Vehicle owners keep their cars, trucks, SUVs, and other wheels longer. In fact, the average time period of ownership has increased dramatically—60 percent—over the past 10 years. That means that many vehicle owners are facing more expensive repairs as their vehicles age, and getting a vehicle protection plan is an increasingly sensible precaution.
Jokes about sales calls regarding a car’s extended warranty abound, but there are actually some valid reasons for considering a vehicle protection plan. Every one of them can save you money. Here is a look at the top five reasons to get a vehicle protection plan, such as one from CarGuard Administration.
Repairs Can Be Expensive
The cost of car repairs has gone through the roof over the past year, with repairs rising 23 percent in just one year, a rate quadruple to price increases in other sectors. A shortage of car parts and an even bigger shortage of workers have led to these dramatic increases.
The average car repair cost ranges between $400 and $500, but it can cost much more than that. Vehicle owners in the US spent a total of 194.9 billion on car repairs and maintenance in 2021. And that was before inflation kicked in.
A starter can cost $505 and a new engine can cost more than $7,300. Most people don’t have that kind of money lying around. Approximately half of all working Americans don’t have a significant amount of savings, so one car repair like this can wipe their finances out.
A car repair can cause additional problems if you depend on the vehicle to get to work. Having the car sit while you save up money to repair it means you will be paying additionally for things like rentals, cabs, and even paying friends to take you to work. That doesn’t even include the hassle involved.
This is where a vehicle protection plan comes in. This type of plan covers many of these major expenses, so they don’t have to come out of your pocket. You can get your vehicle repaired quickly and not be left stranded until you save the money.
It Can Help Your Vehicle Last Longer
Many parts will need replacing as vehicles age. That’s a fact. It’s also a fact that replacing parts before they cause problems is better for the vehicle. People who have vehicle protection plans tend to get those parts replaced sooner because they are often covered. Those who have to pay out of pocket often don’t get them replaced until the car breaks down.
It costs you more money, in the long run, to wait to replace parts. Being reactive—caring for your vehicle only after parts break—rather than proactively replacing worn parts before you need to will cause the vehicle to wear out faster. You will need to buy a new vehicle sooner, losing any money saved in not replacing parts.
Keeping a vehicle protection plan on the vehicle also ensures that you stick with the same mechanic for all your car needs. Vehicle protection plans often have a list of preferred mechanics. Even if your plan doesn’t, knowing the cost will be covered means you will likely keep a mechanic you like rather than shopping around for the cheapest price for every repair.
It also means you are more likely to get a good mechanic working on your vprobleehicle rather than someone who does it “on the side.” Limiting the number of different mechanics working on your car and making sure they are qualified will go a long way to increasing your car’s longevity.
Buying Vehicle Protection Reduces Risks
Vehicle protection is a type of insurance that many people think they will ever use. However, you will find that it reduces the risk of paying for expensive parts and labor out of pocket, especially as your vehicle ages.
Most people keep their vehicles for eight years. Vehicles start needing extra care around five or six years old, depending on the mileage. It is going to happen to everybody, but keeping things updated using the protection coverage reduces the possibility of something major happening.
It also protects your investment while you are still paying off a vehicle loan. It can be challenging if your vehicle has a major breakdown during the last year or so of your loan. A vehicle protection plan can help you pay for the repair so you can keep up with the loan payments.
Vehicle Protection Increases Safety
Maintaining your vehicle is an important part of safety. You want to keep yourself and your family members safe on the road, especially when traveling, going to college, or making a long commute to work.
A vehicle protection plan ensures that you and your family have qualified mechanics and resources available even if something happens on the road. That increases your safety and also ensures the work will be done correctly at a fair price, rather than the inflated price that some mechanics charge unsuspecting or desperate travelers.
It Improves Resale Value
Buyers can be strict about what they want in a used vehicle. Most will ask if everything has been under warranty because they don’t want any surprises. A vehicle protection plan tells potential buyers that you’ve put a priority on the vehicle’s maintenance and will justify a higher resale price.
Finding a Good Vehicle Protection Plan with CarGuard Administration
No one wants to go with just any company for a vehicle protection plan. They want an organization with positive reviews, a reputation for trustworthiness, and some name in the game when it comes to repair coverage.
CarGuard is a different type of vehicle protection plan company because it takes a customer-centric approach to how it does business. That means CarGuard Administration seeks to provide excellent customer service and move claims quickly through the process.
The company offers three types of coverage so vehicle owners can choose the coverage and budget that’s right for them. CarGuard offers Powertrain coverage, Gold coverage, and Platinum coverage, which covers 13 major components of the vehicle, from the engine to seals and gaskets.
Having a vehicle protection plan is an important part of auto maintenance, especially if you plan to keep the vehicle for years. A new vehicle can cost between $25,000 and $60,000, so it makes sense to protect your investment with a vehicle protection plan. CarGuard has complete plans tailored to fit the needs of everyone, whether they need their cars for work, play, or travel.
