurred lines about the motor plan vs service plan topic.