Many people prefer buying new cars to used vehicles. This can be attributed to the availability of affordable auto financing and the low maintenance cost of new cars. New cars come with a manufacturer’s warranty, which covers maintenance costs and replacement costs of major parts.
This means that the owners of new vehicles can use their new vehicles worry-free for the duration of the warranty. This is because the manufacturer undertakes to maintain the vehicle and replace worn-out parts covered by the warranty.
When the warranty expires, however, the manufacturer’s obligation ceases. As a result, the owner of the vehicle will be left exposed. The good news is that Red Shield Administration offers vehicle protection plans that can provide the same level of protection as a manufacturer’s warranty.
How it Works
A manufacturer’s warranty is offered by the manufacturer of a vehicle. It typically covers the vehicle for a certain number of miles or a given period. For instance, some of the best warranties cover a vehicle for five years or a distance of 100,000 miles. This means you can live worry-free for a long time as you enjoy using your vehicle.
If your vehicle develops a mechanical or electrical problem, you will be required to contact the manufacturer or take the vehicle to an authorized dealership. Allowing a third party to service or repair your vehicle can void certain areas of your warranty. This is because unauthorized mechanics are considered unqualified to handle your vehicle.
Once you make a claim, the manufacturer will direct you to the nearest dealership, where your vehicle will be checked and fixed at the manufacturer’s cost. It’s important to note that you will also be given a maintenance schedule after buying a new car. The manufacturer will expect you to take your car for maintenance within the timelines indicated on the maintenance schedule. This will help to ensure your vehicle operates efficiently and does not break down frequently.
What is a Vehicle Protection Plan?
This is a contract between the owner of a car and a service provider, usually an insurance company. The auto service contract company agrees to repair and maintain the vehicle and replace certain parts where necessary, while the client agrees to pay the required premiums.
An excellent example of a reliable vehicle protection plan is Red Shield Administration. Service providers usually offer several different types of vehicle protection plans, which are customized to meet the needs of different types of clients. For instance, some people may only need to cover a vehicle’s powertrain and not every other component. However, some people want to cover every single component through a bumper-to-bumper vehicle protection plan.
You will also find consumers who want something better than a simple powertrain protection plan but do not need a bumper-to-bumper protection plan. All kinds of customers are catered for through the various types of vehicle protection plans offered by Red Shield Administration.
When to Buy a Vehicle Protection Plan
1. To Fill Coverage Gaps
After carefully reading the terms and conditions of a vehicle protection plan, you will realize that there are many exclusion clauses. As a result, you may discover gaps in coverage, however small they may be. You can fill these gaps by purchasing a vehicle protection plan from Red Shield Administration.
Please note that auto manufacturers usually offer different terms and conditions on their manufacturer’s warranties. Some are known to offer better coverage than others. Whatever the case, it’s important you find a suitable vehicle protection plan to fill the gaps in coverage.
2. Expired Manufacturer’s Warranty
Depending on the manufacturer and model of your vehicle, the manufacturer’s warranty may last 3 to 5 years. When the warranty expires, you will be left exposed. To ensure you are protected sufficiently, consider buying a vehicle protection plan from Red Shield Administration. The ideal plan should offer bumper-to-bumper protection.
3. For Additional Coverage
While your auto insurance policy and manufacturer’s warranty may offer protection, the coverage limits may be low. To get additional coverage, you can complement your policy with a vehicle protection plan.
When buying a vehicle protection plan, you should read the terms and conditions of the contract. Be sure to pay attention to the inclusions and exclusions because they determine how good the coverage is. If you fail to read the T&Cs of a contract, you may find yourself buying a given plan thinking that it offers bumper-to-bumper coverage, only to discover that it only covers a few components.
The Key Differences Between a Manufacturer’s Warranty and a Vehicle Protection Plan
The first key difference between a manufacturer’s warranty and a vehicle protection plan is the service provider. As the name suggests, a manufacturer’s warranty is offered by a vehicle manufacturer. On the other hand, a vehicle protection plan is offered by third parties, such as Red Shield Administration. Many other service providers exist in the industry.
A manufacturer’s warranty only applies to brand-new vehicles, also known as zero-mileage automobiles. Vehicles with a manufacturer’s warranty can only be obtained directly from the manufacturer’s factory outlet.
Vehicle protection plans, such as those offered by Red Shield Administration, apply to used vehicles. The vehicle may be over three years old or older. Different service providers have different requirements.
It’s important to note that every new vehicle comes with a manufacturer’s warranty by default. The buyer is not required to apply for the warranty. Consumers are advised to pay attention to the terms and conditions of their manufacturer’s warranties because they can easily void their warranty unknowingly.
With a vehicle protection plan, consumers are required to apply for the plan of their choice. Red Shield Administration has simplified the process of applying for vehicle protection plans.
Manufacturer’s warranties do not come with an added cost to the buyer. The warranty is available as an after-sales service. On the other hand, vehicle protection plans are not available free of charge.
The client has to pay the premium calculated by the service provider. It’s important to note that Red Shield Administration offers vehicle protection plans that are available at different rates.