First and foremost, the Vehicle Protection Plan industry is out there to provide peace of mind to vehicle owners. Purchasing a new car always makes for an exciting occasion for the car’s new owner.
However, there are accompanying concerns as well. What if the car suffers a breakdown? The price of auto parts being as they are, an unexpected breakdown always translates into costly repairs.
For the time being, the repairs will be taken care of by the original auto manufacturer’s warranty. However, vehicle owners are left to fend for themselves once the warranty expires. And here is where the vehicle protection plan industry comes to the rescue of auto owners through vehicle service contracts.
Vehicle protection plans offer different types of coverage to car owners, and subscribing to one of them (depending on one’s requirements) means that if your vehicle suffers a mechanical breakdown, the costs of repairs will be paid in part by the service contract administrator.
That sounds pretty plain and simple. However, there is much more to it than that. First of all, the industry is abounding with any number of vendors, agents, third-party administrators, and companies who prepare the contracts.
Not all companies in the vehicle protection plan industry are created equal. There are not a few unscrupulous actors populating the industry, and it is pretty easy to get duped by one of them unless you are on guard.
Vehicle Protection Association
It is due to the presence of these disreputable companies that the industry trade association Vehicle Protection Association was formed. The association is there to safeguard the interests of the consumers.
The association has established stringent standards of conduct, known as the VPA Standard, and all reputable vehicle service contract administrators are expected to adhere to those standards.
In addition, a separate Certification-Audit Program has been implemented by the Better Business Bureau (BBB), with whom VPA shares a strong relationship, to help further vehicle owners choose the right company.
When drivers are looking for an accredited company from which to get a vehicle service contract, be sure to use that language, calling it a vehicle service contract or a vehicle protection plan. Any other form does not abide by VPA Standards and could be a fraud.
CarGuard Administration and Customer Satisfaction
Many regard CarGuard Administration as the leading vehicle service contract provider in the industry right now. The company enjoys many positive reviews and high ratings on major consumer review platforms like BBB, Google My Business, and Trustpilot.
Most CarGuard Administration reviews on these sites talk about the company’s convenient pro-consumer plans, fast and hassle-free claims processing, and the company’s overall commitment to customer care and satisfaction.
However, this will come as a bit of a surprise to anyone familiar with the company’s philosophy and the way it operates. When the company CEO Trevor Smith founded CarGuard in 2015, his principal aim was to disrupt an industry full of administrators who simply didn’t care too much for customer satisfaction.
Accordingly, the company quickly took a ‘customers first’ approach to separate itself from its competition. And this is amply reflected in several healthy and customer-friendly practices the company has adopted for itself.
To begin with, all contracts prepared by CarGuard are easy to read and understand. Unlike most other companies, there are no fine prints, legal jargon, or restrictive conditions/specifications.
For example, vehicle service contracts state that the contract will cover the engine only if the car receives an oil change in either 4k miles or three months, whichever comes earlier.
If the vehicle owner misses an oil change during the specified period, his policy will void. Pretty weird, do you say? Well, weird or not, these restrictive conditions are still pretty common in the industry.
With CarGuard Administration, however, you won’t need to worry about such conditions. Everything is laid out simply and clearly enough in their contracts, which forestalls any possibility of future misunderstanding.
Again, it is difficult to find a peer of CarGuard in the industry when it comes to claims settlement. The company has adopted a unique approach to facilitate excellent service in claims settlement.
They have passed this responsibility to experienced mechanics since the latter know all types of vehicles inside out and are, therefore, often the best candidates for fair and competent adjudication of claims.
One can also get a fair view of the company’s client- and customer-centric approach in how CarGuard Administration is always ready to support their vendors, agents, etc. (the company makes it a point to refer to these stakeholders as partners).
For example, the norm in the industry is that claims and other issues related to any contract sold by agents (and not directly by the company) must be handled by the seller/agent himself.
Despite that, CarGuard is still willing to run the extra mile for its partners and will take direct calls from vehicle owners. The company’s excellent customer support team will try its best to resolve the matter amicably.
Add to the above the facts that CarGuard offers the best liability limits in the industry and several immensely customer-friendly plans (that are also auto-extendable). It is not difficult to see why the company has earned the distinction of being the industry leader for five years running.
