Can Motor Plans Decrease Insurance Premiums?
Insurance was likely the product that coined the term “grudge purchase”. Nobody likes to spend money and seemingly get nothing in return. Over the years, drivers have wised up to the fact that car insurance (in and amongst other types of insurance) are actually a vital part of their financial well-being.
This comes from experience – having to pay out of pocket for accidents, damage and other claims – and only then comparing what they could have saved if they had had a financial product such as a mechanical warranty in place, in time.
Most motor plans, including service and mechanical warranty plans – require the driver of the vehicle to have comprehensive insurance in place before taking out the additional insurance types. This ensures the driver is covered for loss of the vehicle, major damage etc. that only comprehensive insurance covers, otherwise the service or mechanical warranty plan may be somewhat useless. (This may differ in the case of older vehicles, but check with your VAP provider first)
Adding a warranty or plan to your vehicle undoubtedly allows for financial wellness in terms of budgeting and maintaining your car to the highest possible degree, but would your comprehensive insurance premiums decrease if you have a plan of that nature in place?
It would make sense for this to be the case – you’re demonstrating your willingness to look after your car, make it last longer and perform better. However, vehicle insurance companies base their premium rating on your risk profile – things such as driving style, history of incidents, vehicle age and mileage all affect what you’ll have to pay to insure your vehicle.
That being said, a motor plan will still save you money. It might be in the form of making access to servicing and mechanical or electrical failure affordable, or it might be in the form of protecting yourself from paying an excess with your comprehensive insurer.
- MotorVaps has a unique offering in terms of value-added-products; here’s how they can save you money:
- MotorVaps Service Plan – helps you to allocate a specific amount each month and afford your vehicle a scheduled, regular routine for servicing of vital components.
- MotorVaps Mechanical Warranty – protects you from possibly major costs in the event you experience mechanical or electrical failure.
- MotorVaps Excess Waiver – pay a set fee every month and kiss your comprehensive insurance excess / deductible goodbye.
- MotorVaps Tyre and Rim Insurance – if you’re prone to mounting curbs or hitting potholes, tyre and rim insurance may save you many hours of stress and tears.