A Vehicle Service Contract (VSC) or Extended Warranty on a Car does not extend the coverage of the original factory warranty, which is included in the car's price. The VSC is purchased separately, and it pays for covered repairs or replacement costs in the event of breakdown or mechanical issue. While car buyers are not required to buy an extended warranty, having the extra coverage can help extend the factory warranty's coverage limits - and save the buyer money in the long run.

Types of VSC or Extended Warranty for a Car

There are two types of  Extended Warranty

1. Original Equipment Manufacturers (OEM):  Offered from the vehicle manufacturer, these service plans include extra coverage for a cost on top of the factory warranty. The extended warranty from an OEM often mirrors the coverage provided when the car was brand new, but extends the coverage and mileage length.
2. Aftermarket or Third-Party Administrator (TPAs): A third-party provider, such as an insurance carrier or warranty company, offers a variety of warranty options that can be customized to the consumers' needs.

What Does A VSC Cover?

VSC's can help car owners avoid unexpected auto expenses for an agreed-upon period and mileage. Each contract is different, so buyers should make sure to review it in its entirety before moving forward. Each warranty will have a list of inclusions and exclusions that breaks down which repairs are covered. VSC's will also detail the types of issues or breakdowns they cover.

Some VSC's also provide additional coverage that includes tire and wheel damage, key fob replacement, dent repair, lease wear and tear coverage, theft protection and more.

How Much Does A VSC Cost?

The cost of the VSC will depend upon several factors: the make, model, condition of the car (used or new), plus the amount of coverage and the length of the contract.

Are VSC's Worth Getting?

When purchased from a reputable company with experience in the automotive industry, a VSC is worth the money for the peace of mind it can offer. Many VSC's are flexible, require no down payment and give the consumer the consumer the ability to cancel at any time.

Many car owners think they have sufficient coverage for any issue with their vehicle because they have automobile insurance. However, automobile insurance and warranties cover different things. Without a VSC, car owners may pay out of their own pocket for certain repair needs, especially those that fall outside of a collision accident.

For more information on the types of coverage including the partners we are able to work with, and the territories we have access to, please contact Mark Standen, Mocden Insurance Services on:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)7427 628 886

Mob: +61 (0) 490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk