Car Guard Administration: 5 Reasons for Car Protection Plan

In the US, an average vehicle life has reached over 12.5 years because many car owners are likely happy with their former vehicles.

According to reports, the average ownership period of SUVs, Sedans, and inexpensive cars has increased by 64% over the past 10 years due to current vehicle price regulations and rising interest rates.

This article covers all the details of how a protection plan can benefit you in today’s expensive maintenance and why investing in car protection is a wise decision you should make now.

Why You Need a Vehicle Protection Plan

It burns a lot of cash on car maintenance, which is becoming expensive due to increasing rates of auto spare parts and workforce shortage in the automotive industry.

In the US, vehicle protection plans are referred by different terms depending on what the company calls their services; “extended car warranties,” “extended service contracts,” and “vehicle service contracts” are primarily used terms for the vehicle's protection plans. 

The services offered in protection plans facilitate customers to keep their cars in proper working condition even after the end of the manufacturer's warranty. A vehicle's maintenance and repair costs become challenging to car owners, which leads to instability in their monthly budget.

Tackling these challenges, different dealerships and third parties provide different coverage plans to maintain the cars without affecting your monthly budget. Companies offer different prices and plans that may not fulfill each customer's requirements.

One of the market leaders that has been providing vehicle protection plans for over 9 years is the ‘CarGuard Administration”.

Suppose you are an owner of a brand-new car; in that case, there is no need to buy a vehicle protection plan from any car protection plan provider because car manufacturer usually offers 3 to 5 years of warranty that you can claim if your vehicle parts get damaged or have to be replaced.

Here are a few reasons why you should consider a car protection plan:

Peace of Mind for High Mileage Car Owners

While companies provide vehicle warranties for new cars, they offer a warranty for a standardized time period of 3 to 5 years.

However, high-mileage cars are likely to end their manufacturing warranty quickly, and there is always a risk of component or engine failure. If, in any case, the vehicle experiences mechanical failure, the owner will have to experience high maintenance expenses, which can only be avoided by using a vehicle protection plan.

According to the report, in 2022, people usually spend an average of $1,160 per year on the maintenance of their vehicles ( Source ); considering inflation and rising parts prices, the average expenditure has increased.

Cars with high mileage face wear and tear, and engine components slow down with passage of time. If the vehicle's engine is not maintained properly, it can lead to engine failure and may cost around $7000 or more.

If you have a limited budget to repair your high-mileage car, the best option is to invest in the vehicles’ protection plans. People also pay high mechanic charges to maintain their cars, ranging around $900 annually.

The body and engine parts of older car models are another big concern that leads to increased maintenance and repair costs; you can protect yourself from below mentioned challenges and gain peace of mind by simply getting a protection plan for your car. 

Expensive Repair Cost

Every year, there seems to be an increase in vehicles and their spare parts prices due to several factors; primarily, high interest rates and workforce shortages in the automobile industry are the basis of the hike in their prices.

In 2024, the 19.6% upward price trend significantly affected new vehicle sales. Cars equipped with advanced features and technologies are expensive to repair.

On both repair and maintenance aggregately, an average car owner spends roughly $900 annually; it also depends on how owners maintain their vehicles.

Several factors contribute to maintenance costs, including Driving Habits, the maintenance schedule, and the vehicle's model year. New or low-mileage cars generally require less maintenance than old models. Old and highly used cars experience more wear and tear in body parts that need their replacement.

Each company provides different repair and maintenance services, which may differ from company to company. On average, a Honda car requires $576 per annum for maintenance, compared to a Land Rover, which requires $1,580 per year to maintain and repair. 

Basic inspection costs are around $200, Oil changes are $80, and Engine Air filters cost is $60. If your vehicle experiences a fault in the engine, its part replacement cost can reach thousands of dollars. These repairs could lead to stress and instability in your monthly budget, as unexpected repairs can be required anywhere and anytime while driving.

These vehicle protection plans provide a seamless solution without affecting your urgent budget needs.

Extended Vehicle Warranty by Protection Plan

Increased maintenance costs have affected most car owners, causing them to neglect spending on vehicle upkeep.

According to research by the National Highway Traffic Safety Administration, about 20% of road accidents are caused by neglecting car maintenance or choosing poor-quality vehicle maintenance services.

Most importantly, you should never compromise on the quality of vehicle maintenance services because poorly maintained vehicles are dangerous for people traveling in them and others on the road. New vehicles come with a 4 to 5-year warranty, but the manufacturer provides a limited warranty for some parts specifically, including brake pads, tires, oil changes, routine maintenance, and other parts.

However, the protection plans provide customizable options for owners to repair and maintain the engine transmission, electrical components, suspension, brake, and much more based on the specific plan you bought.

The primary purpose of a protection plan is to offer car owners and their families peace of mind on their journeys and ensure they are traveling in a well-maintained vehicle.

Get Almost stable Resale Value

Cars being appropriately maintained are much more expensive than other cars of the same model, make, and year.

Buyers prefer a well-maintained vehicle and are ready to pay an extra price for it. A car owner who is likely to check their vehicle regularly and spend money on its maintenance doesn't need to buy a new car over their high-mileage car because vehicles that are properly maintained rarely experience any major issues other than in case of an accident.

Spending money on professional mechanics services to repair your vehicle is very important. Sometimes, using poor services may lead to wear and tear in vehicle parts if not fixed properly. Poor maintenance of the car may slow down engine performance.

It's essential to inspect breaks, engine oil, and tires regularly, after a week or two, for smooth working.

Extend Your Vehicle's Lifespan:

While low-mileage cars do not need parts replacement but most importantly, these vehicles require regular maintenance.

High-mileage vehicles often experience wear and tear of parts, which causes them to lose their efficiency and not work correctly as before.

The parts of the vehicle that are not working properly should be replaced to protect others from dysfunctionality and keep the vehicle in good working condition.

Bottom Line: 

Investing in a protection plan is one of the most beneficial decisions for car owners experiencing monthly budget issues and struggling to manage urgent vehicle repair needs.

Companies offer flexible and customizable options to car owners with different plans, averaging $1,500 to $4,500 annually.

Keep it in mind that every company provides different pricing based on the plan they offer, and the price may vary.