Comparing a manufacturer's warranty and a vehicle service contract

It is normal for new vehicle owners to get confused about an auto warranty and a service contract, but they should learn the differences between the two, as they protect vehicles at different points in their lifespan. 

Image source: learnmotorskills.com

As dictated by law, the manufacturer’s warranty comes with the purchase of a new product. It is the company’s de facto promise that the vehicle is free of defects. And if there are issues that may have occurred during the design or production of the car, the manufacturer will cover the repair or replacement of needed parts. 

Understandably, a manufacturer’s warranty will only last for a set period and once it expires, the entire cost of resolving a car breakdown will be shouldered by the owner – unless he purchases a vehicle service contract. For this reason, a service contract is also sometimes called an extended warranty. 

Service contracts can be bought from the manufacturer itself. But there are also other sources of this form of extended warranty, such as dealerships and independent companies. Because of this, the car under a service contract can be brought to a repair shop other than the dealer franchised by the manufacturer. 

Warranties and auto service contracts may have the same coverage, so it is important that the new vehicle owners ensure that the two do not overlap to avoid paying for unnecessary coverage. 

Image source: dohanews.co

For those with used vehicles, American Auto Shield offers insurance-backed vehicle service contracts. The company’s team reviews each claim carefully and efficiently to make sure customers are provided fair assessments and timely service. Visit this website to learn more about auto service contracts.

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