By coverage, an extended car warranty is only applicable for vehicle powertrains, offered by the car manufacturer, and often accompanied by many restrictions.

Vehicle Protection policies, on the other hand, though have the same coverage as extended car warranties, is offered through an administrator who can be a third party.

This administrator is insured by an insurance firm via a CLIP or what is known as the Contractual Liability Insurance Policy. This very same policy is what protects customers should the administrator (3rd party) ceases to pay the claims or shuts down their business. The said insurance company will come in and bear the responsibility of paying the claims.

The problem with extended car warranties is that most of them are not insured. Meaning to say, should the manufacturer closes down his business or is sold to another business entity, the outstanding claims of warranty holders will be left unpaid. Here, the risk is very high compared to vehicle protection policies.

Simply put and to answer the question posed above, vehicle protection is way better than an extended car warranty.

To discuss the importance and advantages of vehicle protection further, let’s take a closer look at what this plan can offer.

First and foremost, unlike extended car warranties, there are no restrictions as to where the vehicle protection policy owner can use his policy. Red Auto’s protection plans, for instance, can be applied and use in the following:

  • Mechanics that are certified by ASE
  • Repair facilities that are certified by ASE
  • Canada dealerships
  • United States dealerships

Extended car warranties, on the other hand, can only be applied and used at the dealership that sold the car.

As to cost, extended car warranties are often available in the form or reimbursement policies. This means that the car owner will have to pay first and then claim for reimbursement. This is clearly the opposite of the intention of auto protection policies.

With vehicle protection plans, the company uses their company credit card directly via phone so all that’s left for the policy owner is to pay the deductible.

And not like extended car warranties, vehicle protection plans are highly customizable based on the car model, year released, and vehicle type. Whether the policy owner has a very new car that has less than 12,000 miles mileage or an older one which is nearing the 150,000 miles mileage mark, there’s a right plan available.

Also, while most extended car warranties are financed with the owner’s car loans and come with interest, vehicle protection policies are available with no cash out within 6 months to as long as 24 months.

Clearly, with all these things discussed, it’s best for vehicle owners to subscribe to an auto protection plan than a car extended warranty.

Check out Red Auto Protection plans today and get your vehicles covered.

For vehicles which are very new and only ran below 12,000 miles, the best plan to avail is the Platinum plan. It covers all car parts so the owner can really rest easy and be at peace even if confronted by emergency car breakdowns and repairs.

For vehicles which only ran less than 90,000 miles but more than 12,000 miles, the best plan to subscribe to is Red Auto’s Gold Plan. Its coverage includes major car parts like luxury electrical, brakes, fuel system, steering, and more. For a more detailed list, check your own plan coverage.

For vehicles running less than 120,000 miles, the ideal coverage to subscribe to is the Powertrain Enhanced plan. And for those who are low on budget, you can still get covered by choosing either of these plans – Prepaid Maintenance, Powertrain, and Powertrain Plus.

Speak to a Red Auto Protection rep today and get to know more of these plans!