Are car service plans worth it?

Cars can be pricey to run - you need to pay for insurance, vehicle tax, fuel and, when something goes wrong with your vehicle, you may be forking out for expensive repairs. However, all of these costs enable you to drive to and from work, experience road trips and visit friends and family. Having a car allows you so much freedom.

So how can you control some of the costs that are associated with having a car? Putting a service plan in place could be the answer. In this article, we discuss what a servicing plan is, why it’s beneficial and whether it’s worth it.

What is a car service plan?

A car service plan allows you to pay for your vehicle’s full service in advance with small monthly payments. Instead of paying one lump sum, you can spread the cost with 10 monthly payments, so you don’t have to worry. This way, by booking onto the plan at the time of your current service, your next service will be paid for in advance.

To qualify, your vehicle can be up to 10 years old and should have fewer than 100,000 miles on the clock. Your vehicle should only be used for personal use. It may not qualify if it’s operated for commercial or agricultural purposes, driving tuition, taxiing or private hire, or competitions and off-road events.

Your car service plan won’t include the cost of additional repairs that need to be made on the vehicle following its service or MOT - these will need to be paid upfront. Traditionally, you would have had to pay for the service and repairs in one go. However, with a servicing plan, the cost of your service is already paid off.

A plan usually lasts for 12 months from the date of your vehicle’s previous full service or for 12,000 miles, whichever comes first. You’ll be able to book in for your car’s service when it’s due.

What does a car service plan cover?

With some car service plans, such as Kwik Fit’s Service Plan, if any parts on your vehicle fail, you’re covered for a maximum of three individual claims up to the value of £500. Parts that are covered include:

• Anti-lock braking system (ABS) sensors
• Handbrake lever
• Horn
• Battery
• Starter motor
• Drive shaft
• Catalytic converter
• Power steering pump
• Shock absorbers
• Ball joints
• Wheel hubs
• Wheel bearings
• Damper

To find a full list of all the components that are covered in the ServiceCare warranty, you can visit our ServicePlan page.

Many car service plans also allow you to include the cost of your MOT and premium oil, if required. You can find out more information about this below.

Every car service plan is different, so ensure that you check exactly what a plan covers before signing up.

How beneficial is a car service plan?

There are plenty of benefits of taking out a car service plan. The most notable is that you can spread out the cost of the service. Most plans allow you to add the cost of the MOT test and premium oil too. The maximum an MOT can cost you by law is £54.85 and, according to the Money Advice Service, a very basic service will cost you around £125, though this is likely to go up depending on what you want the service to include and the type of vehicle you have. Services can cost as much as £300 and if you add the cost of an MOT to this too, it becomes quite a large sum of money to pay upfront. Instead of paying this all in one go, a service plan allows you to spread the cost out over 10 months interest free.

If the service revealed a problem with your vehicle, you wouldn’t need to fork out the cost of the service and pay for any additional repairs. Instead, the service has been paid off over the previous 10 months, leaving you with less to pay on the day.