If you’re looking to save money on major car repairs after your manufacturer’s car warranty ends, it’s time to consider a vehicle service contract (VSC).
A way to extend a car warranty, a vehicle service contract’s monthly or yearly plan covers the cost of unexpected mechanical breakdowns. Unlike insurance, this type of coverage is not required, but for millions of people it’s coverage they just can’t go without.
When evaluating your options, here are the three most important things you must know about vehicle service contracts.
1. Vehicle service contracts cover repairs after the manufacturer’s warranty ends
When you buy a new car, it’ll come with a manufacturer’s warranty that will cover car repairs due to factory defects. The warranty is likely to last around three years or 36,000 miles.
For those first few years, it feels great to have coverage. The problem is most cars begin to have problems precisely after those three years. So manufacturer’s warranties often go unused.
A VSC is a contract between a car owner and an entity that promises to pay for thousands of expensive car repairs due to mechanical breakdowns.
Why do people sign up for a VSC?
The reasons people choose to sign up for a vehicle service plan are really straightforward:
- People want to keep their car for a long time
- People don’t want to pay a huge bill if something goes wrong with the car
Because a VSC covers repairs no longer covered under the manufacturer’s warranty, you can buy coverage even if you’ve already had your car for three or more years or if you’ve recently bought a used car.
What are some examples of repairs covered?
Here are only a few of the common expensive repairs (costing over $1,000 in some cases) covered with the right VSC:
- A/C repair
- Alternator replacement
- Brake caliper repairs
- Electrical problems
- Fuel pump replacement
- Transmission repair or replacement
VSCs may offer coverage for thousands of components. By paying a low fixed rate every month, a VSC protects you from ever having to pay a huge charge at the repair shop when any one of those covered components fails.
2. Recurring or pre-existing car problems are NOT covered
A vehicle service contract functions similarly to a health insurance provider: you can only be approved for a claim if the issue happened after you’ve signed up for the service. For example, if your car is already having alternator problems before you sign up for your VSC (the alternator charges your car battery and electronics), you won’t be able to make a claim to get those repairs done.
To avoid any surprises, it’s recommended that you take your car in to a mechanic for a check up before signing up.
3. Not all vehicle service contracts are the same
There is no such thing as a standard vehicle service contract because each VSC provider can choose what repairs and replacements to cover, how long to structure their contracts and how much to charge. Before you sign up for a plan, you must know what you’re covered for. Read the fine print carefully.
Extended warranties are often sold through pushy salesmen at the dealership or big companies you see on TV and here on the radio (or robocalls that call you nonstop). Some dishonest companies will add really big markups and charge you more money in the long run than what it would cost you to pay for repairs on your own.
Check to see that the company is trustworthy and charging you a fair price for their monthly or yearly plans.
The best vehicle service contract option: Vehicle Repair Protection
Vehicle Repair Protection provides the convenience of comprehensive car repair coverage at the lowest monthly price. You’ll never need to pay the repair shop upfront or be forced to negotiate costs with the mechanic. You’ll just take the car to any repair shop nearby and start the claim quickly and effortlessly through our mobile app.
Uproar.car has created vehicle breakdown coverage that is simple, trustworthy and affordable. Transforming the extended car warranty marketplace through technology and transparency, Uproar.car offers a full suite of worry-free, no haggle car care plans through low-cost, 100% online, monthly subscriptions that drivers can sign up for in less than five minutes. Get an instant quote today!