A manufacturer’s car warranty and a vehicle protection plan might seem very similar for the average person. Both are designed to give drivers peace of mind when investing their hard-earned money in a vehicle, but they don’t cover the same thing.
To better understand how this all works, it’s best to break down what both bring to the table. Some people feel like a manufacturer’s warranty covers much less than they ever imagined. That’s when purchasing an extra vehicle protection plan can make a huge difference.
Manufacturer’s warranty
The simplest way to explain a manufacturer’s warranty is that it was there for full coverage when there’s an unexpected malfunction to a vehicle. It’s available for almost all brand new cars, but sometimes they come with gently used ones as well. Generally speaking, these are offered by the manufacturer.
Otherwise known as a factory warranty, the standard new car starts at 36,000 miles as a bare minimum. This is roughly three years of use for average drivers, assuming they log about 1000 miles a month. On the high end, companies offer a 100,000-mile factory warranty for up to 10 years. This is used for a car company to differentiate itself from the competition and sway shoppers.
Let’s break a manufacturer’s warranty down even more; there are usually two types of coverage that come with the policy, knowing how both work is crucial to making the proper decision.
Bumper-to-bumper coverage
When a car company offers bumper-to-bumper coverage, it covers some issues that might pop up occasionally with a brand new car. For example, any type of electronic issue, or an air-conditioning problem, is usually covered with this policy.
Wear and tear parts are still not covered with this type of coverage, even if it does go by the name bumper-to-bumper. This is considered everyday use of the car and not a malfunction. It’s a great coverage to have since something relatively small can still end up being a very costly fix out-of-pocket.
Powertrain coverage
This coverage takes care of the engine and the transmission of any vehicle. These can be very costly malfunctions, which is why powertrain coverage for as long as possible on a brand new car is valuable. Technically speaking, the average car shouldn’t have any issues during the standard powertrain coverage, but it is nice if something happens.
Can you extend a manufacturer’s warranty?
There isn’t really any way of extending a manufacturer’s warranty. This is one of the many reasons why there are vehicle protection plans. They will help cover the car after a manufacturer’s warranty expires.
Vehicle protection plan
A vehicle protection plan like what CarGuard Administration offers acts as additional insurance to avoid costly repairs out of the blue. It works differently from a manufacturer’s warranty, adding more coverage for people to have for a used or new car.
A CarGuard Administration vehicle protection plan, for example, doesn’t work as a warranty at all because it helps offset the cost of routine maintenance and other issues that are rarely covered by a manufacturer’s warranty.
Many people believe that they will save money with an auto protection plan. This is especially true if the car is a little bit older since it’s more likely to need some repairs and maintenance along the way. Companies like CarGuard Administration do their best to make their protection plans cheap for everyone while also maintaining value.
Having a manufacturer’s warranty and a vehicle protection plan going simultaneously is the ultimate protection. Still, a vehicle protection plan after a car warranty expires is considered sufficient for the money.
Most protection plans offer an opportunity to pay everything upfront for a certain amount of time. This can be as little as a couple of hundred dollars, all the way up to thousands of dollars, depending on the make and model of the vehicle. Certain cars need higher quality parts; this is always factored into the final price.
How does car insurance factor into all this?
Suppose a manufacturer’s warranty protects against malfunctions, and a vehicle protection plan is mainly used for wear-and-tear coverage and other unforeseen issues. Where does car insurance factor into all this?
The reason states require people to carry car insurance is that accidents happen. A driver needs protection, and most also need protection for anyone they hit if they cause a wreck. The same goes for property damage.
Technically speaking, car insurance is the only thing required by law. A car warranty is not necessary, but it usually comes with a car whether a person requested it or not. A vehicle protection plan is entirely optional in nearly every case.
Is a vehicle protection plan worth it for the average driver?
In most cases, people will save money with a vehicle protection plan like the CarGuard Administration offers. While there are always exceptions to the rule, it’s important to note that keeping up with maintenance for a car makes a big difference. It costs money to maintain a car, and having a protection plan to pay over time creates less shocking costs.
