What is a Vehicle Service Contract?

Giulia Nigrini
Giulia Nigrini
Vehicle Service Contract Specialist, Traveler, Car Enthusiast
January 31, 2022
min. read
side view of a broken down car with the hood up

There is a good chance that you are in the market for a protection plan for your vehicle. For that you have come to the right place. A vehicle service contract offers you the opportunity to protect your car in case you have a mechanical failure and you will likely have access to some incredible perks. In this article we are going to delve into the details and answer the question: what is a vehicle service contract?

Is an Extended Car Warranty the same as a Vehicle Service Contract?

The short answer is simply yes. A vehicle service contract is colloquially known as an extended car warranty. Though in fact it is not actually a warranty but rather a contract between you and the provider to ensure that services outlined are covered. As long as you keep to your maintenance schedule, you will have coverage for the most critical parts of your vehicle. Sometimes it is also referred to as auto warranty services and are typically bought via a dealership. Chaiz offers fully online plans that you can research in your own time at your own pace.

The providers here on Chaiz are top-rated throughout the country, offering optional extras and added perks to make car ownership that much easier. The  optional extras you can add to your coverage plan includes commercial use and lift kit installation. Plus they provide added perks such as roadside assistance, fuel delivery, towing services, and so much more. We will get into more detail in a later section.

What does a Vehicle Service Contract Cover?

Vehicle service contracts, or extended car warranties, are offered on three different tiers, a powertrain plan, powertrain plus plan, and a bumper-to-bumper plan, commonly known as the most comprehensive or exclusionary plan. Your powertrain plans are affordable plans that cover the most critical parts of your car in the event of a mechanical breakdown. Powertrain plus plans offer coverage for more parts that include adjacent systems and are a mid range coverage plan. While bumper-to-bumper plans are more comprehensive and cover most of your mechanical parts. The powertrain warranty and powertrain plus warranty plans also have longer terms than those of bumper-to-bumper warranty plans.

Below is a list of what is typically covered by powertrain and powertrain plus plans and what is typically excluded from bumper-to-bumper plans:

Powertrain and Powertrain Plus Warranties Cover:

Bumper-to-Bumper Warranty Does NOT Cover:

What are the Added Perks?

The purpose of added perks is to make sure you get quick and reliable service in case you find yourself stuck on the side of the road. Many of the plans offered on Chaiz have some or all of these perks included. The roadside assistance includes winching services, fuel delivery, towing services, trip interruption if you are 100 miles or more from home, and flat tire service. All of this helps in those moments when you have a mechanical breakdown and you want to be sure you have assistance that is efficient and within your warranty so you do not find yourself forking out any money unnecessarily.

Is a Vehicle Service Contract Right for Me?

Depending on the vehicle you drive, repair costs can range between $200 and $2,500. This is also influenced by the repairs that are needed.  Sometimes this amount can exceed $4,000 when there is damage to expensive parts or entire systems need an overhaul. There are labor costs to take into consideration as well. Though your average repair costs are going to be somewhere between $300 and $800 dollars it still means you will need to have at least $1,000 aside in case you have mechanical issues. That is excluding the added perks that come with many of the car warranty plans.

Let’s be honest about mechanical breakdowns, they tend to happen spontaneously. Proper care and maintenance will definitely reduce the potential of a breakdown but with wear and tear on the vehicle something is bound to happen. A vehicle service contract takes all that stress out of the equation and allows you to drive with peace of mind, knowing that you are covered. So yes, a vehicle service contract is probably right for you.

Related Articles