What is a vehicle service contract vs an extended car warranty?

Giulia Nigrini
Giulia Nigrini
Vehicle Service Contract Specialist, Traveler, Car Enthusiast
June 15, 2022
min. read

There is a good chance that you have heard the term extended car warranty at some point or the other. Fewer have heard of a vehicle service contract. They are similar in coverage but are different mechanical coverage options for your vehicle. In this article we will go through what is a vehicle service contract vs an extended car warranty?

What is an Extended Car Warranty?

An extended warranty is offered by the vehicle manufacturer. They extend the factory warranty the vehicle received upon original purchase. Mostly the powertrain or bumper-to-bumper warranty plans are extended and not any optional coverage items from the original purchase.

Some manufacturers offer certified pre-owned vehicle warranties for vehicles with a full history. Extended car warranties come with roadside assistance, depending on the manufacturer, and are often quite limited. They also typically need to be bought at the original purchase of the vehicle and are known to cost anywhere from $1,500 to $4,000 in total price.

What is a Vehicle Service Contract?

A vehicle service contract, or VSC, is often referred to as an extended car warranty colloquially due to the fact that the contracts offer coverage for certain mechanical parts. A VSC is mechanical breakdown coverage for vehicles that are out of their warranty period.

The VSC is offered by third-party providers and often comes with great roadside assistance services such as towing, jumpstart services, and fuel delivery services. The plans are also available in a number of coverage levels, unlike standard extended warranties. A vehicle service contract is a great choice for older vehicles or pre-owned vehicles that do not already have mechanical coverage.

What are the Main Differences?

To recap let’s list out the main differences between an extended car warranty and a vehicle service contract.

Extended car warranty:

Vehicle service contracts:

Why Choose a Vehicle Service Contract through Chaiz?

Chaiz is the first online marketplace for vehicle service contracts where you can research, compare, and purchase mechanical coverage. With no fuss, you can easily pick the plan that best suits your budget and driving needs.

Convenience – There are somewhere between 200-300 vehicle service contract providers throughout the country. The traditional method of getting coverage is via phone. Whether that be a call back or a robocall reminding you to get your “warranty” plan today. Chaiz removes all of that by giving you one online platform where you can shop for a plan that suits your needs. No phone calls of any kind. Simply put your vehicle’s details into the search bar and get quotes within minutes. Each plan has a tab showing further details for more information on the specific items covered for better comparison.

Savings – A big thing for most of us to be able to save money and be able to maintain the savings. You can receive up to 60% savings on quotes from dealerships or call centers. We do not have massive call centers or offices which means we can pass the savings on to our customers.

Cash Flow – Mechanical repairs are often rather costly and tend to happen at the most unfortunate moment. Without coverage the repair costs would be entirely paid out of pocket. Plus any extra services such as towing or car rental that you might need will also be your responsibility. This can really tighten your cash flow and sometimes have a domino effect. A vehicle service contract with the right coverage for your driving needs at a rate that fits your budget will limit the burden of a mechanical breakdown.

Flexible Plans – You have the choice of three different plan types. This is the powertrain plan, powertrain plus plan, and the most comprehensive plan. Each plan also offers 24/7 roadside assistance when you find yourself stuck on the side of the road. The plans have different coverage within them as well which means that everyone has the opportunity to find a plan that is perfect for them.

Time Saving – Through the Chaiz search tool it takes minutes to get online quotes from providers across the country. This certainly takes much less time than dealing with phone calls from each provider. Here you can simply look at the plans when you have time and spend less time doing so.

A vehicle service contract is designed to alleviate the stress of covering the repair bills occurring under unforeseen circumstances. Taking into account that mechanical issues do tend to happen in an unpredictable way it may be beneficial to shop around for extended auto protection that will suit your needs.

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