There are a lot of scams that surround the car buying process. Whether it's people trying to sell a terrible car at a higher price than it should be or promising services that are never delivered, too many people have been burned in the past.
That's why vehicle protection plans have been looked at skeptically whenever they pop up. Not everyone is entirely sure what they provide, and some have even gone as far as to label them a scam. It doesn't help that at times, scammers have pretended to offer vehicle protection plans only to rob people of their money.
CarGuard Administration Inc. has been helping to educate people on what to look out for when purchasing a vehicle. A vehicle protection plan is anything but a scam when working with a reputable company. In fact, it could be a way for people to save money in the long run on repairs for their used or new vehicles.
What is a vehicle protection plan?
Clearing up the confusion about a vehicle protection plan is the first step to helping people understand what it is and how to avoid fake companies. A vehicle protection plan acts as a service contract that will cover any mechanical breakdowns for the parts covered. This goes into play after a typical factory warranty runs out. Some people opt for vehicle protection plans with bumper-to-bumper coverage, while others only want the powertrain warranty for the essentials.
While it does cost extra, it helps individuals not spend an absorbent amount of money out of the blue. Problems with a vehicle can pop up out of nowhere, and most people don't have repairs budgeted every month. Instead of being shocked with a huge bill, this keeps things much more manageable.
What makes vehicle protection plans so beneficial?
A new vehicle will come with a factory warranty, but they don't cover everything. They often don't last as long as people would like. There might be no factory warranty when buying a used car, so a vehicle protection plan helps fill in the gaps.Those invested in a vehicle protection plan have several benefits from their very first payment. Third-party plans also keep prices down because there is so much competition. CarGuard Administration Inc. takes pride in having a business that offers some of the lowest rates in the United States.
Repair shop options
A quality vehicle protection plan will allow people to go to the repair shop of their choice. This is excellent news for those who trust someone locally and those who don't want to travel too far to get something fixed. There have been horror stories when using other coverages where people have to go a long distance just to get any type of service. There also might be a wait, keeping a person car-less for weeks.
Roadside assistance
No one realizes how much they need roadside assistance until they find themselves in a challenging situation. A vehicle protection plan will offer roadside assistance as part of the package. This can be simple, like fixing a flat tire or getting an entire tow to a repair shop.
Most reputable vehicle protection plans will come with coverage 24 hours a day. CarGuard Administration Inc. feels like it's one of the more essential features with any vehicle protection plan, giving customers assurance that they are truly safe.
Rental car and trip interruption coverage
Some insurance policies may already offer this, but vehicle protection plans also provide rental service. Those who rely on their vehicle to get to work or school every day will not be without an alternative. The best part is it comes at no additional cost.
Is a vehicle protection plan worth the extra cost?
Every auto brand has its own reputation when it comes to reliability. Some age very well, while others start to have one problem after another once they hit a particular milestone on the odometer. The basic thought is that the older the car is, the more essential a vehicle protection plan is.
Most brand new car buyers can get away without a vehicle protection plan early on. However, even in the early stages of car ownership, CarGuard Administration Inc. is quick to point out that plans still provide great value. It's a safeguard to ensure that as much as the car is covered as possible. There's no plan out there that covers 100% of a vehicle, but offsetting the cost does help quite a bit.
How much are vehicle protection plans on average?
How much does a vehicle protection plan cost on average with all these great benefits? Most companies offer at least a couple of plans under $100 per month. The more coverage a person wants, the higher the monthly premium is.
There's also a premium for luxury cars and other specialties out there. It works in a lot of the same ways as insurance does with pricing.
Why vehicle protection plans are not a scam
The reputable companies offering vehicle protection plans are far from a scam. In fact, most customers believe that this type of plan saves them money and keeps them and their families safe. When something terrible happens, the out-of-pocket price is not nearly as high as one would expect.
Like any company, always research them before handing over money. CarGuard Administration Inc. knows that there are a lot of imposters out there, but the best vehicle protection plans are only going to provide benefits in the long run.
