ContractsCounsel Logo
Home Types of Contracts Vehicle Service Contract

Jump to Section

A vehicle service contract (VSC) is a legal agreement between an organization and a vehicle owner that provides security for fixing components of a vehicle. Moreover, in simple terms, a vehicle service contract is an insurance policy for your vehicle that covers unanticipated repairs after the manufacturer's standard warranty has lapsed.

This type of contract is particularly advantageous for individuals who have bought a new or used vehicle, as it offers better peace of mind and helps them avoid unanticipated expenditures.

Why Is a Vehicle Service Contract Significant?

Owning a vehicle is a considerable investment. A vehicle service contract can safeguard you against the high expenditure of replacements and repairs for your car, which can add up quickly and potentially leave you with a considerable monetary burden. With a vehicle service contract, you can be assured that you're covered if your car needs repairs. Below are some primary points that specify the importance of vehicle service contracts.

  • Better Peace of Mind

    One of the principal advantages of a vehicle service contract is better peace of mind. Moreover, with this type of contract, vehicle owners are guarded against the cost of unforeseen repairs, regardless of the reason for the issue.

    It implies they do not have to stress about settling for expensive repairs if their vehicle breaks down suddenly. This peace of mind is especially crucial for individuals who depend on their vehicles to get to work or to transport their families.

  • Cost-Effective

    A vehicle service contract can also be price-effective for vehicle owners. Moreover, by paying a small monthly charge, vehicle owners can have better peace of mind of understanding that their vehicle is guarded.

    It is usually more price-effective than paying for repair services out of pocket, as repairs can add up fast. Also, a vehicle service contract can deliver significant savings compared to the expense of a brand-new vehicle, particularly if the owner's vehicle is an older model.

  • Improved Resale Value

    Besides guarding a vehicle against depreciation, a vehicle service contract can also enhance its resale value. When a vehicle is well-kept and saved from unforeseen expenses, it is more likely to be traded for more funds.

    It is because a well-maintained vehicle is seen as a more lucrative option for possible customers. Furthermore, with a vehicle service contract, vehicle owners can remain assured, knowing that their vehicle is well-maintained and saved from unexpected costs, which can help improve its resale value.

  • Safety from Unforeseen Expenses

    Another benefit of a vehicle service contract is that it safeguards unanticipated expenditures. These contracts cover various services, including transmission and engine repairs, oil changes, and regular maintenance.

    By covering these expenses, vehicle owners can avoid unforeseen expenses that can add up fast, especially if they have to pay for repairs out of pocket. With a vehicle service contract, vehicle owners can have peace of mind knowing that their vehicle is protected against unexpected costs.

  • Protection from Depreciation

    A vehicle service contract can also help safeguard the value of a vehicle. When a vehicle is well-maintained, it retains its value for an extended time and is more likely to hold its worth over time.

    It is necessary because a well-maintained vehicle can be marketed for more money than an adequately maintained vehicle. With a vehicle service contract, vehicle owners can rest assured that their vehicle remains protected from depreciation.

What Are the Different Types of Vehicle Service Contracts?

Below are some of the most prevalent types of vehicle service contracts.

  • Powertrain Coverage

    This type of Vehicle Service Contract covers the essential aspects of your vehicle, including the transmission, engine, and drive axle. This coverage is usually the most inexpensive and is a good choice for those who want to guard their investment while remaining within a budget.

  • Stated Component Coverage

    This kind of vehicle service contract is a customized coverage alternative that allows you to select which components and systems of your vehicle you would like to guard. This type of coverage is the right choice for people concerned about specific parts of their vehicle.

  • Bumper-to-Bumper Coverage

    This type of vehicle service contract offers more extensive coverage than the Powertrain coverage, including security for a more comprehensive spectrum of parts, including steering, suspension, brakes, electrical, and more. This type of coverage is perfect for those who want total peace of mind and security for their investment.

Meet some lawyers on our platform

Forest H.

221 projects on CC
CC verified
View Profile

Valerie L.

77 projects on CC
CC verified
View Profile

Steven S.

16 projects on CC
CC verified
View Profile

Kelvin R.

24 projects on CC
CC verified
View Profile

How to Choose the Right Vehicle Service Contract

Below are some factors to consider when choosing the right vehicle service contract.

  • Evaluate Your Driving Habits

    Your driving habits can play a significant role in deciding which type of vehicle service contract is suitable for you. For instance, if you put a lot of miles on your vehicle, you may want to select a more exhaustive coverage alternative to safeguard yourself against a more comprehensive range of possible repairs.

  • Research the Company Delivering the Contract

    It's essential to research the company offering the vehicle service contract before you execute. Search for a company with a strong prominence and a track record of delivering high-quality coverage and client service. It's also a good idea to read the vehicle service contract thoroughly and comprehend the terms and conditions before signing.

  • Understand Your Budget

    It's essential to consider your budget when picking a vehicle service contract. More extensive coverage alternatives will generally cost more, so you'll want to choose a coverage option that fits your budget and delivers the level of protection you require.

Key Terms

  • Contract Term: The duration that the service agreement is in effect.
  • Covered Components: The distinctive parts of the vehicle that are incorporated in the service contract coverage.
  • Deductible: The amount the client is accountable for settling out of pocket before the service contract starts to cover repairs.
  • Limitations: Any limitations or restrictions on the coverage delivered by the service contract.
  • Exclusions: The vehicle components that are not covered by the service contract.


If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, you can Click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Need help with a Vehicle Service Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,053 reviews

Meet some of our Vehicle Service Contract Lawyers

Jeff C. on ContractsCounsel
View Jeff
5.0 (9)
Member Since:
July 31, 2020

Jeff C.

Outside General Counsel / Business Attorney
Free Consultation
37 Yrs Experience
Licensed in CO, OR
University of Oregon

Experienced and broad based corporate/business attorney and Outside General Counsel (OGC), for start-ups, small businesses and growing companies of all sizes, advising and assisting clients with corporate and LLC formation, contracts and agreements, internet and terms of use/service agreements, trademarks and intellectual property protection, the purchase and sale of businesses (M&A), labor and employment matters, compliance and risk management, corporate governance, and commercial leasing matters. See other reviews on my website at

Elizabeth W. on ContractsCounsel
View Elizabeth
5.0 (5)
Member Since:
December 11, 2021

Elizabeth W.

Legal Counsel
Free Consultation
Minneapolis, MN
7 Yrs Experience
Licensed in MA, RI
Suffolk University Law School

Liz is an experienced insurance professional, having worked with carriers and brokers for over 10 years. She can review or draft a variety of commercial agreements and is here to help your business. Specialties include: Master Service Agreements, business process outsourcing, marketing and partnership agreements, broker agreements, business associate agreements, and NDAs.

Joon H. on ContractsCounsel
View Joon
4.9 (5)
Member Since:
June 28, 2023

Joon H.

Managing Attorney
Free Consultation
Washington State
3 Yrs Experience
Licensed in WA
University of California, Berkeley, School of Law

I work with private tech companies on entity formation, corporate governance, and commercial agreements. I was an in-house counsel for a unicorn fintech startup and am currently associated with a startup boutique while operating my solo practice. I received my JD from Berkeley Law, and served in the US Navy for 5 years as a combat linguist. I am fluent in Korean.

Zachary J. on ContractsCounsel
View Zachary
5.0 (229)
Member Since:
May 27, 2022

Zachary J.

Free Consultation
Crown Point, IN
5 Yrs Experience
Licensed in IL
The University of Michigan Law School

I am a solo-practitioner with a practice mostly consisting of serving as a fractional general counsel to growth stage companies. With a practical business background, I aim to bring real-world, economically driven solutions to my client's legal problems and pride myself on efficient yet effective work.

Brittany S. on ContractsCounsel
View Brittany
Member Since:
May 6, 2022

Brittany S.

Free Consultation
New York / New Jersey
2 Yrs Experience
Licensed in NJ, NY
Touro Law Center

I am licensed in New York and New Jersey. I graduated with my J.D. from Touro University Law Center, Summa Cum Laude, in 2021. In 2018, I graduated from SUNY Farmingdale with a B.S. in Sport Management and a minor in Business Management. I have experience in real estate law and insurance defense, including employment law. Please note, I do not carry malpractice insurance.

Josh L. on ContractsCounsel
View Josh
Member Since:
May 24, 2022

Josh L.

Director of Art and Business Law
Free Consultation
Fort Lauderdale, Florida
9 Yrs Experience
Licensed in FL
Nova Southeastern University Shepard Broad College of Law

Josh is a founding partner and the director of Art and Business Law for Twig, Trade, & Tribunal PLLC a local Fort Lauderdale law firm. His practice focuses on Art and Business law including art transactions, legal strategy, art leasing, due diligence, contract drafting, contract negotiations as well as other facets of Art Law including consulting for all market participants. He also advises clients regarding issues for Non-Fungible Tokens (NFTs) again focusing on contract drafting, strategic guidance, and other factors as it relates to art produced as NFTs having given numerous presentations on the subject.

Michael R. on ContractsCounsel
View Michael
Member Since:
May 30, 2022

Michael R.

Free Consultation
12 Yrs Experience
Licensed in CA
Whittier Law School (Top 5%)

If you're looking for an attorney who can help your business succeed, look no further! With my experience in the legal field, I can provide you with the legal advice you need with entity formation, contract drafting, business operations, and more, And because I'm committed to providing high quality service, you can be sure that your needs will always be met. Contact me today to learn more about how I can help your business thrive!

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Vehicle Service Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,053 reviews
Business lawyers by top cities
See All Business Lawyers
Vehicle Service Contract lawyers by city
See All Vehicle Service Contract Lawyers

ContractsCounsel User

Recent Project:
Business Service Agreement
Location: California
Turnaround: A week
Service: Drafting
Doc Type: Professional Services Agreement
Number of Bids: 2
Bid Range: $500 - $2,500
User Feedback:
Thank You

ContractsCounsel User

Recent Project:
Weird Medicology Services Contract Review
Location: North Carolina
Turnaround: A week
Service: Contract Review
Doc Type: Professional Services Agreement
Page Count: 8
Number of Bids: 5
Bid Range: $300 - $700
User Feedback:
Brad is wonderful to work with. Extremely responsive. Fantastic to work with. Broke down the legal aspects of the contract in question, put them in to plain English for us to understand, and went through his edits to have those make sense. 110% recommend! Thanks a ton for the help, Brad!

Need help with a Vehicle Service Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,053 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city