Here are the answers to some commonly asked questions. If you have a question that is not covered here then please contact us.


Mechanical Breakdown Insurance

What is Mechanical Breakdown Insurance?

Motor vehicles today are made up of thousands of complex mechanical and electrical components that at some stage do break, fail or simply wear out. Mechanical Breakdown Insurance (sometimes referred to as a "warranty") is an insurance policy that covers your vehicle against the cost of sudden or unforeseen mechanical and electrical breakdown of your vehicle.


Does the policy include the cost of both parts and labour?


How can I purchase Mechanical Breakdown Insurance?
Provident Mechanical Breakdown Insurance is only available through Provident Authorised Motor Vehicle Traders. Please click here for a list of Provident Authorised Motor Vehicle Traders – there are dealers near you.


Do I need to service my car?
Yes. If your vehicle is petrol-powered it must be serviced every 12 months or 15,000 kms (from the date the policy commences). If your vehicle is diesel-powered it must be serviced every 12 months or 10,000 kms (from the date the policy commences).Please note that all vehicles should be serviced in order to maintain safety and reliability, whether they have a mechanical breakdown policy or not – the oils and fluids in your engine, transmission and driveline are not designed to last forever and require periodic replacement.


Who pays for my vehicle service?
Regular maintenance, adjustment and tuning is your responsibility.


Who can service my car?
You can have your vehicle serviced by a service centre of your choice, provided they attend to the minimum recommended service requirements outlined in our policy.


Can I service my car myself?
No. The service must be performed by an independent service centre.


Is the service cost expensive?
No. Whilst costs will vary amongst service centres, the cost should be limited to the replacement of consumable items (such as engine and transmission oils, coolants, fluids and filters) and the checking and tuning of important components such as cambelts, spark plugs and brakes)


What is an excess?
An excess is the amount you are required to pay in respect of each unrelated claim. Every policy has an excess.


Is my policy refundable?
No. The policy is unique to you and the vehicle nominated on the Registration Certificate. It is not refundable.


Can my policy be renewed after it has expired?
Yes, provided you take your vehicle back to the dealer who sold you the policy and provided there are no inherent faults with your vehicle at that time. We reserve the right to request a vehicle inspection report to confirm the vehicle is in sound mechanical condition prior to allowing its renewal.


Is my mechanical breakdown insurance policy transferable?
In certain circumstances yes. If you sell the vehicle your policy, at the sole discretion of Provident Insurance and subject to the payment of a transfer fee, can be transferred to the new owner providing that:

- you are the first owner insured under the policy, and

- there have been no claims lodged against the policy, and

- there are no faults in existence that may give rise to a claim under the policy, and

- the vehicle is not being sold through a Register Motor Vehicle Trader. 


Who can undertake repairs on my vehicle?
Any repairs that are subject to a claim under our policies must be performed by an authorised repair facility. Please call our office on 0800 – 676 864, for the name of the most appropriate facility close to you.


Does the policy cover wear and tear?
Yes, our policies cover wear and tear of covered components.


How much does the policy cost?
We have a number of policy options, so the premium will depend on the make/model of vehicle, the age/mileage, the term of cover and excess option selected. Your Registered Motor Vehicle Trader will help you determine the policy and the premium for your vehicle.


Does my policy include Roadside Assistance 24 hours a day/7 days a week?
Yes it will, provided that you have selected the Roadside Assistance option and paid the extra premium.


Credit Related Insurance

What is Credit Related Insurance?

Credit Contract Indemnity (CCI) and Guaranteed Asset Protection (GAP Cover) are Credit Related Insurance products as these products are linked to your credit contract.


Are these policies compulsory to take out with my credit contract?
No they are not compulsory. The policies are offered to you as an optional benefit to your credit contract, to assist with your credit contract repayments in the event that you suffer a loss resulting from an insured event.


If I am not a salary and wage earner (and therefore not eligible for the redundancy benefit of the CCI policy), do I receive a discounted premium?
Yes, we have three (3) types of cover and each policy type is determined by your source of income. For example, if you are a beneficiary you will pay a lower premium as the benefits you will receive apply to death, hospitalisation and bankruptcy only. The policy you select should suit your personal circumstances and provide suitable benefits to cover your needs.


How much premium will I pay?
The amount of the retail premium you will be charged for the policy must be disclosed to you.


Will I be charged interest on the insurance policy?
The full amount amount of interest charged for the credit contract including interest on the insurance products must be disclosed to you.


How will I know what I am covered for?
The key features and exclusions relating to the policy must be disclosed to you and a copy of the policy document will be handed to you at the time you take out the policy.


Is there a cooling-off period where I can cancel the policy without incurring any charges?
Yes. The "cooling-off period" must be disclosed to you at the time you take out the policy.