Car Service Contract: What It Is and Why You Might Need One

If you’re looking for peace of mind and protection from unexpected bills, here’s what you need to know about car service contracts.

What Is a Car Service Contract?

A car service contract is a protection plan you can purchase to cover the cost of repairs after your manufacturer’s warranty expires. While it’s not technically a “warranty” from the automaker, it works in a similar way—helping you avoid paying out-of-pocket for expensive repairs.

What Do Car Service Contracts Cover?

Coverage depends on the plan you select. The two main types are:

• Inclusionary Coverage (Stated Component) – Covers only the parts and systems specifically listed in your contract, like your engine, transmission, or air conditioning.

• Exclusionary Coverage (Best Choice) – Covers almost everything in your car, only excluding a short list of items like routine maintenance or wear-and-tear parts.

Typical coverage includes:

• Engine and transmission

• Electrical and computer systems

• Steering and suspension

• Air conditioning and heating

• Drivetrain

What’s Not Covered?

Even the best car service contracts exclude some items, such as:

• Routine maintenance (oil changes, fluid checks, tire rotations)

• Wear-and-tear items (brakes, tires, wiper blades)

• Cosmetic issues or upholstery

Why Get a Car Service Contract?

1. Budget Protection – Avoid surprise repair bills that can cost thousands.

2. Added Benefits – Many plans include roadside assistance, towing, rental car reimbursement, and trip interruption coverage.

3. Resale Value – Coverage can be transferable, making your car more attractive to buyers.

4. Peace of Mind – Drive with confidence knowing you’re protected.

Cuvrd to the Rescue

Not all contracts are created equal. By choosing a car service contract through a trusted Cuvrd partner, you’ll know you’re getting:

• Transparent terms

• Reliable claims handling

• Coverage tailored to your car’s age, mileage, and needs

• Affordable rates because you aren't paying for middlemen

• Payment options that fit your budget

Bottom Line

A car service contract (or vehicle service contract) is one of the best ways to protect yourself from the high cost of repairs once your factory warranty expires. With the right plan—especially from a trusted Cuvrd partner—you can enjoy peace of mind, protect your budget, and keep your car on the road longer.