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Submission + - Vehicle services contract vs. gap insurance vehicle warranty. What do I need to (

sidsweets writes: Vehicle services contract vs. gap insurance vehicle warranty. What do I need to know?

Like every other good thing that comes to an end manufacturer’s warranty for vehicles also end at one point of time. Till that time, you enjoy using the vehicle with complete confidence that in the event of any problem with the functioning of the vehicle, the manufacturer will pay the cost for setting it right. But once the warranty is over, it is time to start thinking of how you can continue to enjoy the same kind of confidence. The warranty usually lasts for a few years and when it ends, the vehicle also starts showing signs of ageing. Possibilities of failure go up during this time and you are exposed to unforeseen expenses to set things right if there are any operational problems and the car might need repairs. Buy a vehicle service contract

But there are ways to overcome the fear and uncertainty about vehicle failures that can happen at any time. You can purchase additional cover which is also known as extended warranty that can protect you from unforeseen expenses almost in the same way as it happened when the manufacturer’s warranty was in force. You can buy a vehicle service contract that can be enforced immediately as soon as the manufacturer’s warranty comes to an end. Benefits of the contract

Any kind of repair that may be necessary for the vehicle is covered by a vehicle service contract except for damages that occur from accidents or collision. Any mechanical or electrical problems that might require repairs are covered by the contract. The services can be availed at any auto repair shop of your choice so you can have the most reliable services to your satisfaction. The vehicle service contract that you take is transferable. If you sell off your vehicle, you can transfer the service contract to the new owner and realize the cost by adding it to the resale value. GAP insurance

Guaranteed Auto Protection or GAP insurance also offers financial protection to auto owners but in a different way than what is offered by a vehicle service contract. GAP insurance offers protection only in the event of total loss that arises from accidents and damages when the compensation received does not cover the amount that the vehicle owner owes to the financing agency or the leasing company. The book value of the vehicle that is considered for total loss is usually much lower than the amount that is owed by the owner, hence the need for GAP insurance cover. Different kinds of cover

Except that both types of insurance offer financial assistance there is little similarity between the two. Vehicle service contract does not cover the cost of damages but only the cost of repairs that arise from normal wear and tear and usage. Any repair resulting from damage is not allowed in the contract. GAP insurance is applicable only if the vehicle has been extensively damaged that qualifies for total loss.

Both covers can be taken simultaneously so that vehicle owners are completely insulated from financial losses of any kind.

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Vehicle services contract vs. gap insurance vehicle warranty. What do I need to

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