Service contract, insurance and factory warranty

These three things are often confused. They pay for different events.

Vehicle service contract

Pays for covered repairs when a listed part fails from normal wear. It is a separate purchase and it has its own start date, fee, limits and exclusions.

Auto insurance

Pays for accidents, theft, vandalism, hail and flood damage, depending on your policy. A service contract does not replace it.

Factory warranty

Comes with a new vehicle and covers defects for a set time and mileage at no extra cost. Check its dates first, since it may cover the same repairs a service contract would.