Purchasing a costly car is a happy occasion in the lives of many. Whether the car is used regularly or infrequently, some amount of wear and tear to the vehicle is expected. Whether it is a brand new car or a used one, a car dealer will usually provide a warranty for a limited period of time but after that it is prudent to get a vehicle service contract that is like insurance for the car. As per folks of American Auto Shield , a vehicle service contract also goes by the names of extended warranty or extended service agreement.
For a car owner, repairs and replacing of parts can be a costly affair and this is where a vehicle service contract comes in. Once the limited period warranty is over a vehicle service contact, which is a paid plan, covers the costs of parts, services and other expenditure related to the car.
Getting a vehicle service contract is, above all, a relieving prospect. As per American Auto Shield Reviews that whatever damages, wear and tear, services or replacement that the car needs are covered by its vehicle service contract which benefits people greatly. A car is an investment. What the vehicle service contract gives the buyer is the peace of mind to use the car to its utmost capacity. Having an extended warranty for the car also makes it cheaper to have repairs and replacements made, thereby ensuring a longer and smoother run for the vehicle.
There can be Two Types of Extended Warranty
The dealer provides the buyer with a warranty for the car that is being purchased and along with that, the option to extend the warranty period for a certain price. For example: if the dealer’s warranty is for one year, the customer is given the option to purchase an extended warranty on the vehicle for the next year. This would mean that in case of any damage repair, servicing or change of parts, the customer will bring the car back to the dealer who will provide these exactly as during the warranty period. This saves the customer the additional hassle of looking for and finding a certified service centre for their automobile as everything is provided at the dealers.
The second type is where, after the expiry of the warranty period, the customer buys car insurance/vehicle service contract from an external source like an insurance company or an independent automobile service provider. The benefits of going with this second form of warranty, is that the customer is no longer limited to get his car-work done from a specific place.
Most of the time, the customer can get the repair work or servicing done from any certified mechanic against payment and then submit the receipts and bills to the insurance company or independent agent for reimbursement. Sometimes, the vehicle service contract may outline different steps, whereby the repair shop/garage has to directly contact them and an agent is sent to ascertain the services or parts required and payment is made directly without the customer having to spend anything.
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