back to articles | December 31, 2018 | Greg Thibodeau

Categories: Tips & Insights For Car Buying

Auto Warranties

Auto Warranty Information

Auto Warranties: Service Contract Vs. Extended Warranty

When describing auto warranties, people use the terms "extended warranty" and "service contract" interchangeably. While both are used to address similar problems: (i.e., auto repairs), there are a few differences.

A vehicle service contract can be purchased any time you own an automobile and the price of the service contract is clearly distinguishable from any cost associated with the purchase of the auto. A service contract does not necessarily cover the same things covered by a manufacturer's warranty which comes with the purchase of a new auto and usually provides coverage for at least one year or 12,000 miles, whichever comes first.

An extended warranty is usually sold to a consumer at the time of the automobile purchase and is generally sold by the auto dealer. While it may be priced separately, the extended warranty is usually added into the final price of the automobile purchase. An extended warranty often provides essentially the same coverage and benefits as the manufacturer's warranty. In some cases, the service contract provides more coverage and benefits than the manufacturer's warranty.

A motor club is a company that provides emergency roadside assistance and other travel related services.

Auto Warranties: Roadside Assistance

Often called Emergency Road Service, Roadside Assistance provides a set amount of coverage per disablement for your auto. It can also include services performed by a commercial garage, locksmith or wrecker service to handle situations that can include flat tire repair, charging a dead battery, opening a vehicle when the keys are locked inside, and running out of gas. When you have roadside assistance, with just a toll-free call, help is on the way. Signing the receipt is all that is required in most cases when the work is complete.