When a new or certified pre-owned vehicle is purchased, the manufacturer will provide a limited warranty. This indicates that the automaker is guaranteeing that the car is defect free, and the company promises that none of the components covered under warranty will fail within a particular period of time or use.
This type of warranty typically covers the components under the vehicle’s hood and may apply to electronics, power seats, and other bells and whistles. The manufacturer may also provide a powertrain warranty covering the transmission and engine.
A manufacturer’s warranty expiring is when a vehicle protection plan from a company like Red Shield Administration comes in. Typically, a manufacturer warranty covers a minimum of 30,000 miles or three years, whichever comes first.
Vehicle protection plans provide add-on coverage that can be purchased for additional peace of mind. It covers maintenance and repair services after the expiration of the warranty. Warranties are basically manufacturers’ guarantees against defects, whereas a vehicle protection plan is offered at an additional cost by either a third party or a dealership. The vehicle protection plans assist in covering the costs of vehicle repairs in the event that something goes wrong.
Examining Vehicle Protection Plans
Services covered under the initial manufacturer warranty are frequently copied by the vehicle protection plan. The practical distinction is that a protection plan continues coverage for the vehicle for an extended period of time following the expiration of the warranty.
A vehicle protection plan from Red Shield Administration can be in effect along with the manufacturer warranty. This could be wise if it provides coverage for things your warranty does not. A number of plans will provide roadside assistance if you are stranded with a mechanical failure and reimburse you for a rental vehicle used while your car is being repaired.
Red Shield Administration offers car owners three protection plans and provides a host of other plans as well. The three plans for automobiles include the essentials plan, the guard plan, and the red shield select plan.
The essentials plan is a short-term auto protection plan that provides vehicle coverage for 3 to 9 months.
The red shield select plan provides coverage options for new and used cars alike with terms of up to 80,000 miles.
The guard plan provides powertrain plus, premium plus, and powertrain enhanced protection plans. There are also custom packages that provide coverage up to 100,000 miles.
Costs and Factors of Vehicle Protection Plan
To get coverage for your car under a vehicle protection plan, like those offered by Red Shield Administration, you are typically required to pay an upfront fee. This could range between a few hundred dollars to more than 1000 dollars.
Several factors determine this cost. They include the make and model of the vehicle, whether the vehicle is used or new, the length of the contract, and what is covered in the contract. When repairing the vehicle under the vehicle protection plan, a deductible will be required, similar to what is required in an insurance policy.
The protection plan can be directly purchased from the dealership or via a third-party provider like Red Shield Administration. Acquiring a vehicle protection plan via the dealership may guarantee the use of OEM (original manufacturer) parts. However, you might be required to obtain licensed service from one of their official service centers. Conversely, getting a vehicle protection plan via a company that is neither the manufacturer nor dealership may provide more flexibility on places you can get your vehicle serviced and could offer lower prices potentially.
When you are thinking about getting a protection plan from a company like Red Shield Administration, there are several things you should look for and ask about in the fine print:
Can the plan be transferred?
If you decide to sell your vehicle and that results in the plan expiring, you might not have received your money’s worth if your plan is transferable to your new vehicle.
Where can the vehicle be taken for maintenance services?
If you are limited to the dealership and its network, depending on the situation, this could cause problems or make things frustrating. You could find peace of mind knowing you have a wide array of service centers from which you choose, regardless of where you are located.
Is it redundant?
It is a possibility that your car insurance could provide coverage for some of the same components as the protection plan you are thinking about getting. You should not go for a vehicle protection plan that provides the same coverage as your insurance policy.
Is the deductible “per repair” or “per visit?”
This answer could impact the overall cost of having something repaired or serviced.
Investigate the provider. Research the company’s reputation if you are shopping around for third-party providers rather than going through your dealership.
Red Shield Administration is a good source of vehicle protection plans. Their policies can be modified to fill coverage gaps in the comprehensive auto insurance and manufacturer warranty. Vehicle protection plans from Red Shield Administration always provide its owner with peace of mind.