Circle Auto Protect Blog

Extended Auto Warranty Vs. Vehicle Service Contract – What’s the Difference?

Oct 03, 2019
Michael Robinson

Do you know the difference between an extended auto warranty and a vehicle service contract?

Interestingly, a vehicle service contract (VSC) is often called an “extended car warranty” or an “auto warranty.” But a vehicle service contract is not, technically, a warranty, even though it does provide auto repair coverage. There are certain key differences between a manufacturer’s warranty and a vehicle service contract. 

Here at Circle Auto Protect, we are a vehicle service contract (VSC) provider. So, we will protect your out-of-pocket expenses if your car experiences a mechanical breakdown. But we do more than just that. 

In fact, we offer more than you may expect if your only experience with an “extended auto warranty” is what you’ve been offered by an auto dealer. For example, all of our coverage plans at Circle Auto Protect come with 24/7 roadside assistance as well as towing and rental car reimbursement.

If you’re curious, here is a breakdown of some of the significant differences between an extended auto warranty from a manufacturer and a vehicle service contract:
 

Extended Auto Warranty – From a Manufacturer

•    A warranty from a manufacturer is a warranty that will protect your automobile for a certain specific time period or number of miles, given a certain set of conditions.
•    A manufacturer’s warranty typically only covers certain components – even if you would prefer greater, more-inclusive coverage.
•    A manufacturer’s warranty is typically included in the purchase price of your automobile.
•    A warranty from a manufacturer is typically offered only for new automobiles.

Vehicle Service Contract

•    A vehicle service contract can be placed upon an automobile to provide coverage at any time, sometimes multiple times, throughout the life span of the automobile, often picking up after a manufacturer’s warranty runs out.
•    A vehicle service contract can have varying coverage, from basic to more inclusive, so you can get a plan that meets your needs and preferences.
•    A vehicle service contract is not included in the purchase price of your automobile – instead it is an extra service that you can choose, and you can have a range of options for coverage plans. Plus, different plans will also often offer special bonuses.
•    A vehicle service contract can be sold directly to customers from a third-party provider, saving customers money by cutting out the middle man. (Note: Many dealerships that offer an “extended auto warranty” actually use a third-party provider, and charge higher rates that what you would get by going directly through the third-party provider).

If you’ve ever had to pay out-of-pocket for a major car repair, you know how expensive it can be. If your brakes give out, you may need to spend around $2000. A new engine could cost you about $5000. But with an extended auto warranty, or vehicle service contract, you will be covered so that you can get the repairs you need. 

If you want to learn more, give Circle Auto Protect a call at: 833-247-2530 (833-CIRCLE0). Or, you can also get a quick quote for your car right on our website!  

 


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