Mechanical aid for cars

Isaac Moledi

Isaac Moledi

A mechanical insurance similar to a medical aid has been launched.

The Hollard's Motor Mechanical insurance, dubbed the medical aid for cars, will be available direct from Hollard Insurance and brokers rather than motor dealers or maintenance or service plans as is the case with traditional warranty options.

Hollard's Herman Warren who heads the new plan, says there are no wear-and-tear loopholes or cut-off date as long as a vehicle is covered before it reaches 10 years or 200000km.

He says there are about five million cars in South Africa with an average age of more than 10 years. Where the cars are out of warranty, owners have nowhere to turn for cover.

"Procrastinating repairs for financial reasons creates danger for everyone on the roads. We aim to solve the problem for motorists," Warren says.

Though this is a first for the country, Hollard hopes to make the cover standard to motorists as comprehensive insurance.

Motorists can choose from three levels of protection options: Move, drive and cruise. Premiums are R79, R159 and R269 respectively for non-commercial vehicles under the weight of 3000kg.

With monthly premiums and tailoring possibilities, insurance can be bought and paid for like regular motor insurance.

You can pay from R18000 for a mechanical fault in an engine, R12000 for transmission to R2000 for electrical components, depending on the option. For the cruise option, the premium covers two services a year for free. You get 24-hour roadside assistance and help with breakdowns, towing, jump starts, flat tyres, running out of fuel, locksmiths, accommodation and travel costs for breakdowns more than 100km from home.