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Extended Vehicle Warranty vs. Vehicle Service Contracts

warranty and service contract

A common comparison made in the automotive industry is an extended vehicle warranty vs. vehicle service contracts. While there are some basic differences, they are extremely similar. Each of these protects your pocketbook if your automobile experiences a mechanical breakdown. Without either of these types of coverage, your vehicle is vulnerable to a costly repair.

If you have ever experienced a major car repair, being forced to shell out a considerable sum of money can be nauseating. But wouldn’t it be nice if somebody else would cover the bill allowing you to easily return to the road? With a vehicle service contract, that is exactly how it works.

Vehicle service contracts are designed to protect consumers against unexpected, costly repairs. An individual’s coverage for any given repair is based on the terms and conditions of his/her vehicle service agreement. An extended vehicle warranty provides comparable coverage, but in a different form. To clear this up, below is a breakdown of an extended vehicle warranty vs. vehicle service contracts:

Extended Vehicle Warranty:

  • A manufacturer’s warranty is a stated warranty to repair your vehicle for a specified period of time and/or mileage.
  • Warranties are typically not all inclusive and cover only specific components.
  • Warranties are included in the price of a vehicle.
  • Warranties can only be placed upon a vehicle by the manufacturer of said vehicle.
  • Warranties are only for new automobiles.

Vehicle Service Contract:

  • Vehicle service contracts can have a varied degree of coverage from basic parts to all-inclusive.
  • Vehicle service contracts pick up where manufacturer’s warranties run out.
  • Vehicle service contracts are not included in the price, but are an additional cost.
  • Vehicle service contracts can be placed upon a vehicle at any time and multiple times throughout the vehicle’s time of operation
  • Vehicle service contracts can be provided directly to consumers from third-party providers, saving the customer money by eliminating the middle man.

Both a manufacturer’s warranty and a vehicle service contract will cover major parts, labor, and taxes in the event of mechanical breakdown. And did you know that the majority of dealerships that offer an “extended vehicle warranty” actually come from a third-party provider? These are the same contracts that Endurance provides to our customers to protect their automobiles.

When it all comes down to a comparison of an extended vehicle warranty vs. vehicle service contracts, they essentially do the same thing. Both protect your vehicle in the event of a mechanical breakdown. But where the warranty will eventually run out, the vehicle service contract will be there to ensure your vehicle never goes a moment without protected coverage.

With various different plans to fit every person’s specific budget, at Endurance, we only offer the very best coverage plans available. Don’t allow your warranty to expire and cause the responsibility of costly repair bills to fall on you, contact Endurance to find out how we can help you protect your investment and give you peace of mind.

*A Vehicle Service Contract (VSC) is often referred to as an “extended 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 a VSC provider or administrator that states what is a covered repair and what is not. Endurance is an administrator of VSCs and does not sell warranties.*

Author: Maxwell Corey

Maxwell Corey passion for cars is second to only his passion for fitness. When he isn't spending his time working out, you can find him in his garage restoring his friends' and family's vehicles.This former personal trainer turned vehicle protection specialist is a self-titled "crazy cat lover" who hails from Kalamazoo, MI. Connect with Maxwell on Google+!

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