Listed-component coverage
The agreement identifies specific components or systems that are covered.
Components that aren’t included in the applicable coverage description should not be assumed to be covered.
Car Warranty vs. Vehicle Service Contract
What’s the difference?
A car warranty and a vehicle service contract can both provide protection when certain vehicle components fail, but they are not the same thing.
Manufacturer’s warranty
Generally comes with a new vehicle and provides coverage from the manufacturer for specified defects or repairs during a defined period.Vehicle service contract
A separate, optional agreement that can provide coverage for certain eligible mechanical repairs and related benefits according to its terms.Understanding the difference can help you determine what protection you already have and what additional coverage you may want to consider.
At a glance
Warranty vs. vehicle service contract
| Manufacturer’s Warranty | Vehicle Service Contract | |
|---|---|---|
| What is it? | Coverage provided by the vehicle manufacturer according to the warranty terms | A separate contract providing specified vehicle repair coverage according to its terms |
| Is it optional? | Generally included with an eligible new vehicle | Generally optional |
| Who provides it? | Vehicle manufacturer | Depends on the service contract and parties identified in the agreement |
| When is it purchased? | Typically included when the eligible vehicle is purchased new | May be purchased separately, subject to eligibility |
| How long does it last? | For the time/mileage stated by the manufacturer | For the term/mileage stated in the service contract |
| What does it cover? | Defects or repairs specified by the manufacturer's warranty | Eligible repairs/components defined by the service contract |
| Are exclusions possible? | Yes | Yes |
| Does the agreement matter? | Yes — review the warranty terms | Yes — the service contract controls the coverage |
The exact protection always depends on the applicable warranty or contract.
Manufacturer’s warranty
What is a manufacturer’s warranty?
A manufacturer’s warranty is protection provided by the vehicle manufacturer according to specific warranty terms. For an eligible new vehicle, warranty coverage is typically included with the vehicle rather than purchased as a separate vehicle service contract.
The warranty may cover certain defects or repairs for a specified period of time or mileage. The actual coverage depends on the manufacturer’s warranty documentation.
How long does it last?
There is no single warranty period that applies to every vehicle. Manufacturers can provide different warranty periods for different vehicles, components and types of coverage — for example, separate terms for areas such as:
The manufacturer’s warranty documentation is the best source for determining what remains covered on a particular vehicle.
Vehicle service contract
What is a vehicle service contract?
A vehicle service contract is an optional agreement that can provide coverage for certain mechanical repairs and related benefits according to the terms of the contract. Unlike a manufacturer’s warranty, a vehicle service contract is a separate agreement.
Not every vehicle service contract provides the same protection.
Is a vehicle service contract an extended warranty?
You may hear vehicle service contracts described conversationally as “extended warranties.” However, a vehicle service contract is a separate contract and should not automatically be treated as the same thing as a manufacturer’s warranty.
When evaluating an offer, look at what the agreement actually is rather than relying only on phrases such as:
The contract itself tells you who the parties are, what is covered and what rules apply.
The contract should identify
Covered componentsExclusionsDeductibleCoverage termMileage limitsCoverage-start requirementsClaims proceduresContract administratorBenefit limitsCancellation provisions
When does a vehicle service contract make sense?
It depends on the vehicle and the driver
A vehicle service contract may be worth considering when you want additional protection against certain eligible mechanical repair costs beyond the coverage you already have. Whether it makes sense for you depends on factors such as:
There isn’t one vehicle service contract that is right for every driver or every vehicle.
Can a vehicle still be under warranty when you buy a service contract?
Potentially. The important question is not simply whether a vehicle service contract is available, but how the new contract interacts with protection you already have.
Don’t assume that purchasing another agreement automatically gives you completely different coverage.
Before purchasing additional coverage
1Check whether your manufacturer warranty is still active.2Determine what that warranty actually covers.3Review when the vehicle service contract coverage begins.4Compare the two for potential overlap.5Understand what additional protection the service contract provides.
After the warranty expires
Does a service contract cover everything once the warranty ends?
No. A vehicle service contract does not automatically cover every mechanical problem simply because a manufacturer’s warranty has expired. Coverage depends on the individual agreement. Two common coverage approaches are:
Exclusionary coverage
The agreement generally provides broader component coverage while identifying parts, services or circumstances that are excluded.
“Exclusionary” does not mean there are no exclusions.
Every contract should be evaluated according to its actual terms.
What usually isn’t covered?
There is no universal exclusion list for every vehicle service contract. Depending on the agreement, exclusions may apply to areas such as:
This is why reading the exclusions section is just as important as reading the coverage summary. Your individual contract determines what is and is not covered.
Who handles repairs under a service contract?
The agreement should identify the contract administrator and explain the applicable claims process. When a mechanical problem occurs, the process may include:
1Taking the vehicle to an appropriate repair facility2Identifying the vehicle service contract3Diagnosing the mechanical problem4Contacting the contract administrator5Obtaining authorization where required6Completing an eligible covered repair according to the contract
Do not assume that you can authorize or pay for a repair first and automatically receive reimbursement later. Always review the claims procedure in the applicable agreement.
Deductibles
What is a vehicle service contract deductible?
A deductible is an amount you may be responsible for paying toward an eligible covered repair according to the contract. Deductible structures can vary.
Before purchasing, determine
The deductible amountHow the deductible appliesWhether different options are availableWhat your agreement says about when it is charged
Don’t compare vehicle service contracts based only on their purchase price. The deductible can affect your cost when using the coverage.
Roadside assistance and other benefits
Some vehicle service contracts include additional benefits such as:
These benefits may have their own eligibility requirements, dollar limits, time limits and procedures.
The presence of a benefit in a coverage summary does not mean it is unlimited. Review the applicable contract for details.
What should I compare before buying?
Review more than the plan name or monthly payment
01What exactly is covered?Look at the actual components and coverage description.
02What is excluded?Read the exclusions and limitations.
03When does coverage begin?Check for applicable coverage-start requirements or waiting periods.
04What is the deductible?Know what you may have to pay when an eligible repair occurs.
05Who administers the contract?Know which company is responsible for administering the agreement and applicable claims.
06What is the claims procedure?Understand what you're expected to do before repairs are performed.
07What additional benefits are included?Review roadside, rental or trip-interruption benefits and their limits.
08How long does coverage last?Check both time and mileage provisions.
09What does the contract cost?Understand the total cost, not only a monthly payment.
10What are the cancellation provisions?Know what the agreement says before you purchase.
Warranty expiring?
Check your existing coverage first
If your manufacturer’s warranty is approaching its expiration, start by finding out exactly what protection you currently have. Then compare any vehicle service contract you’re considering against that existing coverage.
The goal isn’t simply to find something called an “extended warranty.” Those questions provide a much better basis for comparing vehicle protection.
The goal is to understand
What do I have now?What would the new contract add?What would still not be covered?How would I use it if my vehicle needed a repair?
Exploring vehicle service contracts through Atlas?
Coverage options offered through Atlas
Atlas Vehicle Protection is a Missouri-based seller of vehicle service contracts. Atlas offers coverage options administered by EFG Companies / Enterprise Financial Group and BeeCovered.
Available options include different approaches to coverage, including listed-component and exclusionary contracts. Your vehicle and applicable eligibility and state requirements can affect which options are available.
Frequently asked questions
Warranty and service contract questions
Is a vehicle service contract the same as a car warranty?
No. A manufacturer’s warranty and a vehicle service contract are different forms of vehicle protection.
A manufacturer’s warranty is provided according to the manufacturer’s warranty terms, while a vehicle service contract is a separate agreement with its own coverage, exclusions and conditions.
Is an extended warranty the same as a vehicle service contract?
People sometimes use “extended warranty” to describe vehicle service contracts, but the terms should not automatically be treated as interchangeable.
Review the actual agreement to determine what type of protection is being offered.
Can I buy a vehicle service contract after my manufacturer warranty expires?
Vehicle service contract availability depends on the vehicle and applicable eligibility requirements.
A vehicle does not necessarily need to be under its original manufacturer warranty for a service contract to be available.
Does a vehicle service contract cover maintenance?
Not automatically. Routine maintenance should not be assumed to be covered unless the applicable agreement specifically provides for it.
Does a vehicle service contract cover all mechanical repairs?
No. Coverage depends on the components, exclusions, conditions and other provisions of the individual agreement.
What happens when I need a covered repair?
Follow the claims procedure in your vehicle service contract. The administrator identified in your agreement handles applicable claims according to the contract terms.
Review whether authorization is required before repairs are performed.
Where can I learn more?
Start with the Vehicle Service Contract Buying Checklist to learn what to review before purchasing, or visit Contracts & Coverage to explore options available through Atlas Vehicle Protection.
Vehicle Service Contract Buying Checklist
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