Vehicle Service Contracts and How They Can Protect Your Investment

Giulia Nigrini
Giulia Nigrini
Vehicle Service Contract Specialist, Traveler, Car Enthusiast
December 27, 2023
min. read
car facing the open dirt road

What is a Vehicle Service Contract?

A vehicle service contract is a plan that offers extended auto protection in the event of a mechanical breakdown. 

They are sometimes referred to as extended car warranties. However, they are warranties but rather an agreement between you and the service provider to cover certain parts and labor when you have a mechanical failure. Other terms might include car service contract, auto service contract, vehicle warranty, and extended warranty. 

The vehicle manufacturer offers extended car warranties. For more details on that you should consult your vehicle manufacturer.

What's Included in a Vehicle Service Contract?

Vehicle service contracts function similarly to extended warranties. They offer coverage for repairs on a car that has broken down. The repairs covered are for parts and labor. 

The plans are available on different tiers. Each cover specifically listed parts and at different levels of coverage. The powertrain plan is the most basic plan. That goes up to the most comprehensive plan that covers the majority of parts in your car. 

The majority of plans come with roadside assistance as well. This means that when you find yourself stuck on the road or locked out of your car, a service will assist you. Making the whole experience a lot easier to manage.

How Much Does a Vehicle Service Contract Cost?

The cost of a vehicle service contract is dependent on a few things. This includes:

A vehicle service contract can cost between $50 to $200 per month. Sometimes even a little more or a little less depending on the vehicle and the type of plan you have chosen. The powertrain plan is the least expensive and covers the critical components of your vehicle. While the most comprehensive plan is the more expensive plan, it offers coverage for the majority of parts. 

The plan terms can also impact the price. Powertrain plans typically have longer terms than the most comprehensive plans. Again, this all depends on what the provider has on offer as well. A vehicle warranty comparison is the best way to find out if an extended car warranty or a vehicle service contract is better for you.

Do I Need a Vehicle Service Contract?

You might be wondering “Do I need a car warranty or a vehicle service contract?”. The truth is that your situation is unique. 

For the majority of people, having extended auto protection makes sense. Approximately 1 in 3 Americans cannot afford car repair bills of $600 or more. This means that when a mechanical failure occurs, they have few options when it comes to getting repairs done.

A vehicle service contract can act as an affordable safety net. Ensuring that you will have coverage when you experience a mechanical breakdown. Meaning that your investment will be protected and you can drive with peace of mind.

Next Steps for Vehicle Protection

If you are in the market for extended auto protection, we urge you to do your research. Find out what plan will work best for your driving needs and your budget.

Our online marketplace makes it easy to compare plans from a number of providers. The entire process is online and can be done at your own convenience.

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