If you own a car, you know how valuable it is. With this critical asset, it’s wise to consider the pros and cons of a vehicle protection plan. Buying a car is a considerable capital investment.
Getting extra CarGuard Administration protection for the car might save you big dollars on the cost of car ownership down the line.
Take a look at the advantages and disadvantages of a vehicle service contract and see how CarGuard Administration protection plans could bring you peace of mind on the road.
How Vehicle Protection Plans Work
Similar to using your health insurance to visit a doctor, using your vehicle service contract for repairs can be helpful. You might have to drive your car to a repair facility that has been authorized by your plan when it needs service.
After diagnosing your issue, the mechanic will contact the administrator of your service plan. When the technician has finished the repairs, your claim will be granted. Your contract may stipulate whether you require to pay a deductible.
A vehicle protection plan may be done through the manufacturer or a different service provider, such as CarGuard Administration. Your needs can be met through service contracts that cover a variety of repairs. Most plans are either inclusionary or exclusionary.
Inclusionary covers parts that fall under an established list of products, while exclusionary agreements cover everything, not on a predefined list of issues.
Difference Between Vehicle Protection Plans and Extended Warranties
A manufacturer’s warranty will usually be included with a new car purchase to cover any flaws. Depending on when it expires, this warranty could be for a few years or a certain number of miles.
Extended warranties are available to cover the cost of significant repairs. Vehicle protection plans frequently include minor maintenance tasks like tire rotations or oil changes. Extended warranties often do not cover these. Some businesses also use these terms synonymously.
Pros of a Vehicle Protection Plan
Here are the advantages of having a vehicle protection plan for your valuable asset.
Saves You Money
Paying for protection every month can save you from later having to pay for unexpectedly expensive, significant repairs. A deductible is familiar with a vehicle protection plan.
This means that regardless of how expensive the parts and labor are, you will only pay the deductible at the time of service if you bring your car into the shop for a covered repair. While having safeguards never hurts, some cars require service contracts more than others.
Gives You Peace of Mind
Purchasing a protection plan will always provide you with peace of mind. Vehicle service contracts will be more advantageous for some vehicles than others. To avoid paying for coverage, they don’t need or won’t use, it’s advisable to investigate the dependability of your vehicle.
Your ability to save money on maintenance expenses may be a key selling point for service contracts. Even though there can be some deductibles and monthly fees, the expense of repairs without a plan can easily eclipse them.
More Comprehensive Network of Service Shops and Responsiveness
Vehicle service providers, such as CarGuard Administration, have a vast network of service shops. This means you can locate one even if traveling far beyond your usual route.
Moreover, protection plans are provided in a range of pricing and coverage levels to meet your needs better. CarGuard Administration customers can submit claims online or call the business to request emergency clearance.
A group of mechanic-trained claims adjusters works with the company. Because these claims adjusters are dispersed around the nation, you can bet on quick service no matter where your car might break down.
Some Plans Come with Additional Benefits
Service agreements from CarGuard Administration have benefits outside merely paying for repairs. These include extra privileges like towing, roadside assistance, and reimbursement for car rentals.
Disadvantages of Protection Plans
Additional Cost
For car owners, car payments may already be a recurring monthly burden. A service contract could have a separate monthly fee.
Claims May Be Rejected
You might need to file claims for any repairs you want to be done if you have a vehicle service contract. Your claim could be rejected, just like other types of insurance, requiring you to pay out of pocket.
Is a Vehicle Protection Plan Worth It?
The critical question you need to ask yourself is if you think the expense of the plan is worthwhile. While certain car brands are renowned for their dependability, others are not.
There is always a chance that you won’t use the plan to its full potential, but it may also pay for itself.
The peace of mind that a vehicle protection plan can provide is likewise challenging to quantify in terms of money. It feels fantastic to know that specific car systems are protected for a set period of time.
Therefore, when you purchase a protection plan, you are essentially paying for two things: future repairs will be covered, and you’ll have peace of mind. This doesn’t mean that having a protection plan eliminates the need for you to set aside money for auto repairs.
All protection plans require eligible repairs, and no plan completely covers your car. However, having a plan might help reduce some of the financial strain caused by unplanned repairs.
Protection Plans by CarGuard Administration
CarGuard Administration offers a broad range of protection plans to suit your needs and pocket. Here is an overview of CarGuard vehicle protection plans:
- Platinum plan: Platinum covers the transmission, turbocharger, transfer case, electrical parts, fuel system, front and rear suspensions, cooling system, seals, and gaskets.
- Gold & Powertrain Plan: This plan covers the cooling system, front and rear suspension, air conditioning system, transfer case, drive axle, fuel system, electrical components, turbocharged and supercharged engines, and transmission.
- Powertrain: The powertrain plan covers the car engine, transmission, drive axle, turbo supercharge, and transfer case. This is CarGuard Administration’s most basic plan.
When shopping for a vehicle protection plan, it’s essential to look at the company’s history of dependability and customer service. This is because the last thing you need when your car breaks down is an endless cycle of unfulfilled pledges.
Since its founding in 2005, CarGuard Administration has set the pace for client-centric service in the car protection industry. With the broadest network of garages and claim adjusters, you can rest assured that your claim will be processed quickly.