The Benefits of Having a Car Service Plan

Ah, the joys of car ownership: the wind in your hair, the open road, the gentle purr of the engine... until, of course, it all goes horribly wrong. A blinking light, a rattling sound that just won't go away and – bham! You're left with a hefty bill for repairs. And that, friends, is why you should always take out a Service Plan.

What exactly is a Service Plan?

In a nutshell, a Service Plan is a contract between the owner of the vehicle and a manufacturer or servicing workshop, guaranteeing any number of scheduled services. This contract is generally based on either mileage driven, say every 15 000km, or a set time frame like once every twelve months.

A Service Plan differs from a more comprehensive maintenance plan in that it focuses exclusively on consumables like engine oil, brake fluid and air filters. A maintenance plan can cover more expensive components, including a gearbox or differential, for example, that shouldn't theoretically fail within a reasonable timeframe.

And there was recently some great news for budget-savvy car owners like yourself: since the Right2Repair guidelines were passed in 2021, manufacturers should no longer void your car's warranty if you choose to service it at an independent service provider (which often offer the same services and similar quality parts at a much more competitive price). That also means you don't have to take the Service Plan offered by the manufacturer when you buy a new car – you can (and should!) shop around for the best deal.

Also read: Frequently asked questions about vehicle service plans

What are the benefits of having a car Service Plan?

You know the saying "like a well-oiled machine"? Well, that's pretty much exactly what you'll get if you regularly service your car with a reputable provider – but there are more benefits to having a Service Plan than just keeping your car running at its best.

Affordable monthly premiums

You'll be paying for your car's Service Plan in affordable monthly installments so you don't have to worry about getting slapped with an eye-wateringly pricey bill for repairs.

Easy updates

No need to roll up your sleeves and tackle the maintenance yourself when there are experts to do the hard work for you (and, let's be honest, they probably know your car better than you do). Using a reputable workshop means they'll also have access to all the necessary tools and software updates.

Servicing costs are fixed

All costs are fixed and covered by the workshop so you won't be subjected to the rising costs of parts and labour for the duration of the plan.

Better resale value

You'll likely get a better resale value if you can boast that your car has a FSH (that's a full-service history) because it reassures potential buyers that the vehicle has been well looked after.

Long-term savings (and peace of mind!)

It stands to reason that a car that's regularly serviced will give you fewer nasty (and expensive!) surprises down the line, guaranteeing you both peace of mind and trouble-free motoring. Win-win!

So if you're on the market to buy a new car, or your current car's Service Plan is expiring, you can get a range of quotes in under two minutes by using Hippo's free online Car Service Plan quotes comparison tool. Because if you could be paying less to service and maintain your car, why wouldn't you?

This article is for informational purposes only and should not be construed as financial, legal or medical advice.