CarGuard Administration Helps Your Vehicle Stay Protected

A picture of a car that is protected by a vehicle service contract sitting in front of a house.

When you buy a new vehicle, it probably comes with a warranty that covers certain repairs you may need for a set time frame. Some drivers assume that this coverage is permanent, but it usually expires after a while. Furthermore, your manufacturer’s warranty may not cover all of the work you want to be done to your car or limit the number of mechanic shops you can use unless you want to foot the bill yourself.

If you buy a used vehicle on the secondhand market, any warranty from the manufacturer is unlikely to transfer to you. Furthermore, the manufacturer’s warranties have generally lapsed when a vehicle is sold on the secondhand market.

You could pay for maintenance and repairs as they arise, but that’s expensive and nerve-wracking in that you never know when you’ll face a new bill. Instead, you can lock in repair costs with a vehicle protection plan from a trustworthy administrator such as CarGuard Administration Inc. This article will help you understand the benefits of both manufacturer’s warranties and vehicle service contracts (or VSCs) to help you make the best decision for your needs.

How Do Manufacturers’ Warranties Work?

The warranty on a new vehicle is a financial guarantee that your car will function as intended for a prescribed period. A typical structure might be full bumper-to-bumper coverage for the first 36,000 miles or 36 months (whichever comes first) plus powertrain coverage for the first 100,000 miles. If anything breaks in the first three years or your transmission fails with 50,000 miles on your vehicle, the manufacturer will cover all of the associated bills for you.

Each car manufacturer has a different policy regarding what’s covered and for how long, so you should always read the fine print before assuming that a given repair will be covered. For example, anything you added to the vehicle after purchasing it is probably not covered. The manufacturer may force you to use one of their approved mechanics for any repairs.

Some used auto dealers also offer vehicle protection plans that function similar to a standard used car warranty regarding what’s covered, how it’s structured, and where you can take your vehicle for repairs. This is particularly common for “certified pre-owned vehicles” that the dealership has already verified are in good working order. This type of coverage is sometimes called a vehicle protection plan or vehicle service contract, but technically speaking, they are a different product than what is discussed below.

What Is a Vehicle Protection Plan?

While the warranty is free for drivers (or at least built into the price of a car), you pay for the peace of mind that a vehicle protection plan provides. Understandably, you don’t want a new monthly bill to think about, but a few dollars a month is preferable to paying thousands out of pocket to replace your vehicle’s engine. Large administrators such as CarGuard can also negotiate better per-service rates, helping their customers save money in the long run.

Your VSC will pay for any covered repairs that you need over the life of your contract, even if your vehicle’s warranty expired years ago. It may also be possible to cover aftermarket additions to your vehicle and choose repair shops that aren’t affiliated with a manufacturer, so some drivers opt to purchase a vehicle protection plan before their warranty has expired.

A vehicle protection plan may be offered by a manufacturer, your car dealership, or a third party such as CarGuard Administration Inc. Depending on who sold you your plan, it may be possible to add the monthly cost to your auto payment to limit how much paperwork you have to do.

Many vendors offer a selection of contracts to choose a plan that fits your needs and budget. For example, CarGuard plans range from basic PowerTrain plans covering essential engine components to Gold plans covering everything save for exclusions specifically listed in your contract. You can also choose a prepaid maintenance plan or a flat fee structure.

Furthermore, a vehicle protection plan often includes additional perks that you can take advantage of even if your car doesn’t break down. CarGuard plans include roadside assistance and rental car programs as examples of some of the bonuses that may be included.

Otherwise, your VSC functions identical to your warranty in that it is generally good for a set term or mileage. You may be required to prove that you are taking the proper steps to maintain your vehicle or pay a deductible before your coverage kicks in, so you should always read the fine print before assuming that something will be paid for.

What Makes CarGuard Administration Inc. Stand Out in a Crowded Market?

 A picture of a red chair standing out among a bunch of black chairs

CarGuard differentiates itself with a customer-first approach to vehicle protection plans, meaning that you can count on working with a friendly customer service representative whenever you file a claim. The company is dedicated to fairly adjudicating all claims in a timely fashion so that you won’t be waiting around for approval.

If you would like to learn more about the benefits of vehicle protection plans or CarGuard Administration Inc, you can visit the company online at CarGuardAdmin.com. You can also reach out by phone at (888) 907-0870 or on social platforms such as LinkedIn.