Maintenance Plans vs Service Plans: What’s the Difference?

A service plan and a maintenance plan can both help you manage the costs of looking after your car, but they don't necessarily cover the same things.

Put simply, a service plan generally covers scheduled servicing, while a maintenance plan usually provides broader cover that may include servicing as well as specified wear-and-tear items and repairs. What is actually covered depends on the manufacturer, provider and terms of your particular plan.

Understanding the difference can help you budget for vehicle ownership  and understand where maintenance ends and car insurance begins.

A car service plan helps cover the cost of scheduled services required by your vehicle's manufacturer.

Services normally take place according to specified time or kilometre intervals. Depending on the vehicle and plan, covered service items may include engine oil, filters, spark plugs, fluids and labour required for the scheduled service.

A service plan can therefore make routine vehicle costs more predictable.

However, it generally does not cover components that need replacing because of normal wear and tear or an unexpected mechanical failure.

For example, brake pads, tyres, batteries, clutches and other components may fall outside a service plan, depending on its terms.

A car maintenance plan generally offers broader protection for vehicle-maintenance expenses than a service plan.

Depending on the provider, it may include scheduled servicing plus certain components that wear out through normal vehicle use.

Some maintenance plans may cover specified brake components, wiper blades or mechanical components, for example. However, inclusions and exclusions differ significantly between plans.

That's why the contract matters more than the name.

Before choosing a vehicle maintenance plan, check:

• Which servicing costs are included.
• Which wear-and-tear components are covered.
• Whether there are time or kilometre limits.
• Where the vehicle may be serviced.
• Whether the plan can be transferred when the vehicle is sold.
• What exclusions or claim limits apply.

A service plan is primarily intended for scheduled servicing, rather than every cost associated with maintaining your vehicle.

It will generally not cover unscheduled mechanical repairs or normal wear-and-tear items unless the particular agreement specifically includes them.

That's an important distinction because a vehicle can have a full service history and still require repairs that fall outside its service plan.

Read your agreement carefully and ask the provider about anything that isn't clear.

One of the main advantages is predictable budgeting.

Instead of finding the full cost of a scheduled service when it becomes due, the cost can be managed according to the structure of your particular service plan.

Keeping up with the manufacturer's recommended servicing can also help maintain your vehicle's service history.

A well-documented service history may be useful when you eventually sell or trade in your vehicle, although it does not guarantee a particular resale value.

A maintenance plan may provide greater certainty over some of the additional costs of owning a vehicle.

Because qualifying plans can extend beyond routine servicing to specified wear-and-tear items or repairs, there may be fewer unexpected maintenance bills.

The trade-off is that broader plans can cost more.

Compare the price, exclusions, kilometre limits, covered components and your vehicle's age before deciding whether the additional cover suits you.

A vehicle warranty serves a different purpose.

While a service plan deals primarily with scheduled servicing and a maintenance plan can deal with broader maintenance costs, a warranty generally relates to specified defects or failures subject to its terms.

An extended car warranty may continue certain protection after the original manufacturer's warranty expires, but it should not automatically be treated as a maintenance plan.

MiWay also offers Motor Warranty cover designed to provide financial protection against qualifying mechanical or electrical failures, subject to the applicable terms and conditions. MiWay explains that ordinary car insurance generally does not cover mechanical breakdown expenses.

South Africa's automotive aftermarket rules are worth understanding here.

The Competition Commission's automotive aftermarket guidelines provide for consumer choice regarding service, maintenance and mechanical repair work during the warranty period, including the use of independent service providers. However, there are conditions and potential cost implications, so motorists should understand both the guidelines and their vehicle's warranty requirements before arranging work.

Read the South African Government's Automotive Aftermarket Guidelines

Keep invoices and service records so that work carried out on your vehicle can be documented.

There isn't one answer for every driver.

If your main concern is budgeting for routine manufacturer-scheduled services, a service plan may meet that requirement. If you'd prefer broader protection against specified maintenance and wear-related costs, compare the additional benefits of a maintenance plan.

Before deciding, consider your vehicle's:

• Age and mileage.
• Manufacturer service schedule.
• Existing warranty.
• Current service or maintenance cover.
• Typical annual mileage.
• Service history.
• Expected maintenance costs.

Most importantly, compare the actual terms rather than choosing based purely on the name of the product.

Generally, car insurance and vehicle maintenance plans protect you against different risks.

A service or maintenance plan deals with specified costs associated with looking after the vehicle. Car insurance can protect you financially against selected insured events such as accident damage, theft, hijacking, fire, weather damage or third-party liability, depending on the cover you choose and its terms.

Routine servicing, gradual deterioration and wear and tear are generally not what ordinary car insurance is designed to cover. MiWay's current car insurance guidance similarly lists servicing, wear and tear and mechanical or electrical breakdown among commonly non-covered losses, depending on the policy.

That's why having a service or maintenance plan does not replace appropriate insurance – and having insurance does not mean your servicing and maintenance costs are covered.

Think of them as solving different problems.

A service plan helps with scheduled servicing. A maintenance plan can provide broader maintenance protection. A warranty deals with specified defects or failures. Car insurance protects against selected insured risks such as accidents, theft and third-party liability.

Having the right combination can help you manage both the predictable and unexpected costs that come with owning a vehicle.

Looking after your car doesn't stop when its service is complete.

Make sure you also have the right insurance for the risks you face on the road. With Miway, you can choose car cover that suits your needs and budget.

Get a Miway car insurance quote and make sure you're covered for the road ahead.