America's Advocate for
Vehicle Protection Plans

Why do I need a vehicle service contract?

A vehicle service contract can offer peace of mind and several other benefits to car owners. Knowing that many of your repair costs will be covered can ease any tension about owning a car. Similarly, unexpected repair costs are minimized because of coverage - making it more affordable to own and maintain a vehicle.

Your vehicle is a big investment and the longer it stays in great working condition, the more value you get from your investment. Vehicle service contracts are designed to protect your investment by keeping your vehicle in good, drivable shape without you having to incur a lot of extra, unexpected repair costs that you might otherwise have difficulty paying.

Considering that the average hourly rate for mechanic labor is over $100 an hour, labor alone can be a smart reason to have an extended car warranty. When you also consider how expensive parts and systems can be to fix, the value proposition for vehicle service contracts becomes that much stronger.


Learn About Vehicle Service Contracts

Click below to browse our Frequently Asked Questions:

  1. What is a vehicle service contract?
  2. How does a vehicle service contract work?
  3. Why do I need a vehicle service contract?
  4. What does a vehicle service contract cover?
  5. What is an extended warranty?
  6. A warranty came with my car when I bought it. Why do I need a vehicle service contract? Isn't my car covered by the original warranty?
  7. What happens if I sell my car? Is my vehicle service contract transferrable?
  8. Can I purchase extensions and upgrades to my vehicle service contract?
  9. What vehicle upkeep am I responsible for in order for my service contract to remain valid?
  10. Where can I take my vehicle for repairs?
  11. If I get a vehicle service contract, can I still work with my local mechanic?
  12. Do I have to pay for my vehicle service contract in full at the time of purchase?
  13. What if I want to cancel my vehicle service contract?
  14. Can my claim amounts exceed the amount of money I paid for my vehicle service contract?
  15. How are vehicle service contract claims paid?
  16. What happens to the money I pay for my vehicle service contract?
  17. What should I look for when considering purchasing a vehicle service contract?
  18. How does a vehicle service contract deductible work?
  19. Why should I buy a vehicle service contract now? Especially if I still have a manufacturer's warranty.
  20. Are auto manufacturers involved with the creation and sale of vehicle service contracts?
  21. What's the difference between a vehicle service contract and a manufacturer's warranty?
  22. Will purchasing a vehicle service contract subject me to telemarketers and mailings from companies that may not be reputable?
  23. How does the Vehicle Protection Association (VPA) ensure that I, as a consumer, am protected from fraud, false advertising, or other exploitive practices?
  24. Does the VPA provide a list of trusted organizations and businesses?
  25. Who can I contact if I have a problem with my automotive service contract or its provider?

Consumers who want to avoid becoming victims of "auto warranty scams" will be happy to know that the VPA is putting in place numerous initiatives to protect consumers. Spend some time on this website to learn how to buy a vehicle service contract. It's important to ask the right questions and make sure you are dealing with a reputable provider.

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