Differences between Car Warranty and Vehicle Protection Plan
A car manufacturer issues a car warranty when a car is first purchased, and the cost of the warranty is included in the price. This applies to new cars and factory certified used vehicles (commonly known as Certified Pre-Owned vehicles). They will come with a ‘limited warranty when you buy these cars.’
The manufacturer warranty is saying on the automaker’s part that the purchased vehicle is free of defects, and the automaker is ready to make good on the claim should any covered parts fail within a specified amount of time and use. Unlike typical and often mandatory car insurance policies, a car warranty is like an MBI or Mechanical Breakdown Insurance. The warranty will cover repairs for most major components and systems of the vehicle in case of mechanical failures or breakdowns.
However, the thing to note with car warranties is that they are limited. It may differ according to brands and car models. However, a car warranty typically covers 30,000 miles or three years (whichever comes first).
During this time, most automakers will offer a ‘bumper-to-bumper’ warranty, meaning that pretty much all significant components of your vehicle are covered. Some automakers, however, also provide a powertrain warranty (that covers engine and drivetrain components) for an extended period.
However, what do you do once the original manufacturer warranty expires? This is where vehicle protection plans come in, also known as vehicle service contracts, dealerships, and third-party vehicle service providers like Veritas Global Protection. Therefore, one can look at vehicle protection plans as add-on coverage that car-owners can purchase to avoid costly maintenance services and repairs if something goes wrong.
Vehicle Protection Plan Details and Why You Need Them?
There are two types of vehicle protection plans that interested parties can choose from. These are Stated coverage and exclusionary coverage. A Stated component policy provides cover for a select number of components.
The policy will specifically list all components that are covered under it. The most common of these types of coverage include Drivetrain and Powertrain.
However, most vehicle service providers offer many different stated policies in addition to Drivetrain and Powertrain. Auto protection plans from Veritas Global Protection, for example, include a whole host of different stated coverage, including Powertrain Plus, Powertrain Enhanced, Veritas Global Protection Premier, and many more.
On the other hand, the exclusionary coverage is similar to the ‘bumper-to-bumper’ coverage mentioned above. It covers all major vehicle components except for minor wear and tear items and other bells and whistles.
Apart from the above, two other common auto service contracts include the wrap and the corrosion warranty. The former applies to vehicles that receive extended powertrain coverage as part of the car warranty. With the wrap policy, the powertrain warranty is elevated to bumper-to-bumper coverage for the initial length of the automaker’s powertrain warranty. O the other hand, a corrosion warranty provides cover for damages caused to a vehicle by rust and other environmental factors.
So, why do you need a vehicle protection plan, and is it worth it?
We may look at some simple math to find answers to these questions. According to a source (Endurance), the average cost of a vehicle service contract is around $2,500 annually. The most basic plans will cost significantly less, whereas the costs can go up to $4,000 or more for higher-end and exclusionary plans.
Now, according to a 2020 estimate, the average cost of replacing an engine is $6,783; a turbocharger, $2,165; drive axles, $2,086; transmission $4,102; transfer Case $2,568. Even if you don’t need to replace a part, car repair costs are also escalating rapidly and alarming in the US.
This is why it makes sense to buy extended warranties, especially if someone wants to keep the vehicle for some time. Deductibles for any covered repairs typically range from $100 to $250. This means that there is no need for you to set aside thousands of dollars for unexpected breakdowns and repairs.
Veritas Global Protection: Setting New Benchmarks for the Industry with their Exemplary Plans
Veritas Global Protection offers an amazing number of different vehicle protection plans for its customers. Veritas Vehicle Protection Plan policies aim at independent car owners, franchise dealers, and agencies. Committed to continued innovation and to providing genuine value to their customers, Veritas Global Protection policies are designed so that everyone can find something that will appear tailored to their requirements.
For example, the plans listed under Veritas Select Program were designed with franchise dealers in mind. On the other hand, Veritas Guard Program includes plans that can benefit both franchise dealers and independent owners. Again, the Essential Plans were developed for both short- and long-term coverage requirements.
We must also mention here that Veritas Global Protection offers three separate plans for exotic cars. This is somewhat rare in the industry for two reasons: the highly prohibitive repair or parts replacement costs of these vehicles and the fact that the owners of exotic vehicles will often seek to settle for an ‘agreed value’ since the value of an exotic car grows over time. Veritas, however, still offers two Stated Plans (Preferred and Deluxe) and one exclusionary plan (Exotic Premier) for pretty much all exotic vehicles.
Finally, all Veritas Global Protection Plans come with value-packed perks such as roadside assistance, travel and rental car reimbursements, transferrable coverage, and nationwide protection.