The Benefits of Choosing a Vehicle Service Contract
A vehicle service contract, commonly called a VSC, is a paid plan that helps cover mechanical repairs after your car’s factory warranty expires. VSC’s are also sometimes called extended warranties, even though these plans are not truly a warranty. A true warranty comes from the manufacturer WITH the purchase of your vehicle, while a vehicle service contract is an extra protection you can purchase that extends beyond the manufacturer warranty.
After your vehicle’s factory warranty expires, you may consider purchasing a vehicle service contract. A vehicle service contract is like health insurance for your car; covering mechanical repairs that occur from issues outside of normal wear and tear. A vehicle service contract is an excellent choice for out-of-warranty vehicles or drivers who want to extend the life of their vehicle as long as possible.
What are the Benefits of a Vehicle Service Contract?
VSC’s ensure fewer out-of-pocket expenses as your vehicle begins to show signs of age & requires repairs to mechanical components
A VSC from your dealership ensures that your vehicle is repaired by factory-trained brand technicians with experience
VSC’s are transferable if you sell your car, or can be cancelled for a prorated refund if you trade your vehicle in
Many VSC’s have 24-hour roadside assistance, including battery jump-starts, spare tire installation and fuel delivery if you run out of gas
When your car is in the shop for covered repairs, many VSC’s help you with rental car costs through rental reimbursement
Some VSC’s include trip interruption protection, which helps with food and lodging expenses if you have a covered breakdown away from home
What Coverage is Included?
Commonly Covered Vehicle Service Contract Components
Depending on the administrator and plan you choose, you may get coverage for any of the following vehicle components, or possibly more:
- Air conditioning systems and components
- Electrical systems and components
- Engines and transmissions
- Radiator systems and components
- Brakes
- Suspension
- Fuel system
- Onboard computers, sensors, and relays
- Factory Installed Entertainment, Navigation, and Anti-Theft Systems
Common Exclusions in Vehicle Service Contracts
Just like factory warranties, vehicle service contracts don’t cover every part of a vehicle. They also don’t cover pre-existing issues. Common exclusions include:
- Wear-and-tear items such as tires and brake pads
- Damages from a lack of routine maintenance
- Damages caused by modified components
- Damages caused by non-covered parts
- Damages caused by collisions, environmental factors or vandalism
- Batteries, tires, and wheels
- Glass, upholstery, paint, or other cosmetic issues
- Aftermarket accessories or parts not installed by the manufacturer
- Routine maintenance such as oil changes or tire rotations
