What’s the Difference Between Coverage From CarShield and an Extended Warranty From a Dealership?

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carshield vs extended warranty from dealership

Have you ever wondered what the difference is between what an Auto Dealership can offer after the Manufacturer’s Warranty runs out and what a company like CarShield can offer? Below we will spell out the main differences between the two, and also spell out more information about the Factory Warranty that comes with new vehicles. If you would like a free customized quote for your vehicle click here or or call 1-800-974-9385.

Car Warranties Comparison

There are really 3 types of coverage that an automobile owner may have.

First, when every car is purchased brand new, they come with a Factory Warranty from the Manufacturer. For many years it was standard to have a 3 year/ 36,000 mile warranty that covered nearly everything on the vehicle. This is often referred to as a “Bumper to Bumper” warranty, or “New Car Warranty”. Some manufacturers have gone to different Factory Warranties. For example, many Kia’s come with a 5 year/ 60,000 mile warranty for full coverage and then also have a 10 year/ 100,000 mile warranty that covers the Power Train items only (items like the Engine and Transmission). Power Train warranties are good, but please note that they do not cover many Electronic components, Computer Systems and more.

The second type of coverage that is usually offered is called an Extended Warranty. A real Extended Warranty can only be offered from the Manufacturer of the vehicle, or an Auto Dealership. If you’ve ever purchased a new car from a Dealership, chances are they offered you an Extended Warranty. These coverages normally start when the vehicle was first put into service. It’s common to extend the coverage for another year or two, and get additional mileage. One common term for Extended Warranty is a 5 year/ 75,000 mile coverage. The way most Extended Warranties work is that your Extended Warranty does not kick in until the original Factory Warranty runs out. So, if you have a 3 year/ 36,000 mile warranty and extend it out to 5 year/ 75,000 miles- you really paid for 2 years of additional coverage or up to 75,000 total miles, whichever comes first.

CarShield’s Vehicle Service Contract

The third type of coverage (offered by CarShield), is a Vehicle Service Contract, or commonly referred to as Car Repair Insurance. While they behave very much like an Extended Warranty, there are several key things to point out. First off, while an Extended Warranty can often only be purchased while you are still under your Manufacturer’s Warranty, CarShield can sell a Vehicle Service Contract even to a vehicle that is out of Factory Warranty. That’s very important so that you get what you pay for. Most people don’t want to be double covered. Also, when you’re on a fixed budget like many people are, many would choose to wait and pay for the coverage when they need it. CarShield allows you to do just that. Whether your car is 5 years old or 10 years old; has 36,000 miles or 136,000 miles, CarShield has plans for it. Plans vary based on the age of the vehicle and the mileage, so it’s best to purchase when the Factory Warranty is about to run out. Unlike most of the Extended Warranties that start at the in-service date of the vehicle, CarShield plans are usually given on a monthly term that starts when you purchase it. No more having to pay for double coverage. With a Monthly Plan from CarShield, you can keep the coverage on your vehicle as long as you want. And though CarShield has different levels of coverage, once you purchase, your level of coverage will never change. CarShield also offers more flexibility than a traditional Warranty or Extended Warranty. For repairs under a CarShield plan, you can use your local ASE Certified Repair Shop, or you can even go to a Dealership to get your vehicle repaired. Claims are paid directly to the Dealer or Repair Shop, so getting your car back on the road should be hassle free.

Hopefully this article has helped you understand the difference between different Auto Warranties, Manufacturer Warranties, Extended Warranties and coverage from a company like CarShield. If your vehicle is out of Warranty and you want a quote from CarShield, you can visit www.CarShield.com or call 1-800-974-9385. To find out even more information about CarShield, please read below.

Why Choose CarShield?

  • CarShield has helped over 1,000,000 Vehicle Owners in the United States
  • CarShield customers have had Hundreds of Millions of Dollars in Claims Paid!
  • CarShield has low, budget-friendly plans that can fit almost any budget!

Not sure how long you will keep your vehicle? Great, because with CarShield you can choose a monthly plan that fits around you. No more 5-year plans that you have to pre-pay. Just choose your level of coverage and keep your vehicle covered as long as you want!

Most CarShield plans come with benefits such as: Towing, Rental Car Coverage and 24-hour Roadside Assistance (see contract for more information). Parts, Taxes, Diagnostic Fees and Labor costs paid for all Covered Claims. Many plans can have a $100 Deductible, $50 Deductible, or Zero/ No Deductible on Covered Repairs.

What types of Coverage does CarShield offer?

To find out what you qualify for you can visit CarShield.com or call 1-800-974-9385. CarShield has 4 main types of Coverage. See the points below, or for more about plans click here.

The best coverage at CarShield is the Diamond coverage, often referred to as New Car Coverage. This is their closest offering to the Factory Warranty that vehicles come with and covers everything except for Excluded Items. Even most Computer Systems, Electronic Components and Sensors are covered under Diamond coverage.

The second level of coverage at CarShield is the Platinum Coverage, often referred to as Comprehensive Coverage. This is very similar to the Diamond coverage, but is made for vehicles a little older that may have a little more mileage. Platinum coverage protects the Electrical System, Air Conditioning, Starter, Water Pump, Fuel Pump, Engine, Transmission and more.

The third level of coverage at CarShield is the Gold Coverage, often referred to as Enhanced Power Train Coverage, or Power Train Plus. This level of coverage is made to cover the Power Train on the vehicle, including the Engine and Transmission, but it’s also meant to cover many common repairs. Also included in the Gold protection is Air Conditioning, Power Windows, Water Pump, Alternator, Starter.

The fourth level of coverage at CarShield is the Silver Coverage, often referred to as Power Train Coverage. Silver protection includes all lubricated parts on your Engine, Transmission and Water Pump. It’s a great coverage for vehicles with high miles.

CarShield customer, Esekiez, used his vehicle protection to fix his broken power windows at his Nissan dealer.
CarShield customer, Esekiez, used his vehicle protection to fix his broken power windows at his Nissan dealer.

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