Service Contract on a Vehicle: What It Is and Why You Might Need One
Vehicle service contract
1,149When your factory warranty expires, you’re left to handle the full cost of car repairs—and that can mean thousands of dollars out of pocket. That’s why many drivers search for a service contract on a vehicle.
Also known as a vehicle service contract (VSC) or extended warranty, this type of protection plan helps cover the cost of mechanical and electrical breakdowns. If you want peace of mind on the road, understanding how a service contract works is key.
What Is a Service Contract on a Vehicle?
A service contract on a vehicle is an agreement that provides coverage for specific repairs and replacements. While it’s not technically a manufacturer’s warranty, it works in a similar way by protecting you against expensive, unexpected breakdowns.
What Does a Service Contract Cover?
Coverage depends on the type of plan you choose:
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Inclusionary Coverage (Stated Component): Covers only the parts listed in the contract, such as the engine, transmission, or air conditioning.
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Exclusionary Coverage (Best Choice): Covers almost every part of the vehicle, with only a short list of exclusions like wear-and-tear items or routine maintenance.
Typical covered systems include:
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Engine and transmission
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Electrical and computer systems
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Suspension and steering
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Air conditioning and heating
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Drivetrain
What’s Not Covered?
Like all contracts, there are exclusions. Commonly excluded items include:
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Tires, brake pads, and other wear-and-tear components
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Routine maintenance (oil changes, filters, fluid checks)
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Cosmetic or interior trim repairs
Benefits of a Vehicle Service Contract
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Financial Protection – Avoid surprise bills that can reach thousands of dollars.
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Added Benefits – Many plans include roadside assistance, rental reimbursement, and trip interruption coverage.
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Peace of Mind – Drive with confidence knowing you’re protected.
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Resale Value – Transferable contracts make your car more appealing to buyers.
Get a Vehicle Service Contract through the Cuvrd Platform
Not all service contracts are created equal. When you choose coverage through a trusted Cuvrd partner, you’ll get:
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Transparent contracts from warranty administrators that are easy to understand
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Reliable claims support when you need it most
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Plans tailored to your vehicle’s age, mileage, and budget
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Choose affordable monthly payments or save huge if you pay in full upfront
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Bundle your Vehicle Service Contract with an Auto Loan Refinance and save even more
Bottom Line
A service contract on a vehicle (also called a VSC or extended warranty) is one of the smartest ways to protect yourself from the rising cost of repairs. For the best coverage, choose an exclusionary plan through a trusted Cuvrd partner—and enjoy peace of mind on every drive.
TL;DR: Searching for a service contract on a vehicle? Also called a vehicle service contract (VSC) or extended warranty, this type of coverage protects you from costly repair bills once your factory warranty expires. In this guide, we’ll explain what a service contract is, what it covers, what’s excluded, and why choosing coverage through a trusted Cuvrd partner is the best way to keep your car and your budget protected.
— Neil Coker