As a vehicle owner, you understand the importance of protecting your investment. While the vehicle you’ve purchased may come with a standard manufacturer’s warranty, knowing its limitations is important to protect yourself against unexpected repair costs. That’s why many individuals consider purchasing extra coverage through extended auto warranties and service contracts. This helps ensure long-term peace of mind while protecting your wallet.
Although terms like vehicle service contract and extended auto warranty are often used, they refer to distinct types of vehicle coverage. What’s the difference between extended auto warranties and vehicle service contracts?
What is an Extended Auto Warranty?
An extended auto warranty is an optional contract that covers repairing or replacing specific vehicle components beyond the original manufacturer’s warranty. This coverage kicks in at the end of the original warranty for your vehicle to extend the protection for a predetermined period or mileage, often up to several years or tens of thousands of miles.
In general, your vehicle’s manufacturer or a third-party provider will offer extended auto warranties, which can be purchased when you buy the vehicle or before your original contract expires. It is crucial to note that not all extended auto warranties are the same; they can vary in terms of coverage, duration, and cost. You should review the terms and conditions of any extended auto warranty before purchasing is advisable.
What Are Vehicle Service Contracts?
A vehicle service contract, sometimes called an extended service contract, is a contractual agreement that covers the cost of specified repairs and services on your vehicle. Unlike an extended auto warranty, a vehicle service contract is not an extension of the original warranty provided by the manufacturer. Instead, it is an extra contract covering repairs and maintenance beyond the original warranty.
Third-party providers offer vehicle service contracts. These contracts can be purchased anytime, even if the original warranty has expired. These contracts, like extended auto warranties, often cover a fixed period or mileage. The key difference is that vehicle service warranties can be customized to suit individual needs. It allows for greater flexibility in terms of coverage and cost.
Coverage Differences
On coverage, both extended auto warranties and vehicle service contracts offer protection for vehicle repairs. However, the extent of coverage can vary between the two. Extended auto warranties cover mechanical breakdowns. It also covers failures of specific vehicle components, such as the engine, transmission, or electrical system. In contrast, vehicle service contracts can cover a broader range of repairs, including routine maintenance, wear and tear, and roadside help.
Cost Considerations
The cost of an extended auto warranty can vary based on various factors. This includes the provider, coverage level, and the age and condition of your vehicle. Extended auto warranties are often bundled with purchasing a new or used car and may be included in the financing agreement. Vehicle service contracts can be purchased and available for vehicles of any age or mileage.
Before deciding, check the terms, coverage, and pricing of any extended auto warranty or vehicle service contract. Comparing many providers and reading customer reviews can help you choose a reputable and reliable option that offers comprehensive coverage at a competitive price.
Is There a Third Option?
At Everything Breaks, we know that the words “auto warranty” can leave a bad taste in the mouths of vehicle owners. We also understand that people need comprehensive coverage for their vehicles, protecting themselves from unexpected repairs and breakdowns. That’s why we offer a third, better option to service contracts and standard “extended” vehicle warranties.
Our auto protection plans go beyond what you can get in a vehicle service contract or extended warranty provider by a dealership or other third party. With coverage for vehicles of all manufacturers, and on those up to 250,000 miles, our plans are ideal for most cars on the road today. We offer comprehensive coverage on most vehicle components and major systems, giving you peace of mind knowing that your vehicle is protected from most sources of major malfunctions and breakdowns. We also offer a host of extra benefits that include:
- 24/7 Roadside assistance
- Free rental car coverage
- Continuation of journey
- So much more
How do our plans differ from warranties and service contracts? What else do we offer to our happy and loyal customers? We’d love to tell you. Get in touch with us today by calling 800-895-0842. Coverage can be as little as a dollar a day.
