Education Center

Is a Vehicle Service Contract Right for Me?

Vehicle service contracts are valuable because they cover costly vehicle repairs, which can save you money and provide peace of mind for the long run.

The GM Protection Plan powered by Ally offers convenient coverage against unexpected vehicle repair costs for people who need it, but it might not be right for everyone. Consider the following to find out if a vehicle service contract is right for you.

Will you own or lease your vehicle past your manufacturer's warranty?

If you plan to own or lease your vehicle beyond the manufacturer's warranty, a vehicle service contract may be a smart purchase. A manufacturer's warranty usually covers 36 months or 36,000 miles, whichever comes first. Many people drive their vehicles more than 36,000 miles in 36 months.

On the other hand, if you trade in your purchased or leased vehicle every two or three years, there’s a good chance that the manufacturer’s warranty will cover any major repairs you might need. In this case, a vehicle service contract might not be right for you.

Finally, consider if you want protection beyond the limited manufacturer's warranty coverage. The manufacturer's warranty is limited to repairs resulting from manufacturer defects, and it does not cover wear and tear. Other benefits to premium vehicle service contracts include towing, cost of a rental car while your vehicle is in the shop and other benefits to make your life easier if you experience a breakdown. Learn More About Major Guard

How long will you finance your vehicle?

If you plan to finance your vehicle for longer than the 36 months / 36,000 miles that it will be covered under typical manufacturer's warranties, you should consider a vehicle service contract to protect you from the potential cost of unexpected vehicle repairs during the term when you're making your payments.

How much do you drive?

A typical 36 month / 36,000 mile factory warranty is based on a customer that drives an average of 1,000 miles per month. If you drive more than 1,000 miles monthly or plan to finance or lease for more than 36 months, you will run out of the factory warranty coverage. A vehicle service contract is a good idea if you want to be protected against expenses that would no longer be covered by your manufacturer’s warranty.

Under what conditions do you typically drive?

If you drive in stop-and-go traffic most of the time, you’ll put more wear and tear on the engine and the transmission, which might result in your vehicle's essential components wearing out more quickly. Purchasing a vehicle service contract could save you money in the event of a major mechanical failure.

How high-tech is your vehicle?

You should consider purchasing a vehicle service contract if your vehicle has a lot of the technology that makes today’s cars smarter. Bluetooth, navigation, DVD players and screens, hard drive units, adaptive cruise control and more can be expensive to repair or replace. One major out-of-warranty repair can exceed the cost of buying a vehicle service contract.

Are you prepared for a breakdown?

An advantage of a premium vehicle service contract is that it can reduce the hassle and inconvenience of a breakdown or repair by providing:

  • Coverage of components against failure, even if it results from wear and tear
  • Roadside assistance and towing
  • Alternate transportation or rental
  • Trip interruption benefits

These perks are particularly helpful for people who depend on their vehicles as part of their work or lifestyle.

Explore Major Guard, Ally's premier vehicle service contract, which includes a full package of benefits like roadside assistance in addition to comprehensive coverage for your vehicle.

Do you want coverage for basic vehicle maintenance?

For the most comprehensive coverage, pair your vehicle service contract with Smart Care. Smart Care covers the cost of known, scheduled maintenance expenses, including oil changes, chassis lubrications and tire rotations. It allows you to plan for regular maintenance expenses to make sure your vehicle stays in top condition.

It's a great option for drivers who want the peace of mind that comes from budgeting up front for routine, covered maintenance services needed to keep their vehicles operating in top condition. It's also good for parents who want to ensure college-age kids keep up with vehicle maintenance by protecting them against out-of-pocket expenses. Learn more about Smart Care.

How much do you value peace of mind?

New cars are more reliable than ever, but they also come packed with technology that can be expensive to repair. If you want to decrease your financial exposure to expensive repair costs, you will appreciate the peace of mind that a vehicle service contract provides.

For more information, see Smart Shopping Tips for Vehicle Service and Maintenance Contracts.

Learn more about GM Protection Plan vehicle service contracts.

Leasing your vehicle? Learn about Smart Protection.

Ready to buy a vehicle service contract? Go see your dealer.