Having protection for a vehicle can provide peace of mind for any owner. It’s required by law to have some level of insurance in case an accident occurs, and a warranty is pretty standard for any new car as well.
What causes some confusion is a customer’s vehicle protection plan. What exactly is the difference between a vehicle protection plan and a warranty? Is it required to have both? Having a better understanding of the two will allow people to make better decisions for their own good.
Is protecting a vehicle necessary?
The short answer is that it’s not technically required to have either a warranty or a vehicle protection plan. Most manufacturers provide a warranty with any standard new vehicle, and there are opportunities to go with third-party protection plans. The way warranties work is that it is a guarantee from the manufacturer that the car comes without defects. If there is a defect, they replace or fix the issue free of charge.
All these warranties are limited because they expire after a certain amount of time. The manufacturer’s warranty generally starts at around three years or 30,000 miles.
A bumper-to-bumper warranty that manufacturers generally offer will cover most of the big things under the hood, as well as the bells and whistles inside the seating area like power switches on the seats, electronics, and other little things that could go wrong. A powertrain warranty specifically covers the engine and transmission.
What comes into play with a vehicle protection plan is additional coverage that helps to prevent any surprise costs down the road. A vehicle protection plan can work either with a warranty or after the warranty has expired.
Some people have even labeled vehicle protection plans as an extended warranty, but that is incorrect. Vehicle protection plans help cover vehicle repairs and any major services needed. As long as a person pays for a plan, they can have it on the car for life. That’s not how a warranty works.
Driving without a warranty or vehicle protection plan is not against the law. It’s not required for any driver whatsoever. However, what ends up happening is that people usually spend a lot of extra money seemingly out of nowhere to make changes without these coverages. It’s not the most pleasant surprise in the world to have a bill of $1000 or more to get a car back into working order.
What to consider when shopping for a vehicle protection plan
Companies like CarGuard Administration offer vehicle protection plans that can help all drivers. Before signing on the dotted line, the best way to figure out if a vehicle protection plan is right or not is to go through some of the finer details.
How redundant is the vehicle protection plan?
Some auto insurance policies offer many of the same things provided by a vehicle protection plan. Make sure to look at the current insurance coverage to see what is not necessary with a vehicle protection plan. In many cases, a vehicle protection plan ends up being cheaper, but insurance is the only true requirement.
What’s the deductible look like?
Deductibles come into play either on a per-visit basis or per repair. It’s essential to understand the deductible to budget money for a worst-case scenario.
What repair locations are available?
It doesn’t make much sense to get a vehicle protection plan without researching where the car goes for repairs. If the closest place for a repair that works with a plan is a few hours’ drive away from home, it quickly becomes inconvenient. The best vehicle protection plans work with many companies, so there’s always somebody close by.
Can the plan transfer to the next car?
People are constantly updating their cars to something better. The old car didn’t need anything covered by a vehicle protection plan in some cases. Having a transferable plan allows people to get their money’s worth. After all, who wouldn’t want to have great coverage on their next vehicle?
Is the provider trustworthy?
Companies like CarGuard Administration have positive reviews and experience providing quality coverage for clients. Before handing over money for a new protection plan, it’s essential to research any company. The last thing anyone wants to do is receive lackluster customer support when they need it most. If a vehicle protection plan is needed during tough times, they need to be there.
Why A vehicle protection plan just makes sense for most
It’s not a warranty, and it’s not auto insurance. However, a vehicle protection plan can be as valuable as both in certain situations. Having a little bit more peace of mind when driving on the road can be very beneficial for all types of car owners.
Vehicle protection plans are available for individuals and families. The more a person drives, the more critical it is to have the necessary protection.
Shop around and find what’s available. More often than not, some solid choices come under budget for many shoppers. It reduces the chances of substantial car costs when a person least expects it.
