According to Car and Driver.com, the average age of cars on the road today is nearly 12 years old. That means that most drivers are no longer protected by their car’s original manufacturer’s warranty.
If you are driving a car that is out of its factory warranty period, you might be looking at expensive auto repair bills at some point in the future.
This probably has you looking for options to safeguard you and your wallet from those costs. If that’s the case, then you’ve probably heard about vehicle service contracts, but you may be wondering what they are.
What Is a Vehicle Service Contract? (+ How Do Vehicle Service Contracts Work?)
A vehicle service contract or vehicle service agreement acts much the same as a factory warranty, but instead of being a product from the car’s manufacturer, the coverage is from a third-party company.
You may have heard them referred to as “extended warranties,” and while this description does give a general idea of how they work, technically, “extended warranties” are only available from the manufacturer. As the name implies, it’s an extension of the warranty the vehicle already had.
Unlike manufacturer warranties, a vehicle service contract from a third-party provider isn’t backed by an automaker, but it still delivers peace of mind for drivers. With CarShield, most vehicle service contracts work on a flexible month-to-month basis.
This means coverage continues as long as you keep your plan active and that there’s no set expiration date or mileage cap. Some term-limited options exist, but the majority of plans are designed to provide ongoing protection for your vehicle without worrying about limits.
What Does a Vehicle Service Contract Cover?
The details of a vehicle service contract depend on the specific contract someone chooses to buy.
Perhaps the purchaser only needs a powertrain service contract. This type of vehicle service contract would protect against major powertrain failures, including parts such as the engine, transmission, drive axle, and water pump.
It would not, however, cover any issues with the electrical system, hybrid batteries, suspension, or any other parts.
Perhaps a buyer only wants to cover the powertrain. Alternatively, they may want to get additional coverage for every system in the car and add coverage for corrosion or perks such as roadside assistance.
Vehicle service contract providers, like CarShield, have different tiers of coverage, usually with labels such as silver, gold, and platinum, that provide increasing levels of protection for more of a car’s parts.
How Much Does a Vehicle Service Contract Cost?
Vehicle service contracts vary in price depending on a multitude of factors, such as:
- Age of the vehicle
- How many miles are on the vehicle
- Vehicle make & model
- How the vehicle is used
- The state you reside in
- Modifications to the vehicle
- Commercial or Rideshare usage
All of these things determine how much a car service contract will cost to cover a specific car.
Generally, a newer vehicle with fewer miles will have the lowest cost with a higher level of protection. However, an older vehicle with higher mileage can still qualify for a service contract that has a great level of protection and a budget-friendly price. CarShield offers plans that cater to the coverage and budgeting needs of most drivers.
When and Where Should You Buy a Vehicle Service Contract?
The best time to buy a vehicle service contract is often before your manufacturer’s warranty expires, so you avoid gaps in protection. However, it’s never too late because any time is a good time to get coverage.
Even if your warranty ended years ago, an auto service contract can still protect you from costly car repairs. After a short waiting period, your plan kicks in, ensuring breakdowns that happen afterward are covered.
It’s a win-win.
Now, when it comes to where to select a vehicle service contract, consumers have many options. Fortunately, America's #1 auto protection company has made purchasing a service contract simple, affordable, and convenient.
CarShield offers vehicle service contracts with unique terms. This is because CarShield provides consumers with a month-to-month option.
A month-to-month vehicle service contract from CarShield is essentially unlimited in time or mileage. The contract renews every month, and that means you get the same level of coverage for as long as you want to keep the vehicle protected.
To take advantage of this opportunity, simply go to CarShield.com. Enter a few quick details about your vehicle, and a specialist will help find the right option for you, your vehicle, and your budget.
Are Vehicle Service Contracts Worth It?
Your current vehicle may still be in excellent shape, with low mileage and a reputation for reliability. You may even have the knowledge and disposable income necessary to take care of some of its repair work yourself. Conversely, you might have a vehicle that is sitting over 100,000 miles and has a tendency to cause issues, while you aren’t savvy with tools.
You must determine how comfortable you are with having or not having coverage for repairs. You also have to consider your geographical location in that decision. If you live in an area with rough roads that beat up your car’s suspension.
Vehicle Service Contract for New Cars
New cars already come with a manufacturer’s warranty, so buying a vehicle service contract immediately isn’t always necessary. However, once that original coverage nears its end, it’s the ideal time to consider a vehicle service contract.
Factory-backed extended warranties often cap out around 100,000 to 150,000 miles, while third-party vehicle service contracts can extend protection much further. This ensures your new car stays covered long after the manufacturer’s limits expire.
Vehicle Service Contract for Used Cars
For used vehicles, a vehicle service contract is often the smartest way to manage repair costs. Older, high-mileage cars face greater risks of breakdowns, and manufacturer warranties typically no longer apply.
Third-party vehicle service contracts can provide protection well beyond factory limits by covering 200,000 miles or more. Whether you want basic powertrain coverage or a comprehensive plan, a vehicle service contract helps keep your used car reliable and reduces the chance of expensive, surprise repair bills.
How to Choose a Vehicle Service Contract That Fits Your Needs
Unscrupulous service contract companies do exist, and they are more than happy to keep your money without paying claims.
Check reviews from reputable sources, such as car publications and high-profile review sites, and make sure to also look into customer reviews and ratings to see how these services fare in the real world
.Once you’ve decided upon a particular provider, analyze their vehicle service contracts to guarantee you’re getting the coverage you truly need, and when in doubt, ask questions. Honest providers will tell you if you need specific items or not.
The plan you buy should reflect your needs. Every vehicle, even the most reliable, can break in surprising and catastrophic ways.
Your risk tolerance may be higher than others, and whether you’re willing to foot your own repair bills is up to you. But drivers who want to breathe easy whenever they turn the ignition will more than likely find a vehicle service contract worth it.
CarShield: Your Trusted Provider for Vehicle Service Contracts
There are many good reasons for buying a vehicle service contract for your used car. Not only can it help with the financial burden of repairing an older vehicle, but also benefits like roadside assistance and an increased resale value are things that should not be overlooked.
Buying a vehicle service contract is an investment to not only save you money, but also keep your car on the road for years to come. Be sure to get a free quote from CarShield today for a great vehicle service contract ensures long-term protection for your car.
