What is a mechanical breakdown warranty?

Aside from leaving you stranded, a breakdown of a mechanical component of your car could also have dire financial consequences.

If you, for example, have to fork out for the replacement of your vehicle’s gearbox, the cost could make a substantial dent in your wallet — unless you are adequately insured.

A mechanical breakdown refers to the unforeseen failure of mechanical components, arising from mechanical and/or electrical failure, causing a sudden stoppage of their functions and necessitating repair and/or replacement.

A mechanical breakdown warranty is needed when you purchase a used motor vehicle with no manufacturer’s warranty in place, when you purchase a new vehicle and want to extend the manufacturer’s warranty, or when the manufacturer’s warranty on your current vehicle has expired.

All passenger and 4×4 vehicles with a gross vehicle mass of less than 3 500kg qualify for a mechanical breakdown warranty, and the vehicle kilometre reading and age will determine the benefits applicable per mechanical component. Furthermore, the vehicle must be in a good mechanical condition and have a valid roadworthy certificate to be eligible for the warranty.

Taxis, rental vehicles, exotic vehicles, rebuilt vehicles (Code 3), modified vehicles and vehicles that are being used or have been used in any form of motoring competition or sport do not qualify for a mechanical breakdown warranty.

The cost applicable to the warranty will be determined by the age of the vehicle, as well as the administrator that the client selects.

The following are important features of a mechanical breakdown warranty:

It provides for the repair or replacement of components due to mechanical breakdown or electrical failure.
Cover is available for new or used vehicles.
Comprehensive insurance excess payment is included.
Cover includes a roadside assistance benefit.
The warranty is transferable with the vehicle on the sale thereof.
A mechanical breakdown warranty provides peace-of-mind motoring.
It involves an uncomplicated claims procedure.

The following is a list of components typically covered by a mechanical breakdown warranty:

Engine: All internal, lubricated components.
Gearbox (manual/automatic): All internal, lubricated components (including torque converter and flex plate).
Differential: All internal, lubricated components.
Differential lock: All internal components.
Transaxle: All internal, lubricated components.
Transfer box: All internal components.
Management system: Engine and transmission management control units, crankshaft sensor, camshaft sensor and lambda (O₂) sensor only.
Turbo assembly: Original, manufacturer-fitted turbo charger, intercooler and superchargers only.
Front-wheel drive unit: External drive shafts, couplings, hubs, bearings and drive flanges for 4×4 vehicles only.
Casings: Engine block, cylinder head, gearbox, differential, drive unit, inlet and exhaust manifolds are covered in the event of damage being caused by the failure of a covered component.
Electronic ignition: Distributor and coil packs.
Air conditioner: Compressor only.
Cooling system: Water pump, Welsh plugs, thermostat, thermo-switch and heater radiator only.
Freewheeling hubs: Complete unit (applicable to 4×4 vehicles only).
CV joints: Excluding dust covers and rubbers.
Prop shafts and couplings: U-joints and centre bearings.
Steering mechanism: All internal components of steering box or steering rack (including power-steering pump).
Braking system: Master cylinder, servo unit, wheel cylinders and ABS control unit and all sensors. Vacuum pump on diesel vehicles only (excluding all friction materials).
Fuel system: Mechanical and electrical fuel pumps, injectors, fuel-injection control and sensor units (excluding all calibration- and serviceable components and incorrect or contaminated fuel).
Electrical components: Alternator, starter motor, front and rear windscreen-wiper motors and electric window motors, electric seat motors.
Electric winch: Electric motor only (applicable to 4×4 vehicles only).
Clutch: Clutch plate, pressure plate, clutch cable, clutch fork, master and slave cylinders, release bearing, pilot bearing and flywheel are covered against mechanical failure only.
Suspension: Upper and lower wishbones with associated ball joints, bushes and springs are covered against mechanical failure only.
Wheel bearings: All wheel bearings are covered.
Radiator: Engine-cooling radiator only.
Catalytic converter: Catalytic converter only.
Overfueling: Engine failure as a result of overfueling.
Overheating: Breakdown as a result of overheating.
Drive pulleys: Crankshaft, camshaft, tensioners, and jockey pulleys are covered in the event of mechanical failure.
Cambelt failure: Cambelt and tensioner (excluding routine maintenance).
Cylinder head gaskets: Cylinder head gasket only.
Viscous and electric fans: Engine cooling only.
Central locking: Pump and door actuator only.
Electric sunroof motors and convertible roof motors: Original manufacturer-fitted units only.
Electric mirrors: Motor only.

As with most things in life, prevention is always better than cure. Ensuring that your car is in a good working condition will not only save you money in the long run, it could also save your life.

The information contained in this article is of a general nature and intended for information purposes only. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial, legal or other issue. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult your financial planner/adviser to take into account your particular investment objectives, financial situation and individual needs.