What Is a Vehicle Protection Plan? (2024)

FAQs

What is a protection plan on a vehicle? ›

A vehicle protection plan (AKA a “vehicle service contract”) is add-on coverage that you can purchase for extra peace of mind that covers repair and maintenance services after your warranty has expired. Though this type of plan is often referred to as an “extended warranty,” that term is actually a misnomer.

Long-term peace of mind: Buying a warranty can provide valuable protection and decrease the stress and worry that come with car ownership — especially if you don't have the money to cover large unexpected repairs.

First Class Term Protection covers the cost to repair or replace several of the parts and the related labor that can result from normal vehicle wear and tear.

Extended vehicle service plans, also known as vehicle service contracts or extended warranties, are optional protection plans that cover the cost of certain repairs and parts replacements. You can purchase these plans to extend your coverage once your manufacturer's warranty expires.

Also known as service plans or extended warranties, product protection plans can cover defects, accidents, or damage to products and even allow consumers to get them replaced or repaired at no additional cost.

A protection plan is an agreed plan of what help and support you need to keep safe from harm. You will be involved in your plan, and with your agreement, your family or friends. The plan can also involve others, for example, staff from Social Work, Housing, Police, Health and care services.

vehicle protection plans. Both cover parts and systems on newer cars, but vehicle protection plans generally step in when your car warranty runs out. Vehicle protection plans are often offered by car insurance companies as an optional coverage, while manufacturer car warranties come with the car when you buy it.

The major difference between the two types of coverage is what they protect. While homeowners insurance plans generally cover the structure of your home, home protection plans do not. Instead, home protection plans cover major systems within your home (e.g. HVAC systems, furnaces, plumbing, electrical, etc.)

Like most warranties, extended warranties and vehicle service contracts don't cover routine maintenance, wear items such as tires, brakes or wiper blades, collision damage or damage resulting from lack of maintenance or abuse. You should not expect heavily modified vehicles to be covered.

An extended warranty or service contract on your vehicle pays the costs of some repairs, above what the manufacturer's warranty covers or after the manufacturer's warranty ends. Extended warranties and vehicle service contracts typically exclude routine maintenance such as oil changes and tire replacement.

What are the different types of car protection? ›

We can break this down to four basic categories. Wax, sealants, ceramic coatings, and paint protection film (PPF or Clear Bra).

In short, engine protection cover provides financial protection for any damages to the car's engine or/and its parts arising out of incidents of water ingression, leakage of lubricant oil, damage to the hydrostatic lock, damages to the engine parts, such as the gearbox, crankshaft, cylinder, connecting rods, pistons, ...

A full warranty often covers repair or replacement for all product parts. In general, full warranties don't cover normal wear and tear. They give customers a way to fix substantial problems with the product.

If you have collision and comprehensive, then your vehicle may be covered if the engine is damaged in an accident or by an event outside of your control. A blown engine that's the result of a mechanical failure or wear and tear won't be covered by comprehensive or collision coverage.

Product protection plans are similar to extended warranty plans, but are much more versatile. Rather than only purchasing protection for the occasional big ticket item like a car, you can protect almost any of your online purchases, including appliances (large and small), furniture, bikes, luggage, and much more.

While a manufacturer's warranty will only cover defective parts, pre-existing at time of purchase, extended protection plans will cover issues that come up from normal product use.

The major difference between the two types of coverage is what they protect. While homeowners insurance plans generally cover the structure of your home, home protection plans do not. Instead, home protection plans cover major systems within your home (e.g. HVAC systems, furnaces, plumbing, electrical, etc.)

Most electronics comes with a warranty, typically 1 year, and usually not covering accidental damage. Protection plans cost extra and typically do one or more of the following: Extend the warranty for an additional time period. Add additional coverage, like accidental damage.