Skip to content

Can Vehicle Service Contracts Provide Value for Your Customers?

If you do not offer vehicle service contracts to your customers, you are missing out on a great opportunity. Not only do service contracts provide additional value to customers, but they can also help protect the investment that a customer has made in the vehicle they purchased from you. Titan Warranty Administration offers various types of vehicle service contracts, which we’ve designed to suit different needs and budgets.

In this blog post, we will discuss the different types of vehicle service contracts and look at some of the ways they can benefit and provide value for your customers.

Benefits of Vehicle Service Contracts

Vehicle service contracts can provide your customers with cost savings, peace of mind, and convenience.

If your customers purchase a service contract, they will save money by avoiding expensive repairs. Service contracts cover repair costs that arise due to mechanical failure or normal wear and tear, meaning your customers won’t have to worry about unexpected expenses if their vehicle breaks down.

Peace of mind comes from knowing that their vehicle is covered in the event of an unexpected and potentially expensive repair. Vehicle service contracts offer coverage for parts and labor associated with most common repairs. These parts typically include engine components, transmission systems, electrical systems, brakes, suspension systems, air conditioning units, EV-specific components, and other high-tech features found on modern vehicles.

This gives customers the assurance that they won’t be stuck paying out-of-pocket for costly repairs should something go wrong with their vehicle.

Many plans include reimbursement for emergency roadside assistance services, trip interruption (should something go wrong while customers are away from home), and substitute transportation costs, as well. In some cases, services can include jump starts, tire changes, unlock services, and cover flatbed tows up to a certain number of miles per occurrence.

Types of Vehicle Service Contracts

There are two common types of vehicle service contracts: mechanical breakdown protection and wear-and-tear coverage.

Mechanical breakdown protection covers repairs due to mechanical failure or defects in materials or workmanship, protecting customers against expensive repair bills caused by malfunctioning parts, such as engine components, transmission systems, or electrical systems.

Wear-and-tear coverage addresses repairs due to normal wear and tear on the vehicle over time; this includes items, like suspension components, internally lubricated components, and other parts, that may need replacing once they have worn beyond manufacturers tolerances.

How to Choose the Right Vehicle Service Contract for Your Customers

Choosing the right service contract is an important decision, and your customers will probably ask you for guidance when choosing one. There are three critical factors to consider: the age, make, and model of the vehicle. Older cars may require more comprehensive protection than newer models due to higher repair costs associated with parts that are no longer available or difficult to find.

It is important to understand exactly what types of repairs are covered by a particular service contract, as well as any exclusions that may apply, such as pre-existing conditions or certain components not being included in coverage plans. Knowing exactly what is and isn’t included in each contract will help you determine which one is best for each of your customers.

Questions Your Customers May Ask You

Your customers will most likely ask you some questions about vehicle service contracts. It is crucial that you are able to provide the answers to their questions if you want them to purchase a contract. The following are common questions that customers ask, as well as some comprehensive answers you can provide.

What is a vehicle service contract?

A vehicle service contract is an agreement between you, the vehicle owner, and a third-party provider (like Titan Warranty Administration). The contract covers repairs to specified components of the vehicle in exchange for a fee.

These contracts cover parts and labor costs associated with repairing or replacing defective parts due to normal wear and tear or malfunctioning components. Service contracts are designed to protect you from unexpected repair costs, providing peace of mind that you can fix your vehicle if something goes wrong.

Is a vehicle service contract worth it?

Absolutely! A vehicle service contract can provide you with additional protection and peace of mind beyond the manufacturer’s warranty; they often cover repairs that were not covered by the original warranty. They also provide access to certified technicians who specialize in repairing your make and model of vehicle, ensuring quality workmanship.

In addition, having a service contract may help you avoid costly repairs down the road, as many providers include pre-paid maintenance services, like oil changes or tire rotations, at a small additional cost, locking in today’s prices for tomorrow’s services. With inflation being higher than in recent years, vehicle service contracts can be a great way to protect your customers’ budgets.

What’s the difference between a vehicle service contract and a warranty?

Warranties and limited warranties are guarantees from the manufacturer, distributor, or seller of a product that it will meet certain standards. They typically cover defects in materials and workmanship for a specified period of time, usually at no additional cost to the customer.

Service contracts, on the other hand, are agreements between you and a third-party company that provides repair services for specific parts or systems for your vehicle during its lifetime. Service contracts are generally purchased separately from warranties and may include coverage for parts not covered by warranties, as well as labor costs associated with repairs.

Vehicle Service Contracts from Titan Warranty Administration

Vehicle service contracts are an excellent way to protect your customers’ investments and provide them with peace of mind knowing that they are covered if something goes wrong. Give us a call at (833) 317-3720 or email us at if you are interested in offering our service contracts and warranty products to your customers!

Back To Top