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What is a Vehicle Service Contract? – Complete Guide to Vehicle Service Contracts

What are the Benefits of Vehicle Service Contracts?

1. Coverage for repair costs of expensive parts and components.

Vehicle service contracts offer protection for repairs needed due to breakdowns, failures or malfunctions of covered components. They typically cover major components such as the engine, transmission, air conditioning, drive axle, electrical components, suspension, fuel, gaskets, steering, transfer case, transmission, and turbo/supercharger. Exclusionary plans offer the most comprehensive coverage, covering everything except items specifically listed in the contract. Stated component plans list what is covered in the contract, while powertrain plans cover the engine, transmission and drive axle, and wrap plans cover everything excluded in a powertrain and have a list of exclusions. Generally, general wear and tear, vandalism, theft, routine maintenance, and damage from accidents are not included in extended warranty coverage.

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2. Protection against unexpected repairs

A vehicle service contract can help protect against unexpected repair bills by providing reimbursement for mechanical breakdown repairs, rental car coverage, and other added benefits such as roadside assistance and towing. Many of these contracts come with additional perks, such as 24-hour roadside assistance, rental car reimbursement, and trip-interruption benefits, which can help alleviate some of the stress of dealing with unexpected repairs. Additionally, buying an automaker’s vehicle protection plan from a dealership ensures genuine replacement parts for covered repairs, however these plans may limit repairs to dealership or authorized service centers.

3. Coverage for manufacturer defects

Vehicle service contracts provide coverage for manufacturer defects that are not covered by a manufacturer’s warranty. These contracts are offered by both manufacturers and third-party companies, and they can provide coverage for items such as mechanical breakdowns, non-covered parts, environmental events, and pre-existing issues. However, they typically do not cover wear-and-tear items such as tires and brake pads, routine maintenance services, damages from lack of maintenance, damages caused by modified components, or damages caused by accidents, collisions, abuse, or misuse.

It is important to read the fine print in a vehicle service contract carefully so you understand what is covered and what is not. This will help ensure that you get the coverage you need and don’t end up paying for repairs that are not covered. Additionally, you should be wary of deceptive tactics that may be used to try and get you to sign up for a contract, as you may already have the coverage you need.

4. Ability to avoid long waits at repair shops

Vehicle service contracts can help avoid long waits at repair shops by offering a wide network of approved repair shops, budget and coverage levels that suit the needs of the user, and the ability to choose among several service dealers or authorized repair centers. Automaker’s vehicle protection plans offer genuine replacement parts for covered repairs but may require drivers to take their car to dealerships or authorized service centers. Third-party vehicle service contract providers are independent of the car’s manufacturer and can offer extra perks such as roadside assistance, rental car coverage, and trip-interruption benefits. However, it is important to research third-party providers to make sure that the companies are trustworthy.

5. Peace of mind knowing your vehicle is covered for unexpected repairs

Vehicle service contracts typically cover repairs at a wide network of approved repair shops, and plans are offered in a variety of budget and coverage levels to help suit your needs. Covered repairs may include mechanical breakdowns, as well as towing services, fuel deliveries, lockout assistance, battery jump-starts, and winching. Depending on the plan, some services may also include rental car reimbursement, trip interruption protection, and 24-hour roadside assistance. In addition, many vehicle service contracts offer genuine replacement parts for covered repairs. However, it is important to note that some repairs may not be covered, such as those due to wear and tear, and those where a noncovered part damages a covered component. Additionally, some plans may require you to pay for vehicle diagnostics.

6. Ability to skip the deductible

A vehicle service contract helps to skip the deductible by providing car owners with a way to protect their vehicles from costly repairs. Typically, the standard deductible for vehicle service contracts is $100, though some providers may offer $0 or even $500 deductibles. Choosing a lower deductible will increase the overall cost of the plan, but it could potentially save more money in the long run if the car owner experiences vehicle issues.

In addition to the deductible, a vehicle service contract may also require its owners to submit claims for any repairs they’d like done. And, like other forms of insurance, the claims may be denied. However, the cost of repairs without a contract can quickly add up to outweigh the cost of the service contract.

Moreover, many vehicle service contracts feature additional benefits at no additional cost. Common benefits include 24-hour roadside assistance for lockout assistance, battery jump-starts, and fuel delivery; rental car reimbursement; trip interruption protection; and towing services.

Overall, vehicle service contracts provide car owners with a way to save money on repairs and avoid expensive deductibles. In return, the car owner must pay a monthly fee and will only be reimbursed if the part is covered by the contract.

7. Coverage for trip interruptions

A vehicle service contract typically provides trip interruption coverage which reimburses for food and lodging costs if your car breaks down more than a specified distance from home. This benefit usually applies up to a certain dollar amount per day and typically covers up to 100 miles from home. This coverage can help make the experience of a breakdown less stressful and can provide some financial relief.

8. Ability to save money on maintenance and repairs

A vehicle service contract can help to save money on maintenance and repairs by providing coverage beyond the manufacturer’s warranty. This can help to lower repair costs, as the cost of one major repair after a mechanical breakdown is often higher than the lifetime cost of a vehicle service contract. These contracts may also come with recurring fees and deductibles, but these are often outweighed by the cost of repairs without a contract. Additionally, companies may offer different levels of coverage, so it is possible to find a contract that suits your needs and budget.

9. Ability to get assistance from a certified mechanic

A vehicle service contract can help provide car owners with mechanic assistance in a number of significant ways. Firstly, many vehicle service contracts from independent extended warranty companies allow drivers to take their car to any licensed mechanic for covered repairs. Furthermore, most service contracts come with benefits such as 24-hour roadside assistance, towing services, and rental car reimbursements. This means that should your car break down, you will have access to emergency services and be able to get to your destination with minimal disruption.

10. Exclusion of balance due on warranty claims

A vehicle service contract (VSC) helps to exclude the balance due on warranty claims by providing comprehensive coverage for any mechanical failure unless explicitly excluded in the contract. Exclusionary contracts, such as bumper-to-bumper warranties, cover the most comprehensive list of components and offer peace of mind by allowing vehicle owners to know exactly what is and isn’t covered. Stated-component contracts, such as powertrain warranties, are more specific and cover only a list of components in the engine, transmission, and drivetrain. Furthermore, most VSCs have a waiting period of 30 days and 1,000 miles before coverage kicks in. This is to make sure the vehicle does not have any existing defects, and to ensure that damages from pre-existing issues are excluded from coverage.

What to Consider When Buying a Vehicle Service Contract

1. Vehicle Service Contract: Benefits

The benefits of purchasing a vehicle service contract include 24-hour roadside assistance, towing services, rental car reimbursement, trip interruption reimbursement, choice of where to have your car repaired, lower out-of-pocket repair costs, coverage for vehicles with more than 150,000 miles, more variety in coverage options than manufacturer’s extended warranties, potential perks like 24/7 roadside assistance, trip interruption, and rental car reimbursement, and the ability to save money on unexpected repair bills.

2. Vehicle Service Contract: Cost

A vehicle service contract can cost anywhere from $1,700 to $4,000, depending on factors such as the coverage you choose, the deductible you select, the age and mileage of your vehicle, as well as the make and model. Typically, extended contracts with more features will cost more, and selecting a lower deductible will also increase the overall cost. Additionally, the price of your vehicle service contract may depend on how you choose to pay for it; many third-party providers offer the option for a zero-interest monthly payment plan. On the other hand, dealerships may allow you to roll the cost of extended coverage into your vehicle financing, but in this case, you will end up paying interest on the plan. Ultimately, a vehicle service contract can save you money on unexpected repair bills, and the cost of one major repair could be much higher than the lifetime cost of a vehicle service contract.

3. Vehicle Service Contract: Coverage

Vehicle service contracts typically include two types of coverage: inclusionary and exclusionary. Inclusionary contracts cover repairs that are limited to a predetermined list of items, while exclusionary contracts provide coverage for everything outside of a predetermined list of items. Additionally, vehicle service contracts can provide coverage for the mechanical repairs that occur post-warranty, such as transmissions, air conditioners, and engines. Other customer benefits, such as rental car reimbursement, trip interruption coverage, roadside assistance, and courtesy towing, may also be included.

4. Vehicle Service Contract: Eligibility

In order to purchase a vehicle service contract, you must meet certain eligibility requirements. These may include proof of ownership of the vehicle, the vehicle being within a certain age and mileage, and the vehicle being in good working condition. You may also be required to provide documentation of the vehicle’s maintenance history, including any recent repair receipts. Additionally, the provider may require that the vehicle be inspected prior to the purchase of the service contract. Finally, you may be required to provide proof of insurance, as well as a signed agreement to include the vehicle service contract in the policy.

5. Vehicle Service Contract: Term

A vehicle service contract is an agreement that provides coverage for various component parts with varying term lengths offered by manufacturers and third-party companies. The term of a vehicle service contract typically lasts for an agreed amount of time, ranging from a few months to more than a decade, and may also have an attached mileage limit. For example, a 7-year/100,000-mile vehicle service contract lasts for either 7 years or until the vehicle reaches 100,000 miles, whichever comes first. Most vehicle service contracts are categorized as either inclusionary or exclusionary, with the former covering repairs for components that are limited to a predetermined list of items and the latter providing coverage for everything outside of a predetermined list of items. However, vehicle service contracts typically don’t cover damage to the tires or wheels, damaged upholstery, regular wear and tear, deteriorated brake pads, or broken glass.

6. Vehicle Service Contract: Options

When considering buying a vehicle service contract, you have a few options. You can purchase a service contract from either the car manufacturer, a dealership, an insurance company, or an independent firm. The coverage and term lengths of these contracts vary widely, so be sure to carefully consider your needs before making a decision.

The two main types of service contracts are powertrain and bumper-to-bumper,with varying levels of coverage depending on the type you choose. Powertrain contracts provide coverage for major components such as the engine, transmission, and drivetrain, while bumper-to-bumper contracts cover a much wider range of components.

In addition, many third-party service contracts offer additional benefits like 24/7 roadside assistance, trip interruption, rental car reimbursement, and more. Some service contracts also come with conditions such as service your vehicle in accordance with the manufacturer’s recommended maintenance schedule.

Overall, vehicle service contracts provide peace of mind and lower out-of-pocket repair costs, so take the time to research the best options for your needs.

7. Vehicle Service Contract: Warranty

A vehicle service contract is not the same as a warranty, although the terms are often used interchangeably. A warranty is provided by the manufacturer and is included with the product at no extra cost. It is a promise that the manufacturer will stand behind their products for a specified amount of time. If the product fails in that period, the manufacturer covers the cost of repair or replacement. A vehicle service contract, on the other hand, is an optional service that can be purchased from the manufacturer, dealer or an independent company and covers certain vehicle problems or repairs after the dealer or manufacturer warranty expires.

8. Vehicle Service Contract: Repairs

A vehicle service contract is an agreement to cover a variety of maintenance costs, and typically includes repairs for major components of the vehicle such as the engine, transmission, and air conditioning, as well as roadside assistance and rental car reimbursement. In addition, repairs covered by the contract may also include trip interruption coverage, courtesy towing, and other customer benefits. However, vehicle service contracts typically do not cover damage to tires or wheels, upholstery, regular wear and tear, deteriorated brake pads, or broken glass.

9. Vehicle Service Contract: Deductible

The deductible for a vehicle service contract is the amount you have to pay out of pocket for each visit to the repair shop. The standard deductible is $100, though this can vary depending on the provider, with some offering $0 deductibles and others as high as $500. Low deductible plans tend to cost more than those with higher deductibles. This is because the cost of repairs without a service contract can add up quickly and outweigh the cost of a service contract, which may include monthly fees and a deductible.

10. Vehicle Service Contract: Liability

When buying a vehicle service contract, it is important to consider the potential liabilities. An inclusionary contract covers repairs for components that are limited to a predetermined list of items, while an exclusionary contract provides coverage for everything outside of a predetermined list of items. Generally speaking, both contracts will not cover damage to tires or wheels, damaged upholstery, regular wear and tear, deteriorated brake pads, and broken glass.

Furthermore, a vehicle service contract must be serviced in accordance with the manufacturer’s recommended maintenance schedule, and reasonable efforts must be taken to protect the vehicle from additional damage. ASE-Certified mechanics must be used, and the customer must be aware of any monthly fees and deductibles that must be paid.

In terms of benefits, a vehicle service contract may offer rental car reimbursement, trip interruption coverage, roadside assistance, and courtesy towing. Ultimately, the cost of one major repair after a mechanical breakdown is usually higher than the lifetime cost of a vehicle service contract.

Therefore, when considering a vehicle service contract, customers should weigh the costs and benefits carefully and assess the potential liabilities associated with their decision.

11. Vehicle Service Contract: Availability

When buying a vehicle, a vehicle service contract can be a beneficial factor to consider for cost savings and peace of mind. A service contract can help you avoid costly repairs by covering a variety of component parts, depending on the type of contract you choose. In addition, they can help to provide coverage for 24-hour roadside assistance, towing services, rental car reimbursements, and trip interruption reimbursements, which can help reduce the financial burden of unexpected vehicle repairs. These contracts are often negotiable, so be sure to consider all the options when making your decision. Ultimately, they can be a great asset in helping to keep you and your vehicle safe and in good condition.

12. Vehicle Service Contract: Customer Support

Vehicle service contracts typically offer a range of customer support benefits, including rental car reimbursement, trip interruption coverage, roadside assistance, and courtesy towing. In addition, many service contracts offer 24-hour roadside assistance, towing services, rental car reimbursement, and trip interruption reimbursement at no additional cost. Finally, some extended car warranty providers offer a 30-day money-back guarantee to ensure customer satisfaction.

13. Vehicle Service Contract: Restrictions

A vehicle service contract may come with various restrictions and conditions to maintain coverage, such as: servicing your vehicle in accordance with the manufacturer’s recommended maintenance schedule (at your own expense), making reasonable efforts to protect your vehicle from additional damage after it breaks down, and using only ASE-Certified mechanics.

Additionally, vehicle service contracts typically do not cover cosmetic items like paint, upholstery, or trim, wear-and-tear items like tires or wiper blades, routine maintenance services, parts that haven’t failed beyond manufacturer tolerances, upgraded parts, environmental damage, damage from misuse, damage from lack of maintenance, aftermarket components, pre-existing conditions, select emissions components, teardown and diagnostic costs.

In addition, vehicle service contracts usually require you to keep all maintenance records, follow all maintenance recommendations from the manufacturer, use only mechanics certified by the National Institute for Automotive Service Excellence (ASEⓇ), and get authorization from the vehicle service contract company before having repairs done (except in emergency situations).

14. Vehicle Service Contract: Warranty Company

When choosing a warranty company for a vehicle service contract, it is important to consider the coverage options, cost, deductible, repair locations, and term limits.

Manufacturer warranties are generally included with new cars and cover defects or incorrect installation of parts. However, they often come with limitations such as where a vehicle can be serviced and what term limits they have. In contrast, vehicle service contracts from third-party companies usually have a larger range of coverage options, a low deductible, and allow for repairs at any location. These contracts also typically have longer term lengths compared to manufacturer warranties.

It is also important to consider the cost of the warranty. Vehicle service contracts from third-party companies are usually more expensive than manufacturer warranties, as they offer more comprehensive coverage.

When choosing a warranty company for a vehicle service contract, it is important to compare and consider the coverage, cost, deductible, repair locations, and term limits to ensure you are getting the best deal for your money.

15. Vehicle Service Contract: Quality of Work

When evaluating the quality of work in a vehicle service contract, it is important to compare and contrast the coverage and conditions between inclusionary and exclusionary contracts. Inclusionary contracts cover repairs for components that are limited to a predetermined list of items, and exclusionary contracts provide coverage for everything outside of a predetermined list. Additionally, customers should consider the costs associated with the contract, such as monthly fees and deductibles, as well as any potential perks like 24/7 roadside assistance, trip interruption, and rental car reimbursement. It is also important to determine what is covered, as most vehicle service contracts do not cover damage to tires and wheels, deteriorated brake pads, regular wear and tear, and broken glass. Lastly, customers should consider the reliability of the vehicle, as vehicles with highly reliable cars or lengthier factory warranties may not need a vehicle service contract.

16. Vehicle Service Contract: Comfort

When deciding whether or not to purchase a Vehicle Service Contract (VSC), there are several comfort considerations to keep in mind. Generally, these contracts come in two types – powertrain and bumper-to-bumper coverage – and their coverage levels vary depending on the provider. Powertrain contracts cover the engine, transmission, and drive axle, while bumper-to-bumper contracts cover all mechanical breakdowns aside from a list of exclusions.

Additionally, certain providers offer a range of customer benefits, such as roadside assistance, towing services, rental car reimbursement, and trip interruption reimbursement. These benefits can help to alleviate the inconvenience and expense associated with a mechanical breakdown.

In exchange for these benefits, most VSCs come with a number of conditions, such as following the manufacturer’s recommended maintenance schedule and using ASE-Certified mechanics. Understanding these conditions is key to determining if a VSC is right for you.

Ultimately, VSCs can provide peace of mind and protection from expensive repairs, but they also come at a cost. Carefully weighing the pros and cons of a VSC can help you decide whether or not it’s worth the extra expense.

17. Vehicle Service Contract: Time

When considering a vehicle service contract, the time factor is an important consideration. Most vehicle service contracts have an agreed term length that can span a few months to over a decade, and usually come with a time limit as well as a mileage limit. Manufacturers, such as Honda and Toyota, offer shorter term lengths of 8 years/120,000 miles and 10 years/125,000 miles respectively, while third-party providers, such as Endurance and CARCHEX, offer longer term limits of 15 years/200,000+ miles and 10 years/250,000 miles respectively.

It is important to note that vehicle service contracts don’t cover pre-existing issues and usually come with a waiting period of 30 days and 1,000 miles before coverage kicks in. As such, it may not be cost effective to purchase a monthly payment plan for longer periods of time. Lastly, most service contracts come with a number of conditions in order to maintain coverage, such as having your vehicle serviced according to the manufacturer’s recommended maintenance schedule.

18. Vehicle Service Contract: Accessibility

When buying a vehicle service contract, there are several considerations to take into account in terms of accessibility. In terms of coverage, the options generally fall into two categories: inclusionary contracts, which cover repairs for components that are limited to a predetermined list of items, and exclusionary contracts, which provide coverage for everything outside of a predetermined list of items. It is important to note that most vehicle service contracts typically exclude coverage for damage to tires or wheels, damaged upholstery, regular wear and tear, deteriorated brake pads, and broken glass.

In terms of costs, most vehicle service contracts come with monthly fees and deductibles to pay, but the cost of repairs without a contract can quickly add up to outweigh those expenses. Additionally, many vehicle service contracts come with certain benefits at no additional cost, such as 24-hour roadside assistance, towing services, rental car reimbursement, and trip interruption reimbursement.

Finally, vehicle service contracts are typically offered in a variety of budget and coverage levels, and it is important to think carefully about your needs, maintenance habits, and how long you plan to own the vehicle when considering this additional expense. It is also important to research each major vehicle service contract provider and compare their coverage options and affordability before making a decision.

19. Vehicle Service Contract: Feedback

Customer feedback is an invaluable resource when it comes to purchasing a vehicle service contract. It can give you insight into the experiences of other car owners and provide a better understanding of the pros and cons of different coverage plans. For example, you can learn whether other customers are satisfied with the level of coverage, the cost of repairs, or the customer service they received. Additionally, you can find out if a provider is reputable, has a good reputation, or if they are known for offering good value for money. Knowing this information can help you make an informed decision about which plan is best for you. Furthermore, customer feedback can also serve as a source of motivation, as seeing how others have benefited from a particular plan can encourage you to purchase one as well. Ultimately, customer feedback is invaluable when buying a vehicle service contract, as it can provide a wealth of information that can help you make an informed decision about which plan is right for you.

20. Vehicle Service Contract: Reputation

The reputation of a vehicle service contract provider is often a major factor when deciding whether or not to purchase one. If a provider has a good reputation, it can give potential customers assurance that they will receive high-quality coverage and customer service. On the other hand, a provider with a poor reputation may lead customers to question the quality of their coverage and customer service, resulting in them opting out of purchasing a vehicle service contract. Additionally, customer reviews and rankings can also play a role in a customer’s decision to purchase a vehicle service contract. Reviews from past customers can provide insight into the overall experience a provider has to offer and help customers determine if a service contract is worth the cost. Ultimately, the reputation of a vehicle service contract provider is critical in the decision-making process for customers and can significantly impact whether or not they purchase a vehicle service contract.

The Different Types of Vehicle Service Contracts Available

1. Warranties for vehicles

Vehicle service contracts are agreements between a customer and contract administrator that the administrator will pay for select repairs. They can be purchased from a vehicle’s manufacturer or a third-party provider, such as GWC Warranty. There are two main types of vehicle service contracts: a powertrain warranty and a bumper-to-bumper warranty.

A powertrain warranty covers the components that make your vehicle move: the engine, transmission, transfer case, drive axles, and other related components. This type of warranty does not cover tires, wheels, paint, glass, upholstery, routine maintenance services, wear-and-tear parts, damages from accidents, collisions, abuse, or misuse, and pre-existing issues.

A bumper-to-bumper warranty covers most vehicle parts between your front and rear bumpers. This type of warranty is often exclusionary, meaning that instead of listing every part that’s covered, the contract will only list what isn’t covered. This type of warranty also excludes wear-and-tear items, damages from lack of routine maintenance, damages caused by modified components, damages caused by non-covered parts, and damages caused by collisions, environmental factors, or vandalism.

Some vehicle service contract providers may offer coverage in between the powertrain and bumper-to-bumper warranties. These plans may cover both the powertrain and brakes, air conditioning, audio system, or other major components.

Vehicle service contracts give drivers the confidence and freedom to enjoy their new vehicle worry-free, but it is important to read the fine print in the contract before purchasing one so that you are aware of what is and isn’t covered.

2. Manufacturer warranties

Manufacturer warranties are guarantees provided by the manufacturer of a vehicle that will cover the cost of repairs due to defects or poor installation of parts. These warranties usually come with the car and are often included in the purchase price. Manufacturer warranties usually have coverage limits and a certain time limit during which they are valid. The coverage limits and time limit of a manufacturer’s warranty will depend on the manufacturer, the make and model of the vehicle, and the age of the car. Manufacturer warranties generally cover the cost of repairs for defects or poor installation of parts, but may not cover other costs such as routine maintenance or wear and tear.

3. Extended warranty plans

There are two types of extended warranty plans available: manufacturer-extended warranties and third-party warranties. Manufacturer-extended warranties are usually offered at the time of purchase of a vehicle and typically offer less coverage options. They often come with term limits of up to 150,000 miles and require the vehicle to be serviced at an approved repair shop.

Third-party extended warranties are usually more affordable and provide more flexible coverage options. They can be purchased at any time and provide coverage for up to 250,000 miles. They also typically allow customers to choose their own repair shop. Both types of warranties can help cover expensive mechanical repairs.

4. Powertrain warranties

The different types of powertrain warranties available are exclusionary, stated component, powertrain, and wrap. Exclusionary plans, also known as bumper-to-bumper plans, provide the most comprehensive coverage, covering everything except the parts specifically listed in the contract as excluded. Stated component plans are the second most comprehensive, listing what is covered in the contract. Powertrain plans are designed to cover the engine, transmission and drive axle, as well as some other select components. Finally, wrap plans are the most inclusive of all, typically covering any mechanical failure not explicitly excluded in the contract.

5. Bumper warranty plans

A bumper-to-bumper warranty plan is a type of vehicle service contract that covers most vehicle parts between your front and rear bumpers. This type of plan is often exclusionary, meaning that instead of listing every part that’s covered, your contract will only list what isn’t covered. The coverage provided by a bumper-to-bumper plan may vary depending on the provider, but usually includes parts such as the engine, transmission, transfer case, drive axles, electrical components, air conditioning, steering, brakes, suspension, cooling system, fuel system, factory navigation, and high-tech components. Some plans may also cover additional items such as roadside assistance, towing, and rental car reimbursement.

6. Vehicle service contracts

Vehicle service contracts are agreements to cover a variety of maintenance costs, and come in two main categories: inclusionary and exclusionary. Inclusionary contracts cover repairs for components that are limited to a predetermined list of items, while exclusionary contracts provide coverage for everything outside of a predetermined list of items.

In addition, vehicle service contracts typically don’t cover damage to tires or wheels, upholstery, regular wear and tear, deteriorated brake pads, and broken glass. They come with several conditions such as servicing the vehicle in accordance with the manufacturer’s recommended maintenance schedule, making reasonable efforts to protect the vehicle from additional damage after it breaks down, and using only ASE-Certified mechanics.

By purchasing a vehicle service contract, drivers can save money on unexpected repair bills. The cost of repairs without a contract can quickly add up, and the cost of one major repair after a mechanical breakdown is often higher than the lifetime cost of the contract. Vehicle service contracts are transferable, so they can add value to a car if the owner decides to sell it. However, cancellation policies and money-back guarantees may vary by provider.

7. Aftermarket warranty providers

Some of the best aftermarket warranty providers include Endurance, Carchex, Protect My Car, and GWC Warranty. All of these providers offer a variety of coverage options, allowing you to choose the best plan for your vehicle and budget. Endurance has a massive network of service providers across the US, so it’s likely you can get your car fixed at your favorite local store and still be covered. Carchex and Protect My Car offer extended coverage up to 250,000 miles, while GWC Warranty has paid more than $3.5 billion in claims and protected more than 11 million drivers from costly out-of-pocket repair costs. Before choosing a provider, be sure to ask for a sample contract so you can read the fine print and better understand what parts are covered and what’s considered normal wear.

8. Trip Interruption benefits

Trip interruption benefits in a vehicle service contract typically include rental car reimbursement, trip interruption protection, and roadside assistance. Rental car reimbursement helps with the cost of a rental car while your vehicle is in the shop for a covered repair. Trip interruption protection can help cover food and lodging costs if your car breaks down more than 100 miles away from home. Roadside assistance includes services such as tire changes, lockout assistance, and battery jump-starts. Additionally, some vehicle service contracts may offer towing services and reimbursement of necessary fluids, oils, greases, lubricants, approved air conditioner gases, seals and gaskets that must be replaced in conjunction with a covered repair.

9. Repair expenses

A vehicle service contract may cover repairs of mechanical breakdowns, including parts, labor, and diagnostics. However, it may exclude repairs due to wear and tear, as well as damages caused by a non-covered part to a covered part. It may also require the car owner to pay a deductible for each visit to the repair shop, which may range from $0 to $200. Additionally, some vehicle service contracts may include extra benefits such as car rental reimbursement, roadside assistance, and towing.

10. Vehicle coverage

When it comes to coverage for vehicles, there are several different options available to choose from. Exclusionary coverage offers the most comprehensive coverage, and covers anything that is not explicitly excluded from the contract. Stated component coverage is less comprehensive, providing specified coverage for certain parts and systems of the vehicle. Additionally, new and used vehicle protection plans can be purchased for extra protection.

Other coverage options include 24-hour roadside assistance, rental car reimbursement, trip interruption protection, towing services, fluid coverage, improved resale value, and nationwide coverage. Generally, these services are included at no extra cost. Deductible options vary, with $0, $50 disappearing, $100, and $250 deductibles available.

Overall, the right coverage for your vehicle depends on your individual needs and budget. It’s important to research the various options available to determine the best type of coverage for you.