What Does Vehicle Service Contract Mean

When buying a new or used car, you may be offered a vehicle service contract (VSC) by the dealership or an independent company. But what exactly does a VSC mean?

A VSC is a contract that provides coverage for certain repairs and services for a specified period of time or mileage. It`s essentially an extended warranty that covers the cost of repairs beyond what is covered by the manufacturer`s warranty.

Some VSCs only cover certain components of the car, such as the engine or transmission, while others may provide more comprehensive coverage. The cost of a VSC varies depending on the coverage and the specific make and model of the vehicle.

It`s important to note that a VSC is not the same as car insurance. Car insurance is required by law and covers damage to your vehicle (as well as liability for any damage or injuries you may cause to others). A VSC, on the other hand, is optional and covers repairs and services that are not the result of an accident.

Before purchasing a VSC, it`s important to read and understand the contract thoroughly. Make sure you understand what is covered, what is excluded, and any deductibles or fees that may apply. It`s also a good idea to research the company offering the VSC to ensure they have a good reputation and a history of paying out claims.

In summary, a vehicle service contract provides extended warranty coverage for certain repairs and services beyond what is covered by the manufacturer`s warranty. While it`s not required, a VSC can provide peace of mind and financial protection in the event of unexpected repairs.

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