Warranty and Service Plans Go Beyond Comprehensive Motor Insurance


Comprehensive motor insurance is an essential element in vehicle ownership—especially for those who finance their cars through a financial institution. While comprehensive cover serves its purpose, the introduction of Value-Added Products and Services (VAPS) adds a necessary layer of protection for your car and your finances.

Value-Added Products & Services are products that are different from traditional comprehensive insurance in that they specifically exclude damage if caused by vehicle accidental damage, however, they do offer financial help for unexpected and sudden events related to certain risks and dangers.

The offering of VAPS—ranging from mechanical warranties to scratch and dent policies—adds a layer of security that transcends what standard comprehensive packages can offer. Here’s why adding VAPS to your insurance portfolio makes sense in South Africa’s unique and often challenging landscape.

Extending the Life and Value of Your Vehicle

While comprehensive insurance will cover accidents and theft, it doesn’t cover the cost of wear and tear or minor damages. Mechanical warranties and service plans help maintain the longevity of your vehicle and protect against unexpected financial burdens (KPMG South Africa, 2020).

Enhancing Your Peace of Mind

Scratch and dent policies, as well as tyre cover, add an element of peace of mind. Knowing that small but frustrating incidents are covered can significantly reduce the stress associated with vehicle ownership (Accenture South Africa, 2020).

Customised Protection

One of the critical advantages of VAPS is the ability to tailor your insurance portfolio to meet your specific needs. Depending on your lifestyle, driving habits, and the region you live in, certain VAPS might be more beneficial than others (PWC South Africa, 2020).

Financial Efficiency

Although adding VAPS incurs an additional cost, the long-term savings could be substantial. Paying for individual repairs and services out-of-pocket can accumulate over time, and VAPS can act as a financial buffer against such eventualities (Deloitte South Africa, 2019).

Augmented Safety Measures

Some VAPS offer roadside assistance or emergency support, which can be invaluable in South Africa, where car breakdowns can sometimes pose safety risks (Financial Sector Conduct Authority of South Africa, 2021).

Elective but Essential

In an economic landscape where uncertainty is the only constant, the elective nature of VAPS can be misleading. While you might not be obligated by a financial institution to add these services, their value can be instrumental in providing comprehensive protection and peace of mind.


– KPMG South Africa (2020). “The Role of VAPS in Extending Vehicle Life.”

– Accenture South Africa (2020). “The Psychological Value of Insurance Add-Ons.”

– PWC South Africa (2020). “Customising Insurance Portfolios: The Role of VAPS.”

– Deloitte South Africa (2019). “Financial Efficiency Through Value-Added Insurance Services.”

– Financial Sector Conduct Authority of South Africa (2021). “Safety Measures and Insurance Choices in South Africa.”

By incorporating VAPS into your insurance portfolio, you are not merely ticking off a box in a risk mitigation checklist; you are taking a proactive stance in managing both your assets and well-being. Given the multi-faceted challenges inherent in South Africa’s socio-economic environment, having an insurance portfolio that is as comprehensive as possible has never been more relevant.


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