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Importance of Vehicle Service Contracts

Cars Protection Plus

A vehicle service contract – sometimes referred to as extended auto warranties, extended service contracts or vehicle protection plans – prevents customers from paying for vehicle repairs after warrants expire. 

Below, Cars Protection Plus explains the various types of vehicle service contracts, the process of the service, and the reasons for getting your vehicle serviced frequently.

What a Vehicle Service Contract is All About

Two primary forms of vehicle service contracts: a bumper-to-bumper warranty and a powertrain warranty. The powertrain warranty encompasses the servicing of the engine, drivetrain, and transmission – everything that helps your vehicle move. The powertrain warranty covers the costs of any repairs or replacements to these parts if they endure any problems.

The bumper-to-bumper warranty, as the name suggests, covers all parts between the front and back bumper. The list of what this warranty includes is so extensive that the contract usually only lists what isn’t included.

Most vehicle service contracts will not include coverage for tires, wheels, paint, window glass, wiper blades, brake pads, or damages done as a consequence of collisions, accidents, abuse, or environmental impacts like floods. These warranties will also not include pre-existing problems, so some contracts will wait until the car has done 1,000 miles or wait 30 days until coverage starts.

Vehicle services contracts can range in cost between $350 and $700 annually, depending on what package you choose.


With vehicle service contracts, some bonuses come attached. Many contracts offer 24-hour roadside assistance, which includes delivering fuel, jump starts and lockout assistance. Towing services and car rental services are also included in most contracts.

Although not always the case, vehicle services contracts can sometimes be transferable. This can increase the value of the vehicle if the owner decides to sell it before the contract ends.

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The Protection is Important

Within the past year, 62% of customers with active contracts claim that they have benefitted from them. There are numerous benefits to vehicle services contracts, including ensuring the longevity of the vehicle’s health and safety and allowing customers to save money on future repairs and replacements – these repairs can often cost more than the coverage costs. 

Although many people believe vehicle service contracts are a waste of money, vehicle accidents annually claim over 1.35 million lives and can cause approximately 50 million injuries. Although accidents may seem unlikely and can be easily overlooked, knowing that the financial implications are safely dealt with can ease stress.

Even if a car is new and reliable, damage, accidents, and faults can easily occur. Although some are better equipped and less likely to encounter faults, no vehicle is completely safe from needing repairs. 

Final Thoughts

Vehicle services contracts can guarantee covering the costs of any damage, but each contract will differ in what coverage they offer. Driving a vehicle with the knowledge that a company will help as soon as possible, both physically and financially. There is a vast plethora of companies offering different packages, covering a range of accidents and faults that will suit the needs of any driver.

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