American Auto Shield Reviews Blogs

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 ar...

Most vehicles are protected from operational failures while new through warranty. This is a guarantee by the manufacturer on the integrity of the vehicle as sold and covers a host of issues typically associated with potential flaws in construction, which are subsequently repaired.  Image source: americanautoshield.com But warranties are not forever. Warranties expire as the vehicle ages, leaving the car owner in charge of every subsequent repair not long after. This opens many risks for people purchasing used vehicles, whose warranties may have long since expired or are close to expiry. Thus, pre-owned vehicles are often sold with an alternative to a warranty: a vehicle service contract.  Vehicle service contracts are optional packages sold alongside vehicles to cover for repairs upon the expiry of a warranty. The coverage provided by a vehicle service contract usually acts as an adjunct to other coverage policies like insurance. Although superficially similar, ...