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Auto Warranty vs. Vehicle Service Contract Claim 101

What's the difference?

Auto warranties are provided by motor vehicle manufacturers, come with the product, and are included in the purchase price of the vehicle. Car warranty coverage excludes benefits for damage caused by a lack of recommended maintenance.

Vehicle service contracts, on the other hand, are agreements that are separate from the original contract or sale of the product. They are separate either because they are made some time after the sale of the vehicle, or because they cost the customer a fee beyond the purchase price of the automobile.

When is a car service contract purchased?

A vehicle service contract, commonly but incorrectly referred to as an "auto warranty" or “extended auto warranty”, is sold outside of a new vehicle purchase and can be purchased at any time.

  VCS Pros!  These auto protection plans are designed to cover expensive mechanical car breakdowns or failures. Additional vehicle protection coverage - including emergency roadside assistance, rental car reimbursement, or trip interruption reimbursement - is also often available with the purchase of a vehicle service contract.