Three Common Myths About Vehicle Service Contracts


If you’re buying a car, then you’re likely considering getting a vehicle service contract. Vehicle service contracts protect car buyers against costly and unexpected vehicle repairs after the manufacturer’s warranty expires. While contracts vary in coverage and price, they typically cover the cost of parts, labor and sales tax associated with a repair. Some also include roadside assistance.

Though beneficial, there are several misconceptions regarding vehicle service contracts. To help you separate fact from fiction, CARS Protection Plus is debunking some of the common myths associated with these contracts.

Myth #1: All Vehicle Service Contracts are a Scam

As with any industry, there are going to be a few scammers out there, but the majority of vehicle service contract providers are reliable and trustworthy. To protect yourself from scams, as well as costly vehicle repairs down the road, choose a reputable vehicle service contract from a credible dealer. Select a contract from a provider with an A+ rating with the Better Business Bureau and positive customer and dealer reviews.

Myth #2: Vehicle Service Contracts Aren’t Worth It

You may be thinking vehicle service contracts aren’t worth the money and you can handle any needed repairs without coverage. Well, when you get the bill for the repair, you’ll be kicking yourself for not buying a contract. Unless you’re purchasing your first vehicle, you know car repairs can sneak up on you and put a damper on your wallet. A quality vehicle service contract provides you with the coverage you need, so you’re not paying for expensive repairs out of pocket. These contracts cater to a variety of budgets and coverage needs, so you can choose the one that’s most suitable for you.

Myth #3: I Will Have to Pay for Vehicle Repairs Out of Pocket

Another common misconception about vehicle service contracts is many consumers think they will not receive 100% of the coverage that’s included in their contract. They think there are loop holes in the contracts to prevent them from getting all of the coverage they believe they’re entitled to. If you purchase from a reputable provider like CARS Protection Plus, then you will certainly get the coverage you pay for and not have to pay for authorized repairs out of pocket. Before you sign a contract you should always read it carefully and clarify any issues or questions beforehand.

These are some common misconceptions about vehicle service contracts. For quality coverage from one of the nation’s leading vehicle service contract providers, visit

Finding Peace of Mind with a Vehicle Service Contract

Thinking about purchasing a pre-owned vehicle?  There are some of benefits to consider.

New vehicles depreciate 10% the minute they leave the dealership. According to CARFAX, a new vehicle may continue to depreciate as much as another 10% each year.  When you purchase a pre-owned vehicle you are actually benefitting from this depreciation and saving money rather than losing on your investment.

Online resources such as Kelly Blue Book, (,, and have reduced the guessing game when it comes to choosing a used vehicle.  You can view maintenance records, accident reports, and recent prices to make sure you are getting the best deal.

No matter how much research you do before you purchase a used vehicle, there is always anxiety over the mechanical reliability of the one you choose.  Why was it traded in?  Am I buying someone else’s problem?  Should I buy a new car and take the depreciation just to get a warranty?

The good news?  You can address these concerns with the peace of mind you will find in a Vehicle Service Contract, (commonly referred to as an aftermarket warranty).

Vehicle Service Contracts, VSC’s, offer help in paying for those mechanical repairs which can be financially devastating.  They often offer the security of roadside assistance.   A VSC lets you drive with confidence you will have a partner by your side when you need it.

What Should You Consider When Purchasing a Service Contract?


Every vehicle service contract is different and should be read over thoroughly before you sign. It is important to understand what is covered as well as the entire claim process. Coverage should be explicitly spelled out, so you know exactly what you’re purchasing. If the language is vague, this could be a warning sign. However, most misunderstandings in coverage occur because the customer didn’t take the time to review what they purchased rather than the provider being intentionally vague.

Other things to note on your VSC?

  • Covered labor rate
  • Where you can go for service
  • Time or mileage limitations
  • Deductible
  • Claim process

You should also ask questions about the provider of the VSC.  How is the company rated by the Better Business Bureau?  Are they insured so you are guaranteed protection for the life of your contract?

CARS Protection Plus offers a complete line of VSC’s to fit every budget, maintains an A+ rating with the Better Business Bureau, and is underwritten by Dealer’s Assurance Corp.  If you are considering the purchase of a used vehicle, CARS Protection Plus will give the peace of mind you deserve, at a price you can afford.