Despite all the research you have done to become an informed consumer, you may still have questions on the differences of an auto warranty and a vehicle service contract. Below, we have defined each of these and have listed some of the benefits and shortcomings of each.
However, once you are done reading our guide to auto warranties and vehicle service contracts, you may still have questions. Our customer service representatives are here to help you get through the information and answer any questions you have. Contact us online or by phone at 833-252-4253 to learn more about the differences of an auto warranty for vehicle protection and a vehicle service contract, or if you’re ready to get a quote.
An Overview of Auto Warranties and Vehicle Service Contracts
Commonly used terms for a vehicle service contract include used car warranty and extended auto warranty. These, however, are slightly inaccurate phrases as there are distinct differences between an auto warranty and a service contract. We hope to clarify the differences between an auto warranty and an extended service plan with the information below.
What is an extended auto warranty?
- An auto warranty is a warranty that was provided by your vehicle’s manufacturer when you purchased the car, which covers the car for a certain number or miles or years. Auto warranties are sold by dealers and manufacturers and cannot be sold by a third party. The warranty is backed by the manufacturer and covers certain repairs provided your car is under a certain age or mileage.
What is a vehicle service contract?
- A vehicle service contract pays for any repairs to parts that are listed as covered in your plan much like a warranty. A vehicle service contract can do many things. It can supplement the coverage provided by your auto warranty, filling in any gaps that the original warranty has, or, if your auto warranty has expired, then a vehicle service contract can take its place.
Benefits and Shortcomings of Each
- Auto Warranty Benefits
- Included in purchase price of your vehicle
- Major repairs covered—engine, transmission, etc.
- Auto Warranty Shortcomings
- Limited by the mileage accrued—commonly 36,000 miles
- Limited by the age of your car—typically 3 years
- Limited repairs covered—things like timing belts and the steering system are probably not covered
- Vehicle Service Contract Benefits
- Repairs for smaller parts may be covered—Depending on your plan, parts like brakes, electrical components, and air conditioning may be covered. These parts typically aren’t included in a standard auto warranty.
- Roadside assistance—if your car breaks down on the side of the road, your vehicle service contract may have the benefit of being able to send a tow truck or come help change a flat tire
- Vehicle Service Contract Shortcomings
- Out-of-pocket expense—it will be an added expense to your monthly budget
- Like other types of insurance, you may not ever use it
Contact Us to Learn More About Auto Warranties & Service Contracts
If you have questions about how our plans compare to your current auto warranty, how to get better vehicle protection, or you are just beginning your search for information, we are happy to help. Contact or call us at 833-252-4253 today to learn more about how a Fenix Protect vehicle protection plan compares to your other options.
