A vehicle service contract helps car owners avoid surprise (and often expensive) auto repair bills. With an auto protection plan in place, car owners can rest easy. In the event of a failure, the repair costs will be borne by the service contract, and the car will be back on the road as soon as possible.

But why invest in a vehicle service contract when you already have the manufacturer's warranty on your new vehicle? Well, first of all, a manufacturer's warranty is only available for a limited amount of time (or mileage). Once you cross that threshold, the warranty, of course, goes void.

More importantly, however, one must realize that a manufacturer's warranty covers only certain essential components of the vehicle (typically, engine, drive axles, transmission, etc.). However, if you want comprehensive coverage on your vehicle, then a vehicle service contract happens to be a great option.

Another crucial thing to consider is how long you plan to keep your vehicle. If you have plans to keep it for a short time and then trade it in for a newer model, a vehicle service contract may not be necessary. However, in all other circumstances, extended protection plans are recommended since these are typically high-mileage, long-term plans. This means you continue to enjoy coverage on your vehicle once the original manufacturer's warranty has expired.

Most services of this nature offer additional perks or bonuses with their different plans. These typically include roadside assistance, transferrable coverage, and nationwide coverage, to name but a few. And if the car owner plans to sell their vehicle at any point in time, a 'transferrable coverage' option allows them to sell their existing vehicle contract to the buyer party. And this, of course, helps increase the resale value of the vehicle in question.

With roadside assistance, one will receive towing services, reimbursement for rental vehicle costs, costs for overnight stay (if one is more than 100 miles away from their home), and other benefits, as long as the car failure is caused by a component under coverage.

CarGuard Raising the Bar

CarGuard happens to be one of the few companies in the vehicle service contract industry that enjoy a consistently high reputation among its customers. The company partners with other auto insurers and their own clients to deliver the highest-quality service possible.

The CEO of the company, Trevor Smith, places great importance on customer service and satisfaction. Accordingly, the company only partners with services that meet CarGuard's high levels of commitment to its customers. So, one can rest assured concerning issues like hassle-free (and quick) claims processing, customizable plans, easy payment options, and the like.

However, there are even more things that set CarGuard apart from other reliable vehicle service contract companies. To cite but one example, while CarGuard (like most other companies) offers several different protection plans, it does not stop at that. With their higher-end plans such as Platinum or Gold Coverage, the plans automatically roll over to a mid-level plan without any extra costs to the policyholder. With this policy in place, the company is truly looking out for its customers.

Finally, one must also mention CarGuard's Payment Protection Plan (altogether unique in the auto protection sector), designed for customers experiencing sudden layoffs or temporary unemployment. In such unexpected situations, the Protection Plan will help the policyholder stay up-to-date with his loan payments until things get sorted out for good. It’s easy to see why getting a vehicle service contract like CarGuard will help you feel safe and secure, no matter what the future holds.