Tony Van Niekerk, COVER
The South African vehicle warranty market is undergoing a transformative shift, with rising consumer awareness and economic pressures driving greater demand for protection products.
Aiming to stimulate this evolution further, is Veritas Global Protection, a global leader in automotive warranties, which has officially launched its operations in South Africa.
I recently spoke with Lorenzo Farelo, Operations Manager, and Petrus Potgieter, Country Manager for Veritas South Africa, to understand their vision, market outlook, and what sets Veritas apart in a competitive landscape.
At the heart of Veritas’s offering is an approach to coverage that challenges the limitations of conventional warranty products. As Farelo explained, “At Veritas, we identified a gap in the market where many warranty products place significant limitations on coverage, restricted component lists, high excesses, or capped claim limits.”
What makes Veritas stand out is the comprehensive level of cover it provides. One of its key differentiators is the ability to claim up to the full market value of the vehicle per incident. For example, if a client’s vehicle is worth R150,000, they are covered for up to R150,000 per claim. In the event of a mechanical or electrical total loss, Veritas will pay out the full market value, mirroring the protection of traditional insurance but tailored specifically to mechanical and electrical failures.
Furthermore, there is no limit on the number of claims a client can make during their policy term. Excess amounts are kept highly competitive, starting from R2,000 and going up to a maximum of R6,500 for Heavy Commercial Vehicles (HCVs).
Globally, Veritas is also well-known for providing warranties for HCVs, a segment typically overlooked due to risk exposure. Their product is designed to confidently support this sector, offering coverage up to the vehicle’s market value and accommodating mileages of up to 2 million kilometers, a first for the South African market.
Beyond core warranty offerings, Veritas also includes a comprehensive suite of ancillary solutions such as Service Plans, Maintenance Plans, Tyre & Rim Protection, and Scratch ‘n Dent Coverage, giving clients a 360-degree protection framework.
Petrus provided a snapshot of the South African warranty landscape, describing it as a market in transition. “While factory warranties are standard for new vehicles, there’s growing interest in extended and aftermarket warranties, especially as vehicles age and economic uncertainty increases,” he said.
He added that consumers are demanding greater transparency and trust, they want to understand what is covered, what is excluded, and how claims will be handled. Veritas has responded by simplifying its terms, making policy details clearer, and ensuring alignment with consumer protection laws such as the Consumer Protection Act (CPA) and the Short-Term Insurance Act.
Finance integration is also proving crucial. “Today, around 95% of vehicle purchases involve finance, and most of those include some form of protection product like a warranty,” he noted. “It’s about peace of mind—people want to know they’re covered without added complexity.”
Veritas aims to serve the South African market through a multi-pronged distribution strategy with dealer networks and insurance brokers being the primary channels.
The monthly product offering, in particular, is gaining traction. “We’re seeing a clear demand from clients whose factory warranties have just expired. They don’t always have the capital for a lump-sum warranty purchase, so monthly options give them flexibility,” said Petrus.
Plans are underway to establish a dedicated call centre to handle inbound and outbound communications, enabling efficient customer onboarding, renewals, and post-sale support.
Veritas’s expansion into South Africa is part of a broader international growth strategy that has already seen successful rollouts in Canada, the United States, Chile, and Europe. The company’s founder, Elijah Norton, established Veritas in 2011 with a vision to disrupt the warranty industry through innovation and customer-centric products.
With over 100 employees and global premium volumes exceeding R4.5 billion annually, Veritas has secured partnerships with some of the world’s largest dealer groups and agencies. In Europe, the company recently acquired a majority stake in WAGAS, one of the region’s largest providers of extended warranties and insurance solutions, further consolidating its global footprint.
While South Africa is still in the early stages of electric vehicle (EV) adoption, Veritas is already investing in future-ready solutions. “Globally, EV growth is rapid, and we’re building warranty products specifically designed for EV systems and batteries,” Petrus explained.
In closing, Petrus emphasised that Veritas doesn’t aim to be “just another warranty provider”, it strives to be the’ warranty provider. “What distinguishes us is not just the scope of our coverage, but the commitment to backing up our promises with real support, real service, and genuine peace of mind.”
As South African motorists look for trustworthy partners in the face of rising costs and vehicle complexity, Veritas Global Protection offers a compelling proposition, one that blends international experience, product innovation, and a deep understanding of local needs.