If your car is out of warranty and you don’t want to pay out of pocket for those unexpected repair costs, you may want to look into the option of a vehicle service contract. This can be a great way for people to consistently cover those repair costs so that it’s not an immediate crisis when something comes up.
The professionals at CarGuard Administration have been providing vehicle service contracts for over five years, so we talked to them to find out what vehicle service contracts are and customers’ frequently asked questions.
What is a vehicle service contract?
A vehicle service contract is a perfect way to protect yourself from unexpected repair costs and make sure that your car issues don’t break the bank. It works a lot like an insurance policy: you pay the service contract provider upfront (i.e., a certain amount per month), and if your car needs repairs, the service contract provider will cover it.
You may need to start thinking about getting a vehicle service contract after your car’s manufacturer’s warranty has run out. In the beginning, the manufacturer’s warranty will cover your repair costs, but in a few years, you’ll be on your own.
Vehicle service contracts generally mimic the manufacturer’s warranty coverage, giving you protection for the same types of things. However, it’s important to know that they do not actually extend the manufacturer’s warranty—the vehicle service contract is a separate deal.
What does a vehicle service contract cover?
This will depend on the contract. Businesses will often offer different levels of contracts that have different prices and cover different types of repairs. A cheaper contract might include more basic repairs like oil changes and battery replacement. At the same time, a more expensive one might cover a more comprehensive list of services, including engine and electrical repairs.
Other contracts might offer what is called exclusionary coverage. This basically means that they will cover everything except the things listed as exclusions to the contract. We recommend exploring the different options available to you to decide which contract offers the best protection for you.
Vehicle service contracts can help cover things like roadside assistance or the cost of buying and installing new car parts to keep your vehicle running smoothly. These third-party providers often offer an advantage over extended warranties from your dealer, with prices to fit your budget, more options, and professionals dedicated to making sure you get the coverage you need.
How much does it cost?
Again, this will depend on the contract. Service providers will often offer different types of plans or different prices with varying levels of coverage. You can decide what level of coverage is best for you by thinking about how old your car is, how often it needs repair, and what your budget is.
The price of your vehicle service contract will also depend on your vehicle. Contractors generally price services based on the type of vehicle you have and how much mileage is on it. Most providers will give you a quote if you fill out your information or contact them.
How do I find the right provider?
Finding the right vehicle service contract provider is a must. Some less reputable providers can make it really difficult to actually get your repairs covered, so it’s essential to do your research on the different companies and see what other customers are saying.
CarGuard Administration is one great option for your vehicle service contract. They offer a variety of plans at different price points, allowing you to choose which coverage is best for you. CarGuard Administration’s team prioritizes customer service, with professionals available to talk to you at any time. Their contracts are fully insured to make sure that you get your coverage no matter what.
Looking through all the different options can get overwhelming, but we recommend you compare companies to see what’s out there and what a vehicle service contract can offer you. Endurance is another option that provides high-quality coverage at different price ranges. They offer a service that assists their customers in every step of the process and offers up to 8 years of protection.
Carchex is another company that has been highly rated by vehicle service contract users. They have over 20 years of experience and offer an instant quote on their site to let you know what your vehicle service contract options are.
A vehicle service contract is a helpful service that allows you to rest easy, knowing that you won’t have to cover any unexpected repair costs. They are a great product with varying price options after your dealer’s warranty has run out to make sure your vehicle is still covered and you don’t run into any unpleasant surprises.