A vehicle service contract — sometimes called an auto protection plan or mechanical breakdown protection — is a non-insurance agreement that may help with certain covered repair costs for your vehicle, subject to the contract terms.
Contact Us About Protection PlansImportant: Vehicle service contracts and auto protection plans are not auto insurance policies. They do not replace required auto insurance, liability coverage, collision coverage, comprehensive coverage, or Michigan no-fault PIP coverage. Always maintain required auto insurance separately.
These are fundamentally different products.
A vehicle service contract (VSC) is an agreement between you and a plan provider. If a covered component fails under normal use, you submit a service request and the provider may arrange or reimburse repair costs, subject to the contract terms, limits, and any service fee. VSCs are often sold alongside vehicles but can usually be purchased separately. They go by several names: auto protection plan, extended protection, or mechanical breakdown protection.
A VSC is not an insurance policy. It does not satisfy Michigan's auto insurance requirements and does not replace no-fault PIP, liability, collision, or comprehensive coverage. It is not a manufacturer warranty, and it is not a guarantee that every repair will be covered — coverage always depends on the specific contract.
These two products solve a similar problem — unexpected repair bills — through different structures. Mechanical breakdown insurance (MBI) is a regulated insurance product offered by some insurance carriers, often with eligibility limits based on vehicle age and mileage. A vehicle service contract is a non-insurance agreement offered by a plan provider or administrator. Pricing, claims handling, and consumer protections differ between the two. If you are comparing both, ask who backs the product, how requests are handled, and what happens if a repair is denied.
Coverage varies by plan tier and provider. Depending on the contract, a VSC may help with:
Always review the actual contract for the covered-components list for your specific plan and tier.
Most vehicle service contracts exclude some combination of: routine maintenance (oil changes, brake pads, tires, wiper blades), pre-existing conditions, damage from accidents or environmental events (those are auto insurance territory), wear items, modifications or improper repairs, and failures caused by lack of required maintenance. Waiting periods and mileage requirements may also apply before a request is eligible.
A covered component fails under normal use.
You contact the plan provider or administrator before repairs begin, following the contract's process.
The provider authorizes diagnosis at an eligible repair facility and reviews the request against the contract.
If approved, the provider pays the facility or reimburses you for covered amounts, minus any service fee.
No. Auto insurance is a regulated policy required by Michigan law and covers liability, injury, and vehicle damage from accidents and other perils. A VSC is a non-insurance contract that may help with mechanical breakdown costs. You need auto insurance regardless of whether you buy a VSC.
No. A manufacturer warranty comes with the vehicle and is backed by the automaker. A VSC is a separate contract you purchase, often used after the factory warranty expires or to cover gaps. Some VSC terms overlap with active warranties — check before paying for duplicate protection.
"Full coverage" auto insurance generally means liability plus collision and comprehensive — none of which cover mechanical breakdowns from normal wear. A VSC addresses a different risk. Whether it's worth it depends on your vehicle's age, reliability, repair costs, and your budget for surprise repairs.
Often yes, but eligibility, pricing, and coverage tiers vary significantly by vehicle age and mileage. Some plans exclude vehicles beyond certain thresholds. We can help you understand what options exist for your specific vehicle.
It depends on the contract. Some providers pay eligible repair facilities directly after authorization; others reimburse you. Confirm the payment process and any service fee before purchasing.
Tell us about your vehicle and we'll walk you through what's available — and whether a vehicle service contract, mechanical breakdown insurance, or neither makes sense for your situation.
Start a requestSubmitting a request does not purchase a protection plan or insurance policy and does not bind coverage.
Vehicle service contracts do not replace auto insurance. Always carry required Michigan auto insurance coverage.
Disclosure: Vehicle service contracts and auto protection plans are not auto insurance policies. They do not replace required Michigan auto insurance, no-fault PIP coverage, liability coverage, collision, or comprehensive coverage. Products may be offered by third-party providers and may include exclusions, limitations, service fees, waiting periods, and eligibility requirements. Some features may not be available in all states. Always review the actual contract before purchase. Clutch Risk is a Michigan licensed insurance agency (Agency NPN: 22231445 · Michigan System ID: 0161332). Insurance products and non-insurance protection plans are separate offerings.
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