A new vehicle will typically come with a basic manufacturer warranty. This manufacturer warranty covers mechanical and electrical parts for repair or replacement should they fail within a certain mileage or age – usually under 100 000 km or anywhere between two to four years, but this varies from manufacturer to manufacturer.
However, once your vehicle falls outside these mileage or age limits, your car is no longer covered under manufacturer warranty, and you become liable for the costs of any mechanical breakdowns.
This is where Mechanical Warranty Insurance comes in. A Mechanical Warranty Insurance policy is an invaluable financial planning tool that covers the repair of your car due to mechanical failures or breakdown once it falls outside of its factory/manufacturer warranty period.