What is a Vehicle Service Contract

by | Oct 30, 2020

A vehicle service contract is also referred to as an extended auto warranty. It helps to cover costs for repairs that are needed after the original or limited warranty expires. You can purchase a vehicle service contract on both new and used cars. Think of it as your car shield against repairs.

Even though extended warranties are pretty much the same, there are some differences between the two. The main difference is that vehicle service contracts don’t exactly cover the manufacturer’s warranty. Rather, they copy the coverage from the manufacturer’s warranty. Also, they can sometimes provide added coverage that is not included within the warranty from the manufacturer.

Sometimes people prefer to just pay for the repairs because some companies make it so hard to get a claim covered. A vehicle service contract, as long as it is from a trustworthy company, such as Carcheck Auto Warranty can not only offer you peace of mind as it can lessens your worry regarding the condition of your car, but also will help you to budget easier as your all-out repairs can be more than the cost of the contract.

Using Your Vehicle Service Contract

Whenever your vehicle is in need of repairs you can use your service warranty as long as it is covered. Keep in mind that providers of extended auto warranty’s provide different levels of coverage, so not all contracts cover all repairs. If you’re looking for complete coverage, you may want to check out  contracts that offer no exclusions.

Providers also have their unique processing of claims about how they are covered and filed. For example, some will ask that you pay the repair upfront, then reimburse you, as others will work directly with the repair company from the beginning and pay them directly; that way you have no out of pocket expenses.

Are Vehicle Service Contracts Worth the Money?

If you buy a warranty contract from a reliable company such as Allied Auto Warranty or as mentioned above, Carcheck Auto Warranty, then yes it can bring you peace of mind and possible save you money as well. For some people it is enough to know that they have a clear definite limit on the cost of repairs being more important than saving money. As others will feel better about saving a couple of hundred or even thousands for repairs.

Today people tend to put many more miles on their cars during its lifetime, so if you are planning on keeping your car for some time, then it may be worth it to you.

Need more information about a vehicle service contract? Call Auto Warranty Choice today at 844-604-0589.