Buying a new car is one of life’s most exciting moments.
There’s newfound freedom, a celebration of saving enough to get yourself behind the wheel of a car you’ve had your heart set on for a long time.
It was likely a big decision for you to make. But after you buy, there are more important decisions to come, including investing in a vehicle service contract.
Let’s take a closer look at why it’s worth buying a vehicle service contract, especially through CarGuard Administration.
What is a Vehicle Service Contract?
When you sit down to officially sign papers to receive the key to your new car, the salesperson may discuss your options regarding vehicle service contracts.
These vehicle protection plans cover many repairs to your vehicle that may be expensive or come out of the blue. A vehicle service contract typically replaces a manufacturer’s or dealer’s warranty after it expires.
What Do Vehicle Service Contracts Cover?
Offerings from vehicle service contract companies vary wildly, but generally, they will cover certain repairs, set limits on liability amounts, and include such amenities as free rental cars when your car is being worked on.
The cost of vehicle service contracts also varies wildly, depending on what is covered and who is offering them, usually an independent company, a dealer, or a car manufacturer.
The best vehicle service contracts offer drivers multiple options for coverage. For example, CarGuard Administration has five plans to choose from, ranging from prepaid maintenance and flat-rate plans to escalating coverage options in Powertrain, Gold, and Platinum Plans.
Most plans will cover parts that commonly need repairs over the life of your car, including the engine, transmission, and electrical components.
The average American spent nearly $2,000 over the past five years on car maintenance and repairs, according to Ally Financial. Even a small repair can make a big dent in your bank account.
How Much Will I Be Covered Through a Vehicle Service Contract?
It’s best to look for a contract that has high limits of liability and properly reflects the value of your car.
The best value comes in a contract that reflects both, such as CarGuard Administration plans. All CarGuard Administration contracts cover repairs that reflect your car’s value at the time it is repaired or $12,500 — going with the figure that’s higher.
This means if your car is worth $9,000, CarGuard Administration will cover repairs up to $12,500. If your car is worth $40,000 at the time of the repair, it will provide coverage up to $40,000.
How Much Does a Vehicle Service Contract Cost?
It depends on the type of car and your needs and the length of the contract, but also the company you decide to go with.
Most contracts range between a few hundred dollars to thousands, and some have hidden additional costs, such as requiring a deductible to be paid after every repair.
Some companies offer low limits of liability or are inflexible with the number of contract options you can choose from — all still with high contract costs.
What Else Should I Look For?
Keep an eye out for little extras that make buying a vehicle service contract worthwhile. These include options for car rentals, the range of repair types covered, and how many miles are covered.
Vehicle service contracts should be easy to read and put the power in the hands of the consumer, like the options at CarGuard Administration.
Additionally, some contracts put restrictions on when you can access a rental car. With CarGuard Administration, you don’t have to wait several days to get a rental car covered — you can get a rental within hours.
Pay close attention to the length of a contract and how many miles it covers. Many plans offered by dealers or manufacturers end after a certain number of miles and then require you to take out a new plan.
With plans from CarGuard Administration, you get a maximum amount of coverage — 100,000 miles and five years — without having to repeatedly pay for a new contract.
What if I Need Help With My Contract?
That’s another important aspect of buying the best vehicle service contract for you. Make sure your plan comes with a full range of reliable and easy support.
You should be able to reach companies at any time through email, phone, or live chat. They should keep regular business hours and not make it a hassle for you to get in touch so you can get an answer to any question you may have.
The best independent companies, like CarGuard Administration, will excel in all of the above. CarGuard Administration is so committed to top-notch customer service that it’s an annual sponsor of the PACE conference.