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If you have a car, you have certainly heard the term “extended auto warranty.” But what exactly is an extended auto warranty? Depending on how well you know cars, there could be more than a few misconceptions about what that means. Some drivers mistake it for insurance, others see it as a guarantee, but the majority of drivers don’t have any idea what that term means at all.
Like many terms in the automotive industry, an extended auto warranty comes with loaded and confusing definitions.
In this article, we are going to lay out what an extended auto warranty is. You will learn everything you need to know about extended auto warranties using the following topics:
We will go over all of this and set the record straight when it comes to auto warranties and why Endurance is the best company to provide vehicle protection for you.
So let us begin with clearing up the big question:
Every new car comes with a standard factory warranty. This is a guarantee from the automaker to you that they will cover all repairs stemming from mechanical failure or even subpar manufacturing. It is mostly a means for them to hold their product to a promised standard for a limited period of time.
An extended auto warranty works to continue to help protect drivers after the factory warranty ends. However, according to the Vehicle Protection Association’s definition, an extended car warranty should be referred to as a vehicle service contract or vehicle protection plan.
This is because in order for a product to be labeled an “extended warranty,” it must be included by the manufacturer of the product and be included at the time of purchase. Because these protection plans do not come from Ford, Toyota, or any other automaker, they cannot rightfully be called extended auto warranties.
This is why most providers, like Endurance, use the correct terminology for an extended auto warranty: a Vehicle Service Contract.
Although different in name, an “Extended Auto Warranty” and “Vehicle Service Contract” work the same as your vehicle’s original manufacturer warranty.
Here’s how they work:
As you can see, extended coverage for your car is easy to use. Most contracts come with a waiting period and a premium to be paid through easy, low-cost monthly plans.
It is important to make sure that you only work with credible vehicle service contract providers. You do not want contracts that demand you pay upfront for repairs. Those contracts come with inconvenient reimbursement processes, and claims are more likely to be denied.
The conventional wisdom when shopping for extended vehicle coverage in the form of a vehicle service contract is the only thing that matters is the lowest price. Drivers tend to want the most bang for their buck. And yet, that all becomes a moot point because not every vehicle owner qualifies for the level of coverage they might want.
It is not very difficult to qualify for the coverage you want and need. The key is to be on top of a few things. There are certain limitations for vehicle protection companies that make it impossible for any company, let alone Endurance, to give certain vehicles full coverage.
Endurance works hard to match the best coverage to every driver and car. While the requirements to qualify for fully comprehensive coverage seem high, many drivers can better work towards it by following those 3 steps above.
Then, it becomes a matter of if they feel they need this coverage.
The most common question Endurance gets beyond what is an extended car warranty is if they need one or not. Quite simply: everyone who owns a car needs extended coverage.
Use the following example: in most states, you are required by law to drive with auto insurance. This is meant to protect you and other drivers should an accident happen. No one ever drives wanting an accident to happen. That’s why they are called accidents, but the contract becomes deeply important should the unthinkable happen.
The same thinking applies to extended vehicle protection plans. While you continue using your car well past the manufacturer’s warranty, you hope it never breaks down. However, should it ever break down, you now have a safety net to help pay for the necessary repairs to get your car up and running again.
A vehicle service contract, also known as an extended auto warranty, is not just a smart choice but also a safe choice. Drivers should continue to be protected from large repair bills if they can.
Now that we’ve discussed the extended auto protection let’s go back and clear up a few things. Every car needs a protection plan because all cars will eventually need service. Now the questions are: what kind of protection, and where do you get it from?
There are many companies that provide some sort of means for drivers to pay for breakdown repairs. Don’t just spend money on the first company that you find.
Some drivers think their insurance is enough protection in their day-to-day driving. However, a warranty isn’t the same thing. There are some similarities but let’s clear some things up.
Let’s go back to what an extended auto warranty is. Whenever you purchased a new car, it came with a manufacturer’s warranty. That factory-provided warranty guarantees quality and a way for the automaker to help cover the repair bill should things go wrong in the first few years of ownership.
The same principle applies to a vehicle service contract. Once the factory warranty ends, those repairs will be left to you. If you have coverage from a reputable third-party provider, they will help pay for repairs if your vehicle ever breaks down.
So what is the difference between a warranty and insurance?
Insurance Covers:
Basically, auto insurance covers anything bad that could happen to your car from external factors.
Extended Warranties Cover
Essentially, auto warranties cover any electrical or mechanical breakdowns that your car may experience.
Auto insurance exists to protect drivers in case of accident or theft. Insurance will not ever pay for repairs related to mechanical breakdowns. When you add a vehicle protection plan from a company like Endurance, you now have additional protection against breakdowns. Insurance plus Endurance gives drivers total protection.
Shopping for vehicle protection can be intimidating. All drivers will look for different things when choosing their provider.
They will want to ask:
There are probably a million more questions, but we’re going to explain why Endurance is the best coverage provider for now.
Endurance is the nation’s only direct provider of extended vehicle protection that is both A+ rated by the Better Business Bureau and Gold-Certified by the Vehicle Protection Association.
In discussing the credibility of a vehicle service contract from Endurance, we demonstrate how hard we work to achieve such a high rating among consumers.
We hope you found this article clarifying, as we also want to make it our mission to educate drivers. With all of the information and benefits listed above, the myriad of added perks, and industry-leading service, it’s no wonder why Endurance is the best extended coverage provider to choose!
*A Vehicle Service Contract (VSC) is often referred to as an “extended auto warranty” but is not a warranty. A VSC does, however, provide repair coverage for your vehicle after the manufacturer’s warranty expires. A VSC is a contract between you and an administrator that states what’s a covered repair and what’s not. Endurance is an administrator of VSCs and does not sell warranties.*
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By clicking the button, you consent to Endurance using automated technology to call, email, and text you using the contact info above, including your wireless number, if provided, regarding auto protection or, in California, mechanical breakdown insurance. You also agree to the Endurance Privacy Policy and Terms and Conditions. Consent is not a condition of purchase, and you can withdraw consent at any time. Message and data rates may apply.
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Alex has worked in the automotive service industry for over 20 years. After graduating from one of the country’s top technical schools, he worked as a technician achieving a Master Technician certification. He also has experience as a service advisor and service manager. Read more about Alex.