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How to Choose Between Auto Extended Warranty and Auto Protection?

Thinking to protect your plan? You might be confused about which one to choose a used Auto Extended Warranty or an Auto Protection? Hence, you should understand the difference between these two. It could be a little difficult to get all the nuances related to warranty and protection plan as there is a fine line that separates the two. Also, the term “extended warranty” is often misused, and therein lies the great confusion.

What Federal Law Says?

The Federal Law has established that, if you are paying for a service contract, then, it could not be a warranty. The warranty is included without any extra cost, especially at the time of purchase of auto.  This is generally, coverage that extends beyond the factory warranty. In fact, you are paying for protection.

Where is the Confusion

Often, salespersons and auto service providers call a Vehicle Service Contract as the Auto Protection. Because they think it is simpler to explain. This interchangeable use of terms creates the confusion. Hence, the factory “warranty” provided with your vehicle is really a warranty. Anything else – whether added at the time of purchase, should properly be referred to as a vehicle service contract or a vehicle protection plan. It could be sometime during the factory warranty period, or after the warranty expires. The manufacturers are well aware of this fact, this is why, they call their extended coverage by names such as; Toyota Extra Care, Kia Protection Plus, Chrysler Service Contract, or Ford Extended Service Plan. Especially, if you buy extended protection from a dealership you can expect it to be more like insurance, not a warranty.

So, if are paying for any coverage – or protection that is not part of your free factory warranty – is genuinely a vehicle service plan. Now, the question is “Where do you buy it?” you have two choices, the manufacturer or a third party provider. Depending on the options, you can choose any package or contract.

Why Auto Protection Plan is Good for Old Vehicle?

Manufacturer factory warranties only cover repairs for a certain period of time. So, an Auto Protection is the good choice for your old vehicle. It covers mechanical failures beyond the factory warranty. It relieves worry of expensive out-of-pocket repairs for your aging vehicle.


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